Bird Construction Inc. · TSX:BDT
Bird Construction — Investor Presentation (August 2021)
30 slides from Bird Construction's investor presentation, August 2021
Slide 1: Investor Presentation
Bird Construction Inc. TSX: BDT INVESTOR PRESENTATION AUGUST, 2021
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
DISCLAIMER TERMINOLOGY Throughout this presentation, management uses the following terms that may not be comparable with similar terms presented by other companies and require definition: "Backlog" is the total value of all contracts awarded to the Company, less the total value of work completed on
Slide 4: Disclaimer: Non-GAAP Measures
DISCLAIMER NON-GAAP MEASURES Throughout this presentation, management uses the following terms which have no standardized meaning prescribed by IFRS and are considered non-GAAP measures. The non-GAAP measures used are: Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA
Slide 5: Over 100 Years Building Canada
OVER 100 YEARS BUILDING CANADA 5
Slide 6: Bird Construction (TSX:BDT)
BIRD CONSTRUCTION (TSX:BDT) $1.5B $41.6M $81.9M $2.7B $461M FULL-YEAR 2020 FULL-YEAR 2020 FULL-YEAR 2020 BACKLOG MARKET CAP REVENUE ADJUSTED EARNINGS ADJUSTED EBITDA June 30, 2021 at Aug 9, 2021 75.7% $0.39 +82% 2-YR SHAREHOLDER ANNUALIZED EMPLOYEES ARE 5,000+ NATIONAL RETURN (Incl. Dividend) DIVIDE
Slide 7: Diverse Expertise
DIVERSE BUILDINGS LIGHT INDUSTRIAL NATURAL RESOURCES EXPERTISE Delivering solutions from coast-to-coast, serving a broad scope of end-markets. MODULAR POWER TRANSPORTATION Comprehensive range of construction services from new construction for industrial, commercial, and institutional markets; to ind
Slide 8: Full-Suite Service Offering
FULL-SUITE SERVICE OFFERING DIVERSIFIED REVENUE STREAMS CONSTRUCTION MAINTENANCE, DESIGN-BUILD SELF-PERFORM PUBLIC PRIVATE MANAGEMENT REPAIR & PARTNERSHIPS (PPP) OPERATIONS (MRO) FIXED PRICE / INTEGRATED PROJECT STIPULATED SUM DELIVERY (IPD) COST PLUS INDUSTRIAL SERVICE AGREEMENTS RISK SCALE Reflect
Slide 9: Constructing a Strong Foundation
CONSTRUCTING A STRONG FOUNDATION DRIVING SUPERIOR SHAREHOLDER VALUE CREATION • Balanced and disciplined approach to capital allocation TARGETING SUSTAINABLE PROFITABLE GROWTH • Managing risk profile through diversification • Recurring revenue focus • Consistent margin improvement ENVIRONMENTAL, SOCI
Slide 10: Strong Team of Constructors
DISCLAIMER STRONG TEAM OF CONSTRUCTORS LEVERAGING OUR TALENTED • Executive leadership and operational leadership composed of experienced LEADERSHIP TEAM professionals each with over 25 years in the industry • Building a high-performance culture centred on great people DEEP BENCH STRENGTH AND • Compe
Slide 11: Transformational Acquisition
TRANSFORMATIONAL ACQUISITION $95.7M $1B +$600M +$900M TOTAL BACKLOG PENDING REVENUE 110+ YRS IN CANADA CONSIDERATION BACKLOG 3,000 EMPLOYEES INDUSTRY SAFETY GREATER TOP EMPLOYER COMMUNITY ENHANCED SERVICE LEADER DIVERSIFICATION IN ALBERTA FOCUSED OFFERINGS mergers & acquisitions 11
Slide 12: Stuart Olson Integration Update
STUART OLSON INTEGRATION UPDATE REALIZING PROFITABILITY GROWTH THROUGH TOP-LINE AND COST SAVINGS INITIATIVES REALIZATION OF SYNERGIES The full $10 million in previously stated cost synergies have been set in motion. COST SAVINGS Fully realized the remaining $15 million in depreciation and amortizati
Slide 13: Leveraging Innovation & Technology
LEVERAGING INNOVATION & TECHNOLOGY BUILDING INFORMATION MAINTENANCE, REPAIR, LEVERAGING SMART BUILDING MODELLING AND VIRTUAL AND OPERATION INNOVATIVE PERFORMANCE DESIGN & CONSTRUCTION MANAGEMENT SOLUTIONS TECHNOLOGY Utilizing integrated multi- Multi-year maintenance and Leveraging a variety of tools
Slide 14: Stack Modular
STACK MODULAR Turnkey 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 POI
Slide 15: Mass Timber
MASS TIMBER Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. >$1.27B COMPLETED OR UNDER CONSTRUCTION >$234M PRECONSTRUCTION >$1.02B OPPORTUNITIES ACROSS CANADA innovation and technology value 15
Slide 16: Sustainability Overview
SUSTAINABILITY OVERVIEW BUILD GREEN Bird’s long-term strategic vision is rooted in our belief that the construction industry plays Pursuing opportunities to utilize sustainable an important role in providing sustainable, innovative, and lasting solutions for not only building materials and minimize
Slide 17: Building Sustainable Growth
BUILDING SUSTAINABLE GROWTH CONTINUALLY PURSUIT OF OVERALL MANAGING BACKLOG MARGIN IMPROVEMENT RISK PROFILE RETAINING SIGNIFICANT FINANCIAL FLEXIBILITY TO DIVERSIFIED SERVICES & FOCUSED ON INCREASING PURSUE ORGANIC AND GEOGRAPHICAL PRESENCE RECURRING REVENUE INORGANIC GROWTH STREAMS OPPORTUNITIES ta
Slide 18: Diversifying Risk: Revenue by Contract Type
DIVERSIFYING RISK REVENUE BY CONTRACT TYPE in millions of Canadian dollars 28.8 1.5 100% • Public Private Partnership 102.1 21.3 25.1 (PPP) 134.6 100.6 90% 64.5 179.5 176.9 80% Higher risk • Design-Build-Finance 70% • Complex Design-Build 60% 50% • Stipulated Sum 40% • Unit Price 30% • Specified Des
Slide 19: Contract Awards
CONTRACT AWARDS DEVON RECREATIONAL COMPLEX CORRECTIONAL EXPANSIONS INDUSTRIAL SITE OVERPASS 17-STOREY MIXED USE IN TORONTO STORM AND EFFLUENT PONDS THREE YEAR M&E SERVICES $75M ‘THE BURKE’ $172M NANAIMO CORRECTIONAL$154M 19
Slide 20: Record Combined Backlog
RECORD COMBINED BACKLOG(1) in millions of Canadian dollars 63% of Backlog expected to 5,000 convert into Revenue over the 4,500 next 12 months 4,000 3,500 1,648 1,636 1,685 JUNE 30, 2021 1,300 3,000 • Quarter-end Backlog was ~$2.7B 2,500 • Quarter-end Pending Backlog was ~$1.6B • Backlog increased 6
Slide 21: Strong Government Spending Outlook
STRONG GOVERNMENT SPENDING OUTLOOK $350B+ IN GOVERNMENT SPENDING OPPORTUNITIES FEDERAL 2021-2022 BUDGET HIGHLIGHTS Infrastructure-related spending of $26B over 6 years $14.9B | Public Transit Over 8 Years $3.0B | Long-term Care and Affordable Housing* Over 5 Years (*$2.5B Over 7 Years) $6.0B | Infra
Slide 22: Increasing Adjusted EBITDA Margin
INCREASING ADJUSTED EBITDA MARGIN(1) in millions of Canadian dollars TRAILING TWELVE MONTH (TTM) ADJUSTED EBITDA(1) Q2 2021 2,000 1,901 8% 6.0% 1,800 1,627 7% TTM ADJUSTED 1,600 1,504 6.0% 1,419 1,382 1,376 6% EBITDA Q2 2021 1,400 5.5% 1,200 5% 11 1,000 4% SEQUENTIAL QUARTERS OF IMPROVING TTM 800 2.
Slide 23: Revenue, Net Income and Adjusted Earnings
REVENUE, NET INCOME AND ADJUSTED EARNINGS in millions of Canadian dollars except per share amounts REVENUE NET INCOME ADJUSTED EARNINGS(1) $1,600 $40.0 $0.80 $0.90 $45.0 $0.92 $1.00 $1,400 $35.0 $0.80 $40.0 $0.70 $0.80 $1,200 $30.0 $35.0 $0.60 $1,000 $25.0 $30.0 $20.0 $0.39 $0.50 $25.0 $0.45 $0.60 $
Slide 24: Strong Financial Position
STRONG FINANCIAL POSITION Q2 2021 JUNE 30, 2021 24.6% 1.23 0.54x in millions of Canadian dollars Accessible cash $ 2.8 LT DEBT CURRENT ADJUSTED NET DEBT/ TO EQUITY(1) RATIO(2) TTM ADJUSTED EBITDA(3) Restricted cash $ 58.2 • Q4 2020 announced new syndicated credit facilities of a Held in joint operat
Slide 25: Balanced Capital Allocation Priorities
BALANCED CAPITAL ALLOCATION PRIORITIES $15.0 $13.0 $11.0 $9.0 CAPEX (2) $7.0 $14.6 $14.4 $14.2 $5.0 $3.0 $5.6 $3.2 $1.0 -$1.0 OPERATING CASHFLOW (1) 2018A 2019A 2020A 2020YTD Q2 2021YTD Q2 $80.0 $20.0 $18.0 $70.0 $16.0 $60.0 DIVIDENDS $14.0 $12.0 $50.0 $10.0 $16.6 $16.6 $17.6 $8.0 $40.0 $6.0 $71.7 $
Slide 26: Why Invest in Bird
WHY INVEST IN BIRD Maintaining A Strong A Leading Canadian Delivering Long-term Diversified Balance Sheet With Construction Company Shareholder Value National Presence Significant Financial Flexibility Diversifying Book Key Focus On Overall Of Business And Pro Forma Margin Increasing Recurring Impro
Slide 27: Analyst Coverage
ANALYST COVERAGE ATB CAPITAL CANACCORD| CIBC WORLD iA CAPITAL MARKETS INC. GENUITY MARKETS MARKETS Chris Murray Yuri Lynk Jacob Bout Naji Baydoun 647.776.8246 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 BA
Slide 28: Questions
QUESTIONS é
Slide 29: Financial Highlights
FINANCIAL HIGHLIGHTS Q2 2021 RESULTS(1) STRONG Record Q2 2021 Revenues RECORD FINISH TO 2020 Continued realization of cross- $556M 97% REVENUES selling synergies REVENUE $49.0M 139% GROSS PROFIT Record Backlog (2) of $2.7B RECORD COMBINED and Pending Backlog(2) of $30.1M 144% $1.6B BACKLOG ADJUSTED
Slide 30: Financial Highlights
FINANCIAL HIGHLIGHTS Q2 2021 YTD 2021 REVENUE $556M 97% $1.0B 66% YEAR-OVER-YEAR YEAR-OVER-YEAR INCREASE INCREASE GROSS PROFIT $49.0M 139% YEAR-OVER-YEAR $88.9M 138% YEAR-OVER-YEAR 8.8% OF REVENUE 8.9% OF REVENUE INCREASE INCREASE GENERAL and $30.5M 126% $60.0M 112% ADMINISTRATIVE 5.5% OF REVENUE YE
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