LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT
TORONTO, March 14, 2017 /CNW/ -
HIGHLIGHTS:
- In the fourth quarter of 2016, the Company recorded net income
of $5.8 million on construction
revenue of $430.7 million compared
with net income of $11.6 million and
$413.4 million of construction
revenue recorded in the fourth quarter of 2015. The increase in
construction revenues is largely due to the execution of the
Company's significant commercial and institutional work program,
including many PPP and alternative finance projects. As expected,
the Company's industrial revenues declined relative to those
recorded in 2015, primarily due to a reduced work program resulting
from the successful completion of several large scale projects
during the year and the general state of the market in 2016.
- The Company generated net income of $25.0 million on construction revenue of
$1,589.9 million in 2016 compared
with $21.5 million and $1,444.8 million, respectively in 2015. The
Company organically grew revenue by $145.1
million or 10.0% from $1,444.8
million recorded a year ago. The increase in construction
revenues is largely due to the execution of the Company's
significant institutional work program, including many PPP and
alternative finance projects, secured in 2015.
- In 2016, the Company secured $1,064.1
million of new contract awards and change orders, and
executed $1,589.9 million of
construction revenues. New work secured through the course of the
year contributed to a Backlog of $1,137.0
million for the Company at December
31, 2016, compared with $1,662.8
million at December 31, 2015.
The decline in backlog from the end of 2015 is representative of
the fact that the Company did not secure a major project in 2016,
as available opportunities were limited for securement in fiscal
2016. The Company has been successful in securing many smaller but
strategic projects with opportunities to win additional work
packages as the Company looks to diversify its revenue streams into
new markets and with new clients.
- Subsequent to year-end, the Company announced the contract
signing for the Mental Health Facility and Energy Centre at Royal
Columbian Hospital and that it was part of a consortium named as
preferred proponent for the Hamilton Biosolids project.
- Bird's Board of Directors declared a monthly dividend of
$0.0325 per common share for
April 2017.
"The fourth quarter capped a year in which the Company
successfully completed several key industrial projects and saw
revenues derived from our institutional work program grow
significantly as the Company continues to focus on larger scale,
more complex projects. While backlog declined through the
course of 2016, our pursuit activity increased in the fourth
quarter and subsequent to year-end the Company was successful in
securing the initial phase of the Royal Columbian Hospital
redevelopment and was named preferred proponent for the Hamilton
Biosolids project, both key wins for the business," commented Mr.
Ian Boyd, President & CEO of
Bird Construction. "Although we still anticipate a significant
reduction in earnings in 2017 as compared to 2016, we are
encouraged by our recent wins and our ability to capitalize on the
growing number of opportunities in the PPP market, inclusive of
social, transportation and environmental infrastructure
projects."
Financial
Results
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('000s except per
share amounts)
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Three months
ended
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Year ended
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December
31,
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December
31,
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2016
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2015
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2016
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2015
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Construction
Revenue
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$430,716
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$413,443
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$1,589,868
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$1,444,806
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Net income (loss) and
comprehensive income
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$5,798
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$11,556
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$25,002
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$21,482
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Basic and diluted
earnings per share
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$0.14
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$0.28
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$0.59
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$0.51
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Adjusted net income
(a non-GAAP measure)
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$8,537
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$11,556
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$27,741
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$41,802
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Adjusted net income
per share
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$0.20
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$0.28
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$0.65
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$0.98
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Cash flow from
operations before changes in non-cash working capital
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$14,258
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$21,893
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$48,426
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$75,291
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- Adjusting for the non-cash after-tax impairment charges related
to H.J. O'Connell Limited of $2.7
million on equipment in fourth quarter 2016 and $20.3 million for goodwill and intangibles in
third quarter 2015, the Company's adjusted net income in 2016 and
2015 was $27.7 million and
$41.8 million (a non-GAAP measure),
respectively. Adjusted net income in 2016 of $27.7 million was less than 2015 adjusted net
income of $41.8 million by
$14.1 million or 33.6%. The decrease
is primarily a result of lower gross profit due to a shift in the
mix of the work program from comparatively higher margin industrial
work to lower margin institutional work. In addition, the wildfires
in northern Alberta had a negative
impact on the execution of several projects, resulting in delays
and additional costs that reduced gross profit by approximately
$4.0 million in 2016. The net income
reduction was partially offset through efficiencies in general and
administrative expenses.
Bird Construction Inc. also announced that its Board of
Directors has approved a regular cash dividend for the month of
April 2017 in the amount of
$0.0325 per common share to be paid
as follows:
i)
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The April dividend of
$0.0325 per share will be paid on May 19, 2017, to the Shareholders
of record as of the close of business on April 28, 2017.
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A conference call for analysts and investors will be held at
10:00AM EDT on Wednesday, March 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.