Bird Construction Inc T.BDT

TD

[retiredcf]

As this is a flash report, there's potential for them to raise their current $10.50 target. GLTA

Bird Construction Inc.

(BDT-T) C$9.30

Q1/21 First Look Event

• Bird reported Q1/21 EBITDA, which, on an adjusted basis, was slightly ahead of expectations.

• Conference call at 10:00 a.m. ET today (1-855-328-1925).

  Impact: SLIGHTLY POSITIVE

• Headline adjusted EBITDA was $21.0mm, although we note that this amount includes a compensation expense recovery of $11.2mm for CEWS (vs. our forecast of nil). Adjusted for this recovery, Q1/21 adjusted EBITDA was $9.8mm — slightly above consensus and TD, both at $8.7mm.

   Had Bird not received this recovery, we believe that it would have found alternative cost-saving means (i.e., layoffs, reduced employee hours, etc.) to help offset Q1/21's revenue pressures.

• Adjusted EBITDA margin (excluding CEWS) was 2.2%, vs. consensus of 1.8% and TD at 2.0%.

• Revenue was $444.6mm vs. consensus of $475.5mm and our $434.2mm estimate. Q1/21 revenues were said to be negatively impacted by ~$90mm due to pandemic-related public health restrictions and permitting delays.

• Backlog was $2.63bln (vs. $2.68bln at Q4/20), -2% q/q. At the end of Q1/21, Bird had $1.68bln of pending backlog (i.e., projects awarded but not yet contracted) vs. $1.64bln at Q4/20.

• Outlook Commentary

  • Management noted that Bird's projects are returning to pre-pandemic levels

    and the bidding pipeline is healthy. While Bird continues to experience some delays in project tenders and awards from clients, the company expects to return to some level of normalcy in the second half of the year.

  • Bird indicated that it is well positioned to benefit from potential federal government stimulus and provincial budgetary spending programs. Further, Bird highlighted the recent strength in oil prices, and noted that the improving environment bodes well for the company to secure contracts from clients investing in mid- to long-term projects in the Alberta market.

  • Bird reiterated the timing and amounts of its previously announced Stuart Olson acquisition cost synergy targets. Meanwhile, management indicated that the integrated company's bench strength has started to yield cross-selling opportunities.

  • Bird plans to release a new three-year strategic plan later in 2021. Management indicated the plan would focus on margin improvement, geographic diversification of both existing and new service offerings, and increased levels of recurring revenues (from both organic growth and tuck-in acquisitions).

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This clown must have listened to Takacsey for "Guidance " They will raise the $10.50 target AFTER Q2 comes out in three months and the price will be pushing $12.00