Bird Construction Inc. Announces 2013 Fourth Quarter and Annual Financial Results

LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT

TORONTO, March 6, 2014 /CNW/ -

HIGHLIGHTS:

  • Fourth quarter net income of $5.7 million on construction revenue of $363.7 million, compares with $24.7 million and $420.3 million, respectively, in the fourth quarter of 2012.
  • Adjusted net income for the three months ended December 31, 2013 was $6.1 million ($0.14 per share), compared with $25.6 million ($0.61 per share) in 2012.
  • For the year ended December 31, 2013, the Company reported net income of $12.1 million on construction revenue of $1,331.7 million, compared with $58.2 million and $1,454.9 million, respectively, in 2012.
  • Adjusted net income for fiscal 2013 of $14.6 million ($0.34 per share) compares with $62.0 million ($1.47 per share) recorded in 2012.
  • The Company secured a record $1,518.3 million of work in 2013 and carries forward a record year end backlog of $1,268.7 million at December 31, 2013 compared with $1,073.9 million at December 31, 2012.
  • In the fourth quarter, the Company announced new contract awards totalling $400 million, including a large project to design and construct numerous non-process buildings at the Fort Hills oils sands site located north of Fort McMurray, Alberta.
  • In the fourth quarter, the Company as part of various consortia was short-listed to submit proposals for the Swift Current Long-Term Care Facility and the Saskatoon Civic Operations Centre both located in Saskatchewan and was qualified to bid for the Building Alberta Schools Construction Program.
  • Based on anticipated increases in revenue and improvement in margins, the Company expects earnings will return to a level which supports the current dividend level and will enable future growth.
  • Bird's Board of Directors declares monthly dividends of $0.0633 per common share for March 2014, and April 2014.

"Further execution issues on the previously identified fixed price project and lower returns originating from our industrial sector compared to 2012, which was impacted by the favourable completion of several contracts, contributed to disappointing results for the Company in both the fourth quarter and full year 2013 periods," commented Mr. Tim Talbott, President and CEO of Bird Construction.  "In the last half of the year, the Company had significant project awards leading to a record backlog.  A number of these awards were in our industrial sector which carries higher embedded gross profit margins.  With a record backlog and the troubled project behind us, we are looking forward to improving results as we move through 2014 which will support our dividend payout and future growth plans."

Financial Results              
('000s except per share amounts)              
  Three months ended
December 31
  Year ended
December 31
  2013   2012   2013   2012
               
Construction Revenue $363,692   $420,292   $1,331,689   $1,454,869
               
Net income and comprehensive income for the period $5,708   $24,704   $12,090   $58,245
                 
Adjusted net income (Non-GAAP measure) $6,146   $25,561   $14,550   $61,959
                 
Basic and diluted earnings per share $0.13   $0.58   $0.28   $1.38
Adjusted net income per share $0.14   $0.61   $0.34   $1.47
                 

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

  • Construction revenue decreased by 8.5% to $1,331.7 million for the year ended December 31, 2013, compared to $1,454.9 million for the year ended December 31, 2012, primarily due to lower revenues in our industrial and institutional markets, offset to some extent by higher construction revenues from commercial projects.
  • Net income of $12.1 million for the year ended December 31, 2013, compares to $58.2 million in 2012. The reduction in 2013 net income is in part a result of a loss relating to one fixed price project which experienced a number of execution issues and the timing and mix of construction projects executed in the respective periods which included lower returns derived from the industrial sector compared to 2012 which was impacted by the favourable completion of several contracts.
  • Adjusted net income of $14.6 million for the year ended December 31, 2013, compares to $62.0 million for the year ended December 31, 2012.
  • Backlog of $1,268.7 million at December 31, 2013 compares with $1,073.9 million at December 31, 2012.

Bird Construction Inc. also announced that its Board of Directors has approved regular cash dividends for the months of March and April 2014 in the amount of $0.0633 per common share for each month to be paid as follows:

i)    the March dividend of $0.0633 per share will be paid April 17, 2014 to the Shareholders of record as of the close of business on March 31, 2014.
ii)   the April dividend of $0.0633 per share will be paid May 20, 2014 to the Shareholders of record as of the close of business on April 30, 2014.
   

A conference call for analysts and investors will be held at 10:00 AM ET on Friday, March 7, 2014 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.

SOURCE Bird Construction Inc.

For further information:

T.J. Talbott, 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