LISTING: TORONTO STOCK EXCHANGE
TORONTO, May 14, 2012 /CNW/ -
- Improved first quarter net income of $6.4 million on construction revenue of $294.7 million, compared with $4.1 million and $171.2 million in the first quarter of 2011. The 57% improvement in earnings reflects the combined effect of higher revenues, higher gross margin percentages and the contribution from H.J. O'Connell ("O'Connell") during the quarter.
- In the first quarter of 2012, the Company generated adjusted net income of $7.2 million or 71.4% higher than the $4.2 million recorded in 2011.
- Backlog remains very strong at $1,165.9 million at March 31, 2012. During the quarter the Company secured $225.0 in new construction contracts including change orders on existing contracts.
- Subsequent to the quarter end, the Company has been awarded a number of new construction projects totalling $235 million, including a civil construction contract in the Alberta oil sands, at the Voyageur Upgrader project operated by Suncor Energy. These new construction contracts will be added to Bird's backlog in the second quarter of 2012.
- Bird's Board of Directors approved a 9% increase in the monthly dividend from $0.055 to $0.060 per share, effective with the March 2012 dividend.
Tim Talbott, President and C.E.O. of Bird, stated that "we are pleased with the improvement in our first quarter 2012 earnings relative to those reported a year ago. The results are in line with management's expectations for the quarter, including the contribution from our O'Connell acquisition. Although the first quarter net income was less than our fourth quarter 2011 results, the variance reflects an element of seasonality in the business and differences in the profitability of the construction projects executed in the respective periods. We are seeing some signs of a market recovery where Bird operates. This recovery, combined with a strong backlog, improving gross margins and our well-positioned industrial operations, including O'Connell, should produce improved 2012 results."
|('000s except per share amounts)|
| Three months ended
|Net income and comprehensive income for the period||6,435||4,109|
|Adjusted net income (non-GAAP measure)||$||7,241||$||4,210|
|Basic and diluted earnings per share||$0.15||$0.10|
|Adjusted net income per share (non-GAAP measure)||$0.17||$0.10|
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 72.2% to $294.7 million for the three months ended March 31, 2012 compared to $171.2 million for the three months ended March 31, 2011, primarily due to timing in the execution of our construction projects combined with the impact of O'Connell.
- Net income of $6.4 million for the three months ended March 31, 2012 compares to $4.1 million in the three months ended March 31, 2011. The increase in net income is a result of higher construction revenue and related gross profit offset to some extent by higher general and administrative expenses, higher finance costs and higher income tax expense in the quarter.
- Adjusted net income of $7.2 million for the three months ended March 31, 2012 compares to $4.2 million in the three months ended March 31, 2011. O'Connell's profitable operations continue to make a contribution to Bird's net income and adjusted net income.
- Backlog of $1,165.9 million at March 31, 2012 compares with $1,071.4 million at March 31, 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 June 2012, July 2012 and August 2012 in the amount of $0.06 per common share for each month to be paid as follows;
|i)||the June dividend will be paid July 20, 2012 to the Shareholders of record as of the close of business on June 29, 2012;|
|ii)||the July dividend will be paid August 20, 2012 to the Shareholders of record as of the close of business on July 31, 2012; and|
|iii)||the August dividend will be paid September 20, 2012 to the Shareholders of record as of the close of business on August 31, 2012.|
A conference call for analysts and investors will be held at 10:00 AM ET on Tuesday, May 15, 2012 to discuss the first quarter results. The dial in number is 1-866-636-9090. Attendees are asked to be on the call 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.
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