Bird Construction Inc. Announces 2017 First Quarter Results
18:28 EDT Friday, May 12, 2017
LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT
MISSISSAUGA, ON, May 12, 2017 /CNW/ -
HIGHLIGHTS:
- During the first quarter of 2017, the Company generated a net loss of $1.1 million on construction revenue of $309.8 million compared with net income of $9.3 million and $338.3 million of construction revenue in 2016. The decrease in the amount of first quarter 2017 earnings is reflective of the low volume of industrial project backlog carried into 2017 as several large industrial projects were substantially completed in the fourth quarter of 2016. In the first quarter of 2016, the Company benefitted from a higher proportion of higher margin industrial work than in 2017, which has shifted to predominantly commercial and institutional projects.
- In the first quarter of 2017, the Company secured $421.3 million of new contract awards and change orders, and executed $309.8 million of construction revenues. The success in securing new work through the first quarter of the year contributed to a Backlog of $1,248.5 million for the Company at March 31, 2017, compared with $1,137.0 million at December 31, 2016.
- The Company executed a contract with Fraser Health to design and build a new mental health facility and energy centre at Royal Columbian Hospital in New Westminster, British Columbia. The contract, valued at approximately $200 million commenced construction in early 2017 and is scheduled to be complete in late 2019.
- The Company also executed a contract as part of the Harbour City Solutions consortium to design, build, finance, operate and maintain a biosolids management facility for the City of Hamilton, Ontario. Bird has a 50% interest in the construction joint venture that will design and build the project. Bird has also taken a minority equity interest in the concession responsible for the design, construction, financing, operations and maintenance of the project through Bird Capital, a wholly owned subsidiary. The facility is expected to be operational in the spring of 2020.
- The Board has declared dividends of $0.0325 per common share for May, June and July 2017.
"With the successful completion of several large scale industrial projects in late 2016, we anticipated a slow start to 2017 as we look to rebuild our industrial work program while maintaining our investment in our core team. We are encouraged by our continued success in the PPP and alternative finance market, with two strategic wins in the first quarter and a robust pipeline of opportunities available through 2018," commented Mr. Ian Boyd, President & CEO of Bird Construction. "Our focus moving forward will be on executing our significant institutional work program, building industrial backlog and further diversifying our business."
| Financial Results | |
| ('000s except per share amounts) | |
| | Three months ended |
| | March 31, |
| | | 2017 | | | 2016 |
| | | | | | |
| Construction Revenue | $ | 309,755 | | $ | 338,294 |
| Net income (loss) and comprehensive income | $ | (1,141) | | $ | 9,343 |
| Basic and diluted earnings (loss) per share | $ | (0.03) | | $ | 0.22 |
| | | | | | |
| Cash flow from operations before changes in non-cash working capital | $ | 2,070 | | $ | 15,008 |
- In the first quarter of 2017, the Company recorded a net loss of $1.1 million on construction revenue of $309.8 million compared with net income of $9.3 million and $338.3 million of construction revenue recorded in the first quarter of 2016. First quarter construction revenue of $309.8 million in 2017 was $28.5 million or 8.4% lower than the $338.3 million recorded a year ago.
- The Company's revenues declined relative to those recorded in 2016, primarily owing to a reduced industrial work program resulting from the successful completion of several large scale projects during 2016, and the challenge to replenish the industrial work programs due to the general state of the market in a persistently low commodity price environment. The Company continues to successfully execute on its significant commercial and institutional work program, including many PPP and alternative finance projects.
- Earnings in first quarter of 2017 were negatively impacted by the low volume of industrial work completed. In addition, profits were further reduced because the Company maintained key resources required to rebuild its industrial work program and to support the pursuit and execution of PPP and alternative finance projects in 2017.
- The $10.5 million year-over-year reduction in earnings was the primary driver for the $12.9 million year-over-year reduction in cash flow from operations before changes in non-cash working capital from $15.0 million to $2.1 million.
Bird Construction Inc. also announced that its Board of Directors has approved regular cash dividends for the months of May, June and July 2017 in the amount of $0.0325 per common share to be paid as follows:
| i) | The May dividend of $0.0325 per share will be paid on June 20, 2017, to the Shareholders of record as of the close of business on May 31, 2017. |
| ii) | The June dividend of $0.0325 per share will be paid on July 20, 2017, to the Shareholders of record as of the close of business on June 30, 2017. |
| iii) | The July dividend of $0.0325 per share will be paid on August 18, 2017, to the Shareholders of record as of the close of business on July 31, 2017. |
A conference call for analysts and investors will be held at 10:00AM EDT on Monday, May 15, 2017, to discuss the quarterly results. The dial in number is 1-855-328-1925. Attendees are asked to be on the line 10 minutes prior to the start of the call.
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Bird Construction Inc.
View original content: https://www.newswire.ca/en/releases/archive/May2017/12/c8057.html
For further information: I.J. Boyd, President & C.E.O or W.R. Gingrich, C.F.O, Bird Construction Inc., 5700 Explorer Drive, Suite 400, Mississauga, ON L4W 0C6, Phone: (905) 602-4122, Fax: (905) 602-1516