LISTING: TORONTO
STOCK EXCHANGE
SYMBOL: BDT
MISSISSAUGA, ON, Nov. 8, 2017 /CNW/ -
HIGHLIGHTS:
- During the third quarter of 2017, the Company generated a net
income of $5.5 million on
construction revenue of $385.1
million compared with net income of $6.0 million and $407.7
million of construction revenue in 2016. The year-over-year
decline in the amount of third quarter net income is reflective of
the lower construction revenues in the quarter.
- During the first nine months of 2017, the Company generated a
net income of $6.9 million on
construction revenue of $1,040.7
million compared with net income of $19.2 million and $1,159.2
million of construction revenue in 2016. The decrease in the
amount of year to date 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 nine months of 2016, the
Company benefited from a higher proportion of higher margin
industrial work than in 2017, which has shifted to predominantly
commercial and institutional projects.
- In the first nine months of 2017, the Company secured
$1,250.3 million of new contract
awards and change orders which is 52% higher year-over-year, and
executed $1,040.7 million of
construction revenues. The success in securing new work through the
first nine months of the year contributed to a Backlog of
$1,346.6 million for the Company at
September 30, 2017, an increase of
$209.6 million from the $1,137.0 million of Backlog recorded at
December 31, 2016.
- In the third quarter of 2017, the Company announced that it was
part of the Niagara Falls Entertainment Partners consortium that
had 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.
- In September 2017, the Company
announced that it had acquired 50% of the outstanding shares of
Stack Modular Structures Ltd. and 50% of Stack Modular Structures
Hong Kong Limited (together the "Stack Modular Group of Companies"
or "Stack"). The purchase price and related transaction expenses
were funded with existing working capital. Stack is a modular
construction company with production operations in China. Stack produces steel frame modules for
permanent construction. The modules are suited for the hotel,
senior housing, office space and general housing sectors in the
North American market. Bird and Stack have complementary knowledge,
resources and expertise that positions them well to serve the
permanent modular construction market in Canada and the
United States.
- The Company achieved substantial completion on three Public
Private Partnership and alternative finance ("PPP") projects in the
nine months ended September 30,
2017:
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- 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 equity investments in associates to the end of
September 2017, the Company has
realized equity income of $1.55
million, compared with equity investment losses recognized
during the same period in 2016.
- Cash used for property and equipment additions have increased
$8.4 million compared with the first
three quarters of 2016. The additions support increased activity
with self-perform activities on energy and resource related
projects as well as diversification of the Company's service
offerings to clients in these sectors.
- As part of the Safe Production strategic initiative, the
Company completed an organization wide Safety Culture Assessment in
the third quarter which will form the basis for the development of
a long-term safety strategy for the organization.
- The Board has declared monthly eligible dividends of
$0.0325 per common share for
November 2017, December 2017, January
2018 and February 2018.
"Financial results in the third quarter were in line with our
expectations, improving through the course of 2017 and driven by
strong execution of our institutional work program and increasing
contribution from our industrial operations." said Ian Boyd, President and CEO of Bird Construction
Inc. "Margins have stabilized and are anticipated to grow moving
forward, driven primarily by the high level of activity in the PPP
market combined with a more steadied environment in the energy and
resource sectors. The Company is making good progress with the
implementation of our diversification strategy. As we continue
along the path of rebuilding our earnings base following the
completion of our strong industrial work program at the end of
2016, we expect 2018 earnings to improve relative to the current
year though not yet to the level achieved in 2016."
Financial
Results
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(in thousands of
Canadian dollars, except per share amounts)
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Three months
ended
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Nine months
ended
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September
30,
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September
30,
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2017
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2016
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2017
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2016
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Construction
revenue
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$
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385,090
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$
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407,663
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$
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1,040,726
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$
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1,159,152
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Net income and
comprehensive income
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$
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5,528
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$
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5,975
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$
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6,884
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$
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19,204
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Basic and diluted
earnings per share
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$
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0.13
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$
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0.14
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$
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0.16
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$
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0.45
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Cash flows from
operations before changes in non-cash working capital
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$
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9,681
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$
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10,602
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$
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16,932
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$
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34,168
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- During the nine months of 2017, the Company generated a net
income of $6.9 million on
construction revenue of $1,040.7
million compared with net income of $19.2 million and $1,159.2
million of construction revenue in 2016. The decrease in the
amount of net income year-over-year 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 nine months 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 $12.3 million year-over-year
reduction in net income for the nine months ended September 30 was the primary driver of the
$17.2 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 of
$4.1 million accounts for most of the
remaining difference.
Bird Construction Inc. also announced that its Board of
Directors has approved monthly eligible dividends for the months of
November 2017, December 2017, January
2018 and February 2018 in the
amount of $0.0325 per common share to
be paid as follows:
i)
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The November dividend
of $0.0325 per share will be paid on December 20, 2017, to the
shareholders of record as of the close of business on November 30,
2017.
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ii)
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The December dividend
of $0.0325 per share will be paid on January 19, 2018, to the
shareholders of record as of the close of business on December 29,
2017.
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iii)
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The January dividend
of $0.0325 per share will be paid on February 20, 2018, to the
shareholders of record as of the close of business on January 31,
2018.
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iv)
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The February dividend
of $0.0325 per share will be paid on March 20, 2018, to the
shareholders of record as of the close of business on February 28,
2018.
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A conference call for analysts and investors will be held at
10:00AM EDT on Thursday, November 9, 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.