Press release from CNW Group
Bird Construction Inc. announces improved second quarter 2012 earnings and declares common share dividends of $0.06 per share for the months of September 2012, October 2012 and November 2012.
Wednesday, August 08, 2012
Bird Construction Inc. announces improved second quarter 2012 earnings and declares common share dividends of $0.06 per share for the months of September 2012, October 2012 and November 2012.17:01 EDT Wednesday, August 08, 2012TORONTO, Aug. 8, 2012 /CNW/ -HIGHLIGHTS:Substantially improved second quarter net income of $9.0 million on record quarterly construction revenue of $343.1 million, compared with $3.0 million and $192.7 million in the second quarter of 2011.Adjusted net income for the three months ended June 30, 2012 was $9.8 million compared with $3.4 million in 2011. The significant improvement in adjusted 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. Increased construction activity in northern Alberta, combined with significant construction progress on a number of institutional construction projects also contributed to higher construction revenues and income in 2012.For the six months ended June 30, 2012, the Company reported net income of $15.4 million on record construction revenue of $637.7 million. Revenues were 75% higher than the 2011 amount while net income was more than double last year's result.For the six months ended June 30, 2012, the Company generated adjusted net income of $17.1 million compared with $7.6 million recorded in 2011. The significant improvement reflects the increase in revenues, gross profit percentages and the impact of the O'Connell acquisition.The Company carries forward a record volume of backlog of $1,359.1 million at June 30, 2012. During the second quarter of 2012, the Company was awarded $536.2 million in new construction contracts including change orders on existing contracts.In May, Bird announced that it had been awarded a number of construction contracts totalling approximately $235 million. The projects are located throughout our operating districts within all of Bird's market segments. The largest of the projects was a contract for the Early Works Civil Program at the Voyageur Upgrader Project located north of Fort McMurray, Alberta. For a listing of the remainder of the jobs refer to Bird's previously issued press release.In June, the Company announced that Maple Leaf Foods awarded to a subsidiary of Bird a contract to construct a new prepared meat processing facility located in Hamilton, Ontario. The 402,000 square foot plant will be the largest and most technologically advanced of its kind in Canada and is expected to achieve LEED® Silver environmental certification.Subsequent to the quarter end, the Company was awarded the Alberta Public Safety and Law Enforcement Training Centre located in Fort MacLeod, Alberta. This new construction contract valued at $95.0 million will be added to Bird's backlog in the third quarter of 2012.Bird's Board of Directors declares monthly dividends of $0.06 per common share for September, October and November 2012."The ability of our operations to produce these substantially improved results in terms of both net income and revenue under the competitive pressures of the construction marketplace is encouraging" stated Tim Talbott, President and C.E.O. of Bird. "We are extremely pleased with the record quarterly and six month revenues that we have put in place. Just as important is the record backlog that the Company has accumulated that will provide us with a firm platform for the remainder of 2012 and into next year. Contributing to these numbers is our O'Connell subsidiary which is producing very good results that are in line with management's expectations."Financial Results ('000s except per share amounts) Three months ended June 30 Six months ended June 30 2012 2011 2012 2011 Construction Revenue$ 343,083 $192,752 $ 637,737 $363,907 Net income and comprehensive income for the period$ 9,002 $3,013 $15,437 $7,122Adjusted net income (Non-GAAP measure)$ 9,840 $3,408 $17,082 $7,616Basic and diluted earnings per share$0.22 $0.07 $0.37 $0.17Adjusted net income per share$0.24 $0.08 $0.41 $0.18Refer to the Company's Management Discussion and Analysis for a description of adjusted net income and reconciliation with net income.Construction revenue increased by 75% to $637.7 million for the six months ended June 30, 2012 compared to $363.9 million for the six months ended June 30, 2011, primarily due to timing in the execution of our construction projects combined with the impact of O'Connell.Net income of $15.4 million for the six months ended June 30, 2012 compares to $7.1 million in the six months ended June 30, 2011. The increase in net income is a result of higher construction revenue and the related increase in gross profit, offset to some extent by higher general and administrative expenses, higher finance costs and higher income tax expense in 2012.Adjusted net income of $17.1 million for the six months ended June 30, 2012 compares to $7.6 million for the six months ended June 30, 2011. O'Connell's profitable operations are making a significant contribution to this year's net income and adjusted net income.Backlog of $1,359.1 million at June 30, 2012 compares with $1,138.1 million at June 30, 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 September 2012, October 2012 and November 2012 in the amount of $0.06 per common share for each month to be paid as follows:i) the September dividend will be paid October 19, 2012 to the Shareholders of record as of the close of business on September 28, 2012;ii) the October dividend will be paid November 20, 2012 to the Shareholders of record as of the close of business on October 31, 2012; andiii) the November dividend will be paid December 20, 2012 to the Shareholders of record as of the close of business on November 30, 2012.A conference call for analysts and investors will be held at 11:00 AM ET on Thursday, August 9, 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.SOURCE: Bird Construction Inc.For further information: T.J. Talbott, President & C.E.O. orS.R. Entwistle, C.F.O.Bird Construction Inc.5403 Eglinton Avenue WestToronto, ON M9C 5K6Phone: (4l6) 620-7122 Fax: (416) 620-1516