“Positive momentum continues to build with solid execution of our
strategy as the Company delivered another quarter of double-digit
revenue growth and margin accretion, setting the stage for a strong
finish to 2023 and a foundation for even stronger performance in
2024. Almost $800 million of work was put in place in the quarter
while our combined backlog grew by $40 million, up almost 20% year
to date, and EBITDA margins rose above six percent,” stated Teri
McKibbon, President and CEO of Bird Construction. “Bird is
positioned as a leading collaborative construction and maintenance
company focused on the industrial, institutional and infrastructure
markets. We remain disciplined in our approach to project selection
and in improving our margin profile so that we can continue to
drive further improvement in the Company's results through 2024.”
FINANCIAL HIGHLIGHTS
Strong first-half business momentum continued
into the third quarter with the Company delivering considerable
organic revenue growth of approximately 16% in the quarter and year
to date, coupled with sustained margin accretion. Bird's improving
gross profit and notable 35% increase in Adjusted EBITDA for the
first nine months of 2023 is a result of strategic positioning over
the past few years. The Company is experiencing significant growth
across virtually all markets with both public and private clients,
notably in our institutional buildings, our infrastructure platform
catalyzed by the Dagmar acquisition in 2021, and our industrial
construction and services highlighted by a decade-high mining
backlog and growing presence in Canada's nuclear sector. Visibility
into future performance is provided by the Company's risk-balanced,
highly collaborative Backlog and Pending Backlog, characterized by
enhanced margins and significant multi-year recurring revenue from
Master Service Agreements ("MSA").
Third Quarter 2023 compared to Third
Quarter 2022
-
Construction revenue of $783.8 million compared to $668.2 million,
representing a 17.3% increase year-over-year.
-
Net income and earnings per share were $28.8 million and $0.54,
respectively, compared to $14.5 million and $0.27 in Q3 2022.
-
Adjusted Earnings1 and Adjusted Earnings Per Share1 were $29.0
million and $0.54, respectively, compared to $15.5 million and
$0.29 in Q3 2022.
-
Adjusted EBITDA1 of $49.3 million, or 6.3% of revenues, compared to
$31.2 million, or 4.7% of revenues in Q3 2022.
Year-to-date 2023 compared to
Year-to-date 2022
-
Construction revenue of $2,006.7 million was earned in the first
nine months of 2023, compared to $1,720.4 million in 2022,
representing a 16.6% increase year-over-year.
-
Net income and earnings per share for the first nine months of the
year were $47.7 million and $0.89, respectively, compared to $34.9
million and $0.65 in 2022.
-
Adjusted Earnings1 and Adjusted Earnings Per Share were $49.9
million and $0.93 year-to-date in 2023, respectively, compared to
$30.5 million and $0.57 in the prior year.
-
Adjusted EBITDA1 for the first nine months of 2023 was $94.9
million, or 4.7% of revenues, compared to $70.5 million, or 4.1% of
revenues in 2022.
Financial
Results |
|
|
|
|
|
(in thousands
of Canadian dollars, except per share amounts) |
|
|
|
|
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
Construction revenue |
$ |
783,843 |
$ |
668,156 |
|
$ |
2,006,717 |
$ |
1,720,365 |
|
|
|
|
|
|
Net income |
|
28,795 |
|
14,466 |
|
|
47,658 |
|
34,931 |
|
|
|
|
|
|
Basic and diluted earnings per
share |
|
0.54 |
|
0.27 |
|
|
0.89 |
|
0.65 |
|
|
|
|
|
|
Adjusted Earnings Per Share |
|
0.54 |
|
0.29 |
|
|
0.93 |
|
0.57 |
|
|
|
|
|
|
Adjusted EBITDA1 |
|
49,342 |
|
31,203 |
|
|
94,881 |
|
70,546 |
|
|
|
|
|
|
Cash flows from operations
before changes in non-cash working capital |
$ |
50,395 |
$ |
32,444 |
|
$ |
96,854 |
$ |
80,905 |
|
|
|
|
|
|
(1) Adjusted
EBITDA is a non-GAAP financial measure. See “Terminology and
Non-GAAP & Other Financial Measures.” |
|
HIGHLIGHTS
-
Bird achieved significant revenue growth of 17.3% in the third
quarter of 2023, delivering revenues of $783.8 million driven
predominantly by organic growth, with additional contributions from
Trinity, acquired on February 1, 2023.
-
The Company's margin profiles in the third quarter of 2023
continued to improve, with Gross Profit Percentage increasing to
9.3% compared to 8.8% in the prior year, and Adjusted EBITDA Margin
increasing to 6.3% from 4.7%.
-
Bird maintained a strong Backlog and Pending Backlog at September
30, 2023, adding $612.1 million in securements to Backlog ($2.2
billion year-to-date) and $211.8 million to Pending Backlog ($825.2
million year-to-date) during the quarter. Pending Backlog continues
to include approximately $1.1 billion of MSA and other recurring
revenue to be earned over the next seven years.
-
Bird maintains a strong liquidity position at September 30,
2023, recording positive operating cashflows for the quarter while
continuing to fund the working capital required to support the
significant growth in the Company's work program. At the end of the
third quarter, Bird had $104.1 million of cash and cash equivalents
and an additional $157.0 million available under the Company's
Syndicated Credit Facility.
-
During the third quarter of 2023, the Company announced that it was
awarded the following projects and contracts:
-
Bird was awarded multiple contracts for industrial and civil work
in the energy and mining sectors valued at approximately $180
million, including a contract for civil and concrete scopes to
support processing infrastructure development at the Blackwater
Mine project in central British Columbia, two contracts for
rehabilitation work on hydroelectric power-related structures in
northeastern Ontario, and a contract for final site earthworks,
grading and asphalt paving at an existing project site in
northwestern British Columbia.
-
Bird was selected as the preferred proponent for the Southern
Alberta Institute of Technology’s (SAIT) Campus Centre
Redevelopment Project, the Victor Philip Dahdaleh Hall project at
St. Francis Xavier University, and two long-term care facilities in
Nova Scotia. The combined value of the contracts is over $350
million.
-
Bird was awarded two new contracts at the ArcelorMittal Mont-Wright
Mine in Quebec, and an award for the 2Nations Bird joint venture
for Fine Tailings works on BHP's Jansen Stage 1 Potash Project in
Saskatchewan. The combined value of the awards was over $110
million.
-
Bird was selected as construction manager for the Vancouver
Community College Centre for Clean Energy and Automotive Innovation
and the University of Victoria Engineering Expansion Project. The
combined value of the contracts was approximately $280
million.
-
Bird was awarded an additional task order under the previously
announced Port Hope Area Initiative Master Construction Contract by
Canadian Nuclear Laboratories, and awarded a multi-year contract
for civil works on sites in the Heartland Region of Alberta by an
undisclosed client. The combined value of the awards is
approximately $100 million, to be executed over the next three
years.
-
Subsequent to the quarter end, the Company announced that it was
awarded the following projects and contracts:
-
Bird, as part of a 50/50 general partnership, entered into an
agreement for early works at a new LNG project in Western Canada.
Bird's portion of the limited notice to proceed contracts exceeds
$150 million.
-
The Board has declared eligible dividends of $0.0358 per common
share for each of November 2023, December 2023, January 2024 and
February 2024.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss
the quarterly results on Wednesday, November 8, 2023 at 10:00 a.m.
ET, to discuss the Company’s results. Analysts and investors may
connect to the webcast at
https://services.choruscall.ca/links/bird2023Q3.html. They may also
dial 1-855-328-1925 for audio only or to enter the
question queue; attendees are asked to be on the line 10 minutes
prior to the start of the call. The presentation can also be found
on our website at https://www.bird.ca/investors.
The Company’s financial statements and
Management’s Discussion & Analysis (“MD&A”) will be filed
and available on the System for Electronic Document Analysis and
Retrieval (“SEDAR+”) at www.sedarplus.ca and on the Company’s
website at www.bird.ca.
TERMINOLOGY AND NON-GAAP & OTHER
FINANCIAL MEASURES
Throughout this News Release, certain
terminology and financial measures are used that do not have
standard meanings under IFRS and are considered specified financial
measures. These include non-GAAP financial measures, non-GAAP
financial ratios, and supplementary financial measures. These
measures may not be comparable with similar measures presented by
other companies. Further information on these financial measures
can be found in the “Terminology and Non-GAAP & Other Financial
Measures” section in Bird’s most recently filed Management’s
Discussion & Analysis for the period ended September 30,
2023, prepared as of November 7, 2023. This document is
available on Bird’s SEDAR+ profile, at www.sedarplus.ca and on the
Company’s website at www.bird.ca.
“Backlog” is the total value of all contracts
awarded to the Company, less the total value of work completed on
these contracts as of the date of the most recently completed
quarter. The Company’s Backlog equates to the Company’s remaining
performance obligations as at September 30, 2023 and
December 31, 2022.
“Adjusted Earnings” and “Adjusted EBITDA” are
non-GAAP financial measures. “Adjusted Earnings Per Share” and
“Adjusted EBITDA margin” are non-GAAP financial ratios. “Pending
Backlog” is a supplementary financial measure.
Adjusted Earnings and Adjusted EBITDA are
reconciled as follows:
Adjusted Earnings:
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
(in thousands of Canadian dollars, except per share amounts) |
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
Net income |
$ |
28,795 |
|
$ |
14,466 |
|
|
$ |
47,658 |
|
$ |
34,931 |
|
Add: Acquisition and integration
costs |
|
248 |
|
|
1,362 |
|
|
|
1,571 |
|
|
1,759 |
|
Add: Impairment of assets |
|
— |
|
|
— |
|
|
|
1,430 |
|
|
— |
|
Deduct: Gain on settlement of
trade receivable |
|
— |
|
|
— |
|
|
|
— |
|
|
(7,596 |
) |
Income tax effect of the above
costs |
|
(60 |
) |
|
(326 |
) |
|
|
(724 |
) |
|
1,445 |
|
|
|
|
|
|
|
Adjusted
Earnings |
$ |
28,983 |
|
$ |
15,502 |
|
|
$ |
49,935 |
|
$ |
30,539 |
|
|
|
|
|
|
|
Adjusted Earnings Per
Share(1) |
$ |
0.54 |
|
$ |
0.29 |
|
|
$ |
0.93 |
|
$ |
0.57 |
|
|
|
|
|
|
|
(1) Calculated as Adjusted Earnings divided by basic weighted
average shares outstanding. |
|
Adjusted EBITDA:
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
(in thousands of Canadian dollars, except percentage amounts) |
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
Net income |
$ |
28,795 |
|
$ |
14,466 |
|
|
$ |
47,658 |
|
$ |
34,931 |
|
Add: Income tax expense |
|
8,636 |
|
|
4,748 |
|
|
|
14,307 |
|
|
11,863 |
|
Add: Depreciation and
amortization |
|
9,786 |
|
|
9,593 |
|
|
|
25,733 |
|
|
27,641 |
|
Add: Finance and other costs |
|
2,932 |
|
|
2,793 |
|
|
|
8,911 |
|
|
6,885 |
|
Less: Finance and other
income |
|
(1,323 |
) |
|
(182 |
) |
|
|
(4,010 |
) |
|
(9,437 |
) |
Add: (Gain)/loss on sale of
property and equipment |
|
268 |
|
|
(1,577 |
) |
|
|
(719 |
) |
|
(3,096 |
) |
Add: Acquisition and integration
costs |
|
248 |
|
|
1,362 |
|
|
|
1,571 |
|
|
1,759 |
|
Add: Impairment of assets |
|
— |
|
|
— |
|
|
|
1,430 |
|
|
— |
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
49,342 |
|
$ |
31,203 |
|
|
$ |
94,881 |
|
$ |
70,546 |
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1) |
|
6.3 |
% |
|
4.7 |
% |
|
|
4.7 |
% |
|
4.1 |
% |
|
|
|
|
|
|
(1) Calculated as Adjusted EBITDA divided by revenue. |
|
FORWARD-LOOKING INFORMATION
This news release contains forward-looking
statements and information ("forward-looking statements") within
the meaning of applicable Canadian securities laws. The
forward-looking statements contained in this news release are based
on the expectations, estimates and projections of management of
Bird as of the date of this news release unless otherwise stated.
The use of any of the words "believe", "expect", "anticipate",
"contemplate", "target", "plan", "intend", "continue", "may",
"will", "should" and similar expressions are intended to identify
forward-looking statements and information. More particularly and
without limitation, this news release contains forward-looking
statements concerning: anticipated financial performance; the
future performance of acquired entities; the outlook for 2023;
expectations with respect to anticipated revenue growth, growth in
earnings per share and adjusted EBITDA in 2023 and beyond, and
margin improvements; the Company’s ability to capitalize on
opportunities and grow profitably; the demand for the Company's
modular business; the sufficiency of working capital; and with
respect to Bird’s ability to convert Pending Backlog to Backlog and
the timing of conversions.
Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Investors are cautioned that
forward-looking statements are based on the opinions, assumptions
and estimates of management considered reasonable at the date the
statements are made, and actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, but are not limited to the risks associated
with the industries in which the Company operates in general such
as: the ability to hire and retain qualified and capable personnel,
maintaining safe work sites, economy and cyclicality, ability to
secure work, global pandemics, performance of subcontractors,
accuracy of cost to complete estimates, estimating costs and
schedules/assessing contract risks, adjustments and cancellations
of Backlog, work stoppages, strikes and lockouts, acquisition and
integration risk, potential for non-payment, litigation/potential
litigation, design risks, information systems and cyber-security
risk, competitive factors, completion and performance guarantees,
access to capital, quality assurance and quality control, access to
surety support and other contract security, insurance risk, climate
change risk, joint venture risk, ethics and reputational risk,
compliance with environmental laws, internal and disclosure
controls, and payment of dividends.
Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on other factors
that could affect the operations or financial results of the
parties, and the combined company are included in reports on file
with applicable securities regulatory authorities, including but
not limited to; Bird's Annual Information Form and Management’s
Discussion and Analysis for the year ended December 31, 2022, each
of which may be accessed on Bird’s SEDAR+ profile, at
www.sedarplus.ca and on the Company’s website at
www.bird.ca.
The forward-looking statements contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as, and to the extent required
by applicable securities laws.
The Toronto Stock Exchange does not accept
responsibility for the adequacy or accuracy of this release.
For further information, please
contact:
T.L. McKibbon, President & CEO or W.R.
Gingrich, CFO Bird Construction Inc. 5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6 Phone: (905) 602-4122
ABOUT BIRD CONSTRUCTION
Bird (TSX: BDT) is a leading Canadian
construction company operating from coast-to-coast and servicing
all of Canada's major markets. Bird provides a comprehensive range
of construction services from new construction for industrial,
infrastructure and institutional markets to industrial maintenance,
repair and operations services, heavy civil construction, and mine
support services, as well as vertical infrastructure, including
electrical, mechanical, and specialty trades. For over 100 years,
Bird has been a people-focused company with an unwavering
commitment to safety and a high level of service that provides
long-term value for all stakeholders.
www.bird.ca
1 This News Release contains
terminology and financial measures that do not have standard
meanings under IFRS and may not be comparable with similar measures
presented by other companies. Further information regarding these
measures can be found in the “Terminology and Non-GAAP & Other
Financial Measures” section of this News Release.
Bird Construction (TSX:BDT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bird Construction (TSX:BDT)
Historical Stock Chart
From Apr 2023 to Apr 2024