BIRD CONSTRUCTION INC. ANNOUNCES 2016 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS
- In the fourth quarter of 2016, the Company recorded net income of $5.8 million on construction revenue of $430.7 million compared with net income of $11.6 million and $413.4 million of construction revenue recorded in the fourth quarter of 2015. The increase in construction revenues is largely due to the execution of the Company’s significant commercial and institutional work program, including many PPP and alternative finance projects. As expected, the Company’s industrial revenues declined relative to those recorded in 2015, primarily due to a reduced work program resulting from the successful completion of several large scale projects during the year and the general state of the market in 2016.
- The Company generated net income of $25.0 million on construction revenue of $1,589.9 million in 2016 compared with $21.5 million and $1,444.8 million, respectively in 2015. The Company organically grew revenue by $145.1 million or 10.0% from $1,444.8 million recorded a year ago. The increase in construction revenues is largely due to the execution of the Company’s significant institutional work program, including many PPP and alternative finance projects, secured in 2015.
- In 2016, the Company secured $1,064.1 million of new contract awards and change orders, and executed $1,589.9 million of construction revenues. New work secured through the course of the year contributed to a Backlog of $1,137.0 million for the Company at December 31, 2016, compared with $1,662.8 million at December 31, 2015. The decline in backlog from the end of 2015 is representative of the fact that the Company did not secure a major project in 2016, as available opportunities were limited for securement in fiscal 2016. The Company has been successful in securing many smaller but strategic projects with opportunities to win additional work packages as the Company looks to diversify its revenue streams into new markets and with new clients.
- Subsequent to year-end, the Company announced the contract signing for the Mental Health Facility and Energy Centre at Royal Columbian Hospital and that it was part of a consortium named as preferred proponent for the Hamilton Biosolids project.
- Bird’s Board of Directors declared a monthly dividend of $0.0325 per common share for April 2017.
“The fourth quarter capped a year in which the Company successfully completed several key industrial projects and saw revenues derived from our institutional work program grow significantly as the Company continues to focus on larger scale, more complex projects. While backlog declined through the course of 2016, our pursuit activity increased in the fourth quarter and subsequent to year-end the Company was successful in securing the initial phase of the Royal Columbian Hospital redevelopment and was named preferred proponent for the Hamilton Biosolids project, both key wins for the business,” commented Mr. Ian Boyd, President & CEO of Bird Construction. “Although we still anticipate a significant reduction in earnings in 2017 as compared to 2016, we are encouraged by our recent wins and our ability to capitalize on the growing number of opportunities in the PPP market, inclusive of social, transportation and environmental infrastructure projects.”
('000s except per share amounts)
|Three months |
|Three months ended Dec.31||Year ended|
|Net income (loss) & comprehensive income||$5,798||$11,556||$25,002||$21,482|
|Basic & diluted earnings per share||$0.14||$0.28||$0.59||$0.51|
|Adjusted net income (a non-GAAP measure)||$8,537||$11,556||$27,741||$41,802|
|Adjusted net income per share||$0.20||$0.28||$0.65||$0.98|
|Cash flow from operations before changes in non cash working capital||$14,258||$21,893||$48,426||$75,291|
- Adjusting for the non-cash after-tax impairment charges related to H.J. O’Connell Limited of $2.7 million on equipment in fourth quarter 2016 and $20.3 million for goodwill and intangibles in third quarter 2015, the Company's adjusted net income in 2016 and 2015 was $27.7 million and $41.8 million (a non-GAAP measure), respectively. Adjusted net income in 2016 of $27.7 million was less than 2015 adjusted net income of $41.8 million by $14.1 million or 33.6%. The decrease is primarily a result of lower gross profit due to a shift in the mix of the work program from comparatively higher margin industrial work to lower margin institutional work. In addition, the wildfires in northern Alberta had a negative impact on the execution of several projects, resulting in delays and additional costs that reduced gross profit by approximately $4.0 million in 2016. The net income reduction was partially offset through efficiencies in general and administrative expenses.
i) The April dividend of $0.0325 per share will be paid on May 19, 2017, to the Shareholders of record as of the close of business on April 28, 2017.
A conference call for analysts and investors will be held at 10:00AM EDT on Wednesday, March 15, 2017, 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:
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
Bird Construction Inc. Announces 2016 Fourth Quarter And Annual Financial Results : News & Media : Bird Construction