BIRD CONSTRUCTION INC. ANNOUNCES 2015 FIRST QUARTER FINANCIAL RESULTS

LISTING: TSX
SYMBOL: BDT

HIGHLIGHTS:

  • First quarter 2015 net income of $4.7 million on construction revenue of $306.2 million, compares with $0.9 million and $274.7 million, respectively, in the first quarter of 2014. The increase in the amount of first quarter 2015 earnings compared to the first quarter of 2014 is primarily attributable to higher construction revenues combined with the effect of a higher gross profit percentage realized in 2015 resulting from an increase in the relative significance of higher margin industrial projects executed this year compared to a year ago.
  • In the first quarter of 2015, the Company secured $621.3 million of new construction contracts, including change orders on existing contracts which contributed to a record level of Backlog of $1,464.8 million at March 31, 2015, compared with $1,149.7 million at December 31, 2014. 
  • During the quarter, the Company, as part of a joint venture executed a design, build contract with Plenary Infrastructure ERMF GP Inc. to design and construct the East Rail Maintenance Facility located in Whitby, Ontario for GO Transit. In addition to its role to design and construct the facility, Bird acquired a minority equity interest in the concession responsible for the design, build, financing and operation of the facility.
  • During the quarter, the Company also executed a build and finance contract with the Ontario Government for the Casey House Hospice located in Toronto, Ontario. As part of the contract the Company arranged $29.1 million in non-recourse debt financing used to finance the construction of the facility.
  • Effective January 1, 2015 Mr. Ian Boyd, P.Eng., was appointed to the position of President and CEO of the Company, replacing Mr. Tim Talbott, P.Eng., who retired on the same date.
  • Bird’s Board of Directors declared monthly dividends of $0.0633 per common share for May, June and July 2015.
“We are pleased to report that our first quarter earnings were in line with our expectations and the 2015 year is off to a good start. The revenue executed in the first quarter is historically less than the remaining quarters of  the year, reflecting an element of seasonality in our business as is shown in our year to date performance. Our results are substantially better than those produced a year ago driven by the continued execution of our large industrial work program. We believe the Company is well positioned to produce a reasonable level of earnings in the current year despite the prevailing uncertain economic conditions, however, we continue to anticipate that it will be challenging to replicate 2014 earnings in 2015.” stated Mr. Ian Boyd, President and CEO of Bird Construction. “We are also encouraged by the level of new project awards received in the quarter across all ofour operating districts, including the industrial sector. These awards contributed to a record level of backlog for the Company at March 31, 2015, which will add to our results in the current year and, perhaps more importantly, into 2016.”

Financial Results
('000s except per share amounts)
 Three months 
ended March 31

  2015  2014 
Construction revenue  $306,163 $274,674  
Net income & comprehensive income for the period$4,727  $915  
Basic & diluted earnings per share$0.11 $0.02  

 

  • Construction revenue in 2015 of $306.2 million was 11.4% higher than the $274.7 million recorded in 2014. The increase in construction revenues is for the most part attributable to the continued execution of the Company’s significant industrial work program. In the first quarter of 2014 the Company had just recently secured a number of significant industrial contracts and the execution of this work program was just beginning so the impact of it on the earnings was not meaningful.
  • Net income of $4.7 million for the first quarter of 2015, was $3.8 million higher than $0.9 million in 2014. The increase in the amount of 2015 earnings is primarily a result of higher construction revenue combined with an increase in gross profit resulting from a shift in the Company’s work program to higher margin industrial work.
  • Backlog of $1,464.8 million at March 31, 2015, compares to $1,149.7 million at December 31, 2014.
 
The Company also announced that its Board of Directors has approved regular cash dividends for the months of May, June and July, 2015, in the amount of $0.0633 per common share for each month to be paid as follows:
i) The May dividend of $0.0633 per share will be paid on June 19, 2015 to the Shareholders of record as of the close of business on May 29, 2015.
ii) The June dividend of $0.0633 per share will be paid on July 20, 2015 to the Shareholders of record as of the close of business on June 30, 2015.
iii) The July dividend of $0.0633 per share will be paid August 20, 2015 to the Shareholders of record as of the close of business on July 31, 2015.

A conference call for analysts and investors will be held at 10:00AM EST on Wednesday, May 13, 2015 to discuss the first quarter 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.

This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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

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

our subsidiaries

Bird Construction Inc. Announces 2015 First Quarter Financial Results : News & Media : Bird Construction