BIRD CONSTRUCTION INC. ANNOUNCES 2015 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS
- Fourth quarter 2015 net income of $11.6 million on construction revenue of $413.4 million, compares with $12.9 million and $390.6 million, respectively, in the fourth quarter of 2014. The reduction in fourth quarter 2015 net income is primarily attributable to higher general and administrative expenses and finance and other costs, partially offset by higher gross profits resulting from an increase in construction revenue.
- For the year ended December 31, 2015, the Company recorded revenues of $1,444.8 million and net income of $21.5 million, compared with revenues of $1,364.5 million and net income of $36.2 million in 2014. The reduction in 2015 net income is mainly due to a non-cash charge to earnings of $22.4 million ($20.3 million after deferred tax reversal) for the impairment of goodwill and intangible assets relating to the Company’s investment in its wholly owned subsidiary H.J. O’Connell Limited.
- Adjusting for the non-cash impairment charge, the Company’s adjusted net income was $41.8 million (a non-GAAP measure) on construction revenue of $1,444.8 million in the 12 months of 2015. Adjusted net income in 2015 of $41.8 million exceeded 2014 net income of $36.2 million by $5.6 million or 15.5 percent. The increase in 2015 adjusted net income is a result of higher gross profit resulting from higher construction revenues and an improvement in the gross profit percentage. A reduction in 2015 general and administrative expenses also contributed to the improvement in 2015 adjusted net income (a non-GAAP measure).
- Unfavourable market and economic conditions surrounding O’Connell’s operating environment are expected to negatively affect future revenues and earnings resulting in a third quarter impairment charge for the goodwill and intangible assets relating to the O’Connell investment.
- In 2015, the Company secured $1,957.9 million of new construction contracts, including change orders on existing contracts which contributed to a Backlog of $1,662.8 million at December 31, 2015, compared with $1,149.7 million at December 31, 2014. The increase in Backlog in 2015 is a result of the Company’s success in securing a number of significant public-private partnerships (PPP) and alternative finance projects along with a number of other large non-PPP institutional projects across all of the Company’s operating regions.
- Bird’s Board of Directors declares monthly dividends of $0.0633 per common share for April 2016.
“The year 2015 has been marked by strong execution of our existing work program and success in securing a significant volume of new institutional projects, including seven PPP and alternative finance projects, contributing to a Backlog of almost $1.7 billion at year-end. This level of Backlog will make a positive contribution to future earnings and further demonstrates the value of our diversified work program in light of the decline in the resource sector,” commented Mr. Ian Boyd, President and CEO of Bird Construction. “Unfortunately, this solid performance was somewhat offset by the impairment charge for goodwill and intangible assets relating to our investment in H.J. O’Connell Limited recorded in the third quarter. Looking towards 2016, our earnings are expected to remain strong, though less than 2015 adjusted earnings due to a lower contribution from the industrial market in Western Canada.”
('000s except per share amounts)
|Three months |
|Three months ended Dec.31||Year ended|
|Net income (loss) & comprehensive income||$11,556||$12,882||$21,482||$36,237|
|Basic & diluted earnings per share||$0.28||$0.30||$0.51||$0.85|
|Adjusted net income (a non-gaap measure)||$11,556||$12,882||$41,802||$36,237|
|Adjusted net income per share||$0.28||$0.30||$0.98||$0.85|
|Cash flow from operations before changes in non cash working capital||$21,893||$21,219||$75,291||$64,899|
- Construction revenue of $1,444.8 million in the year ended December 31, 2015, was $80.3 million higher than $1,364.5 million recorded in the year ended December 31, 2014. The 5.9% increase in revenues was primarily a result of higher institutional revenues resulting from the execution of the significant work program secured earlier in the year. The Company’s industrial revenues remained relatively comparable to those recorded in 2014.
- Net income of $21.5 million in the year ended December 31, 2015, compares to $36.2 million in 2014. The reduction in 2015 net income is primarily attributable to a non-cash charge to earnings of $22.4 million ($20.3 million after deferred tax reversal) for the impairment of goodwill and intangible assets relating to the Company’s investment in its wholly owned subsidiary H.J. O’Connell Limited.
- Adjusting for the non-cash impairment charge, the Company’s adjusted net income was $41.8 million (a non-GAAP measure) on construction revenue of $1,444.8 million in the 12 months of 2015. The increase in the amount of 2015 adjusted net income is a result of higher gross profits resulting from an increase in revenues and an improvement in the gross profit percentage. A reduction in 2015 general and administrative expenses also made a contribution to an increase in adjusted net income.
Bird Construction Inc. also announced that its Board of Directors has approved regular cash dividends for the month of April 2016 in the amount of $0.0633 per common share to be paid as follows:
i) The April dividend of $0.0633 per share will be paid on May 20, 2016, to the Shareholders of record as of the close of business on April 29, 2016.
A conference call for analysts and investors will be held at 10:00AM EDT on Tuesday, March 15, 2016, 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.
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 2015 Fourth Quarter And Annual Financial Results : News & Media : Bird Construction