BIRD CONSTRUCTION INC. ANNOUNCES 2014 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS
- Fourth quarter 2014 net income of $12.9 million on construction revenue of $390.6 million, compares with $5.7 million and $363.7 million, respectively, in the fourth quarter of 2013. The increase in 2014 net income is primarily a result of higher gross profits resulting from a shift in the Company’s work program to higher margin industrial work, the effect of a 7.4% increase in revenues this year, combined with the adverse impact of a project loss of $8.0 million recorded in the fourth quarter of 2013.
- For the year ended December 31, 2014, the Company recorded revenues of $1,364.5 million and net income of $36.2 million, compared with revenues of $1,331.7 million and net income of $12.1 million in 2013. The increase in 2014 earnings is primarily a result of higher gross profits due to a shift in the Company’s work program to higher margin industrial work combined with the adverse impact of a project loss of $20.5 million recorded in 2013.
- In 2014 the Company secured $1,245.5 million of new construction contracts, including change orders on existing contracts which contributed to a Backlog of $1,149.7 million at December 31, 2014, compared with $1,268.7 million at December 31, 2013.
- Subsequent to year-end, the Company announced that it was part of a consortium selected as the preferred proponent to design, build, finance and maintain the East Rail Maintenance Facility located in Whitby, Ontario for GO Transit. In addition to its role to design and construct the facility, Bird will also invest in a minority equity interest in the concession responsible for the design, build, financing and operation of the facility.
- Also subsequent to the year-end, the Company was awarded a fixed price contract to construct the Hamilton Transit Centre in Richmond, British Columbia, which consists of a new bus maintenance and operations centre to service Translink’s new fleet of energy efficient buses.
- 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 declares monthly dividends of $0.0633 per common share for March and April, 2015.
“We are pleased with the strong earnings performance achieved in 2014 in light of competitive market conditions and the economic uncertainty that materialized in the latter part of the year. As expected, our 2014 results represented a significant improvement compared with the results reported in 2013” stated Mr. Ian Boyd, President and CEO of Bird Construction. “Looking forward, the market and geographic diversification that we have developed will enable us to better deal with the downturn in the resource sector, particularly in northern Alberta. While we remain confident in our longer-term prospects, we believe that the results achieved last year will be difficult to reproduce in 2015”.
('000s except per share amounts)
|Three months |
|Three months ended Dec.31||Year ended|
|Net income & comprehensive income for the period||$12,882||$5,708||$36,237||$12,090|
|Basic & diluted earnings per share||$0.30||$0.13||$0.85||$0.28|
- Construction revenue in 2014 of $1,364.5 million was 2.5% higher than the $1,331.7 million recorded in 2013. In 2014, the Company experienced a shift in the composition of revenue to the industrial market, primarily due to the execution of a number of significant contracts secured in this sector in late 2013 and early 2014. The increase in industrial revenues was to a large extent offset by a decline in construction revenue from our commercial market where the Company was unable to replicate the significant work program executed in the sector in 2013 due to competitive market conditions.
- Net income of $36.2 million for the year ended December 31, 2014, compared with $12.1 million in 2013. The increase in the amount of 2014 earnings is primarily a result of higher gross profit resulting from a shift in the Company’s work program to higher margin industrial work combined with the adverse impact of a project loss recorded in 2013.
- Backlog of $1,149.7 million at December 31, 2014, compares to $1,268.7 million at December 31, 2013.
The Company also announced that its Board of Directors has approved regular cash dividends for the months of March and April, 2015, in the amount of $0.0633 per common share for each month to be paid as follows:
i) The March dividend of $0.0633 per share will be paid on April 20, 2015 to the Shareholders of record as of the close of business on March 31, 2015.
ii) The April dividend of $0.0633 per share will be paid on May 20, 2015 to the Shareholders of record as of the close of business on April 30, 2015.
A conference call for analysts and investors will be held at 10:00AM EST on Friday, March 13, 2015 to discuss the fourth quarter and annual 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
Bird Construction Inc. Announces 2014 Fourth Quarter And Annual Financial Results : News & Media : Bird Construction