Bullboard - Stock Discussion Forum Bird Construction Inc T.BDT

Alternate Symbol(s): BIRDF

Bird Construction Inc. is a Canadian construction and maintenance company operating from coast-to-coast-to-coast. The Company provides a range of construction services from new construction for industrial, infrastructure and institutional markets; to industrial maintenance, repair and operations (MRO) services, heavy civil construction and mine support services; as well as vertical... see more

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TSX:BDT - Post Discussion

Bird Construction Inc > TD Report

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Post by retiredcf on Nov 13, 2021 2:40pm

TD Report

Bird Construction Inc.

(BDT-T) C$10.55

Q3/21 Results Ahead; Outlook Remains Favourable Event

Bird reported Q3/21 EBITDA that was ahead of consensus. Meanwhile, management's outlook commentary was constructive.

Impact: SLIGHTLY POSITIVE

Q3/21 adjusted EBITDA was $28.6mm, above consensus of $26.1mm and in line with TD at $28.4mm.
Adjusted EBITDA margin was 4.6% (-90bps vs. Q3/20's ex-CEWS margin) vs. consensus of 4.1% and TD at 4.5%.
Revenue was $621.2mm (+80.0% y/y) vs. consensus of $631.4mm and our estimate of $632.5mm.
CFO (before w/c) was strong at $76.8mm (vs. $31.9mm in Q3/20).
Backlog was a record $2.83bln (vs. $2.71bln at Q2/21), +4.4% q/q.
Outlook: Bird noted that market conditions continue to recover, and management is optimistic about the near-to-medium-term growth prospects for the company. The bidding pipeline remains healthy, and the company sees a growing list of opportunities coming to market. Although the company continues to experience some modest delays in project tenders and awards from clients, management expects to return to a greater level of normalcy going forward.
We have made relatively minor adjustments to our forecast, and, as such, our estimates are little changed. Our target price increases to $12.50 (from $12.00), primarily driven by our lower net debt 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). We reiterate our BUY rating.