February 08, 2021
Bird Construction Inc. Announces its Wholly Owned Subsidiary, Stuart Olson Industrial Projects Inc. has been Awarded a Five-Year MRO Contract for Bundled Industrial Services Valued in Excess of $550 Million
COMPANY: BIRD CONSTRUCTION INC.
LISTING: TORONTO STOCK EXCHANGE
DATE: FEBRUARY 8, 2021
SUBJECT: BIRD CONSTRUCTION INC. ANNOUNCES ITS WHOLLY OWNED SUBSIDIARY, STUART OLSON INDUSTRIAL PROJECTS INC. HAS BEEN AWARDED A FIVE-YEAR MRO CONTRACT FOR BUNDLED INDUSTRIAL SERVICES VALUED IN EXCESS OF $550 MILLION
Bird Construction Inc. (TSX: BDT) announced today that its wholly owned subsidiary, Stuart Olson Industrial Projects Inc., has been awarded a five-year contract valued in excess of $550 million to provide maintenance, repair and operations (MRO) services for a longstanding industrial customer in Alberta.
Under the terms of the multi-site, multi-use agreement, the Industrial Maintenance team will deliver a multi-disciplined offering for maintenance services, turnarounds and sustaining capital construction projects, drawing on the full suite of services of both Stuart Olson and Bird. Estimated 2021 revenues will be recorded into Backlog in the first quarter of 2021; the remaining value of the contract will be recorded in Pending Backlog.
“Our Industrial Maintenance team has maintained a best-in-class service offering in addition to a focus on an unparalleled client-first relationship. I am proud to see their hard work recognized through the renewal of this significant contract for an additional five years,” said Mr. Teri McKibbon, President and CEO of Bird. “One of the key pillars of our company’s growth strategy is to continue to increase our recurring revenue streams as they reduce seasonality and provide good visibility over time. The announcement today further validates our Stuart Olson acquisition and exemplifies our strategic focus and commitment to deliver sustainable, profitable growth and build long-term shareholder value.”
“Pending Backlog” has no standardized meaning under IFRS and is considered a non-GAAP measure. Therefore, this measure may not be comparable with similar measures presented by other companies. Pending Backlog is the total potential revenue of awarded but not contracted projects including where the Company has been named preferred proponent, where a contract has not been executed and where the letter of intent or agreement received are non-binding. It may also include amounts for agency relationship construction management projects, pre-construction activities and estimated future work orders to be performed as part of master service agreements. Management does not provide any assurance that a contract will be finalized, or revenue recognized in the future. Pending Backlog cannot be reconciled to any IFRS measure. Further details on non-GAAP measures are included in the Company’s Management’s Discussion and Analysis and available through the System for Electronic Document Analysis and Retrieval at www.sedar.com.
This press release contains forward-looking information (as defined in applicable Canadian securities legislation) that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance, or achievements to materially differ from those expressed or implied by the forward-looking information.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information contact:
T.L. McKibbon, President & CEO or
W.R. Gingrich, CFO
Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6
Phone: (905) 602-4122
About Bird Construction
Bird (TSX:BDT) is a leading Canadian construction company operating from coast-to-coast and servicing all of Canada’s major markets. Bird provides a comprehensive range of construction services from new construction for industrial, commercial, and institutional markets; to industrial maintenance, repair and operations services, heavy civil construction, and contract surface mining; as well as vertical infrastructure including, electrical, mechanical, and specialty trades. For over 100 years, Bird has been a people-focused company with an unwavering commitment to safety and a high level of service that provides long-term value for all stakeholders.