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
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 ended | Nine months ended | ||||||||
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 onFebruary 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 theBlackwater Mine project in centralBritish Columbia , two contracts for rehabilitation work on hydroelectric power-related structures in northeasternOntario , and a contract for final site earthworks, grading and asphalt paving at an existing project site in northwesternBritish 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 atSt. Francis Xavier University , and two long-term care facilities inNova Scotia . The combined value of the contracts is over$350 million . - Bird was awarded two new contracts at the
ArcelorMittal Mont-Wright Mine inQuebec , and an award for the 2Nations Bird joint venture for Fine Tailings works on BHP's Jansen Stage 1Potash Project inSaskatchewan . 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 theUniversity 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 theHeartland Region ofAlberta by an undisclosed client. The combined value of the awards is approximately$100 million , to be executed over the next three years.
- Bird was awarded multiple contracts for industrial and civil work in the energy and mining sectors valued at approximately
- 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 .
- Bird, as part of a 50/50 general partnership, entered into an agreement for early works at a new LNG project in
- The Board has declared eligible dividends of
$0.0358 per common share for each ofNovember 2023 ,December 2023 ,January 2024 andFebruary 2024 .
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 | Nine months ended | ||||||||||||
(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 ended | Nine months ended | ||||||||||||
(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
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:
2023 GlobeNewswire, Inc., source