Bird Construction Inc. · TSX:BDT
Bird Construction — Q3 2022 Earnings Presentation
31 slides from Bird Construction's earnings presentation, November 2022
Slide 1: Third Quarter 2022 Investor Presentation
Bird Construction Inc. (TSX:BDT) Third Quarter 2022 Investor Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information (“forward-looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this presentation are based on the expectations, estimates and projections of managem
Slide 3: Disclaimer: Terminology and Non-GAAP & Other Financial Measures
Disclaimer TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES Throughout this presentation, management uses certain terminology and financial measures that do not have standard meanings under IFRS and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP f
Slide 4: Disclaimer: Terminology and Non-GAAP Measures (continued)
Disclaimer TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES (continued) • “Current Ratio” is a supplementary financial measure representing the percentage derived by dividing total current assets by total current liabilities. • “General and Administrative expenses as a percentage of revenue” is a
Slide 5: Over 100 Years Building Canada
OVER 100 YEARS BUILDING CANADA 1920 1930 1949 2007 2011 2012 2020 2021 BIRD, WOODALL, BIRD SECURES BIRD GOES PUBLIC BIRD ACQUIRES BIRD ACQUIRES BIRD ACQUIRES BIRD ACQUIRES BIRD ACQUIRES & SIMPSON FIRST $1M ON STOCK RIDEAU H.J. O’CONNELL NASON STUART OLSON DAGMAR FOUNDED CONTRACT EXCHANGE CONSTRUCTIO
Slide 6: Coast-to-coast solutions serving a broad scope of end-markets
Coast-to-coast solutions serving Comprehensive range of construction services from new construction for industrial, commercial, institutional, and a broad scope of end-markets. civil infrastructure markets; to industrial maintenance, repair and operations services, heavy civil construction, and mine
Slide 7: Q3 2022 Financial Highlights
Financial Highlights Q3 2022 HIGHLIGHTS Healthy Record Q3 2022 Revenues $668.2M REVENUE Continued realization of Revenue Growth cross-selling synergies $14.5M NET INCOME Strong Combined Strong Backlog(1) of $2.9B $31.2M ADJUSTED EBITDA (2) and Pending Backlog(1) of Backlog $2.1B $15.5M ADJUSTED EARN
Slide 8: What Sets us Apart
What Sets us Apart Disciplined revenue growth Sustained robust combined backlog + Consistent revenue growth since 2018; Q3 TTM + Backlog $2.9B, Pending Backlog $2.1B Revenue $2.3B vs. FY 2018 $1.4B + Diverse, risk-balanced contracts + Diversified, resilient revenue streams + >$800M recurring revenue
Slide 9: 5-Year Revenue and Adjusted EBITDA Margin
5-Year Revenue and Adjusted EBITDA Margin 2,500 10% 2,220 2,2712,318 9% $45M 1,901 2,177 2,251 Q3 2022 TTM 2,000 8% NET INCOME 1,627 TTM Revenue in CAD Millions ($M) 1,504 7% 1,500 1,419 1,382 1,376 6% 5.5% 5.9% 6.0% 5.5% 4.3% 5% 4.3% 4.9% Q3 2022 TTM 1,000 4.7% 4% 4.2% 4.2%* ADJUSTED EBITDA MARGIN(
Slide 10: Backlog & Pending Backlog
Backlog & Pending Backlog 6000 in millions of Canadian dollars Backlog expected to 60% convert into Revenue 5000 over the next 12 months 4000 2,137 1,625 1,717 1,807 1,788 1,636 1,685 1,648 1,300 3000 September 30, 2022 • Strong quarter-end Backlog(1) of $2.9B 2000 625 575 • Strong quarter-end Pendi
Slide 11: Significant Portfolio of Recurring Revenue Contracts
Significant Portfolio of Recurring Revenue Contracts >$800 Combined MSA and Other Multi-year Average Strong Recurring Million Contracts Contract Term Revenue Visibility 2,000+ Leveraging Electrical Expertise Personnel1 Geographically Full-Lifecycle Services Complete Lifecycle and Our ability to self
Slide 12: Significant Pipeline of Projects
Significant Pipeline of Projects Executing on Strategic Pillars TEAM PERFORM DIVERSIFY Recent Marquee Project Awards Multi-year PHAI task order and new recurring revenue stream in energy sector + Long-term Strategic Partnership Agreement $95M Covenant Wellness Community – Community Health Centre in
Slide 13: Projects underway across Canada
Projects underway across Canada 13 1 2 3 4 14 5 6 7 8 9 10 11 12 1. Bruce Power Honi 500kv GIS Relay Building, ON 2. York University Markham Centre Campus, ON 3. Stage 2 Confederation Line, ON 4. Buffalo Atlee Wind Farm, AB 5. Five Alberta Schools, AB 6. Major Oil and Gas Site, BC 7. University of C
Slide 14: Expanding our Power and Sustainable Energy Portfolio
Expanding our Power and Sustainable Energy Portfolio RENEWABLE POWER LOW CARBON ENERGY CARBON INNOVATION ENERGY EFFICIENCY • Wind • Hydrogen (Green and Blue) • Carbon capture • District heating and cooling • Solar • Nuclear/small modular • Carbon utilization • Cogeneration • Hydro Reactors • Carbon
Slide 15: Diversifying Risk - Revenue by Contract Type
Diversifying Risk - Revenue by Contract Type in millions of Canadian dollars $29 $15 $7 $40 • Public Private Partnership $59 $42 $135 $102 $101 $79 (PPP) Higher risk $177 $179 • Design-Build-Finance • Complex Design-Build $1,236 $901 $983 $943 $792 • Stipulated Sum $806 • Unit Price • Specified Desi
Slide 16: Strong Financial Position
Strong Financial Position Q3 2022 in millions of Canadian dollars September 30, 2022 26.5% 1.22 0.78x LONG-TERM LOANS & CURRENT ADJUSTED NET DEBT/ Accessible cash $ 19 BORROWINGS TO EQUITY(1) RATIO(1) TTM ADJUSTED EBITDA(1) Restricted cash $ 67 Syndicated Credit Facility Held in joint operations acc
Slide 17: Balanced Capital Allocation Priorities
Balanced Capital Allocation Priorities $25 Dividends In millions of Canadian Dollars $20 $15 Operating Cashflow(1) $10 $17 $18 $21 $16 $16 $5 $- 2019 2020 2021 2021 Q3 YTD 2022 Q3 YTD $120 $25 Capex $100 In millions of Canadian Dollars $20 in millions of Canadian Dollars $80 $15 $10 $21 $60 $6 $103
Slide 18: A Strong Foundation
A Strong Foundation Created a Strong Key Near-Term Foundation Strategic Priorities Improved geographic and end market diversification Enhance cross-selling opportunities Increased recurring revenue Continue to improve margins Low to medium risk profile of backlog Maintain financial flexibility Limit
Slide 19: Accretive Acquisitions: Stuart Olson and Dagmar Construction
Accretive Acquisitions: Stuart Olson and Dagmar Construction Dagmar Acquisition Date Acquisition Date September 25, 2020 September 1, 2021 $96M Total Consideration Amount $32M Purchase Price(1) Realization of Cost Value and Synergies Savings Cross-selling Strong MRO Constructor Horizontal Infrastruc
Slide 20: $350B+ in Government Spending Opportunities
$350B+ in Government Spending Opportunities Infrastructure Spending of $26B Over 6-years Ending in 2027 2022-2023 Federal Budget Highlights • $14.9B Public transit over 8-years • $397M Rail infrastructure • $3.0B Long-term care and affordable housing* over 5-years (*$2.5B over 7-years) • $900M EV in
Slide 21: Leveraging Innovation and Technology
Leveraging Innovation and Technology Building Information Modelling & Maintenance, Repair, Leveraging Innovative Smart Building Performance Virtual Design and Construction and Operation Management Solutions Technology Utilizing integrated multi- Multi-year maintenance and Leveraging a variety of too
Slide 22: Stack Modular
Stack Modular Integrated solution bridging the gap between site and modular construction. Structural steel modular buildings up to 40-storeys for multi- family, hospitality, senior (long-term care) and student housing, and resource clients. Rapid Delivery Across Canada & The USA Opportunities Market
Slide 23: Mass Timber
Mass Timber Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. >$1.37B >$243M Completed or Awarded or Under Construction Preconstruction >$2.6B Opportunities across Canada 23
Slide 24: 2021 Sustainability Highlights
2021 Sustainability Highlights(1) (1) At December 31, 2021 (2) Includes endowment to Bird Construction/Paul and Geri Charette Endowment Fund 24 (3) Board composition as of August 2022 (4) Salaried and hourly throughout the year
Slide 25: Environmental Stewardship, Social, Governance
Environmental Stewardship • LEED certified projects and professionals >200 LEED Certified • First Zero Carbon Certification project in Canada Projects • Leader in Mass Timber – renewable and captures carbon 37 Mass Timber • Focus on future energy solutions projects completed or • Robust sustainable
Slide 26: Looking Ahead: Why invest in Bird
Looking Ahead Why invest in bird bird em TEAM PERFORM Focus On Margins Strong financial position with improving margin profile Favourable Outlook Solid balance sheet and pipeline of opportunities Strategic Priorities Balanced ESG Strategy OMS Y BUILD GREEN WORK GREEN CG DIVERSIFY \ Y C) LIVE GREEN S
Slide 27: Additional Financial Highlights
Additional Financial Highlights 27
Slide 28: Financial Highlights
Financial Highlights YEAR-OVER-YEAR YEAR-OVER-YEAR Q3 2022 YTD 2022 CHANGE CHANGE No recoveries were recorded under CEWS in YTD 2022 vs. $21.9 million of recoveries recorded in YTD 2021 Revenue $668.2M 7.6% $1,720.4M 6.0% Gross Profit $58.6M 26.3% $143.7M 6.1% 8.8% OF REVENUE(1) 8.4% OF REVENUE(1) G
Slide 29: Revenue, Net Income, and Adjusted Earnings
Revenue, Net Income, and Adjusted Earnings REVENUE NET INCOME ADJUSTED EARNINGS(1) $60 $1.20 $2,500 $45 $0.80 $0.90 $0.80 $0.96 $40 $0.80 $50 $1.00 $0.92 $2,000 $0.65 $35 $0.70 $0.62 $40 $0.80 $30 $0.60 $0.71 $1,500 $25 $0.50 $0.57 $30 $0.60 $43 $2,220 $20 $0.40 $51 $1,000 $36 $35 $33 $42 $1,720 $15
Slide 30: Sector Volume Diversification
Sector Volume Diversification Balanced work programs between 2021 commercial and institutional work, Balanced Sector Diversification while largely maintaining Industrial work to drive stronger growth. 100% 10 98 0. ..0% 0% 96 94 . 0% 0% 90% 92 90 ..0% 26% 24% 88 86 ..0% 0% 0% 34% 84 82 ..0% . 0% 80%
Slide 31: Analyst Coverage
Analyst Coverage ATB CAPITAL CANACCORD | CIBC WORLD iA CAPITAL MARKETS INC. GENUITY MARKETS MARKETS Chris Murray Yuri Lynk Jacob Bout Naji Baydoun 416-520-0267 514.844.3708 416.956.6766 514.830.8077 cmurray@atb.com yuri.lynk@canaccordgenuity.com jacob.bout@cibc.com Naji.baydoun@iagto.ca LAURENTIAN B