Mr. Teri McKibbon reports

BIRD CONSTRUCTION INC. ANNOUNCES 2023 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS

"The robust growth and profitability of Bird's fourth quarter and full year reflect the power of executing our strategy, the trust and level of collaboration we have achieved with our clients, and the quality of delivery from our dedicated 'One Bird' team. Our capabilities to deliver sophisticated work and our position as a leading collaborative construction and maintenance company remain competitive advantages, which we intend to leverage in 2024 and beyond as we continue to focus on growth and margin expansion," stated Teri McKibbon, president and chief executive officer of Bird Construction. "Supported by a strong balance sheet and ability to generate positive cash flow that allows the company to invest in profitable organic growth and pursue accretive acquisitions, the company is well positioned for the future."

Financial highlights

With the completion of the second year of Bird's 2022 to 2024 strategic plan, the company has made great progress in safely advancing the company's strategic priorities. Building on a solid 2022, Bird's 2023 fiscal year delivered significant organic revenue growth, continued accretion of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margins and strong operational cash flow. The company also expanded its infrastructure presence in Canada as evidenced by the recently announced alliance development agreement to work collaboratively with Metrolinx to deliver the East Harbour Transit Hub. Bird continued to pursue accretive tuck-in acquisitions with high growth potential, notably with the acquisitions of Trinity in February, 2023, and NorCan announced subsequent to year-end, and continued to experience robust performance from earlier acquisitions. The company's highly valued team grew in 2023 to meet the needs of Bird's expanding work programs, with Bird being successful in attracting, retaining and developing talent throughout the year.

Full year 2023 compared with full year 2022

• Construction revenue of $2,798.8-million was earned in 2023, compared with $2,369.3-million in 2022, representing an 18.1-per-cent increase year over year.
• Net income and earnings per share for the year were $71.5-million and $1.33, compared with $49.9-million and 93 cents in 2022, representing increases of 43 per cent.
• Adjusted earnings and adjusted earnings per share were $74.2-million and $1.38 in 2023, compared with $46.0-million and 86 cents in the prior year, representing increases of 61 per cent.
• Adjusted EBITDA for 2023 was $138.7-million, or 5.0 per cent of revenues, compared with $101.2-million, or 4.3 per cent of revenues in 2022, representing an increase of 37.1 per cent.

Fourth quarter 2023 compared with fourth quarter 2022

• Construction revenue of $792.1-million earned in the quarter compared with $649.0-million earned in the prior-year quarter, representing a 22.1-per-cent increase year over year.
• Net income and earnings per share were $23.9-million and 44 cents in Q4 2023, compared with $14.9-million and 28 cents in Q4 2022, representing increases of 60 per cent.
• Adjusted earnings and adjusted earnings per share were $24.3-million and 45 cents in Q4 2023, compared with $15.5-million and 29 cents in Q4 2022, representing increases of 57 per cent.
• Adjusted EBITDA of $43.9-million, or 5.5 per cent of revenues, compared with $30.6-million, or 4.7 per cent of revenues in Q4 2022, representing an increase of 43.2 per cent.

Highlights

• Bird continued to deliver significant revenue growth in the fourth quarter of 2023 driven predominantly by organic growth, with additional contributions from Trinity, acquired on Feb. 1, 2023.
• The company's margin profiles in the fourth quarter of 2023 continued to improve compared with the prior year, with gross profit percentage increasing to 9.2 per cent compared with 8.9 per cent and adjusted EBITDA margin increasing to 5.5 per cent from 4.7 per cent.
• Bird added over $1.4-billion in securements to its backlog in the fourth quarter ($3.6-billion year to date), resulting in a record backlog of over $3.4-billion at year-end. Pending backlog of awarded but not yet contracted work remains at a healthy $3.0-billion at year-end, and continues to include almost $1.1-billion of MSA and other recurring revenue to be earned over the next seven years.
• During the quarter, the company renewed and amended its syndicated credit facility, extending the maturity to Dec. 15, 2026, expanding the size of the revolving facility to $250-million, and adding the availability for an additional term loan facility which was subsequently used to complete the acquisition of assets of NorCan Electric Inc. in January, 2024.
• In December, based on the strength of Bird's outlook for significant further improvements in earnings and cash flow in 2024 compared with 2023, the company approved a 30.2-per-cent increase in its annualized dividend to 56 cents per share. The increased monthly dividend of 4.67 cents per share will commence with the March, 2024, dividend, to be paid in April, 2024.
• Bird generated $104.8-million in operating cash flow for the fourth quarter while continuing to finance a modest investment in non-cash working capital required to support significant growth in the company's work program. The company's liquidity position remains strong, with $177.5-million of cash and cash equivalents at year-end, and an additional $215.5-million available under the company's syndicated credit facility.
• During the fourth quarter of 2023, 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 (liquefied natural gas) project in Western Canada. Bird's portion of the limited notice to proceed contracts exceeds $150-million.
  • Bird announced that it had been awarded a construction management contract for the Seneca Polytechnic Health & Wellness Centre project, as well as a new multiyear task order under the previously announced Port Hope Area Initiative master construction contract by Canadian Nuclear Laboratories. The combined value of the awards exceeds $130-million.
  • Bird announced that it had been awarded five new contracts in multiple sectors including energy, power generation, manufacturing and multistorey modular. The combined value of the contracts exceeded $530-million.
• Subsequent to the year-end, the company announced in January, 2024, that it had acquired the assets of NorCan Electric Inc. for total consideration of $11-million. NorCan is a leading electrical and instrumentation contractor providing maintenance turnaround and sustaining capital services in the regional municipality of Wood Buffalo in Alberta. During its 25 years of service in the region, it has developed deep, long-term relationships based on its strong service delivery and safety program. Since 2018, NorCan has operated through an indigenous partnership, the NorCan/Infinity LP, with Infinity Metis Corp.
• Subsequent to the quarter-end, the company announced that it was awarded the following projects and contracts:
  • Bird, as part of a 50/50 joint venture, entered into an alliance development agreement to work collaboratively with Metrolinx to deliver the East Harbour Transit Hub, one of the first major projects in Canada to be procured using an alliance model.
• The board has declared eligible dividends of 4.67 cents per common share for each of March, 2024, and April, 2024, representing the 30-per-cent higher monthly dividend announced in December, 2023.

Conference call and webcast

Bird will host an investor webcast to discuss the quarterly results on Wednesday, March 6, 2024, at 10 a.m. ET to discuss the company's results. Analysts and investors may connect to the webcast on-line. 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.

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 buildings 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.

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