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 $0.0325 per common share for May, June and
July 2017.
"With the successful completion of several large scale
industrial projects in late 2016, we anticipated a slow start to
2017 as we look to rebuild our industrial work program while
maintaining our investment in our core team. We are
encouraged by our continued success in the PPP and alternative
finance market, with two strategic wins in the first quarter and a
robust pipeline of opportunities available through 2018," commented
Mr. Ian Boyd, President & CEO of
Bird Construction. "Our focus moving forward will be on executing
our significant institutional work program, building industrial
backlog and further diversifying our business."
Financial
Results
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('000s except per
share amounts)
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|
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Three months
ended
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March 31,
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|
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2017
|
|
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2016
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|
|
|
|
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Construction
Revenue
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$
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309,755
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$
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338,294
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Net income (loss) and
comprehensive income
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$
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(1,141)
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$
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9,343
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Basic and diluted
earnings (loss) per share
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$
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(0.03)
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$
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0.22
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Cash flow from
operations before changes in non-cash working capital
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$
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2,070
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$
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15,008
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- 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)
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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.
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ii)
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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.
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iii)
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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.
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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.