LISTING: TORONTO
STOCK EXCHANGE
SYMBOL: BDT
MISSISSAUGA, ON, March 8, 2018 /CNW/
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HIGHLIGHTS:
- During the fourth quarter of 2017, the Company generated a net
income of $4.7 million on
construction revenue of $377.7
million compared with net income of $5.8 million and $430.7
million of construction revenue in 2016. The year-over-year
decline in the amount of fourth quarter net income is reflective of
the lower construction revenues in the quarter.
- In 2017, the Company generated net income of $11.6 million on construction revenue of
$1,418.4 million compared with net
income of $25.0 million and
$1,589.9 million of construction
revenue in 2016. The decrease in 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 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 2017, the Company secured $1,467.4
million of new contract awards and change orders which is
38% higher year-over-year, and executed $1,418.4 million of construction revenues. The
success in securing new work through the year contributed to a
Backlog of $1,186.0 million for the
Company at December 31, 2017, an
increase of $49.0 million from the
$1,137.0 million of Backlog recorded
at December 31, 2016.
- In the fourth quarter of 2017, the Company was part of a
consortium that has been contracted to design, build, finance and
maintain Bruce Power's new office complex and training facility in
Kincardine, Ontario. This project
will be the Company's first in the nuclear market.
- In the fourth quarter of 2017, the Company announced that it is
part of the Hartland Resource Management Group consortium that was
selected as preferred proponent to design, build, finance, operate
and maintain the residuals treatment facility for the Capital
Regional District ("CRD") in Victoria,
BC. Subsequent to the 2017 year-end, the consortium executed
the contract with CRD, and will add to the Company's Backlog in
2018.
- The Company achieved substantial completion on three Public
Private Partnership and alternative finance ("PPP") projects in
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-story
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.
- In the fourth quarter of 2017, a PPP project achieved
substantial performance in late December as defined in the
provincial lien legislation but did not achieve substantial
completion from a contractual standpoint. As a result, the Company
took a provision to cover the additional escalation costs and
financing costs from lenders that would result in the first quarter
of 2018. The Company has taken appropriate measures and expects to
achieve substantial completion in the first quarter of 2018.
- In 2017, the Company has realized equity income of $1.8 million, through its investments in equity
accounted entities compared with equity investment losses of
$0.1 million recognized during
2016.
- Cash used for property and equipment additions has increased
$9.1 million compared with 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.
- The Board has declared monthly eligible dividends of
$0.0325 per common share for
March 2018 and April 2018.
"Fiscal 2017 was a challenging year for Bird and unfortunately
the recent issues on a PPP project in which we did not achieve
substantial completion on time impacted our fourth quarter
negatively and overshadows the fact that we successfully delivered
and handed over three PPP projects in the second quarter of this
year. While financial results in the fourth quarter were
lower than the expectations we set for ourselves, we are encouraged
by the strength of our Gross Profit Percentage in the quarter which
exceeded that of a year ago." said Ian Boyd, President and CEO of Bird Construction
Inc. "I am pleased by the progress we are making in the execution
of our Build Bird five-year strategic plan and in the
successes we are having diversifying our earnings base including
our recent wins in the environmental and nuclear sectors. We
are seeing progressive improvements in market conditions in the
energy and resource sectors and expect to see more strength come
from our industrial work program in 2018."
Financial
Results
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(in thousands of
Canadian dollars, except per share amounts)
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Three months
ended
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Year ended
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December
31,
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December
31,
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2017
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2016
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2017
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2016
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Construction
revenue
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$
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377,713
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$
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430,716
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$
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1,418,439
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$
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1,589,868
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Net income
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$
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4,734
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$
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5,798
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$
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11,618
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$
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25,002
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Basic and diluted
earnings per share
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$
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0.11
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$
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0.14
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$
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0.27
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$
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0.59
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Cash flows from
operations before changes in non-cash working capital
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$
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12,687
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$
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14,281
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$
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29,619
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$
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48,449
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- In 2017, the Company generated a net income of $11.6 million on construction revenue of
$1,418.4 million compared with net
income of $25.0 million and
$1,589.9 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 2016, the Company benefitted from a greater proportion of
higher margin industrial work than in 2017, which has shifted to
predominantly commercial and institutional projects.
- The $13.4 million year-over-year
reduction in net income for 2017 was the primary driver of the
$18.8 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
March 2018 and April 2018 in the amount of $0.0325 per common share to be paid as
follows:
i)
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The March dividend of
$0.0325 per share will be paid on April 20, 2018, to the
shareholders of record as of the close of business on March 29,
2018.
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ii)
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The April dividend of
$0.0325 per share will be paid on May 18, 2018, to the shareholders
of record as of the close of business on April 30, 2018.
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A conference call for analysts and investors will be held at
10:00AM EDT on Friday, March 9, 2018,
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.