FINANCIAL HIGHLIGHTS
With the completion of the second year of Bird's 2022-2024 strategic plan, the Company has made great progress in safely advancing our strategic priorities. Building on a solid 2022, Bird's 2023 fiscal year delivered significant organic revenue growth, continued accretion of Adjusted EBITDA margins, and strong operational cash flow. The Company also expanded its infrastructure presence in
Full-Year 2023 compared to Full-Year 2022
- Construction revenue of
$2,798.8 million was earned in 2023, compared to$2,369.3 million in 2022, representing a 18.1% increase year-over-year. - Net income and earnings per share for the year were
$71.5 million and$1.33 , compared to$49.9 million and$0.93 in 2022, representing increases of 43%. - Adjusted Earnings1 and Adjusted Earnings Per Share were
$74.2 million and$1.38 in 2023, compared to$46.0 million and$0.86 in the prior year, representing increases of 61%. - Adjusted EBITDA1 for 2023 was
$138.7 million , or 5.0% of revenues, compared to$101.2 million , or 4.3% of revenues in 2022, representing an increase of 37.1%.
Fourth Quarter 2023 compared to Fourth Quarter 2022
- Construction revenue of
$792.1 million earned in the quarter compared to$649.0 million earned in the prior year quarter, representing a 22.1% increase year-over-year. - Net income and earnings per share were
$23.9 million and$0.44 in Q4 2023, compared to$14.9 million and$0.28 in Q4 2022, representing increases of 60%. - Adjusted Earnings1 and Adjusted Earnings Per Share were
$24.3 million and$0.45 in Q4 2023, compared to$15.5 million and$0.29 in Q4 2022, representing increases of 57%. - Adjusted EBITDA1 of
$43.9 million , or 5.5% of revenues, compared to$30.6 million , or 4.7% of revenues in Q4 2022, representing an increase of 43.2%.
Financial Results | |||||||||||||
(in thousands of Canadian dollars, except per share amounts) | |||||||||||||
Three months ended | Twelve months ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Construction revenue | $ | 792,068 | $ | 648,967 | $ | 2,798,785 | $ | 2,369,332 | |||||
Net income | 23,881 | 14,932 | 71,539 | 49,863 | |||||||||
Basic and diluted earnings per share | 0.44 | 0.28 | 1.33 | 0.93 | |||||||||
Adjusted Earnings Per Share | 0.45 | 0.29 | 1.38 | 0.86 | |||||||||
Adjusted EBITDA1 | 43,868 | 30,639 | 138,749 | 101,185 | |||||||||
Cash flows from operations before changes in non-cash working capital | $ | 47,553 | $ | 33,465 | $ | 144,407 | $ | 114,370 | |||||
(1) Adjusted EBITDA is a non-GAAP financial measure. See “Terminology and Non-GAAP & Other Financial Measures.” |
HIGHLIGHTS
- Bird continued to deliver significant revenue growth in the fourth quarter of 2023 driven predominantly by organic growth, with additional contributions from Trinity, acquired on
February 1, 2023 . - The Company's margin profiles in the fourth quarter of 2023 continued to improve compared to the prior year, with Gross Profit Percentage increasing to 9.2% compared to 8.9%, and Adjusted EBITDA Margin increasing to 5.5% from 4.7%.
- Bird added over
$1.4 billion in securements to its Backlog in the fourth quarter ($3.6 billion year-to-date), resulting in a record Backlog of over$3.4 billion at year-end. Pending Backlog of awarded but not yet contracted work remains at a healthy$3.0 billion at year-end, and continues to include almost$1.1 billion of MSA and other recurring revenue to be earned over the next seven years. - During the quarter, the Company renewed and amended its Syndicated Credit Facility, extending the maturity to
December 15, 2026 , expanding the size of the revolving facility to$250 million , and adding the availability for an additional term loan facility which was subsequently used to complete the acquisition of assets ofNorCan Electric Inc. inJanuary 2024 . - In December, based on the strength of Bird's outlook for significant further improvements in earnings and cash flow in 2024 compared to 2023, the Company approved a 30.2% increase in its annualized dividend to
$0.56 per share. The increased monthly dividend of$0.0467 per share will commence with theMarch 2024 dividend, to be paid inApril 2024 . - Bird generated
$104.8 million in operating cash flow for the fourth quarter while continuing to fund a modest investment in non-cash working capital required to support significant growth in the Company's work program. The Company's liquidity position remains strong, with$177.5 million of cash and cash equivalents at year-end, and an additional$215.5 million available under the Company's Syndicated Credit Facility. - During the fourth quarter of 2023, 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 . - Bird announced that it had been awarded a construction management contract for the
Seneca Polytechnic Health & Wellness Centre Project , as well as a new multi-year task order under the previously announced Port Hope Area Initiative Master Construction Contract byCanadian Nuclear Laboratories . The combined value of the awards exceeds$130 million . - Bird announced that it had been awarded five new contracts in multiple sectors including energy, power generation, manufacturing and multi-storey modular. The combined value of the contracts exceeded
$530 million .
- Bird, as part of a 50/50 general partnership, entered into an agreement for early works at a new LNG project in
- Subsequent to the year end, the Company announced in
January 2024 that it had acquired the assets ofNorCan Electric Inc. (“NorCan”) for total consideration of$11 million . NorCan is a leading electrical and instrumentation contractor providing maintenance turnaround and sustaining capital services in theRegional Municipality of Wood Buffalo inAlberta . During their 25 years of service in the region, they have developed deep, long-term relationships based on their strong service delivery and safety program. Since 2018, NorCan has operated through an Indigenous partnership, theNorCan/Infinity Limited Partnership , with Infinity Métis Corporation. - Subsequent to the quarter end, the Company announced that it was awarded the following projects and contracts:
- Bird, as part of a 50/50 joint venture, entered into an Alliance Development Agreement to work collaboratively with
Metrolinx to deliver the East Harbour Transit Hub, one of the first major projects inCanada to be procured using an ‘alliance’ model.
- Bird, as part of a 50/50 joint venture, entered into an Alliance Development Agreement to work collaboratively with
- The Board has declared eligible dividends of
$0.0467 per common share for each ofMarch 2024 andApril 2024 , representing the 30% higher monthly dividend announced inDecember 2023 .
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to discuss the quarterly results on
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
“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
“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 ended | Twelve months ended | ||||||||||||
(in thousands of Canadian dollars, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||
Net income | $ | 23,881 | $ | 14,932 | $ | 71,539 | $ | 49,863 | |||||
Add: Acquisition and integration costs | 561 | 728 | 2,132 | 2,487 | |||||||||
Add: Impairment of assets | — | — | 1,430 | — | |||||||||
Deduct: Gain on settlement of trade receivable | — | — | — | (7,596 | ) | ||||||||
Income tax effect of the above costs | (147 | ) | (175 | ) | (871 | ) | 1,270 | ||||||
Adjusted Earnings | $ | 24,295 | $ | 15,485 | $ | 74,230 | $ | 46,024 | |||||
Adjusted Earnings Per Share (1) | $ | 0.45 | $ | 0.29 | $ | 1.38 | $ | 0.86 | |||||
(1) Calculated as Adjusted Earnings divided by basic weighted average shares outstanding. |
Adjusted EBITDA:
Three months ended | Twelve months ended | ||||||||||||||||
(in thousands of Canadian dollars, except percentage amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income | $ | 23,881 | $ | 14,932 | $ | 71,539 | $ | 49,863 | |||||||||
Add: Income tax expense | 7,385 | 5,459 | 21,692 | 17,322 | |||||||||||||
Add: Depreciation and amortization | 10,404 | 8,798 | 36,137 | 36,439 | |||||||||||||
Add: Finance and other costs | 4,247 | 2,933 | 13,158 | 9,818 | |||||||||||||
Less: Finance and other income | (1,206 | ) | (904 | ) | (5,216 | ) | (10,341 | ) | |||||||||
Add: (Gain)/loss on sale of property and equipment | (1,404 | ) | (1,307 | ) | (2,123 | ) | (4,403 | ) | |||||||||
Add: Acquisition and integration costs | 561 | 728 | 2,132 | 2,487 | |||||||||||||
Add: Impairment of assets | — | — | 1,430 | — | |||||||||||||
Adjusted EBITDA | $ | 43,868 | $ | 30,639 | $ | 138,749 | $ | 101,185 | |||||||||
Adjusted EBITDA Margin (1) | 5.5 | % | 4.7 | % | 5.0 | % | 4.3 | % | |||||||||
(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 outlook for 2024; expectations for Adjusted EBITDA Margins in 2024 and beyond; dividend rates, their sustainability, and expected dividend payout ratios; expectations with respect to anticipated revenue growth and seasonality, growth in earnings, cash flow, earnings per share and adjusted EBITDA in 2024 and beyond, and margin improvements; the ability of the Company to further leverage its cost structure; the Company’s ability to capitalize on opportunities and grow profitably; the robustness of near to medium term demand in core markets; the sufficiency of working capital and liquidity to support growth and finance future capital expenditures; 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, performance of subcontractors, accuracy of cost to complete estimates, estimating costs and schedules/assessing contract risks, adjustments and cancellations of Backlog, global pandemics, joint venture risk, information systems and cyber-security risk, litigation/potential litigation, work stoppages, strikes and lockouts, acquisition and integration risk, competitive factors, potential for non-payment, climate change risks and opportunities, access to capital, quality assurance and quality control, design risks, insurance risk, access to surety support and other contract security, completion and performance guarantees, ethics and reputational risk, compliance with environmental laws, and internal and disclosure controls.
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
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.
For further information, please contact:
Phone: (905) 602-4122
ABOUT
Bird (TSX: BDT) is a leading Canadian construction company operating from coast-to-coast and servicing all of
_______________________________
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.
Source:
2024 GlobeNewswire, Inc., source