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Bird Construction Inc. Announces Improved Third Quarter 2011 Financial Results and Declares Dividends for the Months of November 2011, December 2011, January 2012 and February 2012

17:33 EST Thursday, November 10, 2011

LISTING: TORONTO STOCK EXCHANGE

SYMBOL: BDT

TORONTO, Nov. 10, 2011 /CNW/ -

HIGHLIGHTS:

  • Improved third quarter net income of $9.5 million on construction revenue of $278.6 million, reflecting improved margins and one month's contribution of H.J. O'Connell's ("O'Connell") profitable operations, compared with $8.1 million and $231.2 million in the third quarter of 2010.
  • Nine month net income of $16.7 million on construction revenue of $642.5 million.
  • On August 31, 2011, successfully completed the acquisition of O'Connell which provides enhanced geographic and market sector scope.
  • Bird's new subsidiary, O'Connell, is awarded a $100 million unit price contract with ArcelorMittal Mines Canada Inc. for the removal of waste rock at the client's Mont Wright mine.
  • Company carries forward a record backlog of $1,299.7 million including the backlog acquired with the O'Connell acquisition.
  • Subsequent to the quarter end, the Company was awarded a significant design-build construction contract with Canada Post to build a new processing facility at the Vancouver International Airport.
  • Bird announces that a subsidiary is part of a consortium that was awarded a contract to design and build the Restigouche Hospital Centre located in Campbellton, New Brunswick.
  • The Company is part of a consortium short-listed to submit a proposal to design, build and finance three Toronto 2015 Pan/Parapan American Games venues.
  • Executed a number of new credit facilities to enhance the Company's financial capacity and flexibility.

Tim Talbott, President and C.E.O. of Bird, stated that "although our nine month earnings are below last year's amounts, we are encouraged by the improvement in our 2011 third quarter earnings relative to those reported in the first half of 2011.  We are now beginning to see the impact of what we believe are improving market conditions and the positive impact we expect from the acquisition of O'Connell.  The continued growth of our backlog to a record level and the award of two major contracts in the past few months provides us with a degree of optimism for the remainder of 2011 and into 2012."





            Financial Results                
            ('000s except per share amounts)                
              Three months ended

September 30
  Nine months ended

September 30
              2011    2010    2011    2010  
            Construction Revenue $278,561   $231,179   $642,468   $616,671
            Income before income taxes 13,877   8,556   23,681   44,178
            Net income and comprehensive income for the period $ 9,549   $   8,144   $ 16,671      $ 36,938
            Adjusted net income (non-GAAP measure) $ 10,285   $   8,277   $ 17,903   $  37,289
                           
            Basic and diluted earnings per share $0.23   $0.19   $0.40   $0.88
            Adjusted net income per share $0.24   $0.20   $0.42   $0.89
            Earnings per share amounts reflect the stock split effective in April 2011.

  • Construction revenue increased by 4.2% to $642.5 million for the nine months ended September 30, 2011 compared to $616.7 million for the nine months ended September 30, 2010, primarily due to timing in the execution of our construction Backlog and the impact of O'Connell.
  • Income before taxes of $23.7 million for the nine months ended September 30, 2011 compares to $44.2 million for the nine months ended September 30, 2010. The reduction in income before taxes is primarily a result of lower gross profit margins in the current year, in part reflecting more recent competitive market conditions and the impact of higher margin projects executed in 2010 compared to those more recently awarded and now being reported in earnings, offset to some extent by the income contribution resulting from the O'Connell acquisition.
  • Net income of $16.7 million for the nine months ended September 30, 2011 compares to $36.9 million in the nine months ended September 30, 2010.
  • Adjusted net income of $17.9 million for the nine months ended September 30, 2011 compares to $37.3 million in the nine months ended September 30, 2010.  O'Connell's profitable operations for the month of September 2011 are making an immediate contribution to Bird's adjusted net income, which will be more evident in the next quarter.
  • Record backlog of $1,299.7 million at September 30, 2011 compares with $1,016.4 million at September 30, 2010 and $1,082.6 million as at December 31, 2010, both of which have been adjusted for the $147.0 million project which was cancelled in the first half of 2011.

Bird Construction Inc. also announced that its Board of Directors has approved regular cash dividends for the months of November 2011, December 2011, January 2012 and February 2012 in the amount of $0.055 per common share for each month to be paid as follows;

      i)      the November dividend will be paid December 20, 2011 to the shareholders of record as of the close of business on November 30, 2011;
      ii)      the December dividend will be paid January 20, 2012 to the shareholders of record as of the close of business on December 30, 2011;
      iii)      the January dividend will be paid February 20, 2012 to the shareholders of record as of the close of business on January 31, 2012;
      iv)      the February dividend will be paid March 20, 2012 to shareholders of record as of the close of business on February 29, 2012.

A conference call for analysts and investors will be held at 10:00 AM EDT on Friday, November 11, 2011 to discuss the second 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




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