Bullboard - Stock Discussion Forum Bird Construction Inc T.BDT

Alternate Symbol(s): BIRDF

Industrials Conglomerates

Bird Construction Inc. is a Canadian construction company. The Company operates from coast-to-coast and serves various Canadian markets. The Company provides a comprehensive range of construction services from new construction for industrial, infrastructure and institutional markets; to industrial maintenance, repair and operations services, heavy civil construction, and mine support services... see more

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TSX:BDT - Post Discussion

Bird Construction Inc > TD 2

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Post by retiredcf on Aug 12, 2021 3:01pm

TD 2

Bird Construction Inc.

(BDT-T) C$9.29

Q2/21 Results Ahead; Outlook Remains Favourable Event

Bird reported Q2/21 EBITDA, which, on an adjusted basis, was ahead of expectations. Meanwhile, management's outlook commentary was constructive.

Impact: SLIGHTLY POSITIVE

Headline adjusted EBITDA was $30.1mm, although we note that this amount includes a compensation expense recovery of $8.9mm for CEWS (vs. our forecast of nil). Adjusted for this recovery, Q2/21 adjusted EBITDA was $21.2mm — above consensus of $19.0mm and TD at $20.2mm.
Adjusted EBITDA margin (excluding CEWS) was 3.8%, vs. consensus of 3.7% and TD at 3.8%.
Revenue was $556.4mm (+97% y/y, supported by the Stuart Olson acquisition), vs. consensus of $519.7mm and our $538.7mm estimate.
Backlog was a record $2.71bln (vs. $2.63bln at Q1/21), +3% q/q.
Outlook: Management noted that market conditions continue to recover and the

company sees a growing pipeline of opportunities. Bird's projects are returning to pre-pandemic levels and the bidding pipeline is healthy. While the company continues to experience some delays in project tenders and awards from clients, management expects to return to some level of normalcy in the second half of the year.
The increase in our 2021 EBITDA estimate largely reflects Q2/21's higher reported EBITDA (including the impact of the aforementioned CEWS recovery), while our 2022 EBITDA estimate also increases, albeit only slightly (driven by slight upward adjustments to our revenue forecast).

TD Investment Conclusion

We are encouraged by management's indication that projects are returning to pre-pandemic levels. Meanwhile, we remain positive on the company's outlook, supported by the level and composition of Bird's backlog (at a record level), new awards prospects, and margin improvement potential over time (underpinned in part by expected Stuart Olson acquisition cost synergies).