Bird Construction Inc. Announces 2016 First Quarter Results

LISTING: TORONTO STOCK EXCHANGE
SYMBOL: BDT

TORONTO, May 11, 2016 /CNW/ -

HIGHLIGHTS:

• First quarter 2016 net income of $9.3 million on construction revenue of $338.3 million, compares with $4.7 million and $306.2 million, respectively, in the first quarter of 2015. The increase in first quarter 2016 net income is primarily a result of higher construction revenue, the realization of a higher gross profit percentage combined to a lesser extent with the effect of lower general and administrative expenses.
  
  
• In the first quarter of 2016, the Company secured $267.5 million of new construction contracts, including change orders on existing contracts which contributed to a Backlog of $1,592.0 million at March 31, 2016, compared with $1,662.8 million at December 31, 2015. New construction contract awards were received in all market sectors across the country including the industrial sector in Western Canada.
  
  
• In the first quarter the Company was awarded a fixed-price contract by the City of Calgary to construct the Seton Recreational Facility located in the southeast region of the city.
  
  
• During the first quarter the Company successfully negotiated a $10.0 million increase in its operating line of credit, increasing the facility from $45.0 million to $55.0 million. The increase will provide the Company with additional financial capacity and flexibility to issue unsecured letters of credit.
  
  
• Bird's Board of Directors declares monthly dividends of $0.0633 per common share for May, June and July 2016.
  
  "Our first quarter results represented a strong start to the year, driven by solid execution of our projects across all of our operating areas. With Backlog near $1.6 billion, the Company has a strong work program that will contribute positively to our results in 2016 despite the decline of the resource sector," commented Mr. Ian Boyd, President and CEO of Bird Construction. "We will continue to source new opportunities in the institutional and commercial markets to replace the decline in the revenue and gross profit contribution from our industrial operations. Nevertheless, the change in the composition of our work program will make it challenging for the Company to replicate the level of earnings recorded in 2015, adjusted for the after-tax HJO impairment loss reported last year."

Financial Results
('000s except per share amounts)
				Three months ended
				March 31,
				2016		2015
Construction Revenue				$338,294		$306,163
Net income (loss) and comprehensive income				$9,343		$4,727
Basic and diluted earnings per share				$0.22		$0.11

• Construction revenue of $338.3 million in the quarter ended March 31, 2016, was $32.1 million higher than $306.2 million recorded in the quarter ended March 31, 2015. The 10.5% increase in revenues was primarily a result of higher institutional revenues resulting from the execution of the significant work program secured in the second half of 2015. As expected revenue derived from the industrial sector was lower in the quarter compared to a year ago, a by-product of the persistent low commodity price environment.
  
  
• Net income of $9.3 million in the first quarter of 2016 was almost double the amount recorded in 2015. The increase in net income is primarily a result of higher construction revenue, the realization of a higher gross profit percentage combined with lower general and administrative expenses.

Bird Construction Inc. also announced that its Board of Directors has approved regular cash dividends for the months May, June and July 2016 in the amount of $0.0633 per common share to be paid as follows:

i)	The May dividend of $0.0633 per share will be paid on June 20, 2016, to the Shareholders of record as of the close of business on May 31, 2016.
ii)	The June dividend of $0.0633 per share will be paid on July 20, 2016, to the Shareholders of record as of the close of business on June 30, 2016.
iii)	The July dividend of $0.0633 per share will be paid on August 19, 2016, to the Shareholders of record as of the close of business on July 29, 2016.

A conference call for analysts and investors will be held at 10:00AM EDT on Thursday, May 12, 2016, 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]