Bird Construction Inc. Announces 10% Dividend Increase on Strong Outlook for 2023


MISSISSAUGA, ON, Dec. 19, 2022 /CNW/ – Bird Construction Inc. (BDT.TO, TSX) announced today that its Board of Directors approved a 10% increase in its dividend, effective with the March monthly dividend payable on April 20, 2023. This follows the Board’s approval of the Company’s 2023 annual business plan which anticipates significant growth in earnings per share and adjusted EBITDA.

The increased monthly dividend will be $0.0358 per share corresponding to an annual dividend rate of $0.43 per share.

Teri McKibbon, President and CEO of Bird, commented, “It is very gratifying to see the results of our efforts to reposition the Company’s business toward a more diversified mix of lower risk collaborative contract formats, as reflected in our 2023 annual business plan. We anticipate healthy revenue growth and stronger margins as our remaining lower margin historical contracts are replaced with new work. The combined effect of higher volume and stronger margins should result in significant growth in our bottom line for 2023, setting the stage for an attractive longer-term outlook.

Although the current business environment poses some challenges, we believe our strong business fundamentals will prevail over the macro factors that are being felt across the industry. We are closing the year with a strong backlog of contracts in hand and a deep pipeline of opportunities which enable us to be selective in achieving our revenue plan with additional favourable contracts. We are pleased to reward our shareholders for their patience with an initial modest dividend increase while still maintaining our expected payout ratio below 40% for 2023 and continuing to strengthen our balance sheet to support additional tuck-in acquisitions.”

FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements and information (“forward-looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this news release are based on the expectations, estimates and projections of management of Bird as of the date of this news release unless otherwise stated. The use of any of the words “outlook”, “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intend”, “continue”, “may”, “will”, “should” and similar expressions are intended to identify forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements concerning: anticipated financial performance; the outlook for 2023; and anticipated growth in earnings per share and adjusted EBITDA.

Forward-looking statements address future events and conditions and involve inherent risks and uncertainties. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which the Company operates in general such as: operational risks, industry and project delivery risks; ability to hire and retain qualified personnel; global pandemics; delays or changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; compliance with environmental laws; competition, ethics and reputational risks; ability to access sufficient capital from internal and external sources; repayment of credit facility; collection of recognized revenue; performance bonds and contract security; potential for non-payment and credit risk; dependence on the public sector; client concentration; labour matters; loss of key management; subcontractor performance; unanticipated shutdowns, work stoppages, strikes and lockouts; maintaining safe worksites; cyber security risks; litigation risk; volatility of market trading; failure of clients to obtain required permits and licenses; payment of dividends; economy and cyclicality; Public Private Partnerships project risk and equity investments; design risks; completion and performance guarantees; ability to secure work; estimating costs and schedules; quality assurance and quality control; insurance risk; adjustments and cancellations of backlog; joint venture risk; internal and disclosure controls; and changes in legislation, including regulations. The forward-looking statements in this news release should not be interpreted as providing a full assessment or reflection of the unprecedented impacts of the COVID-19 pandemic (“COVID-19”) and the resulting indirect global and regional economic impacts. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations or financial results of the parties, and the combined company, including any risk factors related to COVID-19, are included in reports on file with applicable securities regulatory authorities, including but not limited to; Bird’s Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2021

, each of which may be accessed on Bird’s SEDAR profile, at www.sedar.com and on the Company’s website at www.bird.ca.

The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as, and to the extent required by applicable securities laws.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

ABOUT BIRD CONSTRUCTION

Bird (TSX: BDT) is a leading Canadian construction company operating from coast-to-coast and servicing all of Canada’s major markets. Bird provides a comprehensive range of construction services from new construction for industrial, commercial, and institutional and civil infrastructure markets; to industrial maintenance, repair and operations services, heavy civil construction, and mine support services; as well as vertical infrastructure including, electrical, mechanical, and specialty trades. For over 100 years, Bird has been a people-focused company with an unwavering commitment to safety and a high level of service that provides long-term value for all stakeholders. www.bird.ca

SOURCE Bird Construction Inc.

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