Bird Construction Inc. · TSX:BDT
Bird Construction — Q3 2021 Earnings Presentation
21 slides from Bird Construction's earnings presentation, Nov 10, 2021
Slide 1: Q3-2021 Earnings
Bird Construction Inc. TSX: BDT Q3-2021 EARNINGS NOVEMBER 10, 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 o
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: Bird Construction - TSX: BDT
BIRD CONSTRUCTION - TSX: BDT I STRATEGIC PRIORITIES | COMMITMENT TO ESG | LEGACY , 101+ :·~o;;;";;ne~,--- ', ~' bircl YEARS TEAM PERFORM DIVERSIFY 5,000+ STRONG BUILD GREEN WORK GREEN LIVE GREEN STRONG GOVERNANCE COAST TO COAST 5 1920 1930 1949 2007 2011 2!012 2020 20211
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Q3 2021 RESULTS(1) STRONG RECORD FINISH TO 2020 Record Q3 2021 Revenues $621M 80% REVENUES Continued realization of cross- REVENUE selling synergies $12M 37% NET INCOME RECORD Record Backlog(2) of $2.8B $29M 30% BACKLOG & and Record Pending ADJUSTED EBITDA(3) PENDING Backlog(2)
Slide 7: Improving Adjusted EBITDA Margin
IMPROVING ADJUSTED EBITDA MARGIN(1) I TRAILING TWELVE MONTH (TTM) REVENUE & ADJUSTED EBITDA MARGIN (1) 2,500 8% Q3 2021 2,177 7% $53M 2,000 1,901 Q3 2021 TTM 6.0% 6% 1,627 NET INCOME 5.5% TTM Revenue in CAD Millions ($M) 1,504 5.5% TTM Adj. EBITDA Margin (%) 1,419 5% 1,500 1,382 1,376 4% 5.5% Q3 202
Slide 8: Significant Pipeline of Projects
SIGNIFICANT PIPELINE OF PROJECTS EXECUTING ON STRATEGIC PRIORITIES TEAM • PERFORM DIVERSIFY NORTH OKANAGAN WASTEWATER RECOVERY PROJECT e ONTARIO POWER GENERATION – CLARINGTON CAMPUS DBMF FIVE ALBERTA SCHOOLS ESG COMMITMENT TO ESG 0 SUSTAINABLE CONSTRUCTION VIRTUAL DESIGN CONSTRUCTION FOOD and BEVERA
Slide 9: Record Backlog & Pending Backlog
RECORD BACKLOG & PENDING BACKLOG(1) in $millions of Canadian 62% of Backlog expected to 5,000 dollars convert into Revenue over the 4,500 next 12 months 4,000 1,788 3,500 1,636 1,685 1,648 I SEPTEMBER 30, 2021 3,000 1,300 • Record Quarter-end Backlog was ~$2.8B 2,500 • Record Quarter-end Pending Bac
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Q3 2021 YTD 2021 REVENUE $621M 80% $1,622M 71% • --. GROSS PROFIT $46M 7.5% OF REVENUE YEAR-OVER-YEAR INCREASE 70% YEAR-OVER-YEAR INCREASE $135M 8.3% OF REVENUE YEAR-OVER-YEAR INCREASE 109% YEAR-OVER-YEAR INCREASE GENERAL and $30M 69% $90M 96% --• ADMINISTRATIVE NET INCOME 4.8%
Slide 11: Stuart Olson Integration Update
STUART OLSON INTEGRATION UPDATE 9.25.2020 $ 96M $ 30M $ 66M TRANSACTION DATE TOTAL CONSIDERATION AMOUNT CONSISTED OF CASH COMMON SHARES OF BIRD CONSTRUCTION , ' $ 25M $ 10M $ 15M 1 one \ I EBITDA SYNERGIES SET IN MOTION DEPRECIATION, AMORTIZATION, FURTHER COST SAVINGS RUN-RATE COST EXPECTED THROUGH
Slide 12: Dagmar Construction Acquisition
DAGMAR CONSTRUCTION ACQUISITION .j- e,ONS>--. 1>c::, 80% $32M ACQUISITION DATE: :E (") ~ INC. 5Z SEPTEMBER 1, 2021 DEBT PURCHASE PRICE(1) 20% 0 AJAX-ONT EQUITY RAIL WORK | Complete Scope Rail General Contractor STRUCTURE | Complete Scope General Contractor ROADWORK | Complete Scope Roadwork General
Slide 13: Dagmar Construction Overview
DAGMAR CONSTRUCTION OVERVIEW STRONG REPUTATION OVER 80 YEARS BALANCED PORTFOLIO BY WORK TYPE REVENUE BREAKDOWN BY WORK TYPE Solid execution, dependable operations, and a safety-oriented culture. EXTENSIVE EXPERTISE Civil infrastructure, rail, road, bridge, sewer and water, and commercial-institution
Slide 14: Strong Financial Position
STRONG FINANCIAL POSITION Q3 2021 SEPTEMBER 30, 2021 in $millions of Canadian dollars 32.8% 1.21 0.09x Accessible cash $ 75 LT LOANS & CURRENT ADJUSTED NET DEBT/ BORROWINGS RATIO(2) TTM ADJUSTED TO EQUITY(1) EBITDA(3) Restricted cash $ 49 EXPANDED AND EXTENDED SYNDICATED CREDIT FACILITY Held in join
Slide 15: Balanced Capital Allocation Priorities
BALANCED CAPITAL ALLOCATION PRIORITIES $16 CAPITAL EXPENDITURES(2) in $millions of Canadian Dollars $14 $12 $10 CAPEX(2) $8 $15 $14 $14 $6 $4 $8 $6 $2 OPERATING CASHFLOW(1) $- 2018A 2019A 2020A 2020YTD Q3 2021YTD Q3 $90 $80 $20 $18 CASH DIVIDENDS PAID in $millions of Canadian Dollars in $millions of
Slide 16: Looking Ahead: Why Invest in Bird
LOOKING AHEAD: WHY INVEST IN BIRD FAVOURABLE OUTLOOK I STRATEGIC PRIORITIES Solid balance sheet and pipeline of opportunities FOCUS ON MARGINS Strong financial position with improving margin profile TEAM PERFORM DIVERSIFY BALANCED STRATEGY Balanced capital allocation Maintaining a balanced risk prof
Slide 17: Questions
WN Zz ie) la WY Ww ss) oO
Slide 18: Strong Government Spending Outlook
STRONG GOVERNMENT SPENDING OUTLOOK I $350B+ IN GOVERNMENT SPENDING OPPORTUNITIES GoC Projecting Economic Growth: 6% • 2021 | 5% • 2022 | 3% • 2023 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
Slide 19: Sustainability Overview
SUSTAINABILITY OVERVIEW Bird’s long-term strategic vision is rooted in our belief that the construction industry plays BUILD GREEN an important role in providing sustainable, innovative, and lasting solutions for not only our Pursuing opportunities to utilize clients, partners, and employees, but fo
Slide 20: Mass Timber
MASS TIMBER BUILD GREEN WORK GREEN Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. >$1.3B COMPLETED OR UNDER CONSTRUCTION >$234M PRECONSTRUCTION >$1.0B OPPORTUNITIES ACROSS CANADA 20
Slide 21: Stack Modular
STACK MODULAR BUILD GREEN WORK GREEN 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 O