LISTING: TORONTO STOCK EXCHANGE
TORONTO, March 7, 2012 /CNW/ -
- Improved fourth quarter net income of $12.9 million on construction revenue of $332.0 million, compared with $9.2 million and $225.4 million in the fourth quarter of 2010. The improvement in earnings reflects the combined effect of higher revenues, higher gross margin percentages and the full impact of H.J. O'Connell ("O'Connell") earnings in the fourth quarter of 2011.
- In the fourth quarter of 2011, the Company generated adjusted net income of $14.2 million or 52.5% higher than the amount recorded in 2010.
- Annual net income of $29.6 million ($0.70 per share) on construction revenue of $974.5 million compares with $46.2 million ($1.10 per share) on construction revenues of $842.0 million in 2010.
- Full year 2011 adjusted net income of $32.1 million ($0.76 per share) compares with $46.6 million in 2010 ($1.10 per share).
- 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 payment.
- On August 31, 2011, successfully completed the acquisition of O'Connell which provides enhanced geographic and market sector scope.
- The Company carries forward a record year-end backlog of $1.24 billion including the backlog acquired with the O'Connell acquisition.
- The Company was awarded a significant design-build construction contract with Canada Post to build a new processing facility at the Vancouver International Airport.
- The Company is part of a consortium short-listed to submit a proposal to design, build and finance a number of new schools in the Province of Alberta.
Tim Talbott, President and C.E.O. of Bird, stated that "although our annual 2011 earnings are below last year's amounts, we are encouraged by the continuous improvement in our 2011 third and fourth 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 anticipated from the O'Connell acquisition. Our December 31, 2011 backlog of $1.24 billion with improving gross margins provides us with a degree of optimism for 2012."
|('000s except per share amounts)|
Three months ended
|Income before income taxes||16,889||11,308||40,570||55,486|
|Net income and comprehensive income for the period||12,924||9,237||29,595||46,175|
|Adjusted net income (non-GAAP measure)||$ 14,150||$ 9,281||$ 32,053||$ 46,570|
|Basic and diluted earnings per share||$0.30||$0.22||$0.70||$1.10|
|Adjusted net income per share (non-GAAP measure)||$0.34||$0.22||$0.76||$1.10|
|Earnings per share amounts reflect the stock split effective in April 2011.|
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 15.7% to $974.5 million for the year ended December 31, 2011 compared to $842.0 million for the year ended December 31, 2010, primarily due to timing in the execution of our construction projects and the impact of O'Connell.
- Income before taxes of $40.6 million for the year ended December 31, 2011 compares to $55.5 million for the year ended December 31, 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, offset to some extent by the income contribution resulting from the O'Connell acquisition.
- Net income of $29.6 million for the year ended December 31, 2011 compares to $46.2 million in the year ended December 31, 2010. The reduction in net income reflects lower pre-tax earnings from operations combined with a higher incidence of income taxation in 2011. Commencing in 2011, the Company's income was subject to full corporate taxation. In 2010, the Company benefited from the ability to shelter more of its earnings from income tax structured as an income trust.
- Adjusted net income of $32.1 million for the year ended December 31, 2011 compares to $46.6 million in the year ended December 31, 2010. O'Connell's profitable operations for the four months ended December 31, 2011 are making an immediate contribution to Bird's net income and adjusted net income.
- Backlog of $1,235.6 million at December 31, 2011 compares with $1,082.6 million as at December 31, 2010, which has 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 March 2012, April 2012 and May 2012 in the amount of $0.06 per common share for each month to be paid as follows;
|i) the March dividend will be paid April 20, 2012 to the Shareholders of record as of the close of business on March 30, 2012;|
|ii) the April dividend will be paid May 18, 2012 to the Shareholders of record as of the close of business on April 30, 2012; and|
|iii) the May dividend will be paid June 20, 2012 to the Shareholders of record as of the close of business on May 31, 2012.|
A conference call for analysts and investors will be held at 10:00 AM EDT on Thursday, March 8, 2012 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