Mr. Teri McKibbon reports

BIRD CONSTRUCTION INC. ANNOUNCES 2019 THIRD QUARTER FINANCIAL RESULTS

Bird Construction Inc. has released its financial results for the third quarter of 2019.

Highlights:

• During the third quarter of 2019, the company recorded net income of $6.8-million on construction revenue of $378.6-million, compared with net income of $4.4-million on $381.4-million of construction revenue in 2018. Volume was slightly lower year over year; however, net income improved across all sectors in which the company operates, through improved gross profit percentage.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the third quarter of 2019 was $14.0-million compared with $9.0-million in the comparable period in 2018.
• During the first nine months of 2019, the company recorded net income of $1.3-million on construction revenue of $955.8-million, compared with a net loss of $7.4-million on construction revenue of $995.9-million in 2018. Although volume declined 4.0 per cent year over year, the mix of revenue was more diversified as the company's higher-margin industrial work program has increased. The year-over-year income improvement was primarily driven by the increase in gross profit from the shift in mix of revenue in 2019. During the same period in 2018, results were impacted by a public-private partnership (PPP) project that incurred additional cost due to design-related scope growth and acceleration expense to meet the scheduled substantial completion date.
• Adjusted EBITDA year to date at Sept. 30, 2019, was $16.3-million, compared with a $900,000 loss in the comparable period in 2018.
• The company, through its joint venture with ATCO Structures, continues to progress on site construction work for the LNG Canada Cedar Valley Lodge. Construction commenced in the first quarter of 2019 and is planned to continue through spring 2021. Throughout the third quarter, modules were delivered and installed on site and core buildings continued to be erected and enclosed. The facility is being built to house workers involved in the construction of LNG Canada's natural gas liquefaction and export facility. The project is one of the largest accommodation facilities ever built in Canada.
• In 2019, the company secured $1,100.4-million of new contract awards and change orders and executed $955.8-million of construction revenues. The new contract awards and change orders in the nine months contributed to a backlog of $1,440.5-million for the company at Sept. 30, 2019, which is 11.2-per-cent growth in backlog compared with the $1,295.9-million recorded at Dec. 31, 2018.
• In the third quarter of 2019, the company signed multiple contracts for services for an undisclosed amount at an LNG (liquefied natural gas) liquefaction export terminal facility in northwestern British Columbia. The contracts include a site civil works program and the engineering, procurement and construction (EPC) of 16 administrative and service buildings. The EPC buildings program will consist of a combination of pre-engineered and modular buildings. The contracts have commenced and will continue into 2022.
• In the third quarter of 2019, the company signed a construction management contract with Westwood Construction to build a mixed-use development located in north Halifax. The contract will be constructed over a three-year period and will include two high-rise towers and two levels of underground parking. The full project value is approximately $140-million, but, due to the agency nature of the contract with Bird, only the construction management services portion of the project was added to the backlog.
• In the first nine months of 2019, cash and cash equivalents decreased $62.0-million, net of the effects of foreign exchange, to $96.9-million from $158.9-million at the end of 2018. The majority of the decrease in cash and cash equivalents during the year relates to changes in the non-cash net current asset/liability position, which can fluctuate significantly in the normal course of business.
• The board has declared monthly eligible dividends of 3.25 cents per common share for November, 2019, December, 2019, January, 2020, and February, 2020.

"Our results in the third quarter improved significantly quarter over quarter and versus prior year as a result of diversification and growth in our industrial work program, coupled with improved performance in our commercial-institutional work program," said Teri McKibbon, president and chief executive officer. "Backlog continues to grow, embedded margins are increasing as new work is added with a larger self-perform component, and most importantly, our dilutive projects are nearing completion. We see a healthy pipeline of projects in our core markets and are taking a very disciplined approach in project selection to meet the company's targeted risk profile."

                                             FINANCIAL RESULTS
                             (in thousands of dollars, except per-share amounts)

                                                        Three months ended Sept. 30,    Nine months ended Sept. 30,
                                                            2019               2018        2019               2018
                                                                                                               
Construction revenue                                   $ 378,591         $ 381,382    $ 955,796          $ 995,930
Net income (loss)                                          6,782             4,360        1,317             (7,392)
Basic and diluted earnings (loss) per share                 0.16              0.10         0.03              (0.17)
Adjusted EBITDA (1)                                       13,966             8,950       16,280               (879)
Cash flows from operations before changes in non-
cash working capital                                      13,851             9,850       14,676              1,275
                                                                                                               
(1) Non-GAAP (generally accepted accounting principles) measures.

The $13.4-million year-over-year increase in cash flows from operations before changes in non-cash working capital from the nine months ended Sept. 30, 2018, is primarily the result of the $8.7-million improvement in net income and the change in income taxes year-over-year of $3.5-million.

Bird Construction also announces that its board of directors has approved monthly eligible dividends for the months of November, 2019, December, 2019, January, 2020, and February, 2020, in the amount of 3.25 cents per common share, to be paid as follows:

1. The November dividend of 3.25 cents per share will be paid on Dec. 20, 2019m to the shareholders of record as of the close of business on Nov. 29, 2019.
2. The December dividend of 3.25 cents per share will be paid on Jan. 20, 2020, to the shareholders of record as of the close of business on Dec. 31, 2019.
3. The January dividend of 3.25 cents per share will be paid on Feb. 20, 2020, to the shareholders of record as of the close of business on Jan. 31, 2020.
4. The February dividend of 3.25 cents per share will be paid on March 20, 2020, to the shareholders of record as of the close of business on Feb. 28, 2020.

A conference call for analysts and investors will be held at 10 a.m. ET on Wednesday, Nov. 6, 2019, to discuss the quarterly results. The dial-in number is 1-855-328-1925. Attendees are asked to be on the line 10 minutes prior to the start of the call.

Related financial documents will be filed and available on SEDAR.

We seek Safe Harbor.