- During the first quarter of 2019, the Company recorded a net loss of $6.5 million on construction revenue of
$261.8 million, compared with net loss of $6.4 million on $294.4 million of construction revenue
respectively in 2018. Volume and gross
profit were negatively impacted in first quarter year-over-year in part due to harsher than expected winter
conditions experienced in central Canada that impacted productivity and resulted in some of the work program
commencing later than
- The first quarter results were also impacted by a Public Private Partnership (“PPP”) project
that incurred additional cost due to design related scope growth and acceleration expense to meet the
scheduled substantial completion date.
There were substantial changes to the scope of the project requested by the client that are currently under
commercial negotiation. The project is being executed by an office that was previously disclosed as having
performance issues that
has now been restructured.
- Adjusted EBITDA, which excludes $1.9 million of severance costs partially attributable to the restructuring
of an underperforming office, was a $3.1 million loss in the first quarter of 2019 compared to a $5.2
million loss in 2018.
- In 2019, the Company secured $248.9 million of new contract awards and change orders and executed
$261.8 million of construction revenues. The new contract awards in the first quarter contributed to a
Backlog of $1,283.1 million for the Company at March 31, 2019, essentially stable from Backlog recorded
at December 31, 2018.
- In the first quarter of 2019, cash and cash equivalents decreased $51.8 million net of the effects of
foreign exchange to $107.1 million, from $158.9 million at the end of 2018. The majority of the decrease in
cash and equivalents during the year
relate to changes in the non-cash net current asset/liability position which can fluctuate significantly in
the normal course of business.
- The Board has declared monthly eligible dividends of $0.0325 per common share for May, June and July 2019.
- Subsequent to quarter end, the East West Connectors consortium achieved financial close and entered into a
project agreement to design, build and finance the Confederation Line Extension (CLE) project in Ottawa,
Ontario. The Company, as a lead
partner of a joint venture, will enter into a contract with the design-builder to lead the construction of
sixteen light rail transit stations and one light maintenance and storage facility as part of the CLE
project. Due to the nature of
the preferred subcontractor arrangement between Bird and the design-builder, the contract is not expected to
be finalized and executed until 2020, following further advancement of the design, although Bird will begin
working on the project
“The first quarter was more challenging than initially anticipated due to harsher than expected winter
conditions and the resulting impact on some projects in addition to further execution issues on a PPP project in
an office that has now been
restructured to address systemic performance issues. I am satisfied that our restructuring of this office is
complete with a proven management team now in place”, said Ian Boyd, President & CEO. “Looking
ahead, our earnings will
improve through the remainder of 2019 as the Cedar Valley Lodge and OPP Phase 2 Modernization projects come into
full production by July and as our significant list of projects in pre-construction phases become contracted and
However, the setbacks experienced in the first quarter means that the ramp up to our historical normal earnings
in the range of $25 million will be delayed into 2020.”
(in thousands of Canadian dollars, except per share amounts)
Three months ended March 31,
$ 261,777 $ 294,422
Net income (loss)
$ (6,466) $ (6,408)
Basic and diluted earnings (loss) per share
$ (0.15) $ (0.15)
Adjusted EBITDA (1)
$ (3,132) (5,230)
Cash flows from (used in) operations before changes in non-cash working capital
(1) See "Non‐GAAP measures" at the end of this press release
A conference call for analysts and investors will be held at 10:00 a.m. EDT on Wednesday, May 8, 2019, 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
Related financial documents will be posted at www.bird.ca/Investors/publications.
Adjusted EBITDA has no standardized meaning under IFRS and are considered non-GAAP measures. Therefore, these
measures may not be comparable with similar measures presented by other companies. Management uses Adjusted
EBITDA to assess the operating performance of its business. Management believes that investors and analysts
use Adjusted EBITDA and it may provide predictive value to assess the ongoing operations of the business and
provides a more consistent comparison between financial reporting periods.
Adjusted EBITDA (Non-GAAP information):
(in thousands of Canadian dollars)
For the three months ended March 31,
Net income (loss)
Add: Income tax expense (recovery)
Add: Depreciation and amortization
Add: Finance and other costs
Less: Finance income
Add: Loss/(gain) on sale of property and equipment
Add: Restructuring and severance costs (1)
(1) Restructuring and severance costs did not meet the criteria to be classified under restructuring costs as defined
in accordance with IFRS.
Forward Looking Information
Certain statements included in this news release express management's expectations or estimates of future
performance may constitute "forward-looking information". The words "believe", "expect", "anticipate",
"contemplate", "target", "plan", "intends", and similar expressions identify forward-looking information.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to significant business, economic and competitive
uncertainties and contingencies. In particular, this news release includes such forward-looking information and
the Company cautions the reader that such forward-looking information involve known and unknown risks,
uncertainties and other factors that may cause the actual financial results, performance or achievements of the
Company to be materially different from the Company’s estimated future results, performance or
achievements expressed or implied by those forward-looking information and the forward- looking information is
not a guarantee of future performance. Risks that may impact the Company's future results, performance or
achievements include those described under "Risks Relating to the Business” in the Company's Annual
Information Form dated March 12, 2019 filed and the Company’s MD&A for the period ending March 31,
2019 available on SEDAR. The Company expressly disclaims any intention or obligation to update or revise any
forward-looking information whether as a result of new information, events or otherwise.
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
5700 Explorer Drive, Suite 400 Mississauga, ON L4W
Phone: (905) 602-4122 Fax: (905) 602-1516