MISSISSAUGA, Ontario, Dec. 12, 2023 (GLOBE NEWSWIRE) -- Bird Construction Inc. (TSX: BDT) announced today that its Board of Directors has approved a $0.13 cent or 30.2% increase in its dividend effective for the March 29, 2024 dividend, payable on April 19, 2024. The dividend increase follows the Board's approval of the 2024 annual business plan, which anticipates continued accretion in earnings per share and EBITDA through 2024.
The increased monthly dividend will be $0.0467 per share, corresponding to an annual dividend rate of $0.56 per share.
"The dividend increase approved by the Board reflects the Company's outlook for significant further improvements in earnings and cash flow in 2024 over 2023. Based on the margins embedded in the Company's current record combined backlog, and the significant volume of attractive opportunities being pursued, stronger performance is expected throughout the coming year, with seasonal patterns favouring the second half of the year as usual," commented Teri McKibbon, President and CEO of Bird. "The expected improvements in financial performance will support both the increased dividend while allowing the Company to retain in excess of two-thirds of net income to support continued growth beyond 2024."
Bird remains focused on balancing investment in profitable long-term growth with sustainable distributions to shareholders. The Company remains committed to a balanced approach to capital allocation, including our tuck-in M&A strategy, which is essential to facilitate continued business growth with increasing profitability, and to maximize total shareholder returns over the long term. The Company maintains a healthy balance sheet, with low levels of debt outstanding, and ample liquidity to support strategic growth initiatives.
Bird further strengthened its liquidity position through the renewal of its three-year credit agreement with favourable terms, effective December 1, 2023, which included the expansion of its revolving credit facility to $250 million from $220 million, and expanded access to Letters of Credit. Together with the Company's robust cash flow profile, Bird has a solid foundation for continued success and growth.
This press release contains forward-looking information and statements (as defined in applicable Canadian securities legislation) that involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, or achievements to materially differ from those expressed or implied by the forward-looking statements.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, contact:
T.L. McKibbon, President & CEO or
W.R. Gingrich, CFO
Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6
Phone: (905) 602-4122
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, infrastructure, and buildings 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
