Bird Construction Inc. Announces 2024 Third Quarter Financial Results
MISSISSAUGA, Ontario, Nov. 05, 2024 (GLOBE NEWSWIRE) -- "Bird continued to deliver strong growth and profitability in the third quarter, building on the significant momentum from the first half of the year and setting the stage for a solid finish to 2024. The Company's successful diversification of our work programs and focus on collaboration, cross-selling and self-perform capabilities have increased our service offerings in strategic end markets and positioned Bird for greater access to large capital investment projects," stated Teri McKibbon, President and CEO of Bird Construction. "Bird's growing combined backlog with higher embedded margins, supported by our dedicated One Bird team, give us confidence in our growth and margin accretion targets for the remainder of 2024 and into our 2025-2027 Strategic Plan period."
FINANCIAL HIGHLIGHTS
The third quarter saw revenue growth of 15%, building on the strong performance of the first half of the year. Adjusted EBITDA Margins¹ of 7.8%, 1.5% higher than a year ago, led to 42% growth in Adjusted EBITDA and 27% growth in Adjusted EPS for the quarter, fueled by higher embedded margins in the Company's combined backlog and disciplined execution during the quarter. Operational cash generation remained strong, with investment in non-cash working capital balances remaining relatively unchanged from the second quarter when rapid growth in the Company's work program led to higher investments in non-cash working capital. In August, Bird welcomed Jacob Bros Construction to the One Bird team, further expanding the Company's self-perform capabilities and infrastructure presence in Western Canada. Bird is poised for continued revenue and profitability growth in 2025 and beyond, with significant momentum from our strategic focus on key sectors, as outlined in the Company's 2025-2027 Strategic Plan that was presented on October 9, 2024 at Bird's Investor Day.
Third Quarter 2024 compared to Third Quarter 2023
Construction revenue of $898.9 million earned in the quarter compared to $783.8 million earned in the prior year quarter, representing a 15% increase year-over-year.
Net income and earnings per share were $36.2 million and $0.66 in Q3 2024, compared to $28.8 million and $0.54 in Q3 2023, representing increases of 26% and 23%, respectively.
Adjusted Earnings¹ and Adjusted Earnings Per Share¹ were $37.7 million and $0.69 in Q3 2024, compared to $29.0 million and $0.54 in Q3 2023, representing increases of 30% and 27%, respectively.
Adjusted EBITDA¹ of $70.1 million, or 7.8% of revenues, compared to $49.3 million, or 6.3% of revenues in Q3 2023, representing an increase of 42%.
Year-to-Date 2024 compared to Year-to-Date 2023
Construction revenue of $2,460.7 million was earned in the first nine months of 2024, compared to $2,006.7 million in 2023, representing a 23% increase year-over-year.
Net income and earnings per share for the nine months ended September 30, 2024 were $67.6 million and $1.25, compared to $47.7 million and $0.89 in 2023, representing increases of 42% and 41%, respectively.
Adjusted Earnings¹ and Adjusted Earnings Per Share were $71.0 million and $1.31 year-to-date in 2024, compared to $49.9 million and $0.93 in the prior year, representing increases of 42% and 41%, respectively.
Adjusted EBITDA¹ for the first nine months of 2024 was $140.9 million, or 5.7% of revenues, compared to $94.9 million, or 4.7% of revenues in 2023, representing an increase of 48%.
Financial Results
(in thousands of Canadian dollars, except per share amounts)
Three months endedSeptember 30,
Nine months endedSeptember 30,
2024
2023
2024
2023
Construction revenue
$
898,939
$
783,843
$
2,460,680
$
2,006,717
Net income
36,211
28,795
67,594
47,658
Basic and diluted earnings per share
0.66
0.54
1.25
0.89
Adjusted Earnings Per Share
0.69
0.54
1.31
0.93
Adjusted EBITDA¹
70,105
49,342
140,851
94,881
Cash flows from operations before changes in non-cash working capital
$
72,333
$
50,395
$
150,998
$
96,854
(1) Adjusted EBITDA is a non-GAAP financial measure. See "Terminology and Non-GAAP & Other Financial Measures."
HIGHLIGHTS
Bird continued to deliver significant revenue growth in the third quarter of 2024, with approximately 60% of the 15% growth from organic sources. The remainder of revenue growth was driven by Jacob Bros, acquired on August 1, 2024, and NorCan, acquired on January 18, 2024.
The Company's margin profiles in the third quarter of 2024 continued to improve compared to the prior year, with Gross Profit Percentage² increasing to 11.4% compared to 9.3%, and Adjusted EBITDA Margin increasing to 7.8% from 6.3%.
Bird added over $1.3 billion to its Backlog in the third quarter ($2.8 billion year-to-date), increasing Backlog to $3.8 billion at September 30, 2024. Pending Backlog, which is work awarded but not yet contracted, grew 14% in the third quarter (36% year-to-date) to $4.1 billion, and continues to include over $900 million of MSA and other recurring revenue to be earned over the next six years.
Operational cash flow generation remained strong in the quarter, generating $72.3 million before changes in non-cash working capital, a 44% increase over the $50.4 million generated in the third quarter of 2023. The Company generated cash from non-cash working capital related to operating activities of $6.7 million in the third quarter of 2024, a $59.2 million improvement compared to 2023 when non-cash working capital increased by $52.5 million.
On August 1, 2024 Bird completed the acquisition of British Columbia based Jacob Bros Construction ("Jacob Bros") for consideration of $133.1 million consisting of cash of $91.6 million, equity of 1,490,922 common shares of the Company with a fair value at closing of $38.1 million, and a holdback and other liability of $3.3 million. Jacob Bros was a privately-owned civil infrastructure construction business with significant self-perform capability serving both public and private clients, and has a strong, people-first culture that aligns with Bird's ...
