Bird Construction Inc. Announces 2017 Second Quarter Results

Date : 08/09/2017 @ 6:18PM
Source : PR Newswire (Canada)
Stock : Bird Construction Inc. (BDT)
Quote : 9.0  -0.22 (-2.39%) @ 3:59PM
Bird Construction Inc. share price Chart

Bird Construction Inc. Announces 2017 Second Quarter Results

Bird Construction Inc. (TSX:BDT)
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1 Month : From Jul 2017 to Aug 2017

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LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT

MISSISSAUGA, ON, Aug. 9, 2017 /CNW/ -

HIGHLIGHTS:

  • During the second quarter of 2017, the Company generated a net income of $2.5 million on construction revenue of $345.9 million compared with net income of $3.9 million and $413.2 million of construction revenue in 2016. The year-over-year decline in the amount of second quarter net income reflects a minor improvement in comparative gross profit percentage on lower quarterly construction revenues.
     
  • In the second quarter of 2017, the Company secured $341.2 million of new contract awards and change orders, and executed $345.9 million of construction revenue. Year-to-date in 2017 the Company secured $762.5 million of new contract awards and change orders compared to $634.7 million over the same period in 2016. The success in securing new work through the second quarter of 2017 contributed to an increase in Backlog to $1,243.9 million for the Company at June 30, 2017, an increase of $106.9 million from the $1,137.0 million of Backlog recorded at December 31, 2016.
     
  • During the quarter, the Company announced the appointment of Terrance McKibbon as Chief Operating Officer, with responsibility to lead the Company's construction operations and help advance the Company's strategic initiatives. Mr. McKibbon strengthens the Company's executive management team and has a proven track record of success with over three decades of knowledge and experience gained in the Canadian construction market.

  • The Company achieved substantial completion on three Public Private Partnership and alternative finance ("PPP") projects in the quarter ended June 30, 2017:

    • Calgary Composting Facility - The plant is the largest composting facility in Canada and has an administration and educational building that is the first commercial building in Alberta registered under LEED® v4.
    • Casey House Redevelopment – The project is a four-storey addition to a heritage-designated Victorian mansion in downtown Toronto and is a specialized health care facility that will service 200 registered clients and has 14 new inpatient rooms.
    • Saskatchewan Joint-Use Schools – The Company delivered 18 new schools on nine sites in Regina and the Saskatoon region representing the largest new schools project in Saskatchewan's history. Each joint-use site includes two schools: one public and one Catholic, along with a 90-space childcare centre and community space. Joint-use schools are co-located so that they share a roof and spaces such as gymnasiums and multipurpose rooms.

  • Through its subsidiary, Bird Capital, the Company has completed $4.8 million of equity investments to the end of June of 2017. These investments represent the first as an equity partner on multiple PPP projects.

  • The Board has declared monthly eligible dividends of $0.0325 per common share for August, September and October 2017.

"The Company successfully completed and turned over three PPP projects this quarter, demonstrating our ability to execute complex work across the country. In the quarter, the Company also made its first significant equity investments, furthering our strategy in this important market", commented Mr. Ian Boyd, President & CEO of Bird Construction. "With the activity in the PPP market increasing and our early success with three key wins to date in 2017, the Company is well-positioned to secure additional social infrastructure projects as well as transportation and environmental related projects, broadening our scope of expertise and advancing our diversification efforts. In addition to the growth in volume we expect from these opportunities, we also see an emerging environment that should support improved margins on this work. In combination, we expect these factors to support recovery in our earnings toward more satisfactory levels going forward."

Financial Results



(in thousands of Canadian dollars, except per share amounts)





Three months ended


Six months ended



June 30,


June 30,



2017



2016


2017



2016












Construction Revenue

$

345,881


$

413,195

$

655,636


$

751,489












Net income and comprehensive income

$

2,497


$

3,886

$

1,356


$

13,229












Basic and diluted earnings per share

$

0.06


$

0.09

$

0.03


$

0.31












Cash flows from operations before changes in
non-cash working capital

$

5,181


$

8,558

$

7,251


$

23,566

 

  • During the first half of 2017, the Company generated a net income of $1.4 million on construction revenue of $655.6 million compared with net income of $13.2 million and $751.5 million of construction revenue in 2016. The decrease in the amount of first half 2017 net income 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 half of 2016, the Company benefited from a greater proportion of higher margin industrial work than in 2017, which has shifted to predominantly commercial and institutional projects.
     
  • The $11.9 million year-over-year reduction in net income for the six months ended June 30 was the primary driver of the $16.3 million year-over-year reduction in cash flows from operations before changes in non-cash working capital. The year-over-year change in income tax expense accounts for $4.1 million of the remaining difference.

  • Subsequent to June 30, 2017, the Company announced that it is part of the Niagara Falls Entertainment Partners consortium that has executed a contract to design, build, finance and maintain an entertainment facility for the Ontario Lottery and Gaming Corporation in the City of Niagara Falls. The Company will design and build the project and has taken a minority equity interest in the concession responsible for the design, construction, financing and maintenance of the project through Bird Capital, a wholly owned subsidiary.

Bird Construction Inc. also announced that its Board of Directors has approved monthly eligible dividends for the months of August, September and October 2017 in the amount of $0.0325 per common share to be paid as follows:

i)

The August dividend of $0.0325 per share will be paid on September 20, 2017, to the shareholders of record as of the close of business on August 31, 2017.

ii)

The September dividend of $0.0325 per share will be paid on October 20, 2017, to the shareholders of record as of the close of business on September 29, 2017.

iii)

The October dividend of $0.0325 per share will be paid on November 20, 2017, to the shareholders of record as of the close of business on October 31, 2017.

 

A conference call for analysts and investors will be held at 10:00AM EDT on Thursday, August 10, 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.

Copyright 2017 Canada NewsWire

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