Jun. 2, 2011 (Canada NewsWire Group) --
SYMBOL: BDT
TORONTO, June 2 /CNW/ - Bird Construction Inc. ("Bird"), (formerly Bird Construction Income Fund prior to its conversion to a corporate structure effective January 1, 2011) announced its financial results for the first quarter ended March 31, 2011. Tim Talbott, President and C.E.O. of Bird stated that "2011 first quarter income was lower than that achieved in 2010, primarily as a result of lower gross profit margins. The Company began to experience the impact of lower margins in the last half of 2010 and as anticipated, the current quarter results reflect a continuation of a very competitive market resulting from recent economic conditions. In addition, results reported in 2011 were further negatively affected by income tax changes which resulted in Bird's income being fully subject to corporate taxation in 2011. Bird has a strong Backlog and we remain optimistic that the Company will benefit from the increased activity in northern Alberta. In addition, we are considering strategic initiatives that we believe will provide increased shareholder value in the future".
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Highlights
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(000's except per share amounts) Three months ended March 31
2011 2010
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Construction Revenue $171,155 $181,626
Income before income taxes 5,792 16,903
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Net income and comprehensive income for the
period $4,109 $13,813
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Basic and diluted earnings per share $0.10 $0.33
Earnings per share amounts reflect the stock split effective in April
2011
- Construction revenue declined by 5.8% to $171.2 million in 2011
compared to 2010, primarily due to lower construction activity in the
Alberta oil sands.
- Income before taxes of $5.8 million was $11.1 million lower in 2011
than 2010, reflecting the impact of lower gross profit margins
resulting from the continuation of a very competitive market
associated with recent economic conditions.
- Net income of $4.1 million in 2011 was $9.7 million lower than 2010,
resulting from lower construction margins and the impact of Bird's
income being fully subject to income tax in 2011.
- Backlog remains robust at $1,071.4 million at March 31, 2011.
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Bird Construction Inc. further announced that its Board of Directors declared a regular monthly dividend of $0.055 per common share to shareholders of record on July 29, 2011 payable on August 19, 2011.
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
T.J. Talbott, President & C.E.O. or S.R. Entwistle, C.F.O., Bird Construction Inc., 5403 Eglinton Avenue West, Toronto, ON, M9C 5K6, Phone: (4l6) 620-7122, Fax: (416) 620-1516