Mr. Teri McKibbon reports

BIRD CONSTRUCTION INC. ANNOUNCES STRONGER THAN EXPECTED 2023 THIRD QUARTER FINANCIAL RESULTS

Bird Construction Inc. has released its third quarter 2023 financial results.

"Positive momentum continues to build with solid execution of our strategy as the company delivered another quarter of double-digit revenue growth and margin accretion, setting the stage for a strong finish to 2023 and a foundation for even stronger performance in 2024. Almost $800-million of work was put in place in the quarter while our combined backlog grew by $40-million, up almost 20 per cent year to date, and EBITDA margins rose above 6 per cent," stated Teri McKibbon, president and chief executive officer of Bird Construction. "Bird is positioned as a leading collaborative construction and maintenance company focused on the industrial, institutional and infrastructure markets. We remain disciplined in our approach to project selection and in improving our margin profile so that we can continue to drive further improvement in the company's results through 2024."

Financial highlights

Strong first-half business momentum continued into the third quarter with the company delivering considerable organic revenue growth of approximately 16 per cent in the quarter and year to date, coupled with sustained margin accretion. Bird's improving gross profit and notable 35-per-cent increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the first nine months of 2023 is a result of strategic positioning over the past few years. The company is experiencing significant growth across virtually all markets with both public and private clients, notably in the company's institutional buildings, its infrastructure platform catalyzed by the Dagmar acquisition in 2021, and its industrial construction and services, highlighted by a decade-high mining backlog and growing presence in Canada's nuclear sector. Visibility into future performance is provided by the company's risk-balanced, highly collaborative backlog and pending backlog, characterized by enhanced margins and significant multiyear recurring revenue from master service agreements (MSAs).

Third quarter of 2023, compared with the third quarter of 2022:

• Construction revenue of $783.8-million compared with $668.2-million, representing a 17.3-per-cent increase year over year.
• Net income and earnings per share were $28.8-million and 54 cents, respectively, compared with $14.5-million and 27 cents in Q3 2022.
• Adjusted earnings (1) and adjusted earnings per share (1) were $29.0-million and 54 cents, respectively, compared with $15.5-million and 29 cents in Q3 2022.
• Adjusted EBITDA (1) of $49.3-million, or 6.3 per cent of revenues, compared with $31.2-million, or 4.7 per cent of revenues, in Q3 2022.

Year to date 2023, compared with the year to date 2022:

• Construction revenue of $2,006.7-million was earned in the first nine months of 2023, compared with $1,720.4-million in 2022, representing a 16.6-per-cent increase year over year.
• Net income and earnings per share for the first nine months of the year were $47.7-million and 89 cents, respectively, compared with $34.9-million and 65 cents in 2022.
• Adjusted earnings (1) and adjusted earnings per share were $49.9-million and 93 cents year to date in 2023, respectively, compared with $30.5-million and 57 cents in the prior year.
• Adjusted EBITDA (1) for the first nine months of 2023 was $94.9-million, or 4.7 per cent of revenues, compared with $70.5-million, or 4.1 per cent of revenues, in 2022.

Highlights:

• Bird achieved significant revenue growth of 17.3 per cent in the third quarter of 2023, delivering revenues of $783.8-million, driven predominantly by organic growth, with additional contributions from Trinity, acquired on Feb. 1, 2023.
• The company's margin profiles in the third quarter of 2023 continued to improve, with gross profit percentage increasing to 9.3 per cent, compared with 8.8 per cent in the prior year, and adjusted EBITDA margin increasing to 6.3 per cent from 4.7 per cent.
• Bird maintained a strong backlog and pending backlog at Sept. 30, 2023, adding $612.1-million in securements to backlog ($2.2-billion year to date) and $211.8-million to pending backlog ($825.2-million year to date) during the quarter. Pending backlog continues to include approximately $1.1-billion of MSA and other recurring revenue to be earned over the next seven years.
• Bird maintains a strong liquidity position at Sept. 30, 2023, recording positive operating cash flows for the quarter while continuing to finance the working capital required to support the significant growth in the company's work program. At the end of the third quarter, Bird had $104.1-million of cash and cash equivalents, and an additional $157.0-million available under the company's syndicated credit facility.
• During the third quarter of 2023, the company announced that it was awarded the following projects and contracts:
  • Bird was awarded multiple contracts for industrial and civil work in the energy and mining sectors valued at approximately $180-million, including a contract for civil and concrete scopes to support processing infrastructure development at the Blackwater mine project in central British Columbia, two contracts for rehabilitation work on hydroelectric power-related structures in Northeastern Ontario, and a contract for final site earthworks, grading and asphalt paving at an existing project site in northwestern British Columbia.
  • Bird was selected as the preferred proponent for the Southern Alberta Institute of Technology's (SAIT) campus centre redevelopment project, the Victor Philip Dahdaleh Hall project at St. Francis Xavier University and two long-term care facilities in Nova Scotia. The combined value of the contracts is over $350-million.
  • Bird was awarded two new contracts at the ArcelorMittal Mont-Wright mine in Quebec and an award for the 2Nations Bird joint venture for Fine Tailings works on BHP's Jansen Stage 1 potash project in Saskatchewan. The combined value of the awards was over $110-million.
  • Bird was selected as construction manager for the Vancouver Community College Centre for clean energy and automotive innovation and the University of Victoria engineering expansion project. The combined value of the contracts was approximately $280-million.
  • Bird was awarded an additional task order under the previously announced Port Hope area initiative master construction contract by Canadian Nuclear Laboratories and awarded a multiyear contract for civil works on sites in the Heartland region of Alberta by an undisclosed client. The combined value of the awards is approximately $100-million, to be executed over the next three years.
• Subsequent to the quarter-end, the company announced that it was awarded the following projects and contracts:
  • Bird, as part of a 50/50 general partnership, entered into an agreement for early works at a new LNG project in Western Canada. Bird's portion of the limited notice to proceed contracts exceeds $150-million.
• The board has declared eligible dividends of 3.58 cents per common share for each of November, 2023, December, 2023, January, 2024, and February, 2024.

Conference call and webcast

Bird will host an investor webcast to discuss the quarterly results on Wednesday, Nov. 8, 2023, at 10 a.m. ET, to discuss the company's results. Analysts and investors may connect to the webcast. They may also dial 1-855-328-1925 for audio only or to enter the question queue; attendees are asked to be on the line 10 minutes prior to the start of the call. The presentation can also be found on the company's website.

The company's financial statements and management's discussion and analysis (MD&A) will be filed and available on SEDAR+ and on the company's website.

Terminology and non-GAAP (generally accepted accounting principles) and other financial measures

Throughout this news release, certain terminology and financial measures are used that do not have standard meanings under IFRS (international financial reporting standards) and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP financial ratios and supplementary financial measures. These measures may not be comparable with similar measures presented by other companies. Further information on these financial measures can be found in the terminology and non-GAAP and other financial measures section in Bird's most recently filed management's discussion and analysis for the period ended Sept. 30, 2023, prepared as of Nov. 7, 2023. This document is available on Bird's SEDAR+ profile and on the company's website.

Backlog is the total value of all contracts awarded to the company, less the total value of work completed on these contracts as of the date of the most recently completed quarter. The company's backlog equates to the company's remaining performance obligations as at Sept. 30, 2023, and Dec. 31, 2022.

Adjusted earnings and adjusted EBITDA are non-GAAP financial measures. Adjusted earnings per share and adjusted EBITDA margin are non-GAAP financial ratios. Pending backlog is a supplementary financial measure.

About Bird Construction Inc.

Bird is a leading Canadian construction company operating from coast-to-coast and servicing all of Canada's major markets. Bird provides a comprehensive range of construction services from new construction for industrial, infrastructure and institutional markets to industrial maintenance, repair and operations services, heavy civil construction, and mine support services, as well as vertical infrastructure, including electrical, mechanical and specialty trades. For over 100 years, Bird has been a people-focused company with an unwavering commitment to safety and a high level of service that provides long-term value for all stakeholders.

(1) This news release contains terminology and financial measures that do not have standard meanings under IFRS and may not be comparable with similar measures presented by other companies. Further information regarding these measures can be found in the terminology and non-GAAP and other financial measures section of this news release.

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