MISSISSAUGA, Ontario, March 05, 2024 (GLOBE NEWSWIRE) — “The robust growth and profitability of Bird’s fourth quarter and full year reflect the power of executing our strategy, the trust and level of collaboration we have achieved with our clients, and the quality of delivery from our dedicated ‘One Bird’ team. Our capabilities to deliver sophisticated work and our position as a leading collaborative construction and maintenance company remain competitive advantages, which we intend to leverage in 2024 and beyond as we continue to focus on growth and margin expansion,” acknowledged Teri McKibbon, President and CEO of Bird Construction. “Supported by a strong balance sheet and ability to generate positive cash flow that allows the Company to invest in profitable organic growth and pursue accretive acquisitions, the Company is well positioned for the future.”
FINANCIAL HIGHLIGHTS
With the completion of the second 12 months of Bird’s 2022-2024 strategic plan, the Company has made nice progress in safely advancing our strategic priorities. Building on a strong 2022, Bird’s 2023 fiscal 12 months delivered important natural income progress, continued accretion of Adjusted EBITDA margins, and robust operational money circulation. The Company additionally expanded its infrastructure presence in Canada as evidenced by the just lately introduced Alliance Development Agreement to work collaboratively with Metrolinx to ship the East Harbour Transit Hub. Bird continued to pursue accretive tuck-in acquisitions with excessive progress potential, notably with the acquisitions of Trinity in February 2023 and NorCan introduced subsequent to year-end, and continued to expertise strong efficiency from earlier acquisitions. The Company’s extremely valued workforce grew in 2023 to satisfy the wants of Bird’s increasing work packages, with Bird being profitable in attracting, retaining and growing expertise all year long.
Full-Year 2023 in comparison with Full-Year 2022
- Construction income of $2,798.8 million was earned in 2023, in comparison with $2,369.3 million in 2022, representing a 18.1% enhance year-over-year.
- Net revenue and earnings per share for the 12 months had been $71.5 million and $1.33, in comparison with $49.9 million and $0.93 in 2022, representing will increase of 43%.
- Adjusted Earnings1 and Adjusted Earnings Per Share had been $74.2 million and $1.38 in 2023, in comparison with $46.0 million and $0.86 within the prior 12 months, representing will increase of 61%.
- Adjusted EBITDA1 for 2023 was $138.7 million, or 5.0% of revenues, in comparison with $101.2 million, or 4.3% of revenues in 2022, representing a rise of 37.1%.
Fourth Quarter 2023 in comparison with Fourth Quarter 2022
- Construction income of $792.1 million earned within the quarter in comparison with $649.0 million earned within the prior 12 months quarter, representing a 22.1% enhance year-over-year.
- Net revenue and earnings per share had been $23.9 million and $0.44 in This fall 2023, in comparison with $14.9 million and $0.28 in This fall 2022, representing will increase of 60%.
- Adjusted Earnings1 and Adjusted Earnings Per Share had been $24.3 million and $0.45 in This fall 2023, in comparison with $15.5 million and $0.29 in This fall 2022, representing will increase of 57%.
- Adjusted EBITDA1 of $43.9 million, or 5.5% of revenues, in comparison with $30.6 million, or 4.7% of revenues in This fall 2022, representing a rise of 43.2%.
| Financial Results | |||||||||||||
| (in hundreds of Canadian {dollars}, besides per share quantities) | |||||||||||||
| Three months ended December 31, |
Twelve months ended December 31, |
||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Construction income | $ | 792,068 | $ | 648,967 | $ | 2,798,785 | $ | 2,369,332 | |||||
| Net revenue | 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 earlier than modifications in non-cash working capital | $ | 47,553 | $ | 33,465 | $ | 144,407 | $ | 114,370 | |||||
| (1) Adjusted EBITDA is a non-GAAP monetary measure. See “Terminology and Non-GAAP & Other Financial Measures.” | |||||||||||||
HIGHLIGHTS
- Bird continued to ship important income progress within the fourth quarter of 2023 pushed predominantly by natural progress, with further contributions from Trinity, acquired on February 1, 2023.
- The Company’s margin profiles within the fourth quarter of 2023 continued to enhance in comparison with the prior 12 months, with Gross Profit Percentage growing to 9.2% in comparison with 8.9%, and Adjusted EBITDA Margin growing to five.5% from 4.7%.
- Bird added over $1.4 billion in securements to its Backlog within the fourth quarter ($3.6 billion year-to-date), leading to a report Backlog of over $3.4 billion at year-end. Pending Backlog of awarded however not but contracted work stays at a wholesome $3.0 billion at year-end, and continues to incorporate almost $1.1 billion of MSA and different recurring income to be earned over the following seven years.
- During the quarter, the Company renewed and amended its Syndicated Credit Facility, extending the maturity to December 15, 2026, increasing the scale of the revolving facility to $250 million, and including the availability for an extra time period mortgage facility which was subsequently used to finish the acquisition of property of NorCan Electric Inc. in January 2024.
- In December, primarily based on the power of Bird’s outlook for important additional enhancements in earnings and money circulation in 2024 in comparison with 2023, the Company accepted a 30.2% enhance in its annualized dividend to $0.56 per share. The elevated month-to-month dividend of $0.0467 per share will start with the March 2024 dividend, to be paid in April 2024.
- Bird generated $104.8 million in working money circulation for the fourth quarter whereas persevering with to fund a modest funding in non-cash working capital required to assist important progress within the Company’s work program. The Company’s liquidity position stays robust, with $177.5 million of money and money equivalents at year-end, and an extra $215.5 million available below the Company’s Syndicated Credit Facility.
- During the fourth quarter of 2023, the Company introduced that it was awarded the next tasks and contracts:
- Bird, as a part of a 50/50 normal partnership, entered into an settlement for early works at a brand new LNG challenge in Western Canada. Bird’s portion of the restricted discover to proceed contracts exceeds $150 million.
- Bird introduced that it had been awarded a building administration contract for the Seneca Polytechnic Health & Wellness Centre Project, in addition to a brand new multi-year activity order below the beforehand introduced Port Hope Area Initiative Master Construction Contract by Canadian Nuclear Laboratories. The mixed worth of the awards exceeds $130 million.
- Bird introduced that it had been awarded 5 new contracts in a number of sectors together with power, energy era, manufacturing and multi-storey modular. The mixed worth of the contracts exceeded $530 million.
- Subsequent to the 12 months finish, the Company introduced in January 2024 that it had acquired the property of NorCan Electric Inc. (“NorCan”) for whole consideration of $11 million. NorCan is a number one electrical and instrumentation contractor offering upkeep turnaround and sustaining capital companies within the Regional Municipality of Wood Buffalo in Alberta. During their 25 years of service within the area, they’ve developed deep, long-term relationships primarily based on their robust service supply and security program. Since 2018, NorCan has operated via an Indigenous partnership, the NorCan/Infinity Limited Partnership, with Infinity Métis Corporation.
- Subsequent to the quarter finish, the Company introduced that it was awarded the next tasks and contracts:
- Bird, as a part of a 50/50 three way partnership, entered into an Alliance Development Agreement to work collaboratively with Metrolinx to ship the East Harbour Transit Hub, one of many first main tasks in Canada to be procured utilizing an ‘alliance’ mannequin.
- The Board has declared eligible dividends of $0.0467 per frequent share for every of March 2024 and April 2024, representing the 30% larger month-to-month dividend introduced in December 2023.
CONFERENCE CALL AND WEBCAST
Bird will host an investor webcast to debate the quarterly outcomes on Wednesday, March 6, 2024 at 10:00 a.m. ET, to debate the Company’s outcomes. Analysts and buyers could hook up with the webcast at https://companies.choruscall.ca/hyperlinks/bird2023Q4.html. They might also dial 1-855-328-1925 for audio solely or to enter the query queue; attendees are requested to be on the road 10 minutes previous to the beginning of the decision. The presentation can be discovered on our web site at https://www.hen.ca/buyers.
The Company’s monetary statements and Management’s Discussion & Analysis (“MD&A”) might be filed and available on the System for Electronic Document Analysis and Retrieval (“SEDAR+”) at www.sedarplus.ca and on the Company’s web site at www.hen.ca.
TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES
Throughout this News Release, sure terminology and monetary measures are used that wouldn’t have normal meanings below IFRS and are thought of specified monetary measures. These embody non-GAAP monetary measures, non-GAAP monetary ratios, and supplementary monetary measures. These measures will not be comparable with related measures introduced by different corporations. Further info on these monetary measures will be discovered within the “Terminology and Non-GAAP & Other Financial Measures” part in Bird’s most just lately filed Management’s Discussion & Analysis for the interval ended December 31, 2023, ready as of March 5, 2024. This doc is available on Bird’s SEDAR+ profile, at www.sedarplus.ca and on the Company’s web site at www.hen.ca.
“Backlog” is the full worth of all contracts awarded to the Company, much less the full worth of labor accomplished on these contracts as of the date of essentially the most just lately accomplished quarter. The Company’s Backlog equates to the Company’s remaining efficiency obligations as at December 31, 2023 and December 31, 2022.
“Adjusted Earnings” and “Adjusted EBITDA” are non-GAAP monetary measures. “Adjusted Earnings Per Share” and “Adjusted EBITDA margin” are non-GAAP monetary ratios. “Pending Backlog” is a supplementary monetary measure.
Adjusted Earnings and Adjusted EBITDA are reconciled as follows:
Adjusted Earnings:
| Three months ended December 31, |
Twelve months ended December 31, |
||||||||||||
| (in hundreds of Canadian {dollars}, besides per share quantities) | 2023 | 2022 | 2023 | 2022 | |||||||||
| Net revenue | $ | 23,881 | $ | 14,932 | $ | 71,539 | $ | 49,863 | |||||
| Add: Acquisition and integration prices | 561 | 728 | 2,132 | 2,487 | |||||||||
| Add: Impairment of property | — | — | 1,430 | — | |||||||||
| Deduct: Gain on settlement of commerce receivable | — | — | — | (7,596 | ) | ||||||||
| Income tax impact of the above prices | (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 common shares excellent. | |||||||||||||
Adjusted EBITDA:
| Three months ended December 31, |
Twelve months ended December 31, |
||||||||||||||||
| (in hundreds of Canadian {dollars}, besides share quantities) | 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net revenue | $ | 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 different prices | 4,247 | 2,933 | 13,158 | 9,818 | |||||||||||||
| Less: Finance and different revenue | (1,206 | ) | (904 | ) | (5,216 | ) | (10,341 | ) | |||||||||
| Add: (Gain)/loss on sale of property and gear | (1,404 | ) | (1,307 | ) | (2,123 | ) | (4,403 | ) | |||||||||
| Add: Acquisition and integration prices | 561 | 728 | 2,132 | 2,487 | |||||||||||||
| Add: Impairment of property | — | — | 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 income. | |||||||||||||||||
FORWARD-LOOKING INFORMATION
This information launch comprises forward-looking statements and knowledge (“forward-looking statements”) throughout the that means of relevant Canadian securities legal guidelines. The forward-looking statements contained on this information launch are primarily based on the expectations, estimates and projections of administration of Bird as of the date of this information launch until in any other case acknowledged. The use of any of the phrases “imagine”, “count on”, “anticipate”, “ponder”, “goal”, “plan”, “intend”, “proceed”, “could”, “will”, “ought to” and related expressions are meant to establish forward-looking statements and knowledge. More notably and with out limitation, this information launch comprises forward-looking statements regarding: anticipated monetary efficiency; the outlook for 2024; expectations for Adjusted EBITDA Margins in 2024 and past; dividend charges, their sustainability, and anticipated dividend payout ratios; expectations with respect to anticipated income progress and seasonality, progress in earnings, money circulation, earnings per share and adjusted EBITDA in 2024 and past, and margin enhancements; the power of the Company to additional leverage its cost construction; the Company’s capacity to capitalize on alternatives and develop profitably; the robustness of close to to medium time period demand in core markets; the sufficiency of working capital and liquidity to assist progress and finance future capital expenditures; and with respect to Bird’s capacity to transform Pending Backlog to Backlog and the timing of conversions.
Since forward-looking statements deal with future occasions and circumstances, by their very nature they contain inherent dangers and uncertainties. Investors are cautioned that forward-looking statements are primarily based on the opinions, assumptions and estimates of administration thought of affordable on the date the statements are made, and precise outcomes may differ materially from these at present anticipated as a consequence of plenty of elements and dangers. These embody, however are usually not restricted to the dangers related to the industries wherein the Company operates basically akin to: the power to rent and retain certified and succesful personnel, sustaining secure work websites, financial system and cyclicality, capacity to safe work, efficiency of subcontractors, accuracy of cost to finish estimates, estimating prices and schedules/assessing contract dangers, changes and cancellations of Backlog, world pandemics, three way partnership danger, info methods and cyber-security danger, litigation/potential litigation, work stoppages, strikes and lockouts, acquisition and integration danger, aggressive elements, potential for non-payment, local weather change dangers and alternatives, access to capital, high quality assurance and high quality management, design dangers, insurance coverage danger, access to surety assist and different contract safety, completion and efficiency ensures, ethics and reputational danger, compliance with environmental legal guidelines, and inner and disclosure controls.
Readers are cautioned that the foregoing listing of things will not be exhaustive. Additional info on different elements that would have an effect on the operations or monetary outcomes of the events, and the mixed firm are included in experiences on file with relevant securities regulatory authorities, together with however not restricted to; Bird’s Annual Information Form and Management’s Discussion and Analysis for the 12 months ended December 31, 2023, every of which can be accessed on Bird’s SEDAR+ profile, at www.sedarplus.ca and on the Company’s web site at www.hen.ca.
The forward-looking statements contained on this information launch are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as, and to the extent required by relevant securities legal guidelines.
The Toronto Stock Exchange doesn’t settle for accountability for the adequacy or accuracy of this launch.
For additional info, 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 number one Canadian building firm working from coast-to-coast and servicing all of Canada’s main markets. Bird offers a complete vary of building companies from new building for industrial, infrastructure and buildings markets to industrial upkeep, restore and operations companies, heavy civil building, and mine assist companies, in addition to vertical infrastructure, together with electrical, mechanical, and specialty trades. For over 100 years, Bird has been a people-focused firm with an unwavering dedication to security and a excessive degree of service that gives long-term worth for all stakeholders. www.hen.ca
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1 This News Release comprises terminology and monetary measures that wouldn’t have normal meanings below IFRS and will not be comparable with related measures introduced by different corporations. Further info relating to these measures will be discovered within the “Terminology and Non-GAAP & Other Financial Measures” part of this News Release.
