Bird Construction Inc. Announces 2015 Third Quarter Results

LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT

TORONTO, Nov. 10, 2015 /CNW/ -

HIGHLIGHTS:

• Third quarter 2015 net loss of $5.6 million on construction revenue of $389.9 million, compares with $12.4 million and $370.4 million, respectively, in the third quarter of 2014. The reduction in third quarter 2015 net income is primarily attributable to a non-cash charge to earnings of $22.4 million ($20.3 million after deferred tax reversal) for the impairment of goodwill and intangible assets relating to the Company's investment in its wholly owned subsidiary H.J. O'Connell Limited.
• Adjusting net income for the non-cash impairment charge, the Company would have recorded adjusted net income of $14.7 million (a non-GAAP measure) on construction revenue of $389.9 million in the third quarter of 2015. The increase in 2015 adjusted net income is a result of higher construction revenue combined with a slightly higher gross profit percentage and lower general and administrative expenses.
• Unfavourable market and economic conditions surrounding O'Connell's operating environment are expected to negatively affect future revenues and earnings resulting in a third quarter impairment charge for the goodwill and intangible assets relating to the O'Connell investment.
• For the nine months ended September 30, 2015, the Company reported net income of $9.9 million on construction revenue of $1,031.4 million, compared with net income of $23.4 million on construction revenue of $973.9 million in 2014. The reduction in 2015 net income is primarily attributable to a non-cash charge to earnings of $22.4 million ($20.3 million after deferred tax reversal) for the impairment of goodwill and intangible assets relating to the Company's investment in its wholly owned subsidiary H.J. O'Connell Limited.
• Adjusting net income for the non-cash impairment charge, the Company would have recorded adjusted net income of $30.2 million (a non-GAAP measure) on construction revenue of $1,031.4 million in the nine months of 2015, exceeding the results for the same period in 2014. The increase in 2015 adjusted net income is a result of higher construction revenue, a slightly higher gross profit percentage and lower general and administrative expenses.
• The Company secured $1,716.7 million of new construction contracts, including change orders on existing contracts, to date in 2015. At September 30, 2015, the Company has achieved a record level of Backlog of $1,835.0 million compared with $1,149.7 million at December 31, 2014 and $1,340.7 million at September 30, 2014.
• Bird's Board of Directors declares monthly dividends of $0.0633 per common share for November and December 2015 and January, February and March 2016.

"We are very pleased to report that in the third quarter the Company secured a significant number of new PPP construction contracts which contributed to a record level of Backlog of just over $1.8 billion at quarter end. These projects will make a positive contribution to earnings in the final quarter of 2015 and more importantly in 2016 and beyond. The loss reported in the third quarter is a result of a non-cash impairment charge for the goodwill and intangible assets relating to our investment in H.J. O'Connell Limited. Had it not been for this expense, earnings for the year and the third quarter would have exceeded 2014 results and our expectations for the year. Looking towards 2016, we remain confident in our ability to deliver solid results, albeit lower than 2015 adjusted net income, as we work through our record level of Backlog and in spite of ongoing challenging economic conditions in the resource sector.", commented Mr. Ian Boyd, President and CEO of Bird Construction.

Financial Results
('000s except per share amounts)
				Three months ended				Nine months ended
				September 30				September 30
				2015		2014		2015		2014
Construction Revenue				$389,878		$370,382		$1,031,363		$973,891
Net income (loss) and comprehensive income				$(5,616)		$12,425		$9,926		$23,355
Basic and diluted earnings per share				$(0.13)		$0.29		$0.23		$0.55
Adjusted net income				$14,704		$12,425		$30,246		$23,355
Adjusted net income per share				$0.35		$0.29		$0.71		$0.55

• Construction revenue of $1,031.4 million in the nine months ended September 30, 2015 were $57.5 million higher than $973.9 million recorded in the nine months ended September 30, 2014. The 5.9% increase in revenues was primarily a result of higher institutional revenues resulting from the execution of the significant work program secured earlier in the year and to a lesser extent through higher industrial revenues.
• Net income of $9.9 million in the nine months ended September 30, 2015, compares to $23.4 million in 2014. The reduction in 2015  net income is primarily attributable to a non-cash charge to earnings of $22.4 million ($20.3 million after deferred tax reversal) for the impairment of goodwill and intangible assets relating to the Company's investment in its wholly owned subsidiary H.J. O'Connell Limited.  
• Adjusting net income for the non-cash impairment charge, the Company would have recorded adjusted net income of $30.2 million (a non-GAAP measure) on construction revenue of $1,031.4 million in the nine months of 2015.
• The Company's record Backlog of $1,835.0 million at September 30, 2015 compares to $1,340.7 million at September 30, 2014 and $1,149.7 million at December 31, 2014.

Bird Construction Inc. also announced that its Board of Directors has approved regular cash dividends for the months of November and December 2015 and January, February, March 2016 in the amount of $0.0633 per common share for each month to be paid as follows;

i)	The November dividend of $0.0633 per share will be paid on December 18, 2015 to the Shareholders of record as of the close of business on November 30, 2015.
ii)	The December dividend of $0.0633 per share will be paid on January 20, 2016 to the Shareholders of record as of the close of business on December 31, 2015.
iii)	The January dividend of $0.0633 per share will be paid on February 19, 2016 to the Shareholders of record as of the close of business on January 29, 2016.
iv)	The February dividend of $0.0633 per share will be paid on March 18, 2016 to the Shareholders of record as of the close of business on February 29, 2016.
v)	The March dividend of $0.0633 per share will be paid on April 20, 2016 to the Shareholders of record as of the close of business on March 31, 2016.

A conference call for analysts and investors will be held at 10:00AM ET on Wednesday November 11, 2015 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.

I.J. Boyd, President & C.E.O or S.R. Entwistle, C.F.O, Bird Construction Inc., 5700 Explorer Drive, Suite 400, Mississauga, ON, L4W 0C6, Phone: [phone], Fax: [phone]