LISTING: TORONTO STOCK EXCHANGE
TORONTO, March 27 /CNW/ - Bird Construction Income Fund today reported
record results for the year ended December 31, 2007. Paul Charette, the Fund's
Chairman, is quoted as saying, "We are very encouraged by the significant
increases in revenues, pre-tax income and net income. The 50% increase in net
income was achieved in spite of recording an increase in income taxes of
$6.6 million. The additional income tax provision resulted from an unintended
technical tax matter for which the Fund will be seeking relief from the Courts
and the relevant taxation authorities. Although no assurance can be given
concerning our success in seeking relief, the Fund has received advice that
the Fund should achieve a full recovery of the income taxes. A doubling of the
Fund's level of backlog is also very promising for the future."
Restated results for the three months ended March 31, 2007, the
six months ended June 30, 2007 and the nine months ended September 30, 2007
and supporting MD&A's reflecting the impact of the income tax liability can be
found on Sedar at www.sedar.com.
Results for the Year Ended December 31, 2007
($000 except per unit data)
Three months ended Year ended
December 31 December 31
2007 2006 2007 2006
Construction 222,262 146,062 753,905 530,188
Investment income 1,189 927 2,974 3,181
Total revenues 223,451 146,989 756,879 533,369
Income before income taxes 20,774 8,728 51,342 27,415
Income tax expense 9,567 1,647 17,930 5,241
Net income 11,207 7,081 33,412 22,174
Earnings per unit 0.81 0.51 2.42 1.65
- Construction revenue increased 42.2% to $753.9 million compared to
$530.2 million for the year ended December 31, 2006.
- Income before income taxes increased 87.3% to $51.3 million compared
to $27.4 million for the year ended December 31, 2006.
- Income tax expense of $17.9 million for the year ended December 31,
2007 includes the accrual of $6.6 million related to transactions
between the Fund and a subsidiary.
In 2007, the Company completed certain transactions related to the stated
capital of its common shares held by the Fund in a manner that resulted in
unintended current income tax liabilities of the Fund, totaling $6.6 million
in 2007. The current income tax liability of $6.6 million for 2007 has been
accrued as a current income tax expense in the Fund's consolidated financial
statements for the year ended December 31, 2007. These transactions were
intended by the Company and the Fund to be tax free returns of stated capital
and, accordingly, the current income tax liabilities resulting therefrom were
inadvertent. The Company and the Fund have reviewed alternatives, including
applying to the Saskatchewan Court of Queen's Bench (the "Court") to request
(the "Request") an order (the "Order") rectifying the relevant documentation
in order to correctly reflect the intentions of the Company and the Fund in
respect of these transactions and thereby eliminate the resulting income tax
liabilities. No assurance can be given that the Court will grant the Order in
whole or in part or that taxation authorities will not oppose the Request.
In the first quarter of 2008, the Company completed additional
transactions with the Fund on the same basis as those described above. If the
Court does not grant the Order, the Fund would incur an additional current
income tax liability of $1.9 million.
- Net income increased 50.7% to $33.4 million compared to $22.2 million
in the year ended December 31, 2006.
- Working capital of $49.8 million has improved significantly in
comparison to the $34.5 million position as of December 31, 2006.
- Backlog has also increased significantly to $969.3 million as at
December 31, 2007 compared to $464.7 million as at December 31, 2006.
Bird Construction Income Fund also announced that its Board of Trustees
has approved its regular cash distribution for the month of April 2008, in the
amount of $0.1209 per unit to be paid May 20, 2008 to the unitholders of
record as of the close of business on April 30, 2008.
Bird Construction is an international general contractor providing
general contracting, construction management and design-build services to
institutional, commercial, industrial and residential sectors from offices in
Calgary, Edmonton, Halifax, Saint John, Seattle, Toronto, Vancouver and
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this release.
For further information:
For further information: P.A. Charette, Chairman and C.E.O., Bird
Construction Company Limited as Administrator of Bird Construction Income
Fund, 5403 Eglinton Avenue West, Toronto, ON, M9C 5K6, Phone: (4l6) 620-7122,
Fax: (416) 620-1516