Bird Construction posts profit in second quarter, but revenue dips
TORONTO—Bird Construction Inc. swung to a profit in the second quarter of 2019, but saw its construction revenues decline from a year ago.
The company posted net income of $1 million, or two cents per share for Q2, compared to a loss of 12 cents per share, or $5.3 million during the same period last year. Revenue dropped to $315.4 million from $320.1 million.
Bird said its results in the first half of this year were negatively affected by a P3 project that went over budget. The Toronto-based contractor said “substantial changes” to the scope of the project are currently under commercial negotiation.
Teri McKibbon, the company’s president and CEO, said Bird’s performance is “much improved” from last year, but added it’s also anticipating better results to come as it starts work on a new slate of projects.
“Our backlog continues to grow and become more diversified as does our list of awarded but not yet contracted projects, both of which include a significant portion of higher-margin self-perform industrial work and overall have a lower risk profile than a year ago,” he said in a release. “As these new projects evolve and further diversification takes hold, we expect to see an improvement in our gross profit margins.”
The company’s backlog climbed to $1.4 billion by the end of the second quarter, up from $1.3 billion three months earlier.