Bird Construction Inc. Announces Strong Third Quarter 2012 Earnings on Record Revenues

LISTING:  TORONTO STOCK EXCHANGE
SYMBOL: BDT

TORONTO, Nov. 12, 2012 /CNW/ -

HIGHLIGHTS:

  • Third quarter net income of $18.1 million on record quarterly construction revenue of $396.8 million, compares with $9.5 million and $278.6 million, respectively, in the third quarter of 2011.

  • For the nine months ended September 30, 2012, the Company reported net income of $33.5 million on record construction revenue of $1,034.6 million.  The year-to-date revenues were 61% higher than 2011, while net income was double last year's result.

  • Adjusted net income for the three months ended September 30, 2012 was $19.3 million compared with $10.3 million in 2011.

  • For the nine months ended September 30, 2012, the Company generated adjusted net income of $36.4 million compared with $17.9 million recorded in 2011.

  • The Company carries forward backlog of $1,162.3 million at September 30, 2012. During the third quarter of 2012, the Company was awarded $200.0 million in new construction contracts including change orders on existing contracts.

  • In the third quarter of 2012, the Company was part of two consortia shortlisted for a response to the Request for Proposal calls for the Iqaluit International Airport Improvement Project located on Baffin Island, Nunavut and the North Island Hospitals Project located on Vancouver Island, British Columbia.

"We are very pleased with the ability of the Company to execute effectively and efficiently on our portfolio of construction contracts. Our third quarter revenue represents a record for the Company which contributed significantly to the net income reported in the quarter and year-to-date under competitive market conditions." stated Tim Talbott, President and C.E.O. of Bird.  "With approximately $400 million of the current backlog expected to be put in place through the remainder of 2012, we expect to generate very respectable net income results for the year. In addition, Bird's operational centers are aggressively pursuing a number of significant construction opportunities. Our O'Connell subsidiary continues to produce good results and is an important factor in the increased revenue and net income results reported today."

Financial Results              
('000s except per share amounts)              
  Three months ended
September 30
  Nine months ended
September 30
  2012   2011   2012   2011
               
Construction Revenue $396,840   $278,561   $1,034,577   $642,468
               
Net income and comprehensive income for the period $18,104   $9,549        $33,541        $16,671
Adjusted net income (Non-GAAP measure) $19,318   $10,288   $36,383   $17,904
Basic and diluted earnings per share $0.43   $0.23   $0. 80   $0. 40
Adjusted net income per share $0.45   $0.24   $0.86   $0.42
               
               

Refer to the Company's Management Discussion and Analysis for a description of adjusted net income and reconciliation with net income.

  • Construction revenue increased by 61% to $1,034.6 million for the nine months ended September 30, 2012 compared to $642.5 million for the nine months ended September 30, 2011, primarily due to an increase in construction activity in northern Alberta, the contribution of H.J. O'Connell ("O'Connell") and timing in the execution of a number of our construction projects in the institutional and commercial sectors.

  • Net income of $33.5 million for the nine months ended September 30, 2012 compares to $16.7 million in the nine months ended September 30, 2011. Significantly improved net income in 2012 compared to 2011 is a result of higher revenues, higher gross profit margin percentages and the ongoing contribution from O'Connell.  Increased construction activity in northern Alberta, combined with significant construction progress on a number of institutional and commercial construction projects further contributed to higher construction revenues and income in the quarter.

  • Adjusted net income of $36.4 million for the nine months ended September 30, 2012 compares to $17.9 million for the nine months ended September 30, 2011.  O'Connell's profitable operations are making a strong contribution to this year's net income and adjusted net income.

  • Third quarter adjusted net income of $19.3 million reflects a quarterly peak due to the combination of favourable weather conditions on industrial projects and the magnitude of work on hand at the outset of the quarter in all our operating centers.

  • Backlog of $1,162.3 million at September 30, 2012 compares with $1,299.7 million at September 30, 2011 and $1,235.6 million at December 31, 2011.

Bird Construction Inc. also announced that its Board of Directors has approved regular cash dividends for the months of December 2012, January 2013 and February 2013 in the amount of $0.06 per common share for each month to be paid as follows:

          i) the December dividend will be paid January 18, 2013 to the Shareholders of record as of the close of business on December 31, 2012; and
          ii) the January dividend will be paid February 20, 2013 to the Shareholders of record as of the close of business on January 31, 2013; and
          iii) the February dividend will be paid March 20, 2013 to the Shareholders of record as of the close of business on February 28, 2013.
             

A conference call for analysts and investors will be held at 10:00 AM ET on Tuesday, November 13, 2012 to discuss the third quarter results.  The dial in number is 1-866-636-9090.  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. 

 

 

SOURCE: Bird Construction Inc.

For further information:

T.J. Talbott, President & C.E.O. or
S.R. Entwistle, C.F.O.
Bird Construction Inc.
5403 Eglinton Avenue West
Toronto, ON   M9C 5K6
Phone: (4l6) 620-7122 Fax: (416) 620-1516