Canada NewsWire
MISSISSAUGA, ON, May 9, 2023
MISSISSAUGA, ON, May 9, 2023 /CNW/ - "Bird's first quarter results reflect a return to normal seasonal patterns and were consistent with Management's expectations, setting the stage for significant growth in earnings per share and adjusted EBITDA for full year 2023. Combined backlog reached a new record with favourable embedded margins, and the Company added new specialized self-perform capabilities through the acquisition of Trinity Communications Ltd. in February, expanding Bird's capabilities in the utilities market," stated Teri McKibbon, President and CEO of Bird Construction. "Our One Bird team remains committed to delivering innovative and sustainable solutions to our clients across the country and multiple industries while maintaining the highest standards for safety and client satisfaction."
Continuing the Company's momentum from the end of 2022, Bird achieved a significant increase in construction revenue for the first quarter of 2023, with healthy seasonal margins reflecting strong execution across work programs. At the same time, Bird grew its Backlog and Pending Backlog to record combined levels, including recurring revenue awards now exceeding $1.1 billion. The Company's growth continues to be driven by a diversified and risk-balanced business model with expanding cross-selling opportunities across its diversified service offerings, and robust, accretive performance from recent acquisitions. Bird generates the vast majority of revenues from lower risk contract types, and has limited exposure to lump sum turnkey projects and minimal work in residential construction markets.
During the quarter, Bird acquired Trinity Communications Ltd. ("Trinity"), an Ontario-based diversified telecommunication and utility infrastructure contractor with specialized self-perform capabilities that can be leveraged and expanded across the Company's sizeable national client base. The acquisition exemplifies Bird's approach to accretive tuck-in acquisitions, and the benefits of the Company's strong financial position and disciplined capital allocation strategy.
First Quarter 2023 compared to First Quarter 2022
_______________________________ |
1 This News Release contains terminology and financial measures that do not have standard meanings under IFRS and may not be comparable with similar measures presented by other companies. Further information regarding these measures can be found in the "Terminology and Non-GAAP & Other Financial Measures" section of this News Release. |
Financial Results | ||
(in thousands of Canadian dollars, except per share amounts) | ||
Three months ended | ||
2023 | 2022 | |
Construction revenue | $ 536,459 | $ 475,521 |
Net income | 5,149 | 6,361 |
Basic and diluted earnings per share | 0.10 | 0.12 |
Adjusted Earnings Per Share | 0.10 | 0.12 |
Adjusted EBITDA1 | 16,082 | 17,835 |
Cash flows from operations before changes in non-cash working capital | $ 17,628 | $ 19,268 |
(1) Adjusted EBITDA is a non-GAAP financial measure. See "Terminology and Non-GAAP & Other Financial Measures." |
HIGHLIGHTS
Bird will host an investor webcast to discuss the quarterly results on Wednesday, May 10, 2023 at 10:00 a.m. ET, to discuss the Company's results. Analysts and investors may connect to the webcast at https://services.choruscall.ca/links/bird2023Q1.html. They may also dial 1-855-328-1925 for audio only or to enter the question queue; attendees are asked to be on the line 10 minutes prior to the start of the call. The presentation can also be found on our website at https://www.bird.ca/investors.
The Company's financial statements and Management's Discussion & Analysis ("MD&A") will be filed and available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and on the Company's website at www.bird.ca.
Throughout this News Release, certain terminology and financial measures are used that do not have standard meanings under IFRS and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP financial ratios, and supplementary financial measures. These measures may not be comparable with similar measures presented by other companies. Further information on these financial measures can be found in the "Terminology and Non-GAAP & Other Financial Measures" section in Bird's most recently filed Management's Discussion & Analysis for the period ended March 31, 2023, prepared as of May 9, 2023. This document is available on Bird's SEDAR profile, at www.sedar.com and on the Company's website at www.bird.ca.
"Backlog" is the total value of all contracts awarded to the Company, less the total value of work completed on these contracts as of the date of the most recently completed quarter. The Company's Backlog equates to the Company's remaining performance obligations as at March 31, 2023 and December 31, 2022.
"Adjusted Earnings" and "Adjusted EBITDA" are non-GAAP financial measures. "Adjusted Earnings Per Share" and "Adjusted EBITDA margin" are non-GAAP financial ratios. "Pending Backlog" is a supplementary financial measure.
Adjusted Earnings and Adjusted EBITDA are reconciled as follows:
Adjusted Earnings:
Three months ended | ||
(in thousands of Canadian dollars, except per share amounts) | 2023 | 2022 |
Net income | $ 5,149 | $ 6,361 |
Add: Acquisition and integration costs | 162 | 246 |
Income tax effect of the above costs | (39) | (61) |
Adjusted Earnings | $ 5,272 | $ 6,546 |
Adjusted Earnings Per Share (1) | $ 0.10 | $ 0.12 |
Notes: | ||
(1) Calculated as Adjusted Earnings divided by basic weighted average shares outstanding. |
Adjusted EBITDA:
Three months ended | ||
(in thousands of Canadian dollars, except percentage amounts) | 2023 | 2022 |
Net income | $ 5,149 | $ 6,361 |
Add: Income tax expense | 1,584 | 1,981 |
Add: Depreciation and amortization | 7,835 | 8,420 |
Add: Finance and other costs | 2,792 | 1,773 |
Less: Finance and other income | (1,171) | (266) |
Add: (Gain)/loss on sale of property and equipment | (269) | (680) |
Add: Acquisition and integration costs | 162 | 246 |
Adjusted EBITDA | $ 16,082 | $ 17,835 |
Adjusted EBITDA Margin (1) | 3.0 % | 3.8 % |
Notes: | ||
(1) Calculated as Adjusted EBITDA divided by revenue. |
This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this news release are based on the expectations, estimates and projections of management of Bird as of the date of this news release unless otherwise stated. The use of any of the words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intend", "continue", "may", "will", "should" and similar expressions are intended to identify forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements concerning: anticipated financial performance; the future performance of acquired entities; the outlook for 2023; expectations with respect to anticipated revenue growth, growth in earnings per share and adjusted EBITDA in 2023 and margin improvements; the ability to capitalize on new and emerging opportunities; the ability to realize on the Company's bid pipeline; and with respect to Bird's ability to convert Pending Backlog to Backlog and the timing of conversions.
Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which the Company operates in general such as: the ability to hire and retain qualified and capable personnel, maintaining safe work sites, economy and cyclicality, ability to secure work, global pandemics, performance of subcontractors, accuracy of cost to complete estimates, estimating costs and schedules/assessing contract risks, adjustments and cancellations of Backlog, work stoppages, strikes and lockouts, acquisition and integration risk, potential for non-payment, litigation/potential litigation, design risks, information systems and cyber-security risk, competitive factors, completion and performance guarantees, access to capital, quality assurance and quality control, access to surety support and other contract security, insurance risk, climate change risk, joint venture risk, ethics and reputational risk, compliance with environmental laws, internal and disclosure controls, and payment of dividends.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations or financial results of the parties, and the combined company are included in reports on file with applicable securities regulatory authorities, including but not limited to; Bird's Annual Information Form and Management's Discussion and Analysis for the year ended December 31, 2022, each of which may be accessed on Bird's SEDAR profile, at www.sedar.com and on the Company's website at www.bird.ca.
The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as, and to the extent required by applicable securities laws.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
T.L. McKibbon, President & CEO or
W.R. Gingrich, CFO
Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6
Phone: (905) 602-4122
Bird (TSX: BDT) is a leading Canadian construction company operating from coast-to-coast and servicing all of Canada's major markets. Bird provides a comprehensive range of construction services from new construction for industrial, commercial, and institutional and civil infrastructure markets; to industrial maintenance, repair and operations services, heavy civil construction, and mine support services; as well as vertical infrastructure including, electrical, mechanical, and specialty trades. For over 100 years, Bird has been a people-focused company with an unwavering commitment to safety and a high level of service that provides long-term value for all stakeholders. www.bird.ca
SOURCE Bird Construction Inc.
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