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
$0.0325 per common share for August,
September and October 2017.
"The Company successfully completed and turned over three PPP
projects this quarter, demonstrating our ability to execute complex
work across the country. In the quarter, the Company also made
its first significant equity investments, furthering our strategy
in this important market", commented Mr. Ian Boyd, President & CEO of Bird
Construction. "With the activity in the PPP market increasing and
our early success with three key wins to date in 2017, the Company
is well-positioned to secure additional social infrastructure
projects as well as transportation and environmental related
projects, broadening our scope of expertise and advancing our
diversification efforts. In addition to the growth in volume we
expect from these opportunities, we also see an emerging
environment that should support improved margins on this
work. In combination, we expect these factors to support
recovery in our earnings toward more satisfactory levels going
forward."
Financial
Results
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(in thousands of
Canadian dollars, except per share amounts)
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|
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Three months
ended
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Six months
ended
|
|
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June 30,
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June 30,
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|
|
2017
|
|
|
2016
|
|
2017
|
|
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2016
|
|
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|
|
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Construction
Revenue
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$
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345,881
|
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$
|
413,195
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$
|
655,636
|
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$
|
751,489
|
|
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Net income and
comprehensive income
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$
|
2,497
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$
|
3,886
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$
|
1,356
|
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$
|
13,229
|
|
|
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|
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Basic and diluted
earnings per share
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$
|
0.06
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$
|
0.09
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$
|
0.03
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$
|
0.31
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|
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Cash flows from
operations before changes in
non-cash working capital
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$
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5,181
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$
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8,558
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$
|
7,251
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$
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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)
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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.
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iii)
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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.
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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.