Bird Construction Inc. · TSX:BDT
Bird Construction — ATB Financial investor marketing presentation (January 2021)
28 slides from Bird Construction's conference presentation, Jan 12, 2021
Slide 1: Bird Construction Inc. TSX: BDT
BIRD CONSTRUCTION INC. TSX: BDT ATB FINANCIAL January 12, 2021
Slide 2: Disclaimer
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
Slide 3: Disclaimer: Non-GAAP Measures and Terminology
DISCLAIMER DISCLAIMER NON-GAAP MEASURES AND TERMINOLOGY Throughout this presentation, management uses the following terms which have no standardized meaning prescribed by GAAP and are considered non-GAAP measures. Therefore, these terms may not be comparable with similar terms presented by other com
Slide 4: COVID-19 Response
DISCLAIMER COVID-19 RESPONSE • Pandemic response plan and a rigorous COVID-19 health and safety program in place EMPLOYEE • Best practices in place for managers and site teams: self-assessment tools, enhanced cleaning HEALTH AND protocols and hygiene measures, physical distancing practices, new COVI
Slide 5: Over 100 Years Building Canada
OVER 100 YEARS BUILDING CANADA
Slide 6: Bird Construction (TSX:BDT)
BIRD CONSTRUCTION (TSX:BDT) $1.4B $28.2M 4.23% $2.59B $458M TTM Q3’20 TTM Q3’20 TTM Q3’20 BACKLOG MARKET CAP REVENUE ADJUSTED EARNINGS ADJUSTED EBITDA at September 30, 2020 at January 11, 2021 40% $0.39 +82% 2-YR SHAREHOLDER ANNUALIZED EMPLOYEES ARE 5,000+ NATIONAL RETURN (Incl. Dividend) DIVIDEND S
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, Diversified Revenue Streams
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 DEEP BENCH STRENGTH AND • Building a high-performance culture centred on great people • Compe
Slide 11: Transformational Acquisition
TRANSFORMATIONAL ACQUISITION $95.7M $1B +$600M +$900M TOTAL PENDING BACKLOG 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 and acquisitions 11
Slide 12: Integration Update and Synergies Update
INTEGRATION UPDATE Bird closed its acquisition of Stuart Olson in the third quarter of 2020 and immediately began the important work of integrating the two companies. • “Best of both” approach • Regular communications and updates • Focus on people, organizational structure and technology needs • Ide
Slide 13: Leveraging Innovation and Technology
LEVERAGING INNOVATION AND 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 too
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. >$1.0B COMPLETED OR UNDER CONSTRUCTION >$194M PRECONSTRUCTION >$1.3B OPPORTUNITIES ACROSS CANADA innovation and technology value 15
Slide 16: Bringing Value to Communities
BRINGING VALUE TO COMMUNITIES ENVIRONMENTAL SOCIAL CORPORATE STEWARDSHIP RESPONSIBILITY GOVERNANCE LEED certified projects and Support for health care foundations, A strong culture of ethical conduct professionals food and clothing banks, community Recognition of the benefits of First Zero
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 27.3 6.0 • Public Private Partnership 100% 134.6 102.1 78.5 29.0 15.2 (PPP) 90% 262.5 79.7 176.9 44.0 Higher risk 179.5 132.5 80% 118.8 • Design-Build-Finance 70% • Complex Design-Build 60% 50% • Stipulated Sum 40% • Unit Pri
Slide 19: Strong Backlog and Pending Backlog
STRONG BACKLOG AND PENDING BACKLOG1 in millions of Canadian dollars 61% of Backlog expected to 4,500 convert into Revenue over the 4,000 next 12 months 3,500 1300 KEY AWARDS IN 3,000 LAST 12 MONTHS 2,500 2,000 Eric Hamber School (BC) 625 575 750 600 625 Louvre Residence (AB) 1,500 500 300 185
Slide 20: Increasing Adjusted EBITDA
INCREASING ADJUSTED EBITDA in millions of Canadian dollars TRAILING TWELVE MONTH (TTM) ADJUSTED EBITDA 2020 Q3 $1,565 4.23% 1600 0.06 $1,419 $1,376 $1,370 1400 $1,382 0.05 1200 4.23% TTM ADJUSTED EBITDA Q3 2020 0.04 1000 800 0.03 8 2.11% SEQUENTIAL QUARTERS 600 2.35% OF IMPROVING TTM 1.81% 0.02 ADJU
Slide 21: 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 $1,440 $25.0 $0.56 $0.60 $30.0 $0.66 $0.70 $1,420 $0.50 $0.60 $20.0 $25.0 $1,400 $0.40 $0.50 $15.0 $20.0 $1,380 $0.21 $0.22 $23.7 $0.30 $0.40 $10.0 $0.18 $15.0 $28
Slide 22: Strong Financial Position
STRONG FINANCIAL POSITION Q3 2020 SEPTEMBER 30, 2020 33.3% 1.14x 0.33x in millions of Canadian dollars LT DEBT CURRENT ADJUSTED NET DEBT/ Non-restricted cash $ 54.3 TO EQUITY RATIO TTM ADJUSTED EBITDA Restricted cash $ 28.0 • Q4’20 announced new syndicated credit facilities $165M Held in joint opera
Slide 23: Balanced Capital Allocation Priorities
BALANCED CAPITAL ALLOCATION PRIORITIES in millions of Canadian dollars CAPEX (2) OPERATING CASHFLOW (1) DIVIDENDS MERGER AND ACQUISITION OPPORTUNITIES driving superior shareholder (1) Operating cash flow - Refer to the consolidated statement of cash flows – value creation “Cash flows from operations
Slide 24: Why Invest in Bird
WHY INVEST IN BIRD Maintaining A Strong A Leading Canadian Delivering Long-term Diversified National Balance Sheet With Construction Shareholder Value Presence Significant Financial Company Flexibility Diversifying Book Key Focus On Overall Of Business And Pro Forma Margin Increasing Recurring Impro
Slide 25: Analyst Coverage
ANALYST COVERAGE ATB CAPITAL MARKETS INC. CANACCORD|GENUITY CIBC WORLD MARKETS Chris Murray Yuri Lynk Jacob Bout 647.776.8246 514.844.3708 416.956.6766 cmurray@atb.com yuri.lynk@canaccordgenuity.com jacob.bout@cibc.com NATIONAL BANK FINANCIAL RAYMOND JAMES LTD. TD SECURITIES Maxim Sytchev Frederic B
Slide 26: Questions
QUESTIONS Teri McKibbon President & Chief Executive Officer Wayne Gingrich Chief Financial Officer
Slide 27: Bird Quarterly Highlights
BIRD QUARTERLY HIGHLIGHTS • • $8.8M net income or $0.20 basic and diluted earnings per share $12.4M Adjusted Earnings on revenue of $345.1M Q3 2020 IMPROVING FINANCIAL • $22.0M Adjusted EBITDA (6.39% Adjusted EBITDA Margin) $345.1M • Eight sequential quarters of TTM Adjusted EBITDA % improvement REV
Slide 28: Thank you
Thank you bird.
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