Bird Construction Inc T.BDT

very strong second quarter

[midard]

Bird Construction Inc. Announces 2021 Second Quarter Financial Results

MISSISSAUGA, ON, Aug. 10, 2021 /CNW/ - "The second quarter of 2021 was very strong for the Company. We reported our eleventh successive quarter of trailing twelve month Adjusted EBITDA margin improvement and our combined Backlog reached a new record high.  We are extremely pleased with the acquisition of Stuart Olson as the integration is on track and it is contributing positively to the bottom line. Additionally, we are witnessing increasingly greater cross-selling opportunities emerge as the list of combined project pursuits continues to grow," said Mr. Teri McKibbon, President and CEO, Bird Construction. "The Company's strategic focus in the past several years to balance the risk profile of our work program and further diversify the Company both geographically and with new service offerings continues to bear fruit. This, combined with higher recurring revenue streams, a record combined Backlog and a key focus on margin expansion, positions Bird to continue to deliver strong financial performance as market conditions improve and with government spending expected to rise."

FINANCIAL HIGHLIGHTS

Second Quarter 2021 compared to Second Quarter 2020

• Construction revenue of $556.4 million, representing a 96.8% increase year-over-year.
• Net income and earnings per share were $13.6 million and $0.26, respectively, compared to $5.6 million and $0.13 in Q2 2020.
• Adjusted Earnings⁽¹⁾ and Adjusted Earnings Per Share⁽¹⁾ were $15.0 million and $0.28, respectively, compared to $6.6 million and $0.15 in Q2 2020.
• Adjusted EBITDA⁽¹⁾ of $30.1 million, or 5.4% of revenues, reflects a 144.3% increase in Adjusted EBITDA and a 105 bps improvement in Adjusted EBITDA Margin⁽¹⁾.
• Record Backlog of $2,709.3 million and Pending Backlog of $1,647.6 million at June 30, 2021.
• Strong balance sheet with $142.7 million of working capital at June 30, 2021.

Year-to-date 2021 compared to Year-to-date 2020

• Construction revenue of $1,001.0 million, representing a 65.6% increase year-over-year.
• Net income and earnings per share were $20.7 million and $0.39, respectively, compared to $6.7 million and $0.16 in 2020.
• Adjusted Earnings and Adjusted Earnings Per Share were $24.1 million and $0.45 respectively, compared to $7.7 million and $0.18 in 2020.
• Adjusted EBITDA of $51.2 million, or 5.1% of revenues, reflects a 157.2% increase in Adjusted EBITDA and a 180 bps improvement in Adjusted EBITDA Margin year-over-year.

Financial Results
(in thousands of Canadian dollars, except per share amounts)
		Three months ended June 30,				Six months ended June 30,
		2021		2020		2021		2020
Construction revenue	$	556,362	$	282,766	$	1,000,999	$	604,412
Net income		13,630		5,624		20,749		6,747
Basic and diluted earnings per share		0.26		0.13		0.39		0.16
Adjusted Earnings Per Share (1)		0.28		0.15		0.45		0.18
Adjusted EBITDA (1)		30,112		12,328		51,152		19,890
Cash flows from operations before changes in non-cash working capital (2)	$	28,431	$	8,990	$	49,223	$	16,049
(1)Non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Refer to the section entitled "Non-GAAP Measures" at the end of this news release.
(2)Refer to the sections entitled Quarterly and Year-to-date Cash Flow Data in the MD&A for the period ended June 30, 2021.

Afficher plus

OVERVIEW

• During the second quarter of 2021, the Company recorded net income of $13.6 million on construction revenue of $556.4 million compared with net income of $5.6 million on $282.8 million of construction revenue in the second quarter of 2020. Basic and diluted earnings per share in the second quarter of 2021 and 2020 was $0.26 and $0.13, respectively. The year-over-year increase in second quarter revenue is primarily attributable to the inclusion of Stuart Olson. The Company's work programs also experienced a moderate increase in activity and revenue for projects that were previously temporarily delayed by clients as a result of the COVID-19 pandemic. The year-over-year increase in net income reflects a combination of additional margin from the acquisition of Stuart Olson, inclusive of synergies, as well as progress with diversifying the work program and improving year-over-year margins in operations. Additionally, the Company recognized a pre-tax compensation expense recovery of $8.9 million for the Canada Emergency Wage Subsidy ("CEWS") program in the second quarter of 2021, which helped to offset additional costs incurred by the Company related to the pandemic.
   
• Adjusted Earnings and Adjusted Earnings Per Share in the second quarter of 2021 were $15.0 million and $0.28, respectively, compared with Adjusted Earnings and Adjusted Earnings Per Share in the second quarter of 2020 of $6.6 million and $0.15, respectively. The year-over-year increase in second quarter Adjusted Earnings is reflective of the improvement in net income described above and the year-over-year increase for $0.4 million of tax effected integration and restructuring expenses incurred in the second quarter of 2021.
   
• Adjusted EBITDA and Adjusted EBITDA Margin in the second quarter of 2021 were $30.1 million and 5.4%, respectively. Adjusted EBITDA increased $17.8 million from the Adjusted EBITDA of $12.3 million in the second quarter of 2020. Adjusted EBITDA Margin increased 105 basis points from the Adjusted EBITDA margin of 4.4% recorded in the second quarter of 2020.
   
• During the first half of 2021, the Company recorded net income of $20.7 million on construction revenue of $1,001.0 million compared with net income of $6.7 million on $604.4 million of construction revenue in 2020. Basic and diluted earnings per share in the first half of 2021 and 2020 was $0.39 and $0.16, respectively. The year-over-year increase in revenue is primarily attributable to the inclusion of Stuart Olson. Revenues were negatively impacted in the first half of 2021 by approximately $116.0 million due to both public health restrictions and delays in permitting associated with the COVID-19 pandemic. The year-over-year increase in net income reflects a combination of additional margin from the acquisition of Stuart Olson, inclusive of synergies, as well as progress in diversifying the work program and improving year-over-year margins in operations. Net income in the first half of 2021 was impacted negatively by reduced productivity and project delays resulting from the pandemic, which had a significant unfavourable impact on earnings and were mitigated by a pre-tax compensation expense recovery of $20.1 million recognized in the first half of 2021 for CEWS.
   
• Adjusted Earnings and Adjusted Earnings Per Share in the first half of 2021 were $24.1 million and $0.45, respectively, compared with Adjusted Earnings and Adjusted Earnings Per Share in the first half of 2020 of $7.7 million and $0.18, respectively. The year-over-year increase in Adjusted Earnings is reflective of the improvement in net income described above and the year-over-year increase of $2.4 million of tax effected integration and restructuring expenses incurred in the first half of 2021.
   
• Adjusted EBITDA and Adjusted EBITDA Margin in the first half of 2021 were $51.2 million and 5.1%, respectively. Adjusted EBITDA increased $31.3 million from the Adjusted EBITDA of $19.9 million in the first half of 2020. Adjusted EBITDA Margin increased 180 basis points from the Adjusted EBITDA margin of 3.3% recorded in the first half of 2020.
   
• During 2021, the Company secured $1,027.8 million of new contract awards and change orders and executed $1,001.0 million of construction revenues. The Company's record Backlog of $2,709.3 million at June 30, 2021 increased slightly from Backlog of $2,682.5 million at December 31, 2020, however Backlog remains relatively flat due to COVID-19 timing delays in project tenders and awards from clients.
   
• During the second quarter of 2021, the Company announced that it was awarded the following projects and contracts:
  • The Company was awarded a $172.0 million fixed price construction services contract with Concert Properties for the Sherbourne Project ("The Burke") in Toronto, Ontario. The Burke is a residential tower consisting of 53 floors and a gross floor area of 43,300 m², combining a healthy blend of residential and retail space. The Burke will be constructed to a LEED® gold standard, leveraging green building practices and environmentally sound solutions.
     
  • The Company was awarded two contracts for civil works on two separate sites: construction of two storm and effluent ponds at an existing project site in northwestern British Columbia, and construction of an overpass in northern Alberta. The combined value of the contracts awarded is approximately $135.0 million.
     
  • The Company was awarded a three-year contract with a two-year extension option for mechanical and electrical maintenance services for the North West Redwater Partnership. The total value of the multi-year contract awarded is potentially up to $75 million.
• The Board has declared an eligible dividend of $0.0325 per common share for each of July 2021, August 2021, September 2021 and October 2021.
   
• Subsequent to quarter end, the Company announced that it was awarded the following project:
  • The Company has negotiated a construction services contract with the international real estate firm Hines for a mixed-use project in the heart of Toronto, Ontario. The project is a 17-storey mixed-use building located near the corner of King street and Bathurst street. The new building will be constructed by leveraging green building practices with sustainable solutions.

CONFERENCE CALL AND WEBCAST

Bird will host an investor webcast to discuss the quarterly results on Wednesday, August 11, 2021 at 10:00 a.m. ET, to discuss the Company's results. Analysts and investors may connect to the webcast via URL at https://services.choruscall.ca/links/bird20210811.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 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.