Slide 1: Bird Construction Inc. Q3 2020 Earnings Presentation
BIRD CONSTRUCTION INC. Q3 2020 EARNINGS PRESENTATION NOVEMBER 11, 2020
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 manage
Slide 3: Disclaimer Continued
DISCLAIMER CONTINUED 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 comp
Slide 4: Lest we forget.
Lest we forget. 4
Slide 5: Bird Quarterly Highlights 2020 Q3
BIRD QUARTERLY HIGHLIGHTS $8.8M net income or $0.20 basic and diluted earnings per share Improving $12.4M Adjusted Earnings on revenue of $345.1M 2020 Q3 Financial $22.0M Adjusted EBITDA (6.39% Adjusted EBITDA Margin) Performance Eight sequential quarters of TTM Adjusted EBITDA % improvement $345.1M
Slide 6: Integration Update
INTEGRATION UPDATE Bird closed its acquisition of Stuart Olson in the third quarter 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 – Identifying
Slide 7: Diverse Services
DIVERSE SERVICES Enhanced service offering through new expertise in Construction management, + CONSTRUCTION + SELF-PERFORM + MRO expanded self- MANAGEMENT perform capabilities and highly regarded MRO service offering as well as increased recurring revenue generating activities. 7
Slide 8: COVID-19 Response
COVID-19 RESPONSE Employee Initiated a pandemic response plan combined with a rigorous COVID-19 health and safety program Best practices developed and implemented for managers and site teams - self-assessment tools, Health and enhanced cleaning protocols and hygiene measures, physical distancing p
Slide 9: Adjusted EBITDA
ADJUSTED EBITDA Trailing Twelve Month (TTM) Adjusted EBITDA in millions of Canadian dollars 2020 Q3 $1,600M $1,565M 6.00% 4.23% $1,419M $1,400M $1,382M $1,376M $1,370M TTM Adjusted 5.00% EBITDA Q3 2020 4.23% 8 $1,200M 4.00% $1,000M Sequential $800M 3.00% quarters of improving $600M 2.11% 2.35% TTM A
Slide 10: 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 $0.40 $0.21 $0.22 $23.7 $0.30 $10.0 $0.18 $15.0 $28.
Slide 11: Strong Balance Sheet
STRONG BALANCE SHEET September 30, 2020 Leverage remains one of the industry’s Bird Q3’20 33.3% 1.14X lowest, providing flexibility to successfully LT Debt to equity Current ratio integrate and grow the combined business. Working Capital of $118.5M with opportunity generate strong operating cash
Slide 12: Q3 Cash and Equivalents Leverage
Q3 CASH AND EQUIVALENTS LEVERAGE Cash and Cash equivalents Sept 30, Dec 31, Sept 30, Non-restricted cash position in millions of Canadian dollars 2020 2019 2019 improved at Q3’20 vs both Non-restricted cash $ 54.3 $ 36.1 $ 16.6 December 31, 2019 and year-over-year Restricted cash 28.0 10.2 6.3 Held
Slide 13: Bird Cash Flows
BIRD CASH FLOWS in millions of Canadian dollars OPERATING CASH FLOW (BEFORE NON-CASH WC)(1) CAPEX(2) $35.0 $16.0 $30.0 $14.0 $25.0 $12.0 $10.0 $20.0 $8.0 $15.0 $30.2 $31.9 $14.6 $14.4 $26.9 $6.0 $11.6 $10.0 $14.7 $4.0 $7.2 $8.2 $5.0 $12.3 $2.0 $- $- 2017A 2018A 2019A 2019YTD 2020YTD 2017A 2018A 2019
Slide 14: Diversifying Risk Revenue by Contract Type
DIVERSIFYING RISK REVENUE BY CONTRACT TYPE in millions of Canadian dollars 27.3 6.0 100% 134.6 102.1 78.5 29.0 15.2 90% 262.5 79.7 176.9 132.5 44.0 179.5 80% 118.8 70% 60% 50% 40% 30% 20% 10% 0% 2017A 2018A 2019A 2019 Q3 YTD 2020 Q3 YTD 2019 Q3 2020 Q3 CM/CP/IPD Stip Sum, Unit Price & Spec DB DBF &
Slide 15: Strong Backlog and Pending Backlog
STRONG BACKLOG AND PENDING BACKLOG 4,500 in millions of Canadian dollars 4,000 September 30, 2020 $995.7 Backlog acquired 3,500 through Stuart Olson 1300 3,000 Greater portion of Backlog is over 12 months out (39% 2,500 vs 31%) Securements and change 2,000 575 orders Q3 ‘20 YTD is 625 750 600
Slide 16: Capitalization
CAPITALIZATION in Canadian dollars $6.48 6.02% $53.04M Price as of Nov 10, 2020 Dividend Yield* Shares Outstanding Leading mid-cap construction company with strong Backlog $343.69M $3.96 / $7.30 Market Capitalization 52 Week Low / High Long term accretive value creation through transformational
Slide 17: Questions
QUESTIONS Teri McKibbon President & Chief Executive Officer Wayne Gingrich Chief Financial Officer
Slide 18: Appendix
Appendix 18
Slide 19: 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 professionals food and clothing banks, community conduct First Zero Carbon Certification events, and
Slide 20: Diverse Expertise
DIVERSE EXPERTISE BUILDINGS LIGHT INDUSTRIAL NATURAL RESOURCES A leading builder with offices from coast-to-coast serving a broad scope of end- MODULAR POWER TRANSPORTATION markets. INDUSTRIAL ENVIRONMENTAL UTILITIES MAINTENANCE 20
Slide 21: Over 100 Years of Building Canada
OVER 100 YEARS OF BUILDING CANADA 21
Slide 22: Build Bird Strategy
BUILD BIRD STRATEGY Build the Build Business Relationships Diversification Customer First Profitable Growth Approach Efficient Processes & ESG Cost Structure Integrated Safe Production Bird Teams Build the Team Leading National Grow Our Talent Builder Employer of Strategic Planning Choice
Slide 23: Leveraging Innovation & Technology Solutions
LEVERAGING INNOVATION & TECHNOLOGY SOLUTIONS BUILDING INFORMATION LEVERAGING MODELLING AND VIRTUAL TECHNOLOGY DESIGN & CONSTRUCTION MAINTENANCE, REPAIR, SMART BUILDING AND OPERATION Utilizing integrated multi- Leveraging a variety of tools TECHNOLOGY MANAGEMENT disciplinary performance from virtual
Slide 24: 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 and the United States Opportunitie
Slide 25: Mass Timber
MASS TIMBER Bird is a North American leader in wood construction with un-matched expertise, experience, and supply chain knowledge. >$1B completed or under construction >$194M pre-construction >$1.3B opportunities across Canada 25
Slide 26: Analyst Coverage
ANALYST COVERAGE ATB Capital Markets Inc. Chris Murray 647.776.8246 cmurray@atb.com National Bank Financial Maxim Sytchev 416.869.5617 maxim.sytchev@nbc.ca Canaccord|Genuity Yuri Lynk 514.844.3708 yuri.lynk@canaccordgenuity.com Raymond James Ltd. Frederic Bastien 604.659.8232 frederic.bastien@raymon
Slide 27: Thank you
Thank you bird