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Bird Construction Inc. Announces 2018 Fourth Quarter And Annual Financial Results

LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT

MISSISSAUGA, ON , March 12, 2019 /CNW/ -

HIGHLIGHTS:

  • During the fourth quarter of 2018, the Company recorded net income of $6.4 million on construction revenue of $385.9 million , compared with net income of $2.0 million on $365.6 million of construction revenue respectively in 2017. The year-over-year increase in fourth quarter net income is reflective of the increase in revenue and earnings attributable to higher margin self-perform industrial work programs in the fourth quarter of 2018 as well as a reduction in pursuit costs and a foreign exchange translation gain on U.S. cash and equivalents held.

  • In 2018, the Company recorded a net loss of $1.0 million on construction revenue of $1,381.8 million compared with net income of $8.8 million on $1,418.6 million of construction revenue in 2017. The decrease in net income year-over-year is attributable to a confluence of events that the Company experienced in 2018. Industrial operations, including mining in eastern Canada , were negatively impacted by project delays, including a labour strike at one of the Company's primary mining clients, in the first half of 2018. Industrial project activity ramped up through the second half of the year as delays eased and alternative work programs became available, although later than initially anticipated. One of the Company's offices experienced execution issues on several projects that were largely design related and for which the Company has recorded provisions to account for the increase in costs, taken steps to mitigate further impacts and is seeking recovery accordingly. In the first quarter of 2018, the Company incurred additional costs, including financing costs from lenders, on a PPP project that was late in achieving substantial completion.

  • In 2018, the Company secured $1,491.7 million of new contract awards and change orders and executed $1,381.8 million of construction revenues. The new contract awards through the year contributed to a Backlog of $1,295.9 million for the Company at December 31, 2018 , an increase of $109.9 million , or 9.3% from the $1,186.0 million of Backlog recorded at December 31, 2017 . Key new contract awards in 2018 that demonstrate the Company's success in diversifying its work program include:

  • The Company announced in the third quarter that it was selected as first negotiations proponent as part of the CBS JV Corp to execute, under an Integrated Project Delivery ("IPD") contract model, the construction of the Advanced Nuclear Materials Research Centre ("ANMRC") for Canadian Nuclear Laboratories ("CNL") located in Chalk River, Ontario . Bird is part of the joint venture that will lead the construction of the project. The project has not yet been added to Backlog as CBS JV Corp is working through the validation phase, which confirms the project's financial viability and is expected to be complete by the third quarter of 2019.

  • The Company achieved substantial completion on three Public Private Partnership and alternative finance ("PPP") projects in the year ended December 31, 2018 :

  • In 2018, cash and cash equivalents increased $25.8 million net of the effects of foreign exchange to $158.9 million , from the $133.1 million balance at the end of 2017. The majority of the increase in cash and equivalents during the year relate to changes in the non-cash net current asset/liability position which can fluctuate significantly in the normal course of business.

  • The Board has declared monthly eligible dividends of $0.0325 per common share for March 2019 and April 2019 .


"While rebuilding our earnings base is taking longer than initially anticipated, I am encouraged by our performance in the second half of the year where the Company generated strong cash flow, grew backlog and is carrying a healthy list of awarded projects into 2019", said Ian Boyd , President & CEO. "Building off this momentum, we expect to see a ramp up in earnings throughout the year towards the $25.0 million of net income recorded in 2016, consistent with our outlook communicated in the third quarter and driven by a more balanced work program, with positive contributions from all sectors."

Financial Results

(in thousands of Canadian dollars, except per share amounts)


Three months ended December 31, 

Year ended December 31,



2018



2017
(restated)(1)


2018



2017
(restated)(1)












Construction revenue

$

385,854


$

365,552

$

1,381,784


$

1,418,557












Net income (loss)

$

6,379


$

1,990

$

(1,013)


$

8,836












Basic and diluted earnings (loss) per share

$

0.15


$

0.05

$

(0.02)


$

0.21












Cash flows from operations before changes in non-cash working capital

$

10,977


$

7,902

$

12,185


$

26,938












(1)2017 reported figures have been restated applying IFRS 15. See note 4 of the notes to the annual audited consolidated financial statements.


 

  • The year-over-year decrease in cash flows from operations before changes in non-cash working capital from 2017 is primarily the result of the $1.0 million net loss in 2018 compared to $8.8 million net income in 2017 and the change in income tax recovery year-over-year of $1.7 million in 2018 from an income tax expense of $4.2 million in 2017.


Bird Construction Inc. also announced that its Board of Directors has approved monthly eligible dividends for the months of March 2019 and April 2019 in the amount of $0.0325 per common share to be paid as follows:

i) The March dividend of $0.0325 per share will be paid on April 18, 2019 , to the shareholders of record as of the close of business on March 29, 2019 .

ii) The April dividend of $0.0325 per share will be paid on May 17, 2019 , to the shareholders of record as of the close of business on April 30, 2019 .

A conference call for analysts and investors will be held at 10:00 a.m. EDT on Wednesday , March 13, 2019, 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.

Related financial documents will be posted at www.bird.ca/Investors/publications.

This press release contains forward-looking information (as defined in applicable Canadian securities legislation) that involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to materially differ from those expressed or implied by the forward-looking information.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

For further information contact:
I.J. Boyd, President & C.E.O or
W.R. Gingrich, C.F.O
Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga , ON  L4W 0C6
Phone: (905) 602-4122 Fax: (905) 602-1516

SOURCE Bird Construction Inc.


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