3 rd quarter financials MISSISSAUGA, ON, Nov. 9, 2021 /CNW/ - "The Company has been focused on advancing collaboration, both internally and externally, and we are truly seeing the benefit of that reflected in the increase in collaborative contract awards. These collaborative projects have been primary drivers for our record Backlog, record Pending Backlog and record revenue in the third quarter," said Mr. Teri McKibbon, President and CEO of Bird Construction. "Our employees have embraced the changes in our company over the past several years and have done a tremendous job managing through the pandemic while building a resilient business. Bird's bid pipeline is robust, and we continue to see more cross selling opportunities emerge as we continue our successful integration with Stuart Olson. While it is early days with Dagmar Construction, we are excited about the growth prospects this acquisition opens up to us in the civil infrastructure market. Both acquisitions are acting as catalysts for Bird to grow and diversify, all while maintaining a balanced risk profile in our work program."
FINANCIAL HIGHLIGHTS
Third Quarter 2021 compared to Third Quarter 2020
- Construction revenue of $621.2 million, representing an 80.0% increase year-over-year.
- Net income and earnings per share were $12.1 million and $0.23, respectively, compared to $8.8 million and $0.20 in Q3 2020.
- Adjusted Earnings(1) and Adjusted Earnings Per Share(1) were $13.8 million and $0.26, respectively, compared to $12.4 million and $0.29 in Q3 2020.
- Adjusted EBITDA(1) of $28.6 million, or 4.6% of revenues, reflects a 29.7% increase in Adjusted EBITDA.
- Record Backlog of $2,828.0 million and record Pending Backlog of $1,787.7 million at September 30, 2021.
- Strong balance sheet with $154.9 million of working capital at September 30, 2021, compared to $130.3 million at December 31, 2020.
Year-to-date 2021 compared to Year-to-date 2020
- Construction revenue of $1,622.2 million, representing a 70.9% increase year-over-year.
- Net income and earnings per share were $32.9 million and $0.62, respectively, compared to $15.6 million and $0.36 in 2020.
- Adjusted Earnings and Adjusted Earnings Per Share were $37.9 million and $0.71 respectively, compared to $20.1 million and $0.47 in 2020.
- Adjusted EBITDA of $79.7 million, or 4.9% of revenues, reflects a 90.2% increase in Adjusted EBITDA.
| (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. |
| Financial Results | |
| (in thousands of Canadian dollars, except per share amounts) | | | | | | | |
| | Three months ended September 30, | | Nine months ended September 30, |
| | | 2021 | | 2020 | | | 2021 | | 2020 |
| | | | | | | | | | |
| Construction revenue | $ | 621,224 | $ | 345,060 | | $ | 1,622,223 | $ | 949,472 |
| | | | | | | | | | |
| Net income | | 12,117 | | 8,822 | | | 32,866 | | 15,569 |
| | | | | | | | | | |
| Basic and diluted earnings per share | | 0.23 | | 0.20 | | | 0.62 | | 0.36 |
| | | | | | | | | | |
| Adjusted Earnings Per Share (1) | | 0.26 | | 0.29 | | | 0.71 | | 0.47 |
| | | | | | | | | | |
| Adjusted EBITDA (1) | | 28,585 | | 22,036 | | | 79,737 | | 41,926 |
| | | | | | | | | | |
| Cash flows from operations before changes in non-cash
working capital (2) | | 27,609 | | 15,841 | | | 76,832 | | 31,890 |
| | | | | | | | | | |
| (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 September 30, 2021. |
OVERVIEW
- On September 1, 2021, the Company completed its acquisition of Dagmar Construction Inc. ("Dagmar"), an Ontario-based construction company with extensive experience across key civil infrastructure sub-sectors including road, bridge, rail, sewer and water, and commercial-institutional sites. Dagmar's capabilities and service offerings for both private and public owners across Ontario, integrated with Bird's existing civil business, will act as a catalyst in this attractive end market. In selected national markets where Bird has civil activity, Dagmar will add specialized capabilities to broaden client service offerings and increase diversification.
- The third quarter of 2021 also represents the first anniversary of the Company's transformational acquisition of Stuart Olson Inc. ("Stuart Olson") which was completed on September 25, 2020. Since the acquisition, Bird has worked to successfully combine two strong, experienced workforces and integrate and harmonize its policies, processes and people. The previously stated $25.0 million in annualized cost synergies will be achieved as expected by the end of 2021 resulting from the integration of Stuart Olson. The Company is also benefitting from revenue synergies as cross-selling opportunities yield results.
- The Company set records for both its Backlog and Pending Backlog at September 30, 2021. During 2021, the Company secured $1,767.7 million of new contract awards and change orders and executed $1,622.2 million of construction revenues. The Company's Backlog of $2,828.0 million at September 30, 2021 increased from Backlog of $2,682.5 million at December 31, 2020. The Company's Pending Backlog at September 30, 2021 was $1,787.7 million compared to $1,635.9 million at December 31, 2020. Growth in both Backlog and Pending Backlog has resumed after remaining relatively flat due to COVID-19 related timing delays in project tenders and awards from clients.
- During the third quarter, Bird extended its Syndicated Credit Facility (the "Credit Facility") by an additional year and expanded the committed Credit Facility to $235.0 million, consisting of a $185.0 million committed, revolving credit facility, and a $50.0 million committed, non-revolving term debt facility. There is also an additional uncommitted accordion for up to $50.0 million. This Credit Facility replaces the Company's $165.0 million committed, revolving credit facility and $35.0 million committed, term debt facility. The Credit Facility matures on September 1, 2024. In addition, Bird changed its agreement with Export Development Canada ("EDC") to provide for an increase in performance security guarantees by $25.0 million to $100.0 million for letters of credit issued by financial institutions on behalf of the Company.
- During the third quarter, the Company hosted its inaugural investor day and released details of its new three-year strategic plan which will guide the Company through 2024. Details from the investor day can be found under the "Investors" section on the Company's website. As discussed in the "2022-2024 Strategic Plan" section of Bird's Q3 2021 MD&A, key facets of the new strategic plan include a focus on the further development of Bird's team, strong project execution and the geographic diversification of service offerings.
- In the third quarter of 2021, the Company, through its joint venture with ATCO Structures, reached final completion on the LNG Canada Cedar Valley Lodge design-build project in Kitimat, British Columbia. The facility was built to house workers involved in the construction of LNG Canada's natural gas liquefaction and export facility and is one of the largest accommodation facilities ever built in Canada.
- During the third quarter of 2021, the Company announced that it was awarded the following projects and contracts:
- 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 that will be constructed by leveraging green building practices with sustainable solutions.
- Under the Public Private Partnership ("PPP") model, the consortium, Concert-Bird Partners, was awarded a Design, Build, Finance, and Maintain ("DBFM") contract for five Alberta high schools with the Alberta government. The project has a total combined contract value in excess of $300.0 million and is a part of Alberta's Recovery Plan to create jobs and diversify the economy.
- The Board has declared an eligible dividend of $0.0325 per common share for each of October 2021, November 2021, December 2021, January 2022 and February 2022.
- Subsequent to quarter end, the Company announced that it was awarded the following projects:
- The Company has been awarded the first phase of a progressive Design-Build contract with early collaborative contractor involvement for the Ontario Power Generation ("OPG") Clarington Corporate Campus Project. The project is divided into three phases to reflect the design's progressive nature, and ensure the cost estimate, schedule forecast, and project planning are sufficiently advanced before construction. Construction is expected to begin in 2022, with completion in 2024.
- The Company will participate in three Integrated Project Delivery ("IPD") contracts in Western Canada with a combined value in excess of $150 million. The contracts include a substantial food and beverage facility expansion project, the Okanagan Indian Band water system upgrade and the North Okanagan Wastewater Recovery Project. These projects will be recorded in pending backlog until purchase orders are issued by the clients for the full value.
- The Company entered into an Alliance Agreement with the renewable energy company, Noventa Energy Partners, to jointly pursue opportunities for wastewater energy transfer ("WET") projects across Canada, with Bird acting as the exclusive constructor. Currently developing opportunities represent over $500 million. The Alliance relationship commences with the successful financial close of the recently announced Toronto Western Hospital WET project that is valued at approximately $42.9 million.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly results on Wednesday, November 10, 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/bird20211110.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.