annual
report 2020
NINETIETH
ANNUAL REPORT
for the year ended
December 31, 2020
CORPORATE OFFICES
5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6 Canada
4820 Richard Road SW, Suite 600
Calgary, AB T3E 6L1 Canada
DIRECTORS
OFFICERS
AUDITORS
LEAD BANK
SURETY
J. Richard Bird, Ph.D., MBA ............................................................................. Calgary
Karyn A. Brooks, FCPA, FCA (1)........................................................................ Calgary
Paul A. Charette (Chair) .................................................................................Oakville
D. Greg Doyle, FCPA, FCA.............................................................................. Victoria
Bonnie D. DuPont, AOE., M.Ed., F.ICD.D (2) ........................................................ Calgary
Teri L. McKibbon .......................................................................................Canmore
Luc J. Messier, P.Eng.............................................................................. Texas, USA
Ron D. Munkley, BSc, Hon (Eng) .....................................................................Oakville
Paul R. Raboud, P.Eng., MSc, MBA................................................................... Toronto
Arni C. Thorsteinson, CFA ......................................................................... Winnipeg
(1)
(2)
Audit Committee Chair
Human Resources, Safety and Governance Committee Chair
Teri L. McKibbon ........................................................................... President & CEO
Wayne R. Gingrich, CPA, CMA, ICD.D.................... Chief Financial Officer & Treasurer
Gilles G. Royer, P.Eng. ..........................................................Chief Operating Officer
Charles J. Caza, BA. Sc. Eng., LL.B......Executive Vice President & Chief Legal Officer
Brian C. Henry ......................................................................... Chief People Officer
Rick Begg...........................................................................Chief Information Officer
Peter Lineen............................................................ Executive Vice President, HSE
J. Paul Bergman, CET ............................... Executive Vice President, Buildings East
Rob Otway, P.Eng., GSC, ICD.D ................... Executive Vice President, Buildings West
Tannis Proulx, P.Eng. ...................…...Senior Vice President, Industrial Construction
Adham Kaddoura .................................... Senior Vice President, Civil Infrastructure
David Keep ..................................... Senior Vice President, Industrial Maintenance
John Krill, P.Eng., MBA ............................................. President, Commercial Systems
Arthur Krehut.......................................Senior Vice President, Operational Services
Paul Pastirik, CPA, MBA ......................Senior Vice President, Strategic Development
KPMG LLP
Bank of Montreal
Travelers Guarantee Company of Canada
STOCK EXCHANGE LISTING
Toronto Stock Exchange (Symbol “BDT”)
TRANSFER AGENT AND REGISTRAR
Computershare Investor Services
WEBSITE
www.bird.ca
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ....................................................................... i
BIRD SUSTAINABILITY OVERVIEW 2020 .................................................... 1
MANAGEMENT’S DISCUSSION & ANALYSIS ............................................ 37
CONSOLIDATED FINANCIAL STATEMENTS ............................................. 81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .................. 93
FIVE YEAR SUMMARY .............................................................................. 138
Letter to Shareholders
There is no doubt that 2020 was a historic year for Bird Construction. We began the year with the excitement
of celebrating our 100th year of building Canada. This is a testament to any organization that is able to
celebrate 100 years, and grow their business, expand coast-to-coast, and thrive as an industry leader.
Since our humble beginning in 1920 to today, Bird has persevered through times of war, economic
downturns, and natural disasters. During the end of the first quarter, we, along with the rest of the world,
faced our next challenge – a global pandemic. Everything we knew changed, and we were all challenged
to think differently. From this, came innovative ways to address safety, community, and business. 2020 also
provided opportunities, with the acquisition of Stuart Olson.
Through everything that our 100th year brought, the key ingredient to our continued success remained our
employees and their commitment to the company. Throughout our history, talented and passionate
employees have contributed immensely to our growth by operating with integrity and professionalism,
creating a collaborative environment that fosters teamwork, collective stewardship, and a robust safety
culture. Now, as a combined organization, we are even more excited for our future. As we look back on a
significant 2020, we are proud to highlight our accomplishments.
Delivering Value
Over the past year, we continued to deliver value for our people, clients, communities, and shareholders,
as we have for the past 100 years. Our focus remained on maintaining a strong balance sheet, which
enabled us to invest in long-term growth strategies, both organic and acquisition-related opportunities. We
continue to focus on increasing profitability into the coming year, driven by our record Backlog, our balanced
risk profile, and the integration of the Stuart Olson team.
Driving a Culture of Safety
The pandemic has undoubtedly impacted our industry with temporary project shutdowns and reduced
productivity on project sites. Throughout these unprecedented times, we remained proud of our team’s
ability to adapt to ensure the health and safety of our employees remained at the forefront as we navigated
our new reality. New, more robust measures were quickly introduced to keep our employees safe and help
to flatten the curve. This included almost 12,000 site inspections, new COVID-19 measure audits, additional
personal protective equipment, strategies to reduce the concentration of workers on site, and remote work
practices, to name a few. We would both like to personally thank our employees who worked tirelessly
throughout the pandemic to ensure that we operated safely and effectively, while continuing to deliver on
our project commitments.
Creating an Industry Leading Organization
On September 25, 2020, we completed our acquisition of Stuart Olson. We welcomed the additional
employees, clients, shareholders, and all other stakeholders to create an industry-leading Canadian
construction company. This accretive acquisition, which was the largest and most transformative in our
100-year history, will create long-term value for years to come. Throughout our integration process, we
continue to leverage best practices across our teams to create a strong, innovative, and dynamic company
that provides our employees with a best-in-class working environment, and our clients with an exceptional
service offering.
Executing Excellence
Our teams successfully delivered a number of projects in 2020, including substantial general contracting
and maintenance work for our industrial clients across Canada, and securing additional contracts with
longstanding clients. Our buildings team successfully executed on, and secured new projects from coast-
to-coast, including educational and recreational facilities, mixed-used residential buildings, police
detachments, health care projects, and modular construction. Commercial systems continued to deliver on,
i
and were awarded contracts for major health care projects, post-secondary facilities, food processing
plants, high-rise, mixed-use residential buildings, and institutional projects.
Promoting Sustainability
Sustainability at Bird is a continuous journey of learning, evolving, innovating, and growing. As part of this,
we are excited to include our Sustainability Overview in our 2020 Annual Report. This document provides
a snapshot of some of the Environmental, Social, and Governance (ESG) initiatives that are currently
underway across Bird. As an organization, our long-term strategic vision is rooted in our belief that the
construction industry plays an important role in providing sustainable, innovative, and lasting solutions for
not only our employees, clients, and partners, but for the communities in which we live and work. Over the
coming years, we will continue to execute on our ESG strategy, which will include the release of a more
substantive report.
Building our Future Together
We are an industry-leading Canadian construction company with an even greater ability to service our
clients coast-to-coast and provide our employees with exciting opportunities as a larger, more diverse
organization. With a strong balance sheet and record Backlog, we continue to invest in long-term growth
opportunities, securing our place amongst the largest and most robust construction companies in Canada.
We are excited for our collective future and our continued ability to deliver every day for our people, clients,
communities, and shareholders.
Thank you for your continued support, and welcome to #ourbestbuildyet.
Paul A. Charette
Chairman of the Board
Terrance L. McKibbon
President and CEO
ii
SUSTAINABILITY
OVERVIEW 2020
T A B L E O F
C O N T E N T S
Bird’s Commitment
A Message from Teri McKibbon
Build Green
Mass Timber
Prefabrication
Stack Modular
Work Green
BIM/VDC
Centre for Building Performance
Waste Management
Supply Chain Management
Live Green
Health and Safety
COVID-19 Response
Indigenous Relations
Community Connections
Human Capital Development
Stakeholder Engagement
Commitment to Governance
Risk Management
Oversight
4
5
6
8
10
12
14
14
16
19
20
21
21
23
24
27
28
30
31
31
35
B I R D ’ S
C O M M I T M E N T
Bird Construction has been building on a tradition of trust through dedication, collaboration, customer
satisfaction, and value creation for over 100 years. Bird’s approach to sustainability is a reflection of its
commitment to the core company values of safety, people, teamwork, professionalism, integrity, and
stewardship. These values guide us in all we do and ensure that, as an organization, Bird provides sustainable
value and accretive contributions to its clients, employees, shareholders, and the communities in which Bird and
our employees live and work.
As of September 2020, Bird and Stuart Olson officially joined forces to create a leading Canadian
construction company. Informed by leading industry standards and best practices, the combined entity is
consistently striving towards maximizing its social and environmental impact, as well as highlighting the strong
corporate governance framework in place that ensure accountability and stewardship across all of its operations.
This Sustainability Overview provides a snapshot of some of the Environmental, Social, and Governance (ESG)
(cid:73)(cid:78)(cid:73)(cid:84)(cid:73)(cid:65)(cid:84)(cid:73)(cid:86)(cid:69)(cid:83)(cid:3)(cid:67)(cid:85)(cid:82)(cid:82)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:87)(cid:65)(cid:89)(cid:3)(cid:65)(cid:67)(cid:82)(cid:79)(cid:83)(cid:83)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:14)(cid:3)(cid:41)(cid:84)(cid:3)(cid:73)(cid:83)(cid:3)(cid:78)(cid:79)(cid:84)(cid:3)(cid:65)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:82)(cid:69)(cid:72)(cid:69)(cid:78)(cid:83)(cid:73)(cid:86)(cid:69)(cid:3)(cid:65)(cid:67)(cid:67)(cid:79)(cid:85)(cid:78)(cid:84)(cid:3)(cid:79)(cid:70)(cid:3)(cid:65)(cid:76)(cid:76)(cid:3)(cid:79)(cid:70)(cid:3)(cid:79)(cid:85)(cid:82)(cid:3)(cid:65)(cid:67)(cid:84)(cid:73)(cid:86)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:12)(cid:3)(cid:78)(cid:79)(cid:82)(cid:3)(cid:68)(cid:79)(cid:69)(cid:83)(cid:3)(cid:73)(cid:84)(cid:3)(cid:82)(cid:69)(cid:109)(cid:69)(cid:67)(cid:84)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)
complexity of our long-term strategic approach to sustainability.
Bird is committed to entrenching sustainability best practices within all areas of the business, transforming the way we
work, build, and live. In pursuit of this objective, we have undertaken a systemic review to inform how we can better track
our progress towards our sustainability goals, and expand our disclosure across a wide range of key metrics, including
conforming to the leading reporting frameworks utilized within our industry. This will be an ongoing process as our
(cid:83)(cid:85)(cid:83)(cid:84)(cid:65)(cid:73)(cid:78)(cid:65)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3)(cid:83)(cid:84)(cid:82)(cid:65)(cid:84)(cid:69)(cid:71)(cid:89)(cid:3)(cid:67)(cid:79)(cid:78)(cid:84)(cid:73)(cid:78)(cid:85)(cid:69)(cid:83)(cid:3)(cid:84)(cid:79)(cid:3)(cid:69)(cid:86)(cid:79)(cid:76)(cid:86)(cid:69)(cid:3)(cid:84)(cid:79)(cid:3)(cid:82)(cid:69)(cid:109)(cid:69)(cid:67)(cid:84)(cid:3)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:69)(cid:88)(cid:84)(cid:69)(cid:82)(cid:78)(cid:65)(cid:76)(cid:3)(cid:70)(cid:65)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:14)
Bird’s sustainability journey is led by our ESG Executive Sponsors and the ESG Executive Steering Committee, and is
driven by senior leaders and subject matter experts drawn from across our operating groups.
ESG EXECUTIVE SPONSORS
(cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:3)(cid:38)(cid:73)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3)(cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)
SVP Strategic Development
ESG EXECUTIVE STEERING COMMITTEE
(cid:35)(cid:72)(cid:73)(cid:69)(cid:70)(cid:3)(cid:48)(cid:69)(cid:79)(cid:80)(cid:76)(cid:69)(cid:3)(cid:47)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)
EVP Health, Safety, and Environment
EVP Buildings West
SVP Industrial Maintenance
ESG WORKING GROUPS
Senior managers and subject matter
experts from Operations, Health and
Safety, People and Culture,
Marketing and Communications,
Finance, and Risk Management
S U S T A I N A B I L I T Y O V E R V I E W
Sustainability
at Bird is a
continuous journey
of learning,
evolving, innovating,
and growing.
$1.5B
CONSTRUCTION
REVENUE1
$2.7B
BACKLOG2
$1.6B
PENDING
BACKLOG2
A M E S S A G E F R O M
T E R I M C K I B B O N
P R E S I D E N T & C E O
Sustainable building practices, robust health and
safety standards, substantial community investment,
authentic
Indigenous engagement, and strong
corporate governance are at the core of everything
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Sustainability Overview, which highlights the great
things Bird has accomplished from coast to coast.
in
Bird’s long-term strategic vision is rooted in our
industry plays an
belief that the construction
important
sustainable,
role
innovative, and lasting solutions for not only our
clients, partners, and employees, but
for the
communities
live and work.
Global events of this past year remind us of just how
intrinsically linked we all are.
in which we
providing
P
A
G
E
0
5
Over the coming years, we will continue to develop,
execute, and deliver on our Environmental, Social,
and Governance Strategy, which will include the
release of a more substantive report.
look
forward to our future as an organization, industry, and
collective, as we work together to create a stronger
future for us all.
I
1Consolidated results for the year ended
December 31, 2020.
2Consolidated results as at December 31, 2020.
Refer to the “Terminology & Non-GAAP Measures”
section of Bird’s MD&A for the year ended
December 31, 2020.
B U I L D
G R E E N
Pursuing opportunities to utilize sustainable
building materials and minimize resource waste
Bird is committed to sustainable construction. We have partnered with our clients to
deliver complex and innovative building systems that meet LEED®, Green Globes,
Passive House, and Zero Carbon building requirements. By utilizing sustainable
building materials and minimizing resource use and waste, we can realize both
(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:67)(cid:79)(cid:83)(cid:84)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:14)
Over the last decade, Bird has delivered over 200 projects that are built to
(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:3) (cid:79)(cid:82)(cid:3) (cid:72)(cid:65)(cid:86)(cid:69)(cid:3) (cid:65)(cid:67)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:68)(cid:3) (cid:44)(cid:37)(cid:37)(cid:36)(cid:3) (cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:14)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:72)(cid:65)(cid:83)(cid:3) (cid:44)(cid:37)(cid:37)(cid:36)
(cid:44)(cid:37)(cid:37)(cid:36)(cid:3)
Accredited professionals across Canada and is a proud member of the Canada
Green Building Council (CaGBC).
H U M B E R C O L L E G E B U I L D I N G N X
T O R O N T O , O N T A R I O
Humber College Building NX received the 2020 Ontario Consulting
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achieve the Canada Green Building Council’s Zero Carbon Building-
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(cid:52)(cid:72)(cid:73)(cid:83)(cid:3) (cid:68)(cid:69)(cid:83)(cid:73)(cid:71)(cid:78)(cid:13)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:3) (cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3) (cid:69)(cid:78)(cid:84)(cid:65)(cid:73)(cid:76)(cid:69)(cid:68)(cid:3) (cid:65)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69)(cid:3) (cid:69)(cid:78)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:69)(cid:3) (cid:82)(cid:69)(cid:84)(cid:82)(cid:79)(cid:108)(cid:84)(cid:3) (cid:84)(cid:72)(cid:65)(cid:84)(cid:3) (cid:73)(cid:83)(cid:3)
(cid:72)(cid:73)(cid:71)(cid:72)(cid:76)(cid:89)(cid:3) (cid:73)(cid:78)(cid:83)(cid:85)(cid:76)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:65)(cid:73)(cid:82)(cid:84)(cid:73)(cid:71)(cid:72)(cid:84)(cid:14)(cid:3) (cid:52)(cid:72)(cid:82)(cid:79)(cid:85)(cid:71)(cid:72)(cid:3) (cid:65)(cid:3) (cid:68)(cid:69)(cid:69)(cid:80)(cid:3) (cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3) (cid:82)(cid:69)(cid:84)(cid:82)(cid:79)(cid:108)(cid:84)(cid:12)(cid:3) (cid:73)(cid:84)(cid:3) (cid:72)(cid:65)(cid:83)(cid:3) (cid:66)(cid:69)(cid:69)(cid:78)(cid:3)
(cid:84)(cid:82)(cid:65)(cid:78)(cid:83)(cid:70)(cid:79)(cid:82)(cid:77)(cid:69)(cid:68)(cid:3) (cid:73)(cid:78)(cid:84)(cid:79)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:77)(cid:79)(cid:83)(cid:84)(cid:3) (cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3) (cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3) (cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:79)(cid:78)(cid:3) (cid:67)(cid:65)(cid:77)(cid:80)(cid:85)(cid:83)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:79)(cid:78)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3)
(cid:84)(cid:72)(cid:69)(cid:3)(cid:77)(cid:79)(cid:83)(cid:84)(cid:3)(cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:83)(cid:3)(cid:73)(cid:78)(cid:3)(cid:46)(cid:79)(cid:82)(cid:84)(cid:72)(cid:3)(cid:33)(cid:77)(cid:69)(cid:82)(cid:73)(cid:67)(cid:65)(cid:14)(cid:3)
S U S T A I N A B I L I T Y O V E R V I E W
200+
LEED
PROJECTS1
1 Bird and Stuart Olson combined, 2020.
Sustainable
design through
creativity,
collaboration,
and dedication.
70%
REDUCTION IN
ENERGY USE
INTERNALLY
90%
REDUCTION
IN GHG
EMISSIONS
97%
REDUCTION IN
HEATING
ENERGY
A C T I V E W A T E R T R E A T M E N T S Y S T E M
P
A
G
E
0
7
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environmental milestone on an industrial project. Over 50,000,000 gallons of
treated construction contact water was delivered back into the environment
without incident (the equivalent volume of water in 75 Olympic-sized pools).
The entire project site falls within a temperate rainforest that supports a rich
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ranges. Federal and provincial regulators required 3,500 commitments in order for
the project to proceed. One of these commitments is that the discharge of water
off site is to be as clean as the surrounding rivers and creeks.
In order to meet regulatory compliance while keeping construction timelines,
Bird mobilized an active water treatment system. The success of the system
placed Bird in the position to assist other contractors to meet their water quality
management requirements. Bird is looking forward to achieving the next major
milestone of delivering clean water off site, while maintaining compliance with
the BC Water Quality Guidelines over the course of the remainder of the project.
>50M
GALLONS OF TREATED
CONSTRUCTION
CONTACT WATER
DISCHARGED OFFSITE
ZERO
ENVIRONMENTAL
INFRACTIONS
+2M m3
SOIL/AGGREGATES
SAFELY MOVED
M A S S
T I M B E R
Mass Timber projects offer
low carbon solutions using a
renewable resource as a primary construction material. Through
sustainable forestry, wood-based materials capture carbon and
offset total CO2 emissions.
L E T H B R I D G E C O L L E G E
L E T H B R I D G E , A L B E R T A
K W A N L I N D Ü N C U L T U R A L
C E N T R E
W H I T E H O R S E , Y U K O N
Visibility of wood
improves productivity and happiness:
in the working environment
• Physical workplace satisfaction: 81% vs 47%
• Better concentration: 83% vs 65%
• Lower stress levels: 65% vs 42%
• Optimistic about the future: 61% vs 44%1
1 “Workplaces: Wellness + Wood = Productivity” Report prepared in 2018 for Forest & Wood
Products Australia, by Andrew Knox, Howard Parry-Husbands, and Pollinate.
$1B+
COMPLETED/
UNDER
CONSTRUCTION1
20+PROJECTS
COMPLETED/
UNDER
CONSTRUCTION2
1, 2, Bird and Stuart Olson combined, to date.
with
leader
extensive
is a North American
in wood
Bird
construction
expertise,
experience, and supply chain knowledge. We
have the in-house expertise to develop Cross
Laminated Timber, Nailed Laminated Timber,
wood-frame, and hybrid projects from concept
to substantial completion. With an in-depth
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of different mass timber and engineered wood
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(cid:84)(cid:79)(cid:3)(cid:77)(cid:65)(cid:88)(cid:73)(cid:77)(cid:73)(cid:90)(cid:69)(cid:3)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:85)(cid:82)(cid:65)(cid:76)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:67)(cid:73)(cid:69)(cid:83)(cid:14)(cid:3)
Our strong North American network of material
supply channels effectively service mass timber
projects. By leveraging our global relationships
with designers, consultants, subtrades, and
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forward-thinking
cutting-edge
strategies, and value-maximizing processes and
methodologies. This results in buildings that
improve communities, user experience, and
the environment.
technologies,
S U R R E Y M A I N , K W A N T L E N U N I V E R S I T Y
S U R R E Y, B R I T I S H C O L U M B I A
A L B E R T A C A R P E N T E R S U N I O N P E N S I O N
B U I L D I N G
E D M O N T O N , A L B E R T A
R I C H M O N D O V A L
The Richmond Oval, a 2010 Olympic Games
facility, used
legacy community
venue and
local and regional sustainably produced materials
– in particular wood – to connect with the local
Indigenous building aesthetics.
The 43,000-square-metre facility featured a clear
span of almost 100 metres to ensure no visual
obstructions for spectators. Composite wood
glulam beams spanned the space, proving that
even very large span projects can be realized cost
effectively through innovation in the use of wood.
The project was awarded the Canadian Wood
Council/Wood WORKS! BC Wood Design Award
for Institutional Wood Design in 2009.
P
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9
C A L G A R Y, A L B E R T A
E A S T H A N T S A Q U AT I C C E N T R E
One of the largest infrastructure builds in East Hants
history, the new Aquatic Centre in Elmsdale, Nova Scotia
is designed for the enjoyment of people of all ages and
abilities. Bird, the ownership team, and the design
team, were all committed to using local resources
wherever possible. For example, the wood for the
showcase
Laminated
1,500-square-metre Nailed
Timber roof over the natatorium was harvested within
10 kilometres of the local sawmill. Bird’s self-perform
team manufactured the Nailed Laminated Timber panels
straight from the sawmill planers and installed the roof.
R I C H M O N D , B R I T I S H C O L U M B I A
C E N T R A L L I B R A R Y
space
The new Calgary Central Library provides
nearly 22,300 square metres of beautifully
designed
in Calgary’s East Village.
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(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:67)(cid:89)(cid:3)(cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:69)(cid:78)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:69)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:83)(cid:84)(cid:83)(cid:3)(cid:79)(cid:70)(cid:3)(cid:20)(cid:22)(cid:21)(cid:3)(cid:85)(cid:78)(cid:73)(cid:81)(cid:85)(cid:69)(cid:3)
curtainwall panels. The building also encapsulates
the LRT tunnel, emerging at grade level. Among
the mass timber elements in the avant-garde
design are expansive curved cedar battens along
the ceilings and walls, western red cedar planks
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western hemlock on the vertical surfaces.
E L M S D A L E , N O V A S C O T I A
P R E FA B R I C AT I O N
The offsite fabrication and assembly of specialty modular skid units
can mitigate site safety risks and improve overall usage and waste
of consumables
O F F S I T E F A B R I C A T I O N A N D M O D U L A R I Z A T I O N
C O N T R I B U T E T O O U R S U S T A I N A B I L I T Y G O A L S
• Waste minimization and lower waste removal costs
•
Improved project schedules as fabrication and module assembly
occur in parallel with site development and piling programs
Improved quality due to a controlled module yard environment
•
• (cid:50)(cid:69)(cid:68)(cid:85)(cid:67)(cid:69)(cid:68)(cid:3)(cid:83)(cid:73)(cid:84)(cid:69)(cid:3)(cid:69)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:82)(cid:73)(cid:83)(cid:75)(cid:12)(cid:3)(cid:73)(cid:78)(cid:67)(cid:76)(cid:85)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:73)(cid:78)(cid:3)(cid:84)(cid:82)(cid:65)(cid:70)(cid:108)(cid:67)(cid:3)(cid:84)(cid:79)(cid:3)
remote project sites
Improved safety performance
Increased productivity
•
•
• Reduced site laydown space requirements
• Reduced onsite power consumption
• Recyclability of steel
M E C H A N I C A L
E L E C T R I C A L
I N S T R U M E N T A T I O N
Our industrial modular capabilities include a wide range of solutions including electrical houses, modular water
facilities, and industrial process piping. The commercial systems business is an industry leader in the offsite assembly of
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(cid:55)(cid:69)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:70)(cid:85)(cid:77)(cid:69)(cid:3) (cid:69)(cid:88)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3) (cid:108)(cid:76)(cid:84)(cid:69)(cid:82)(cid:3) (cid:65)(cid:76)(cid:76)(cid:3) (cid:87)(cid:69)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:70)(cid:85)(cid:77)(cid:69)(cid:83)(cid:12)(cid:3) (cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:73)(cid:78)(cid:71)(cid:3)
harmful exhausts and capturing any hazardous particulates. Clean air
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help to prevent safety risks and health problems caused by dust,
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improving worker safety and comfort, this process helps to protect
valuable equipment from contamination.
The recyclability of steel makes it a very
sustainable material. Scrap metal recycling
plays a critical role in reclaiming valuable
secondary materials for reuse
into new
products, helping us to conserve natural
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ensure that all of our scrap metals are
recycled, and gather various materials in
recycling bins throughout the site.
Our electronically managed consumable distribution system within
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overall usage and waste of consumables, improves productivity, and
provides better visibility and control.
(cid:104)(cid:33)(cid:84)(cid:3) (cid:73)(cid:84)(cid:83)(cid:3) (cid:67)(cid:79)(cid:82)(cid:69)(cid:12)(cid:3) (cid:79)(cid:85)(cid:82)(cid:3) (cid:77)(cid:73)(cid:83)(cid:83)(cid:73)(cid:79)(cid:78)(cid:3) (cid:73)(cid:83)(cid:3) (cid:84)(cid:79)(cid:3) (cid:80)(cid:82)(cid:79)(cid:68)(cid:85)(cid:67)(cid:69)(cid:3) (cid:65)(cid:3) (cid:77)(cid:79)(cid:82)(cid:69)(cid:3) (cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3) (cid:83)(cid:65)(cid:70)(cid:69)(cid:82)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:76)(cid:89)(cid:3)
conscious project for our clients, employees, partners, community and all other
stakeholders
innovation,
technology, and utilizing manufacturing/production
line philosophies whilst
operating in a contractors that care culture.”
involved. Achieved by planning,
collaboration,
P a u l B l a n c h a r d , C o m m e r c i a l S y s t e m s G r o u p P r e f a b r i c a t i o n S h o p M a n a g e r
B M O C O N V E N T I O N C E N T R E E X P A N S I O N – H A L L F
P
A
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1
1
C A L G A R Y, A L B E R T A
is part of
the BMO Convention Centre Expansion
Hall F
undertaken by the Calgary Stampede. The team undertook the
construction management project to provide 4,533 square metres of
additional hall/trade space to the existing BMO Convention Centre,
complimenting the existing footprint of the facility and allowing for
the next phases of the expansion.
Our commercial systems business team was awarded the electrical
contract, and utilized their local pre-fabrication shop to increase
overall safety, improve project schedule, decrease waste, and reduce
costs by over 50% for the panels and transformers.
the
for
Prefabrication offers opportunities
commercial
systems
innovation:
business worked
collaboratively with
the owner and consultant to create a
vertical show panel assembly on cantruss,
achieving
overall
footprint. The shallow cantruss support was
designed to secure the panel assembly to
the catwalk while leaving the end user with
more working space.
a much
smaller
REDUCED
SITE RISK
INCREASED
PRODUCTIVITY
IMPROVED
SAFETY
EFFICIENT
USE OF
RESOURCES
S T A C K
M O D U L A R
investment
The company’s
in modular
construction, through its 50% partnership
with Stack Modular, contributes to Bird’s
overall environmental sustainability focus
A Q S A R N I I T H O T E L A N D C O N V E N T I O N C E N T R E
I Q A L U I T, N U N A V U T
Image courtesy of Bill Williams
T H E M O D U L A R D I F F E R E N C E
Greener process than conventional construction
Generates up to 90% less construction waste
Consumes less energy during the construction
process and during operation
Projects can be completed 30 - 50% faster than
conventional construction
Delivery of sophisticated construction facilities
to remote locations and urban areas
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Controlled manufacturing conditions reduce
the risks of safety incidents
Less material exposure to inclement weather
Ease of construction on urban or congested sites
Advantages of repeatability
Can exceed Energy Code compliance
A Q S A R N I I T H O T E L A N D C O N V E N T I O N C E N T R E
I Q A L U I T, N U N A V U T
The Bird/Stack Modular partnership was awarded the contract to construct this hotel and conference centre in
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centre in the city, and is comprised of a 465-square-metre conference centre, 94-room full-service hotel, lounge,
restaurant, commercial space, and gym. This project leveraged the Bird/Stack partnership’s capability to deliver a
turnkey solution that bridges the gap between site and modular construction.
P
A
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1
3
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and reduced the schedule by close to a year. A prototype modular unit was produced by Stack Modular’s
international supply chain in less than four weeks for client approval. The modular units, which are of the highest quality
in the industry, also feature outboard insulation that optimizes thermal performance and assists in creating an
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W O R K G R E E N
Delivering innovative solutions for sustainable construction
N I A G A R A F A L L S E N T E R T A I N M E N T C E N T R E , O N T A R I O
B U I L D I N G I N F O R M AT I O N M O D E L I N G ( B I M ) /
V I R T U A L D E S I G N A N D C O N S T R U C T I O N ( V D C )
Leveraging technology to build smarter, more efficient buildings through
innovative solutions
• Provides a new level of optimization in onsite construction to identify green solutions
•
and options for modularization or prefabrication
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project stakeholders
Integrated process containing all digital information available for a project
•
• Co-ordinated in a single dedicated model enabling visualization of all design and
construction activities
• Leverages project information for constructability, co-ordination, and communication
As sustainable construction evolves as a key focus for the
for
industry and our clients, we continuously
innovative solutions that can improve our capability in
delivering projects that have a low-carbon footprint and use
unique energy systems to reduce waste and cost. BIM and
VDC allow us to use advanced construction intelligence to
identify areas of opportunity, such as green solutions for
projects, or options for modularization and pre-fabrication.
look
VDC allows for better communication of the design intent
as well as the development of fully co-ordinated project
documentation. VDC co-ordinates everything from early
conceptual massing models to highly developed, thoroughly
documented 3D models in the development of a Digital Twin
of the physical project.
S U S T A I N A B I L I T Y O V E R V I E W
E F F I C I E N T
L O G I S T I C S P L A N N I N G
C L A S H D E T E C T I O N F O R
R E D U C E D R E W O R K
4 D S C H E D U L I N G T O
I M P R O V E E F F I C I E N C I E S
Q U A N T I T Y T A K E O F F S T O
R E D U C E W A S T E
I N T E G R A T I O N W I T H F A C I L I T Y
M A I N T E N A N C E S E R V I C E S T O
M A X I M I Z E L I F E S P A N
Y O R K U N I V E R S I T Y M A R K H A M C E N T R E C A M P U S
The new York University campus in Markham aims to meet the education, research, and innovation needs of an
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students. The building consists of a four-storey podium with a six-storey tower, and a mechanical penthouse.
The design of the building and landscaped areas includes several features that respond to the needs of Indigenous
communities within and around the university campus.
York University is committed to having the project fully designed, constructed, and delivered using BIM. The
construction team will utilize the BIM model for clash co-ordination, issue tracking, quantity takeoffs, and visualizing
construction via 4D animations. By viewing the 4D animations, all construction personnel will be aware and
knowledgeable of weekly tasks before commencing their activities. The BIM model will also assist with change
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• Designed to achieve CaGBC LEED Silver as a
minimum sustainability standard
• VDC team implementing laser scanning throughout
construction to capture all services before wall/
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• Using 4D
schedule allows
to
visualize construction prior to commencement,
mitigating construction risks
stakeholders
• Operation and maintenance documents will
be added to the 3D model, which will be used
by our Centre
to
monitor performance of equipment and services
for Building Performance
M A R K H A M , O N T A R I O
N I A G A R A FA L L S E N T E R TA I N M E N T C E N T R E
P
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5
Bird, as part of the Niagara Falls Entertainment
Partners consortium, executed the contract to
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Falls Entertainment Centre (NFEC) facility for the
Ontario Lottery and Gaming Corporation
in
the City of Niagara Falls. The facility features a
performance
stage
space
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patrons.
lobby and
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The project was designed and constructed to LEED
v4 requirements, and was completed in June 2020.
features a public
with multiple
It also
N I A G A R A F A L L S , O N T A R I O
BIM was instrumental in the long-term co-ordination of the project, as well as assisting in the
day-to-day understanding of the intricate design.
• 3D models were utilized to develop the designs and provide detailed plans
• Construction took place above an existing structure and adjacent to a busy hotel. Laser scanning was used to
capture the existing structure, which was then modeled to co-ordinate with the proposed designs
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(cid:84)(cid:69)(cid:83)(cid:84)(cid:83)(cid:14)(cid:3)(cid:41)(cid:84)(cid:3)(cid:87)(cid:65)(cid:83)(cid:3)(cid:70)(cid:79)(cid:85)(cid:78)(cid:68)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:84)(cid:72)(cid:73)(cid:83)(cid:3)(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:3)(cid:87)(cid:65)(cid:83)(cid:3)(cid:65)(cid:84)(cid:3)(cid:76)(cid:69)(cid:65)(cid:83)(cid:84)(cid:3)(cid:84)(cid:72)(cid:82)(cid:69)(cid:69)(cid:3)(cid:84)(cid:73)(cid:77)(cid:69)(cid:83)(cid:3)(cid:77)(cid:79)(cid:82)(cid:69)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3)(cid:84)(cid:72)(cid:65)(cid:78)(cid:3)(cid:84)(cid:82)(cid:65)(cid:68)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:65)(cid:76)(cid:3)(cid:84)(cid:65)(cid:75)(cid:69)(cid:13)(cid:79)(cid:70)(cid:70)(cid:83)(cid:3)(cid:80)(cid:82)(cid:79)(cid:84)(cid:79)(cid:67)(cid:79)(cid:76)(cid:83)
• Owner-initiated changes in the later stages of the project could be accurately designed based on construction
progress and as-built conditions detailed in the models
C E N T R E F O R B U I L D I N G P E R F O R M A N C E
Constructing smarter, more efficient, and environmentally-friendly buildings
Our Centre for Building Performance (CfBP) is dedicated to assisting construction teams, designers, and
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(cid:67)(cid:76)(cid:73)(cid:69)(cid:78)(cid:84)(cid:83)(cid:3)
environmentally-friendly buildings. CfBP offers a variety of services from equipment and building systems testing
to software development and integration of the best equipment throughout the building.
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The range of innovative solutions offered by the CfBP has the potential to optimize the sustainability of building
systems and minimize environmental impacts. This in-house service enables both our clients and our teams to
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• Targeted building technology solutions
• Optimized sustainability of
building systems
• Multi-system integration
• Reduced operating costs through
efficient building management
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are anticipated and addressed. With today’s staggering amount of
options when it comes to smart building technologies, the CfBP
assists project teams in making sure that the right systems are
considered
ideal outcomes. This eliminates
infrastructure redundancies, which not only saves time and
(cid:77)(cid:79)(cid:78)(cid:69)(cid:89)(cid:3) (cid:66)(cid:85)(cid:84)(cid:3) (cid:65)(cid:76)(cid:83)(cid:79)(cid:3) (cid:77)(cid:65)(cid:75)(cid:69)(cid:83)(cid:3) (cid:65)(cid:3) (cid:66)(cid:85)(cid:73)(cid:76)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3) (cid:77)(cid:79)(cid:82)(cid:69)(cid:3) (cid:69)(cid:78)(cid:69)(cid:82)(cid:71)(cid:89)(cid:3) (cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:83)(cid:69)(cid:3)
building performance solutions can reduce overall capital budgets
by optimizing building systems and infrastructure while ensuring a
high-performance building and faster occupancy handover.
support
to
in-house
Post-occupancy,
designed
solutions provide valuable insights that
simplify building management
help
and maintenance decisions,
reduces
operating costs, and improves efficiency.
Clients have ownership of their own data,
providing access to real-time information.
Through
their mobile devices, clients
are able to see what is causing building
issues, thus driving better and more
effective building maintenance decisions,
and ensuring all systems are operating at
optimal capacity.
S U S T A I N A B I L I T Y O V E R V I E W
U N I V E R S I T Y O F C A L G A R Y
M A C K I M M I E C O M P L E X
R E D E V E L O P M E N T P R O J E C T
to
construction
The MacKimmie Tower and Block project
is an example of how technology can add
value
This
marriage of iconic and sustainable design with
modern technology and building analytics is an
important case study for the future of high
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projects.
MacKimmie Tower’s double-skin facade will
respond to changing weather and works in
concert with the mechanical system to decrease
energy consumption and improve the indoor
environment in terms of thermal comfort, day
lighting, and air quality. The design of the
double
along with photovoltaic
panels on the rooftop and integrated into the
curtainwall, add to the sustainable design
features of the project, as well as the goal of net
zero carbon emission. The complex system for
air quality and temperature control is supported
by a Gigabit Passive Optical Network (GPON).
facade,
C A L G A R Y, A L B E R T A
•
•
STRIVES TO BE NET CARBON NEUTRAL FOR ANNUAL
OPERATIONS: THE TOWER ACHIEVED NET ZERO CARBON
STANDARDS IN 2020
IT WILL BE ONE OF THE MOST ENERGY EFFICIENT BUILDINGS
ON A CANADIAN POST-SECONDARY CAMPUS
G P O N
G I G A B I T PA S S I V E O P T I C A L N E T W O R K
for
forward
the complex
Real time building analytics reporting gave
the team accurate insights into the building’s
system performance throughout the project, and
allowed the team to understand the best
integrations
way
associated with the project. This data proved
crucial to anticipating and resolving
issues
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the
warranty. The University has adopted
Centre’s analytics platform since completion,
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track to roll out building analytics to the rest
of the campus.
>90%
CONSTRUCTION WASTE
MATERIALS ARE BEING RECYCLED
150
NEW MATURE TREES ADDED
TO THE REVITALIZED LANDSCAPE
~3,000
METRIC
TONNES
CONCRETE RECYCLED
TO DATE
67%
SAVINGS ON
CAPITAL COSTS
96%
CABLE WEIGHT
REDUCTION
DRASTICALLY
IMPROVED
SECURITY
NETWORK
30+
YEAR
LIFESPAN
P
A
G
E
1
7
68%
CORE EQUIPMENT
SPACE SAVINGS
72%
POWER USAGE
REDUCTION
is
(GPON)
Gigabit Passive Optical Network
a
Single Mode Fibre (SMF) network cabling option that
consolidates multiple network cables down to one
single, smaller, faster cable. It lays the groundwork for smart
building
fast network
access required in this age of technology. Our CfBP
supports clients with
this
implementation of
the
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technologies, providing
the
• Faster
• Smaller footprint
• (cid:45)(cid:79)(cid:82)(cid:69)(cid:3)(cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:76)(cid:69)
• Less noise
• Lighter
• Safer
• Stronger
• Greener
U N I V E R S I T Y O F B R I T I S H
C O L U M B I A C E N T R E F O R
I N T E R A C T I V E R E S E A R C H
O N S U S TA I N A B I L I T Y ( C I R S )
the
to operate at
Designed
frontier of sustainable
performance in both environmental and human terms, the
CIRS building serves as a living laboratory and research
testbed for sustainable practice over
Its
modern communications capabilities facilitate community
outreach programs and help
sustainable
futures. It is also central to our CfBP’s ongoing research
programs and initiatives.
visualize
lifetime.
its
V A N C O U V E R , B R I T I S H C O L U M B I A
• Net Positive building that produces more energy
from renewable sources than it consumes
• (cid:47)(cid:80)(cid:80)(cid:79)(cid:82)(cid:84)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:3)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3)(cid:84)(cid:79)(cid:3)(cid:79)(cid:80)(cid:84)(cid:73)(cid:77)(cid:73)(cid:90)(cid:69)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:80)(cid:69)(cid:82)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3)
of equipment and systems by intelligently analyzing
and aggregating operational data
• Automated operator reporting
Q U A D R E A L
team
installing,
is designing,
Our CfBP
and
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buildings across Canada. This entails the cut over of each
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optic cables (including security cameras, BMS, lighting
controls, elevators, energy management systems, and
high-speed internet). This cut over is the integration of
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building is unique, resulting in our team executing 37
bespoke designs for optimum building performance.
• Major savings on capital costs
• Lower power consumption
• (cid:51)(cid:73)(cid:71)(cid:78)(cid:73)(cid:108)(cid:67)(cid:65)(cid:78)(cid:84)(cid:3)(cid:83)(cid:80)(cid:65)(cid:67)(cid:69)(cid:3)(cid:83)(cid:65)(cid:86)(cid:73)(cid:78)(cid:71)(cid:83)(cid:3)(cid:8)(cid:69)(cid:81)(cid:85)(cid:73)(cid:80)(cid:77)(cid:69)(cid:78)(cid:84)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:67)(cid:65)(cid:66)(cid:76)(cid:73)(cid:78)(cid:71)(cid:9)
• Massive cable weight reduction
• Longer lifespan
• Network security safety
•
• Substantial network expansion
Integration of base-building and tenant requirements
S U S T A I N A B I L I T Y O V E R V I E W
W A S T E
M A N A G E M E N T
Bird is committed to being a responsible environmental steward, maintaining
the highest standards in public health and safety in an effort to protect the
quality of the global environment, and reducing our carbon footprint
team co-ordinates
Our
implementation of
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Programs are maintained, revised, and updated as necessary to minimize
negative environmental effects caused by company activities.
the development and
Green measures are implemented as part of site execution plans. The
primary focus is on waste avoidance, with clear procedures established
for the reduction of waste, the re-use of materials, and the recycling of all
possible waste. When practicable, preference is given to products made
of recycled and renewable materials, organic and water-soluble products,
and environmentally-friendly products that have a minimal negative impact
on the environment.
R E S U LT S O F O U R W I N N I P E G W A S T E
M A N A G E M E N T P I L O T S T U D Y 1
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priority for Bird. Our aim is to save
energy and reduce the amount of
greenhouse gases through recycling
and waste diversion. Indirectly, this
lowers the cost for each project.
(cid:51)(cid:79)(cid:77)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3) (cid:79)(cid:85)(cid:82)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:83)(cid:3) (cid:72)(cid:65)(cid:86)(cid:69)(cid:3) (cid:66)(cid:69)(cid:69)(cid:78)(cid:3)
tracking waste management and
remediation efforts at both their
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proud of their efforts and are
currently investigating a national
waste management strategy.
P
A
G
E
1
9
2,874 Mature Trees
Enough saved timber resources to produce 35,613,469
sheets of newspaper
2,820,063 Litres of Water
Enough fresh water to meet the daily fresh water needs
of 37,601 people
2,250 Cubic Metres of Landfill Airspace
Enough airspace to meet the municipal waste disposal needs
of 35,158 people per month
1(cid:55)(cid:136)(cid:152)(cid:152)(cid:136)(cid:171)(cid:105)(cid:125)(cid:3)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:171)(cid:192)(cid:156)(cid:141)(cid:105)(cid:86)(cid:204)(cid:3)(cid:195)(cid:136)(cid:204)(cid:105)(cid:195)(cid:93)(cid:3)(cid:211)(cid:228)(cid:163)(cid:199)(cid:135)(cid:211)(cid:228)(cid:211)(cid:228)
S U P P LY C H A I N
M A N A G E M E N T
Aligned, standardized practices are essential to driving a holistic
sustainability strategy
The Corporate Supply Chain Management (SCM) team is developing a consistent company-wide strategy for supply
chain and asset management, ensuring standardized SCM practices that align with our core values.
GUIDING PRINCIPLES
Competitive, Ethical,
and Sustainable
Value
Trust
(cid:37)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:67)(cid:89)
Complete all
transactions in
a fair, equitable, and
accountable manner
Consider all elements
of the value matrix
when procuring goods
and services
Build and maintain
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relationships with our
internal and external
customers and vendors
Drive continuous
improvement and
standardization
throughout SCM
processes
STRATEGIC SOURCING
We endeavour to work with partners that share our commitment to:
• Conduct business in an ethical and transparent manner
• Prioritize safety at all times
• Report on labour practices
• Prioritize sound labour practices
• Stipulate that there is no forced or child labour at any point in the supply chain
• Employ a diverse workforce
• Seek opportunities to work with Indigenous businesses and communities
• Promote, track, and report on environmental sustainability initiatives
• Utilize local resources responsibly and sustainably
• Minimize environmental impacts where we work
98%
CANADIAN SUPPLIERS
55+
E M I S S I O N S T R A C K I N G AT B I R D
(cid:22)(cid:32)(cid:12)(cid:22)(cid:20)(cid:13)(cid:32)(cid:34)(cid:49)(cid:45)(cid:135)(cid:34)(cid:55)(cid:32)(cid:13)(cid:12)(cid:3)
BUSINESSES SUPPORTED(cid:163)
our
gas
greenhouse
An essential element of our sustainability strategy is
tracking
Taking
concrete steps towards minimizing our impact on the
environment starts with assessing our carbon footprint.
We are measuring and reducing idling times across our
(cid:109)(cid:69)(cid:69)(cid:84)(cid:12)(cid:3) (cid:84)(cid:82)(cid:65)(cid:67)(cid:75)(cid:73)(cid:78)(cid:71)(cid:3) (cid:65)(cid:73)(cid:82)(cid:3) (cid:84)(cid:82)(cid:65)(cid:86)(cid:69)(cid:76)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:82)(cid:69)(cid:68)(cid:85)(cid:67)(cid:73)(cid:78)(cid:71)(cid:3) (cid:77)(cid:73)(cid:76)(cid:69)(cid:83)(cid:3) (cid:84)(cid:82)(cid:65)(cid:86)(cid:69)(cid:76)(cid:76)(cid:69)(cid:68)(cid:3)
where possible. The team is committed to expediting
the roll out of emissions tracking across the company.
emissions.
>$50M
PROCUREMENT SPEND
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OWNED BUSINESSES2
1,2Bird, 2020
L I V E
G R E E N
Providing a safe, inclusive workplace that supports physical and
mental wellbeing, promotes professional development, and encourages
positive community engagement
Our employees are the drivers of our longevity and success, and we are committed to investing in their development and
wellbeing. Bird pursues a holistic approach to employee health and wellbeing, striving to create an empathetic culture
(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:71)(cid:79)(cid:69)(cid:83)(cid:3)(cid:66)(cid:69)(cid:89)(cid:79)(cid:78)(cid:68)(cid:3)(cid:80)(cid:82)(cid:79)(cid:86)(cid:73)(cid:68)(cid:73)(cid:78)(cid:71)(cid:3)(cid:80)(cid:72)(cid:89)(cid:83)(cid:73)(cid:67)(cid:65)(cid:76)(cid:3)(cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:3)(cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:3)(cid:84)(cid:79)(cid:3)(cid:79)(cid:78)(cid:69)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:68)(cid:69)(cid:82)(cid:83)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:77)(cid:69)(cid:78)(cid:84)(cid:65)(cid:76)(cid:3)(cid:72)(cid:69)(cid:65)(cid:76)(cid:84)(cid:72)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:80)(cid:83)(cid:89)(cid:67)(cid:72)(cid:79)(cid:76)(cid:79)(cid:71)(cid:73)(cid:67)(cid:65)(cid:76)(cid:3)(cid:83)(cid:65)(cid:70)(cid:69)(cid:84)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:65)(cid:76)(cid:76)(cid:3)
employees. A healthy workplace promotes safety and overall wellbeing, and the essential components of supporting our
people include advancing their professional development, strengthening our neighbourhoods, and creating inclusive,
respectful, and equitable working environments.
H E A LT H A N D S A F E T Y
Incorporating the latest innovations to ensure the safety of our people, the communities
we work in, and the environment, has made Bird a recognized safety leader
responsibility
Bird’s approach to safety continues to evolve
in
response to new technologies, tools, strategies, and
challenges such as COVID-19. Bird promotes a culture of
personal
for safety wherein safety
considerations are interwoven into the very fabric of
operational processes and every person at every level
takes ownership for safety. From planning to execution,
effective communication, documentation, orientation,
training, and ongoing review and analysis of all work
activity are vigorously undertaken to ensure continuous
improvement in all facets of operations.
Safety and production are viewed as complementary objectives,
and both are pursued in order to achieve and sustain a positive
and safe work environment. A team-based safety commitment
is essential in order to achieve successful business outcomes
and ensure that high quality work is delivered on schedule.
The creation of a collaborative and participative safety culture
requires going beyond the technical aspects of safety such as
(cid:80)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:3) (cid:69)(cid:78)(cid:71)(cid:73)(cid:78)(cid:69)(cid:69)(cid:82)(cid:73)(cid:78)(cid:71)(cid:12)(cid:3) (cid:72)(cid:65)(cid:90)(cid:65)(cid:82)(cid:68)(cid:3) (cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3)
with legislation. Person-based approaches must be integrated
into the organizational safety strategy to promote an ingrained
culture of personal responsibility for safety.
P
A
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2
1
0.02
+9.7M
0.70
LOST TIME INJURY
FREQUENCY RATE(cid:163)
HOURS WORKED2
TOTAL RECORDABLE
INCIDENT FREQUENCY3
1,2,3Bird and Stuart Olson combined, 2020.
At Bird, ensuring that all work on our sites is executed
standards begins with our
to exacting quality
commitment to creating and sustaining a culture in which
(cid:84)(cid:72)(cid:69)(cid:3)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:67)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3)(cid:65)(cid:83)(cid:83)(cid:69)(cid:83)(cid:83)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:69)(cid:76)(cid:73)(cid:77)(cid:73)(cid:78)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:79)(cid:82)(cid:3)(cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:79)(cid:76)(cid:3)
of hazards and risks is incorporated into every aspect of
our operations. This is a cornerstone of our operational
philosophy and approach.
Ensuring that all workers leave our job sites every day
just as healthy and safe as when they arrived is a shared
commitment. By working collaboratively with our
employees and subcontractors, we minimize risk and
create the appropriate conditions for the safe execution
of construction activity - on time, on budget, and to our
client’s satisfaction. We believe this shared commitment is
critical to our overall success. It is how we work.
ROBUST ORIENTATION AND TRAINING PROGRAMS
ONGOING COMMUNICATION AND ENGAGEMENT
ACTIVITIES
EMPLOYEE-LED SITE SAFETY PROGRAMS TO
RECOGNIZE PEERS FOR SAFETY
ACCOMPLISHMENTS OR MILESTONES
ALL WORKERS ARE ENCOURAGED TO ACTIVELY
CONTRIBUTE TO OUR EFFORTS TO
CONTINUOUSLY IMPROVE OUR SAFETY
PROGRAM AND OVERALL COLLABORATION
AND EFFECTIVENESS
100% OF WORKERS ON SITE MUST TAKE PART
IN ORIENTATION AND TRAINING PROGRAMS
DAILY HAZARD ASSESSMENTS ON
EVERY SITE EVERY DAY
At Bird, Personal Ownership is not just a vision or a philosophy. It is a daily routine
practiced with discipline and rigor on all our job sites.
S U S T A I N A B I L I T Y O V E R V I E W
C O V I D - 1 9 R E S P O N S E
On March 11, 2020 the World Health Organization declared COVID-19 a global pandemic. Since the
declaration, the industry has faced uncertainty as each provincial government has responded by implementing
measures to address the public health threat. COVID-19 continues to be an important consideration and preventative
safety measures remain in place and continue to vary from province to province as governments respond to
(cid:109)(cid:85)(cid:67)(cid:84)(cid:85)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:73)(cid:78)(cid:3)(cid:67)(cid:65)(cid:83)(cid:69)(cid:3)(cid:78)(cid:85)(cid:77)(cid:66)(cid:69)(cid:82)(cid:83)(cid:14)(cid:3)(cid:52)(cid:72)(cid:69)(cid:3)(cid:68)(cid:85)(cid:82)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:79)(cid:70)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:80)(cid:65)(cid:78)(cid:68)(cid:69)(cid:77)(cid:73)(cid:67)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:65)(cid:83)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3)(cid:77)(cid:69)(cid:65)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:3)(cid:65)(cid:82)(cid:69)(cid:3)(cid:85)(cid:78)(cid:75)(cid:78)(cid:79)(cid:87)(cid:78)(cid:14)(cid:3)
The health and safety of employees is paramount and, as a result of the pandemic, Bird has increased health
and safety initiatives that meet or exceed guidance from applicable public health authorities. Bird continues to
communicate on a regular basis with all employees and has highlighted the additional support offered by the
provider of the Employee and Family Assistance Program to support employees and their families during
(cid:84)(cid:72)(cid:73)(cid:83)(cid:3) (cid:84)(cid:73)(cid:77)(cid:69)(cid:14)(cid:3) (cid:52)(cid:72)(cid:69)(cid:3) (cid:37)(cid:88)(cid:69)(cid:67)(cid:85)(cid:84)(cid:73)(cid:86)(cid:69)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3) (cid:87)(cid:65)(cid:78)(cid:84)(cid:3) (cid:84)(cid:79)(cid:3) (cid:65)(cid:67)(cid:75)(cid:78)(cid:79)(cid:87)(cid:76)(cid:69)(cid:68)(cid:71)(cid:69)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:69)(cid:70)(cid:70)(cid:79)(cid:82)(cid:84)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:83)(cid:65)(cid:67)(cid:82)(cid:73)(cid:108)(cid:67)(cid:69)(cid:83)(cid:3) (cid:84)(cid:72)(cid:65)(cid:84)(cid:3) (cid:79)(cid:85)(cid:82)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:3)
have made to ensure that Bird
its project
commitments through these unprecedented times.
is operating safely and effectively, while delivering upon
E M P L O Y E E H E A LT H A N D S A F E T Y
•
Initiated a pandemic response plan combined with a rigorous COVID-19 health and safety program that included
safety inspections.
• Best practices developed and implemented for managers and site teams - self-assessment tools, enhanced
cleaning protocols and hygiene measures, physical distancing practices, new COVID-19 measure audits, and
additional personal protective equipment requirements for proximity activities.
• Strategies to reduce concentrations of site workers such as staggered start times, breaks, and lunch times have
P
A
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2
3
been implemented on construction sites.
• (cid:50)(cid:69)(cid:77)(cid:79)(cid:84)(cid:69)(cid:3)(cid:87)(cid:79)(cid:82)(cid:75)(cid:3)(cid:80)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:67)(cid:69)(cid:83)(cid:3)(cid:70)(cid:65)(cid:67)(cid:73)(cid:76)(cid:73)(cid:84)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3)(cid:66)(cid:89)(cid:3)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:84)(cid:69)(cid:67)(cid:72)(cid:78)(cid:79)(cid:76)(cid:79)(cid:71)(cid:89)(cid:3)(cid:72)(cid:65)(cid:86)(cid:69)(cid:3)(cid:66)(cid:69)(cid:69)(cid:78)(cid:3)(cid:73)(cid:77)(cid:80)(cid:76)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:69)(cid:68)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:83)(cid:3)(cid:72)(cid:65)(cid:86)(cid:69)(cid:3)(cid:65)(cid:76)(cid:83)(cid:79)(cid:3)(cid:66)(cid:69)(cid:69)(cid:78)(cid:3)
adapted to ensure employee safety for those not working remotely.
• Online COVID-19 information centres and remote work practices facilitated by information technology.
• (cid:54)(cid:65)(cid:82)(cid:73)(cid:79)(cid:85)(cid:83)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:83)(cid:73)(cid:84)(cid:69)(cid:3) (cid:83)(cid:73)(cid:71)(cid:78)(cid:65)(cid:71)(cid:69)(cid:3) (cid:67)(cid:82)(cid:69)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3) (cid:84)(cid:79)(cid:3) (cid:82)(cid:69)(cid:77)(cid:73)(cid:78)(cid:68)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:3) (cid:79)(cid:70)(cid:3) (cid:83)(cid:65)(cid:70)(cid:69)(cid:3) (cid:80)(cid:82)(cid:65)(cid:67)(cid:84)(cid:73)(cid:67)(cid:69)(cid:83)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:71)(cid:85)(cid:73)(cid:68)(cid:69)(cid:76)(cid:73)(cid:78)(cid:69)(cid:83)(cid:12)(cid:3) (cid:65)(cid:83)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:69)(cid:88)(cid:65)(cid:77)(cid:80)(cid:76)(cid:69)(cid:83)(cid:3)
below show.
EMPLOYEES:
RETURNING TO THE WORKPLACE
AT HOME / BEFORE ARRIVING TO A BIRD OFFICE
(cid:40) Complete the daily self-assessment with your district QR Code or URL before you enter
a Bird Office
(cid:40) Be aware – always self-monitor for symptoms and stay home if you are sick
(cid:40) Review provincial guidelines for physical distancing and hygiene applicable to whatever
transit method you use to arrive at work (transit, car-pooling, personal vehicle)
(cid:40) Wipe your IT hardware with a disinfectant prior to returning it to the office
(cid:40) Ensure you bring all required technology back to the office (see checklist in your
employee guide)
(cid:40) Self Assessment Link:______________________________________________
AT THE OFFICE
QR
CODE
All employees must abide by the communicated hygiene and cleaning practices and maintain physical distancing during the workday.
HYGIENE
(cid:40) Handwash or hand sanitize regularly throughout the day
(cid:40) Handwash or hand sanitize before and after using shared equipment and surfaces (doors,
kitchen amenities, printers, meeting rooms etc.) and upon re-entering the office
(cid:40) Avoid touching your eyes, nose, or mouth throughout the day
(cid:40) Avoid shaking hands and consider other greeting styles
(cid:40) Cough or sneeze into your shoulder or elbow, not into your hands
2
m
/ 6ft
2m / 6ft
2
m
/
6
f
t
PHYSICAL DISTANCING
(cid:40) Physical distancing should be maintained throughout the day (this
includes in elevators, kitchen/coffee areas)
(cid:40) Limit time spent in kitchens and wait if necessary to minimize number of
individuals in the space at a time
(cid:40) Work at a minimum of 2m apart if no physical barriers are present
(cid:40) Limit the total number of people in meetings or gatherings while
practicing physical distancing
(cid:40) Avoid non-essential face-to-face meetings and continue to use MS Teams
2m / 6ft
or Lifesize as alternatives
(cid:40) Reduce meeting durations to avoid long periods of time sharing an
enclosed space with others
CLEANING
(cid:40) Property management has increased frequency of cleaning in common areas
(cid:40) Disinfect your workstation (keyboard, mouse, chair, desk) on a regular basis
(cid:40) Use available sanitizing supplies in meeting rooms for remotes, surfaces and
chairs prior to leaving the room
PPE
(cid:40) A mask or face covering is required to be worn during Proximity Activities
(activities that cannot safely be performed while maintaining 2m or where
maintaining physical distancing is difficult)
(cid:40) Speak to a manager if you require PPE to complete a Proximity Activity
(cid:40) Review guidelines to properly wear and dispose of used PPE
(cid:40) Personal masks or face coverings can be worn in the office as desired by
individuals
STAY UP TO DATE
2m / 6ft
2m / 6ft
2m / 6ft
(cid:40) Review posters and company communications to stay up to date
(cid:40) Reach out to Birdlistens@bird.ca or your office COVID-19 Response Team if you have any
questions or concerns
(cid:40) Provincial COVID-19 Guidelines Link:___________________________________________
(cid:40) Local Office Response Team Contact:__________________________________________
11,492
INSPECTIONS
ACROSS
150
SITES1
1 March-December 2020
PHYSICAL DISTANCING
AT BIRD
COVID-19
Maintain physical distancing while working at all times
SAFETY POLICY
RESPECTFUL
WORKPLACE POLICY
OUR VISION
SAFETY AT HOME
FIRST AID
ASSESSMENT
HAZARD
ASSESSMENT
HAZARD
INSPECTION
JOINT HEALTH &
SAFETY COMMITTEE
JHSC MEETING
MINUTES
WELLNESS
FIRST AIDER’S
FIRE SAFETY PLAN
EMERGENCY
PHONE NUMBERS
MAPS TO HOSPITAL
NOTICE TO WORKERS
(ACT & REGULATION)
NOTICE TO WORKERS
(INJURIES)
PREVENTION POSTER
WHMIS
EMERGENCY
RESPONSE PLAN
OFFICE
EVACUATION MAP
INJURY MANAGEMENT
PHYSICAL
DISTANCING
2m / 6ft
2020
2m / 6ft
2m / 6ft
2m / 6ft
Outside on Site
Inside Site Trailers
If physical distancing cannot be maintained, speak to your
supervisor and follow Proximity Activity Guidelines.
LESS THAN
2m / 6ft
MASK OR
FACE COVERING
REQUIRED
Keep
duration to
a minimum
When proximity activity is complete:
Sanitize Shared
Tools and Surfaces
Properly Dispose
of Used PPE
Wash Hands
Thoroughly
20Seconds
Jan. 2020 v.2
April 2020 v.1
I N D I G E N O U S
R E L AT I O N S
Building relationships and supporting Indigenous
communities through investment and engagement
inclusive,
the creation of
respectful, and
Bird values
equitable working environments. We are committed
to
delivering our projects in a socially responsible way that is
mindful of human rights and local residents. (cid:9)(cid:136)(cid:192)(cid:96)(cid:189)(cid:195)(cid:3) (cid:32)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:62)(cid:143)(cid:3)
(cid:22)(cid:152)(cid:96)(cid:136)(cid:125)(cid:105)(cid:152)(cid:156)(cid:213)(cid:195)(cid:3)(cid:13)(cid:152)(cid:125)(cid:62)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:3)(cid:42)(cid:156)(cid:143)(cid:136)(cid:86)(cid:222)(cid:3)aims to ensure a consistent and
culturally appropriate approach that respects the diversity of the
Indigenous landscape in Canada, while considering the Truth
and Reconciliation Call to Action #92. It is built on four pillars:
building respectful relationships, being proactive in employing
a diverse workforce, seeking to increase business opportunities
with Indigenous partners, and investing in community programs.
“We continue to seek ways to authentically engage with Indigenous partners and the
communities in which we work. This commitment starts within, and we are extending
our mandatory internal Indigenous Cultural Awareness Training to all Stuart Olson
employees this year. We will continue to seek opportunities to increase our
investments in Indigenous communities, and build upon our strategies to attract
Indigenous talent to Bird.”
P a u l P a s t i r i k , S V P S t r a t e g i c D e v e l o p m e n t
B U I L D I N G R E S P E C T F U L R E L A T I O N S H I P S A N D P R O M O T I N G O P E N
C O M M U N I C A T I O N S A N D C U L T U R A L A W A R E N E S S
INDIGENOUS CULTURAL AWARENESS TRAINING PROGRAM
(cid:41)(cid:78)(cid:3)(cid:42)(cid:65)(cid:78)(cid:85)(cid:65)(cid:82)(cid:89)(cid:3)(cid:18)(cid:16)(cid:17)(cid:24)(cid:12)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:3)(cid:68)(cid:69)(cid:86)(cid:69)(cid:76)(cid:79)(cid:80)(cid:69)(cid:68)(cid:3)(cid:65)(cid:78)(cid:3)(cid:79)(cid:78)(cid:76)(cid:73)(cid:78)(cid:69)(cid:3)(cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3)(cid:35)(cid:85)(cid:76)(cid:84)(cid:85)(cid:82)(cid:65)(cid:76)(cid:3)(cid:33)(cid:87)(cid:65)(cid:82)(cid:69)(cid:78)(cid:69)(cid:83)(cid:83)(cid:3)(cid:52)(cid:82)(cid:65)(cid:73)(cid:78)(cid:73)(cid:78)(cid:71)(cid:3)(cid:48)(cid:82)(cid:79)(cid:71)(cid:82)(cid:65)(cid:77)(cid:3)(cid:67)(cid:79)(cid:78)(cid:83)(cid:73)(cid:83)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3)(cid:79)(cid:70)(cid:3)(cid:108)(cid:86)(cid:69)(cid:3)(cid:77)(cid:79)(cid:68)(cid:85)(cid:76)(cid:69)(cid:83)(cid:3)
in cooperation with NVision, which is an Inuit-owned company. The aim is to educate management and employees
and enable them to deliver on Bird’s commitment to its Indigenous Relations Policy, strategies and plans. The Cultural
Awareness Training builds upon Bird’s Indigenous Engagement Policy and is mandatory for all staff. This action is the
(cid:108)(cid:82)(cid:83)(cid:84)(cid:3) (cid:83)(cid:84)(cid:69)(cid:80)(cid:3) (cid:69)(cid:65)(cid:67)(cid:72)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:3) (cid:84)(cid:65)(cid:75)(cid:69)(cid:83)(cid:3) (cid:84)(cid:79)(cid:3) (cid:80)(cid:82)(cid:79)(cid:77)(cid:79)(cid:84)(cid:69)(cid:3) (cid:80)(cid:79)(cid:83)(cid:73)(cid:84)(cid:73)(cid:86)(cid:69)(cid:3) (cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:72)(cid:73)(cid:80)(cid:83)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3) (cid:73)(cid:78)(cid:68)(cid:73)(cid:86)(cid:73)(cid:68)(cid:85)(cid:65)(cid:76)(cid:83)(cid:12)(cid:3) (cid:66)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:69)(cid:83)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3)
communities as the company continues to make investments in people, projects, and partnerships.
ORANGE SHIRT DAY
On September 30th we recognize Orange Shirt Day to
honour the legacy of residential school survivors. By wearing an
orange shirt, we recognize the First Nations, Métis, and Inuit
children who were removed from their homes at this time of year
and forced to attend residential schools. We acknowledge the
importance of supporting education and awareness of the
Canadian history of Residential Schools and the impact upon
Indigenous communities for more than a century in Canada.
Pictured right: Bird spent some time with our partners
Gitxaala Nation, the British Columbia Regional Carpenters
Council (BRCC), and the Gitxaala/Bird Introduction to Carpentry
Cohort in Prince Rupert, BC. discussing why we wear orange on
September 30th.
B E I N G P R O A C T I V E I N E M P L O Y I N G A Q U A L I F I E D W O R K F O R C E
T H A T S T R I V E S T O B E R E P R E S E N T A T I V E O F T H E I N D I G E N O U S
C O M M U N I T I E S I N W H I C H B I R D W O R K S
GITXAALA INTRODUCTION TO CARPENTRY PROGRAM
Meaningful community relationships are important to Bird. In March 2020,
Bird entered a joint venture agreement with the Gitxaala Nation, the oldest
(cid:41)(cid:78)(cid:68)(cid:73)(cid:71)(cid:69)(cid:78)(cid:79)(cid:85)(cid:83)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:89)(cid:3) (cid:79)(cid:78)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:85)(cid:78)(cid:67)(cid:69)(cid:68)(cid:69)(cid:68)(cid:3) (cid:84)(cid:69)(cid:82)(cid:82)(cid:73)(cid:84)(cid:79)(cid:82)(cid:89)(cid:3) (cid:79)(cid:78)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:48)(cid:65)(cid:67)(cid:73)(cid:108)(cid:67)(cid:3) (cid:46)(cid:79)(cid:82)(cid:84)(cid:72)(cid:87)(cid:69)(cid:83)(cid:84)(cid:3)
coast of BC. Employing local Indigenous talent where we work is a pillar of the
Bird Indigenous Engagement Policy. In collaboration with the community, the
Industry Training Authority (ITA), and the British Columbia Regional Carpenters
Introduction to Carpentry program was
Council
designed for Gitxaala Nation members to start a career as a carpenter on the
LNG Canada Concrete and Paving project. The course included a practical
training component and learning about safety, and concluded in October.
Successful graduates were offered carpenter apprenticeship positions with Bird.
A second cohort will be starting in March 2021.
(BRCC), an eight-week
FIRST NATIONS SAFETY WATCH TRAINING AND
EMPLOYMENT INITIATIVE
Participants in this initiative started with a week of offsite training to receive
all the mandatory Safety tickets, followed by a week of onsite Safety Watch
training that included theoretical and practical elements. The onsite training was
developed internally and was delivered by Stuart Olson trainers. We worked
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(cid:15)(cid:55)(cid:72)(cid:73)(cid:84)(cid:69)(cid:108)(cid:83)(cid:72)(cid:3) (cid:44)(cid:65)(cid:75)(cid:69)(cid:12)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:43)(cid:69)(cid:72)(cid:69)(cid:87)(cid:73)(cid:78)(cid:3) (cid:35)(cid:82)(cid:69)(cid:69)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:85)(cid:78)(cid:73)(cid:84)(cid:73)(cid:69)(cid:83)(cid:3) (cid:84)(cid:79)(cid:3) (cid:65)(cid:84)(cid:84)(cid:82)(cid:65)(cid:67)(cid:84)(cid:12)(cid:3) (cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:70)(cid:89)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:82)(cid:69)(cid:67)(cid:82)(cid:85)(cid:73)(cid:84)(cid:3)
100% local community members. Upon completion of the training, they were
all offered employment on a 7-week shutdown project. Once the project was
completed, the remaining workers were offered full-time employment on the
maintenance contract and signed up for apprenticeships.
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2
5
S E E K I N G T O I N C R E A S E B U S I N E S S O P P O R T U N I T I E S F O R
I N D I G E N O U S P A R T N E R S A N D B U I L D C A P A C I T Y I N T H E
I N D I G E N O U S B U S I N E S S C O M M U N I T Y
Bird understands that contribution to economic reconciliation includes employing
Indigenous Peoples, supporting development opportunities, purchasing
from
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Bird is proud to be part of the Canadian Council for
Aboriginal Business’ Progressive Aboriginal Relations (PAR)
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Indigenous relations and indicates to communities that
participating companies are good business partners,
a great place to work, and committed to prosperity in
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to include all Bird business units in the fall of 2018, and in
(cid:84)(cid:72)(cid:69)(cid:3) (cid:83)(cid:85)(cid:77)(cid:77)(cid:69)(cid:82)(cid:3) (cid:79)(cid:70)(cid:3) (cid:18)(cid:16)(cid:18)(cid:16)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:35)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:87)(cid:65)(cid:83)(cid:3) (cid:82)(cid:69)(cid:67)(cid:69)(cid:82)(cid:84)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3) (cid:48)(cid:33)(cid:50)(cid:3)
Bronze level.
55+
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BUSINESSES SUPPORTED(cid:163)
>$50M
in
Bird’s membership
the Aboriginal Procurement
Champions Group provides assurance that procurement
opportunities are made available to those busineses that
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Indigenous owned and controlled.
PROCUREMENT SPEND
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OWNED BUSINESSES2
1,2Bird, 2020
I N V E S T I N G I N C O M M U N I T Y P R O G R A M S T H A T S U P P O R T
I N D I G E N O U S C U L T U R A L A W A R E N E S S , S K I L L S D E V E L O P M E N T ,
A N D B U S I N E S S C A P A C I T Y
SPOTLIGHT ON SCHOLARSHIPS
Bird is dedicated to investing in the development of young people in Canada,
particularly young people from Indigenous communities. A number of scholarships
are awarded annually.
• Bird Heavy Civil awards three annual scholarships
Indigenous
post-secondary students. This scholarship currently has gender parity and targets
students enrolled in technical or trade programs. Some of the recipients have also
gained valuable work experience by completing work-terms with Bird. Since
2016, $18,000 has been awarded to students.
full-time
to
• An annual scholarship to students enrolled in the University of New Brunswick’s
Bachelor of Science in Engineering Program, with preference given to female
Indigenous students. Since 2019, $3,000 has been awarded.
• A scholarship has been created at Langara College in British Columbia in support
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given to Indigenous students. Since starting in 2019, $4,000 has been awarded.
• The Scott Ferguson Memorial Scholarship was created in 2019 to assist Indigenous
post-secondary students in Alberta. To date, it has awarded $6,000 to students.
>$30K
SCHOLARSHIP
AWARDS
SINCE 2016
C O M M U N I T Y
C O N N E C T I O N S
A passion for giving back
in a manner that
Bird is committed to contributing to the communities in which we live,
work, and build
is socially responsible, mindful of
human rights, and respectful of local residents. Through donations, scholarships,
fundraising activities, and volunteer work, Bird employees consistently
demonstrate a passion for giving back. Bird supports national charities, health care
foundation initiatives, food and clothing banks, community festivals and events,
youth and community sports, and much more.
CHARITABLE GIVING IN KITIMAT
Bird has a number of active projects
in the Kitimat region, and the
project teams went above and beyond in 2020 raising over $50,000 for
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in crisis;
organization
the Kitimat Community
Development Centre, which supports
families and children; the Tamitik
Status Of Women, which concentrates on intervention and prevention of
violence against women, youth, and children; and a family that had suffered
a tragic loss.
supports people
that
QAJUQTURVIK COMMUNITY FOOD CENTRE
RENOVATIONS
The Qajuqturvik Community Food Centre in Iqaluit improves access to good
food by supporting local harvesting, preparation, education, training, and
advocacy. The centre serves 56,000 meals every year. The centre needed better
functionality in their kitchen area and, while the Bird team was in Iqaluit, it was an
opportune time to lend a hand to a community in which we work.
By changing some of the spaces in the kitchen, the sink was rotated to
create a less cramped workspace and a new hand wash sink was installed,
together with stainless steel wall panels in the dish area to protect the drywall. The
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A new entrance was created, and some washroom renovations were done.
(cid:52)(cid:72)(cid:69)(cid:3) (cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3) (cid:87)(cid:65)(cid:83)(cid:3) (cid:67)(cid:79)(cid:77)(cid:80)(cid:76)(cid:69)(cid:84)(cid:69)(cid:68)(cid:3) (cid:79)(cid:86)(cid:69)(cid:82)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:67)(cid:79)(cid:85)(cid:82)(cid:83)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3) (cid:108)(cid:86)(cid:69)(cid:3) (cid:68)(cid:65)(cid:89)(cid:83)(cid:12)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:80)(cid:76)(cid:85)(cid:77)(cid:66)(cid:73)(cid:78)(cid:71)(cid:12)(cid:3)
electrical, and drywall taping work involved donated by the trades (Narwhal,
KRT, and NCC respectively).
SUPPORTING SENIORS IN LONG-TERM CARE
DURING COVID-19
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7
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members of our communities were not allowed to have
visitors, the Covid-19 Response Team created and
distributed a custom Community Activity Book to residents
of seniors and long-term care facilities across the country.
Today, and looking beyond COVID-19, we plan to share
these activity books with our clients at the handover of
future care facilities to give their residents a warm
welcome home. A small display of our commitment to
clients long after we hand over a building - we remain
neighbours, friends, and community members.
H U M A N C A P I TA L
D E V E L O P M E N T
DIVERSITY AND INCLUSION
Bird values the importance of creating inclusive, respectful, and equitable working environments.
A diverse workplace has been shown to improve employee satisfaction, create a larger talent pool, and
spark creativity and innovation.
Bird is committed to promoting employment equity by providing a workplace environment that
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in our workforce, and believe in proactively managing the special measures outlined in the
Employment Equity Act.
individuals,
In order to provide equal employment and advancement opportunities to all
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company does not discriminate in employment opportunities or practices on the basis of race or colour,
national or ethnic origin, religion, age, family or marital status, gender identity or expression, genetic
characteristics, pardoned conviction, disability, sexual orientation, or any other prohibited ground.
(cid:55)(cid:72)(cid:69)(cid:78)(cid:3) (cid:84)(cid:72)(cid:69)(cid:82)(cid:69)(cid:3) (cid:73)(cid:83)(cid:3) (cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:13)(cid:82)(cid:69)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:12)(cid:3) (cid:34)(cid:73)(cid:82)(cid:68)(cid:3) (cid:87)(cid:73)(cid:76)(cid:76)(cid:3) (cid:71)(cid:73)(cid:86)(cid:69)(cid:3) (cid:80)(cid:82)(cid:69)(cid:70)(cid:69)(cid:82)(cid:69)(cid:78)(cid:67)(cid:69)(cid:3) (cid:84)(cid:79)(cid:3) (cid:69)(cid:81)(cid:85)(cid:65)(cid:76)(cid:76)(cid:89)(cid:3) (cid:81)(cid:85)(cid:65)(cid:76)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3) (cid:67)(cid:65)(cid:78)(cid:68)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:83)(cid:3) (cid:87)(cid:72)(cid:79)(cid:3) (cid:65)(cid:82)(cid:69)(cid:3)
members of the designated groups stated in the Employment Equity Act.
A CULTURE OF LEARNING
At Bird, we are committed to an open and transparent learning culture that promotes continuous
improvement and shared accountability. We believe that commitment to our employees’ success leads
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and timely.
Bird encourages all employees to take an active role in their own self-development by continually
seeking to improve their skills and education. As a result, Bird offers tuition reimbursement to help share
the cost of external, work-related educational programs. A variety of training materials, both on-demand
and scheduled, are provided through Bird’s intranet portal. There is also regular peer-to-peer training
and information sharing, such as the weekly “Quality Lessons Learned” presentations that share best
practices from site situations.
1,509
FULL-TIME
STAFF1
28%
WOMEN2
+30HRS
TRAINING PER
EMPLOYEE3
9,454
COURSES
AVAILABLE4
(cid:163)(cid:9)(cid:136)(cid:192)(cid:96)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)(cid:3)
(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:105)(cid:96)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:228)(cid:176)
2(cid:9)(cid:136)(cid:192)(cid:96)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)(cid:3)
(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:105)(cid:96)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:228)(cid:176)
3(cid:31)(cid:136)(cid:152)(cid:136)(cid:147)(cid:213)(cid:147)(cid:3)(cid:204)(cid:62)(cid:192)(cid:125)(cid:105)(cid:204)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:163)
4(cid:9)(cid:136)(cid:192)(cid:96)(cid:3)(cid:62)(cid:152)(cid:96)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)(cid:3)
(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:105)(cid:96)(cid:3)(cid:118)(cid:156)(cid:192)(cid:3)(cid:211)(cid:228)(cid:211)(cid:228)(cid:176)
PROFESSIONAL DEVELOPMENT SPOTLIGHT
INDUSTRIAL INSULATOR
TRAINING PROGRAM
This innovative and complementary training program
was created as a jump start for exceptional candidates
interested in the insulation trade. The 8-week program
provides students with the skills required to begin
working in the insulation trade immediately and will
support the foundation required to work towards
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students are hired as second year apprentices. The
program was designed to accommodate both sectors
of the industrial insulator industry, offering training for
the union and non-union sectors.
launching the program, 26 students have
Since
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(cid:73)(cid:78)(cid:84)(cid:65)(cid:75)(cid:69)(cid:3) (cid:87)(cid:65)(cid:83)(cid:3) (cid:70)(cid:79)(cid:82)(cid:3)
the non-union sector, in partnership with Northern
Institute of Technology (NAIT), in Edmonton, Alberta.
The second session was
in partnership with the
Insulators Local 110 Union and was held at our Fort
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(cid:45)(cid:67)(cid:45)(cid:85)(cid:82)(cid:82)(cid:65)(cid:89)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:14)(cid:3) (cid:47)(cid:85)(cid:82)(cid:3)
(cid:67)(cid:79)(cid:78)(cid:86)(cid:69)(cid:82)(cid:84)(cid:69)(cid:68)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:83)(cid:69)(cid:67)(cid:79)(cid:78)(cid:68)(cid:3) (cid:109)(cid:79)(cid:79)(cid:82)(cid:3) (cid:79)(cid:70)(cid:3) (cid:84)(cid:72)(cid:69)(cid:73)(cid:82)(cid:3) (cid:78)(cid:69)(cid:87)(cid:3) (cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:3) (cid:73)(cid:78)(cid:84)(cid:79)(cid:3) (cid:65)(cid:3)
classroom and made a portion of the shop available for
hands-on learning.
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We are committed to supporting our local regions
to several
and also offer special consideration
demographics
in construction,
including women
Indigenous People, recent graduates, and apprentic-
es currently outside of the insulation trade who are
seeking a career transition.
4.26%
OF OUR APPRENCTICES AND
JOURNEYPERSONS ARE WOMEN(cid:81)(cid:163)(cid:82)
(cid:81)(cid:163)(cid:82)(cid:3)(cid:42)(cid:192)(cid:105)(cid:135)(cid:147)(cid:105)(cid:192)(cid:125)(cid:105)(cid:192)(cid:3)(cid:220)(cid:136)(cid:204)(cid:133)(cid:3)(cid:45)(cid:204)(cid:213)(cid:62)(cid:192)(cid:204)(cid:3)(cid:34)(cid:143)(cid:195)(cid:156)(cid:152)
LEADERSHIP TRAINING SPOTLIGHT
is
the
invested
in developing
leadership
Bird
potential of employees. Taking Flight, a mid-level
management program started in 2019, builds the
leadership capacity of staff who manage people.
The Bird Leadership Academy is targeted towards
higher level managers who the organization feels will
become key leaders or who have expressed leadership
aspirations. Every second year, 25 candidates are
selected from across the country to participate in the
intensive course.
P
A
G
E
2
9
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leaders
(cid:84)(cid:72)(cid:69)(cid:3) (cid:108)(cid:69)(cid:76)(cid:68)(cid:3)
The Bird Site Management Program
(BSMP) was
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in providing effective
better equip site
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(cid:73)(cid:78)(cid:68)(cid:85)(cid:83)(cid:84)(cid:82)(cid:89)(cid:3)
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driven by constant and accelerating change. BSMP is a
critical development program for our site staff and an
excellent pportunity to increase engagement and drive
commitment to their own and the company’s future
success. The platform allows for the imparting of key
skills and knowledge by internal and external speakers,
as well as the sharing of feedback on the challenges
faced by the participants in the course of their jobs
and how to overcome them.
NATIONAL STRATEGY FOR
SUPPORTING WOMEN IN TRADES
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as an early adopter in support of SWIT – a National
Strategy for Supporting Women in Trades released by
the Canadian Apprenticeship Forum. The aim is to
increase the participation and retention of women in
skilled trades careers to 15 per cent by 2030.
Skilled trades are an essential part of our business,
and there aren’t enough skilled workers in Canada.
As a company with a large range of trades across the
country, participation in this initiative represents an
opportunity to make a big difference. Women in trades
are a key underrepresented group that bring unique
skills to these professions and it is important to us to
improve the diversity of our team.
As part of our campaign to attract, retain, and employ
more women in the trades, Bird has pledged to:
• Hire and train more women to work in trades
• Ensure a respectful and inclusive workplace
• Submit annual reports outlining the impact of
our efforts, including public disclosure of the
number of women apprentices and journeypersons
in our organization
S TA K E H O L D E R
E N G A G E M E N T
Bird’s communication policy emphasizes transparency,
inclusivity, and integrity
Bird regularly communicates with internal and external stakeholders on a range of issues, endeavoring to
deliver clear and informative messages about the company and its operations. Bird’s communication policy
emphasizes transparency, inclusivity, and integrity, in keeping with the company’s core values and mission
statement. Bird is continually seeking new ways to engage with stakeholders, utilizing a range of methods and
media to reach the widest possible audience.
HOW DO WE ENGAGE?
Employees
• Regular communication from executive leadership
• Monthly newsletter
• SharePoint news portal
• Social media communications
• Employee meetings
• Employee feedback surveys
• Safety reports
• Engagement events
• Service awards
• Annual performance reviews
•
• National internal conferences
Learning and development opportunities
Clients
• Client events and presentations
• Client feedback surveys
• Regular one-on-one meetings
Industry
• Partnering agreements
Industry association participation
•
• Co-op programs and apprenticeships
Public and Community
• Press releases
• Website
• Social media communications
• Trade publications
• Mainstream media channels
• Ongoing engagement with Indigenous Peoples
• Public consultation for projects
• Volunteer initiatives
• Sponsorship and participation in community events
• Company donations to charities and community
groups
• Tradeshows
• Conferences
• Community procurement sessions
Shareholders
• Shareholder meetings
• Annual general meetings
• Shareholder reports
• Press releases
• Conference calls
•
Investor relations conferences
95.7% increase
In total messages
received via
social media
94,876
Total Audience
4,845,517
Impressions
208,577
Engagements
112,234
Post Link Clicks[1]
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C O M M I T M E N T T O
G O V E R N A N C E
Cultivating a culture of honesty and accountability
Bird endeavors to be at the forefront of industry efforts to be responsible, responsive, and
innovative corporate citizens. A strong culture of ethical conduct is central to good governance
at Bird. The company and its Board are committed to conducting their activities in accordance
with the highest standards of business ethics. These standards are intended to provide guidance
regarding ethical issues, to assist in recognizing and dealing with ethical issues, to provide
mechanisms to report unethical conduct, and to help foster a culture of honesty and accountability.
R I S K M A N A G E M E N T
Executing a robust Enterprise Risk Management strategy in support of
strategic objectives
P
A
G
E
3
1
recognizes
Bird
is an
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management of risk as an important component to the delivery of the company’s strategic plan and sustainability.
through Enterprise Risk Management
the management of
(ERM)
that
risk
The maintenance of a robust ERM framework ensures that:
• Current and developing material risks that could impact the achievement of the company’s strategic plan or
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(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:7)(cid:83)(cid:3)(cid:79)(cid:80)(cid:69)(cid:82)(cid:65)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3)(cid:69)(cid:78)(cid:86)(cid:73)(cid:82)(cid:79)(cid:78)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3)(cid:65)(cid:82)(cid:69)(cid:3)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:108)(cid:69)(cid:68)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:85)(cid:78)(cid:68)(cid:69)(cid:82)(cid:83)(cid:84)(cid:79)(cid:79)(cid:68)(cid:14)
• Appropriate and effective risk management systems are maintained and used to manage risks.
• Regular reviews are conducted to evaluate the effectiveness of the company’s ERM Systems.
C R I T I C A L I N C I D E N T R E S P O N S E P L A N
• (cid:37)(cid:78)(cid:83)(cid:85)(cid:82)(cid:69)(cid:83)(cid:3)(cid:65)(cid:78)(cid:3)(cid:69)(cid:70)(cid:108)(cid:67)(cid:73)(cid:69)(cid:78)(cid:84)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:3)(cid:82)(cid:69)(cid:83)(cid:80)(cid:79)(cid:78)(cid:83)(cid:69)(cid:3)(cid:84)(cid:79)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:80)(cid:82)(cid:79)(cid:74)(cid:69)(cid:67)(cid:84)(cid:3)(cid:83)(cid:73)(cid:84)(cid:69)(cid:3)(cid:67)(cid:82)(cid:73)(cid:84)(cid:73)(cid:67)(cid:65)(cid:76)(cid:3)(cid:73)(cid:78)(cid:67)(cid:73)(cid:68)(cid:69)(cid:78)(cid:84)(cid:83)(cid:14)
• Functions in conjunction with the Emergency Response Plans in place on all Bird projects.
• Outlines immediate steps to assess and secure the scene.
• Provides reporting procedures, information management and media relations, and mobilization of
additional resources.
• Summarizes guidelines for investigations, documentation, and evidence collection.
• Stipulates the development of mitigation plans for appropriate corrective actions and mechanisms for
information sharing to ensure that lessons learned are appropriately communicated.
CODE OF ETHICS
Bird requires that all employees, direct service providers, and agents of the company observe the
highest levels of personal and professional ethics. Ethical behaviour is entrenched in our vision,
mission, and values and forms a core component of our company and employment with Bird. Every
employee agrees to abide by Bird’s Code of Ethics, which outlines the importance of honesty, fairness,
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insider information are all clearly addressed.
100%
Employees agree
to abide by the
Code of Ethics
RESPECTFUL WORKPLACE POLICY
Bird expects that all people are treated with respect and dignity and strives to provide a healthy and open work environment
free from harassment and violence. The company prohibits discrimination based on race, colour, ancestry, place of origin,
religious beliefs, gender identity or expression, genetic characteristics, age, physical disability, mental disability, marital
status, family status, source of income, or sexual orientation. All employees are informed of this policy in orientations, by
training sessions, or through safety meetings, and agree to abide by the terms therein. Immediate and appropriate action
must always be taken to report, intervene in, or deal with incidents of harassment.
All employees have a responsibility to treat others in a professional manner free from abuse and
harassment, and all employees are encouraged to seek out assistance when needed and to
report incidents of harassment. Under no circumstances shall a legitimate complaint be dismissed
or downplayed, or the complainant be told to deal with it personally. Company employees,
contractors, subcontractors, visitors and clients must comply with this policy. Failure to do
so will result in corrective action up to and including termination of employment or business
relationship. Bird is committed to eliminating or controlling harassment as a hazard.
Ensuring a healthy
work environment
free from
harassment and
violence
WHISTLEBLOWER POLICY
Bird observes high standards of business, professional, and personal ethics in the conduct of its
duties and responsibilities. We aim to exceed the regulatory requirements regarding accounting
and business practices, securities laws, internal controls, and auditing matters. In order to ensure
that Bird maintains its ethical ideals, the company has a clear Whistleblower Policy that protects
any individual who reports an actual or potential violation or suspected violation of any company
requirements or standards. It is contrary to the values of Bird for anyone to retaliate or discriminate
against any person who makes such a report. Anonymous reports can be made to an independent
third-party that is available 24 hours per day, 365 days per year. All employees receive a copy of the
Whistleblower Policy during the onboarding process, and are provided with the opportunity to ask
questions about the policy.
Anonymous
Hotline
24 HOURS
per day
365 DAYS
per year
S U S T A I N A B I L I T Y O V E R V I E W
INFORMATION SECURITY AND CYBERSECURITY
INFORMATION SECURITY AND CYBERSECURITY
Bird maintains rigorous protocols to protect the information security of internal and
internal and external
Bird Construction maintains rigorous protocols to protect the
external stakeholders. The Information Technology team works diligently to secure system
stakeholders. The IT team works diligently to secure system and network resources, and protect the availability, integrity and
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(cid:67)(cid:79)(cid:78)(cid:108)(cid:68)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:67)(cid:76)(cid:73)(cid:69)(cid:78)(cid:84)(cid:83)(cid:12)(cid:3)(cid:80)(cid:65)(cid:82)(cid:84)(cid:78)(cid:69)(cid:82)(cid:83)(cid:12)(cid:3)(cid:69)(cid:77)(cid:80)(cid:76)(cid:79)(cid:89)(cid:69)(cid:69)(cid:83)(cid:12)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:34)(cid:73)(cid:82)(cid:68)(cid:3)(cid:35)(cid:79)(cid:78)(cid:83)(cid:84)(cid:82)(cid:85)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:73)(cid:78)(cid:70)(cid:79)(cid:82)(cid:77)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:73)(cid:78)(cid:3)(cid:65)(cid:3)(cid:67)(cid:79)(cid:83)(cid:84)(cid:13)(cid:69)(cid:70)(cid:70)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:12)(cid:3)(cid:82)(cid:73)(cid:83)(cid:75)(cid:13)(cid:66)(cid:65)(cid:83)(cid:69)(cid:68)(cid:3)(cid:65)(cid:80)(cid:80)(cid:82)(cid:79)(cid:65)(cid:67)(cid:72)(cid:14)(cid:3)
partners, employees, and company information in a cost-effective, risk-based approach.
Access-controlled
secure rooms
information security of
layers of security such as
Bird has access-controlled secure rooms with multiple
infrastructure,
Bird has access-controlled secure rooms with multiple
layers of security such as
security systems, and physical reinforcements, in accordance with federal government regulations. Used primarily for
independent infrastructure, security systems, and physical reinforcements, in accordance
government contracts,
including defense and policing projects, strict security controls are observed, such as
with federal government regulations. Used primarily for government contracts, including
security clearances for all staff working on the project.
defense and policing projects, strict security controls are observed, such as security
clearances for all staff working on the project.
Multiple layers
of security
independent
P
A
G
E
3
3
ANTI-BRIBERY AND CORRUPTION POLICY
The Anti-Bribery and Corruption Policy establishes controls and procedures to
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applicable anti-bribery and corruption legislation and regulations. It also aims to ensure
that the company conducts its business in an ethical and socially responsible manner. Bird
strongly believes that bribery and corruption are morally and ethically wrong and are not
and should not be a part of how we conduct our business. On this basis, it is imperative
that all employees behave ethically in all business dealings and that they do not engage in
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level of government).
Independent
third-party
audit on a
regular basis
INSIDER TRADING AND BLACKOUT POLICY
As a public company incorporated under the Business Corporations Act (Ontario), Bird
has a clear policy that sets out guidelines regarding transactions involving its securities by its
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employees about their legal obligations with respect to insider trading, tipping, reporting, and
other obligations and prohibitions relating to their trading and trading by their family members
in the company’s securities.
Clear
ethical
guidelines
COMPETITION LAWS COMPLIANCE POLICY
Bird recognizes that strong compliance policies and procedures are critical. The company is
committed to complying with all aspects of the Competition Act, Canada’s competition law. Bird
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its customers, and all Canadians.
This policy communicates the controls and procedures that ensure that Bird, its employees, and
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Through this policy, employees are made aware that the potential impacts of non-compliance are
material and could include substantial regulatory penalties and sanctions, and criminal charges
against the company and individual employees.
DISCLOSURE POLICY
Bird has a policy and an established set of procedures for the public disclosure of Material
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securities legislation). The policy ensures that Bird provides timely, consistent, fair, and
credible public disclosure of Material Information, in compliance with all legal and regulatory
requirements, to keep shareholders informed and assist in maintaining market integrity.
The Public Disclosure Sub-Committee determines what constitutes Material Information and
authorizes the issuance a media release that discloses the nature and substance of the
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release is sent to the Market Surveillance Section of the TSX prior to dissemination, advises
Market Surveillance of the proposed method of dissemination of the media release, and upon
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(TSX) through SEDAR, as well as on the publicly facing Bird website. The policy outlines the
means for preventing the misuse or inadvertent disclosure of non-public Material Information,
assigns authorized spokespersons, and provides guidance for dealing with analysts, investors,
shareholders, the media, and the public.
Legal and
ethical conduct
is in the best
interests of the
company and its
employees
Timely, consistent,
fair, and credible
public disclosure
of material
information
S U S T A I N A B I L I T Y O V E R V I E W
O V E R S I G H T
Robust independent oversight
As a public company whose securities are traded on the Toronto Stock Exchange, the company’s Board of
Directors has adopted, as its approach to corporate governance, the guidelines set out in National Instrument
58-101 - Disclosure of Corporate Governance Practices, National Instrument 52-110 – Audit Committees, and
National Policy 58-201 – Corporate Governance Guidelines.
(cid:52)(cid:72)(cid:69)(cid:3)(cid:36)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:3)(cid:35)(cid:79)(cid:68)(cid:69)(cid:3)(cid:79)(cid:70)(cid:3)(cid:37)(cid:84)(cid:72)(cid:73)(cid:67)(cid:83)(cid:3)(cid:82)(cid:69)(cid:81)(cid:85)(cid:73)(cid:82)(cid:69)(cid:83)(cid:3)(cid:84)(cid:72)(cid:65)(cid:84)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:67)(cid:79)(cid:77)(cid:80)(cid:65)(cid:78)(cid:89)(cid:7)(cid:83)(cid:3)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:83)(cid:3)(cid:68)(cid:73)(cid:83)(cid:67)(cid:76)(cid:79)(cid:83)(cid:69)(cid:3)(cid:65)(cid:78)(cid:89)(cid:3)(cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:3)(cid:79)(cid:82)(cid:3)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76)(cid:3)(cid:67)(cid:79)(cid:78)(cid:109)(cid:73)(cid:67)(cid:84)(cid:3)(cid:79)(cid:70)(cid:3)
interest to ensure independent judgment regarding Board discussions and decision making. In the event of any
(cid:80)(cid:79)(cid:84)(cid:69)(cid:78)(cid:84)(cid:73)(cid:65)(cid:76)(cid:3)(cid:79)(cid:82)(cid:3)(cid:65)(cid:67)(cid:84)(cid:85)(cid:65)(cid:76)(cid:3)(cid:67)(cid:79)(cid:78)(cid:109)(cid:73)(cid:67)(cid:84)(cid:3)(cid:79)(cid:70)(cid:3)(cid:73)(cid:78)(cid:84)(cid:69)(cid:82)(cid:69)(cid:83)(cid:84)(cid:3)(cid:66)(cid:89)(cid:3)(cid:65)(cid:3)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:3)(cid:73)(cid:78)(cid:3)(cid:82)(cid:69)(cid:76)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)(cid:84)(cid:79)(cid:3)(cid:65)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)(cid:77)(cid:65)(cid:84)(cid:84)(cid:69)(cid:82)(cid:12)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:68)(cid:73)(cid:82)(cid:69)(cid:67)(cid:84)(cid:79)(cid:82)(cid:3)(cid:87)(cid:73)(cid:76)(cid:76)(cid:3)(cid:87)(cid:73)(cid:84)(cid:72)(cid:68)(cid:82)(cid:65)(cid:87)(cid:3)(cid:70)(cid:82)(cid:79)(cid:77)(cid:3)
the deliberations and not vote upon such matter. The Board and its committees have adopted governance best
practices including:
• (cid:50)(cid:69)(cid:67)(cid:79)(cid:71)(cid:78)(cid:73)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3) (cid:79)(cid:70)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:66)(cid:69)(cid:78)(cid:69)(cid:108)(cid:84)(cid:83)(cid:3) (cid:79)(cid:70)(cid:3) (cid:80)(cid:82)(cid:79)(cid:77)(cid:79)(cid:84)(cid:73)(cid:78)(cid:71)(cid:3) (cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3) (cid:68)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:73)(cid:84)(cid:89)(cid:14)(cid:3) (cid:36)(cid:73)(cid:86)(cid:69)(cid:82)(cid:83)(cid:69)(cid:3) (cid:80)(cid:69)(cid:82)(cid:83)(cid:80)(cid:69)(cid:67)(cid:84)(cid:73)(cid:86)(cid:69)(cid:83)(cid:3) (cid:67)(cid:79)(cid:78)(cid:84)(cid:82)(cid:73)(cid:66)(cid:85)(cid:84)(cid:69)(cid:3) (cid:84)(cid:79)(cid:3) (cid:73)(cid:78)(cid:78)(cid:79)(cid:86)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)(cid:3)
and growth opportunities, and the Board believes that diversity may be achieved through a range of factors
including gender diversity, diverse skills and experiences, regional diversity and industry diversity.
• (cid:50)(cid:69)(cid:71)(cid:85)(cid:76)(cid:65)(cid:82)(cid:3)(cid:73)(cid:78)(cid:13)(cid:67)(cid:65)(cid:77)(cid:69)(cid:82)(cid:65)(cid:3)(cid:77)(cid:69)(cid:69)(cid:84)(cid:73)(cid:78)(cid:71)(cid:83)(cid:12)(cid:3)(cid:87)(cid:73)(cid:84)(cid:72)(cid:79)(cid:85)(cid:84)(cid:3)(cid:79)(cid:70)(cid:108)(cid:67)(cid:69)(cid:82)(cid:83)(cid:3)(cid:65)(cid:78)(cid:68)(cid:3)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:3)(cid:80)(cid:82)(cid:69)(cid:83)(cid:69)(cid:78)(cid:84)(cid:14)(cid:3)(cid:52)(cid:72)(cid:69)(cid:83)(cid:69)(cid:3)(cid:83)(cid:69)(cid:83)(cid:83)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:69)(cid:78)(cid:65)(cid:66)(cid:76)(cid:69)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)
(cid:65)(cid:78)(cid:68)(cid:3) (cid:67)(cid:79)(cid:77)(cid:77)(cid:73)(cid:84)(cid:84)(cid:69)(cid:69)(cid:83)(cid:3) (cid:84)(cid:79)(cid:3) (cid:68)(cid:73)(cid:83)(cid:67)(cid:85)(cid:83)(cid:83)(cid:3) (cid:73)(cid:83)(cid:83)(cid:85)(cid:69)(cid:83)(cid:3) (cid:73)(cid:78)(cid:3) (cid:65)(cid:3) (cid:67)(cid:65)(cid:78)(cid:68)(cid:73)(cid:68)(cid:3) (cid:65)(cid:78)(cid:68)(cid:3) (cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:3) (cid:77)(cid:65)(cid:78)(cid:78)(cid:69)(cid:82)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:79)(cid:85)(cid:84)(cid:3) (cid:84)(cid:72)(cid:69)(cid:3) (cid:73)(cid:78)(cid:109)(cid:85)(cid:69)(cid:78)(cid:67)(cid:69)(cid:3) (cid:79)(cid:70)(cid:3) (cid:83)(cid:69)(cid:78)(cid:73)(cid:79)(cid:82)(cid:3)
(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:14)(cid:3)(cid:52)(cid:79)(cid:3)(cid:77)(cid:65)(cid:75)(cid:69)(cid:3)(cid:83)(cid:85)(cid:82)(cid:69)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)(cid:70)(cid:85)(cid:78)(cid:67)(cid:84)(cid:73)(cid:79)(cid:78)(cid:83)(cid:3)(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3)(cid:79)(cid:70)(cid:3)(cid:77)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:12)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:34)(cid:79)(cid:65)(cid:82)(cid:68)(cid:3)(cid:72)(cid:65)(cid:83)(cid:3)(cid:84)(cid:72)(cid:69)(cid:3)(cid:109)(cid:69)(cid:88)(cid:73)(cid:66)(cid:73)(cid:76)(cid:73)(cid:84)(cid:89)(cid:3)
to retain and to meet with external consultants without the presence of management whenever the Board
(cid:83)(cid:69)(cid:69)(cid:83)(cid:3)(cid:108)(cid:84)(cid:14)
• Conducting performance evaluations of the Board, the Audit Committee, the Human Resources, Safety
and Governance Committee (HRS&G), each of their chairs and individual directors on a regular basis. The
chair of the Board and the chair of the HRS&G Committee also conducted informal discussions with each
individual director.
(cid:34)(cid:73)(cid:82)(cid:68)(cid:7)(cid:83)(cid:3) (cid:67)(cid:79)(cid:78)(cid:83)(cid:79)(cid:76)(cid:73)(cid:68)(cid:65)(cid:84)(cid:69)(cid:68)(cid:3) (cid:108)(cid:78)(cid:65)(cid:78)(cid:67)(cid:73)(cid:65)(cid:76)(cid:3) (cid:83)(cid:84)(cid:65)(cid:84)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:3) (cid:65)(cid:82)(cid:69)(cid:3)
auditing standards.
(cid:73)(cid:78)(cid:68)(cid:69)(cid:80)(cid:69)(cid:78)(cid:68)(cid:69)(cid:78)(cid:84)(cid:76)(cid:89)(cid:3) (cid:65)(cid:85)(cid:68)(cid:73)(cid:84)(cid:69)(cid:68)(cid:3)
(cid:73)(cid:78)(cid:3) (cid:65)(cid:67)(cid:67)(cid:79)(cid:82)(cid:68)(cid:65)(cid:78)(cid:67)(cid:69)(cid:3) (cid:87)(cid:73)(cid:84)(cid:72)(cid:3) (cid:35)(cid:65)(cid:78)(cid:65)(cid:68)(cid:73)(cid:65)(cid:78)(cid:3)
P
A
G
E
3
5
90%
22%
>82%
100%
Independent
Board Members
Women on
the Board1
Employees are
Shareholders2
Board Committee
Chairs are Women
1 Non-executive Board members
in 2020
2 Prior to joining forces with
Stuart Olson
2020
MANAGEMENT’S DISCUSSION & ANALYSIS
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
Management’s Discussion and Analysis
TABLE OF CONTENTS
TABLE OF CONTENTS .................................................................................................................................... 39
EXECUTIVE SUMMARY .................................................................................................................................. 40
NATURE OF THE BUSINESS .......................................................................................................................... 41
2020 HIGHLIGHTS ........................................................................................................................................... 43
COVID-19 AND COMPANY RESPONSE ........................................................................................................ 45
ANNUAL RESULTS OF OPERATIONS .......................................................................................................... 46
QUARTERLY RESULTS OF OPERATIONS ................................................................................................... 49
KEY PERFORMANCE INDICATORS .............................................................................................................. 51
OUTLOOK......................................................................................................................................................... 55
CAPABILITY TO DELIVER RESULTS ............................................................................................................ 56
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY ............................................................ 57
CONTRACTUAL OBLIGATIONS ..................................................................................................................... 61
FINANCIAL INSTRUMENTS ............................................................................................................................ 62
DIVIDENDS ....................................................................................................................................................... 63
OUTSTANDING COMMON SHARE DATA AND STOCK EXCHANGE LISTING .......................................... 63
OFF BALANCE SHEET ARRANGEMENTS .................................................................................................... 63
RELATED PARTY TRANSACTIONS .............................................................................................................. 64
SUMMARY OF QUARTERLY RESULTS ........................................................................................................ 64
ACCOUNTING POLICIES ................................................................................................................................ 65
CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS ............................................................................. 66
CONTROLS AND PROCEDURES ................................................................................................................... 68
RISKS RELATING TO THE BUSINESS .......................................................................................................... 69
TERMINOLOGY & NON-GAAP MEASURES .................................................................................................. 75
FORWARD-LOOKING INFORMATION ........................................................................................................... 78
The following Management’s Discussion and Analysis (“MD&A”) of Bird Construction Inc.’s (“the Company” or
“Bird”) financial condition and results of operations for the three and twelve months ended December 31, 2020,
should be read in conjunction with the December 31, 2020 consolidated annual financial statements, the
December 31, 2019 consolidated annual financial statements, and the December 31, 2019 MD&A. This MD&A
has been prepared as of March 9, 2021. Unless otherwise specified, all amounts are expressed in Canadian
dollars. The information presented in this MD&A is presented in accordance with International Financial Reporting
Standards (“IFRS”), unless otherwise noted.
This discussion contains forward-looking information, which are subject to a variety of factors that could cause
actual results to differ materially from those contemplated by this information. See “Forward-Looking Information”.
Some of the factors that could cause results or events to differ from current expectations include, but are not
limited to, the factors described under “Risks Relating to the Business” included in the Company’s most current
Annual Information Form dated March 9, 2021. Additional information about the Company is available through the
System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com and on the Company’s
website at www.bird.ca.
Certain measures in this MD&A do not have any standardized meaning as prescribed by IFRS and, therefore, are
considered non-GAAP measures. These non-GAAP measures are commonly used in the construction industry,
and by management of Bird, as alternative methods for assessing operating results and to provide a consistent
basis of comparison between periods. Therefore, the non-GAAP measures in this MD&A are unlikely to be
comparable to similar measures used by other entities. Non-GAAP measures include: Adjusted Earnings;
Adjusted Earnings Per Share; Adjusted EBITDA; and Adjusted EBITDA Margin. Further information regarding
these measures can be found in the “Terminology & Non-GAAP Measures” section of this MD&A.
39 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
39
EXECUTIVE SUMMARY
(in thousands of Canadian dollars, except per share amounts)
2020
2019
2018
Income Statement Data
Revenue
Net income (loss)
Basic and diluted earnings (loss) per share
Adjusted Earnings (1)
Adjusted Earnings Per Share (1)
Adjusted EBITDA (1)
Adjusted EBITDA Margin (1)
Cash Flow Data
Net increase in cash and cash equivalents
Cash flows from operations before changes in non-cash working capital (2)
Additions to property and equipment (3)
Cash dividends paid
Cash dividends declared per share
Balance Sheet Data
Total assets
Working capital
Loans and borrowings (current and non-current)
ROU Liabilities (current and non-current) (4)
Shareholders' equity
$ 1,504,432 $ 1,376,408 $ 1,381,784
(1,013)
(0.02)
36,103
0.80
9,484
0.22
41,579
0.92
81,937
5.5%
31,765
71,696
14,227
17,607
0.39
9,484
0.22
32,292
2.4%
21,763
30,201
14,431
16,582
0.39
(1,013)
(0.02)
10,914
0.8%
24,606
12,320
14,613
16,582
0.39
1,061,796
135,514
72,913
78,075
212,610
856,787
80,503
40,621
31,100
127,720
652,021
70,215
21,198
8,759
136,229
(1) Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures
and do not have standardized meanings under IFRS. See "Terminology and Non-GAAP Measures."
(2) Refer to the consolidated statement of cash flows
(3) Includes computer software purchases classified as intangible assets
(4) IFRS 16 Leases was adopted effective January 1, 2019 using the modified retrospective approach, 2018 figures have not
been restated.
40 | 2020 Management Discussion and Analysis
40
2020 Management’s Discussion and Analysis
NATURE OF THE BUSINESS
range of
Bird provides a comprehensive
construction services from new construction for
industrial, commercial, and institutional markets;
to industrial maintenance, repair and operations
(“MRO”) services, heavy civil construction and
contract surface mining; as well as vertical
infrastructure including, electrical, mechanical,
and specialty trades.
PROJECT DELIVERY METHODS
In all sectors, Bird contracts with its
clients using a combination of fixed
price, unit price, design-build,
alternative finance projects, public,
private, partnerships (“PPP”), cost
reimbursable (such as cost plus),
construction management, and
integrated project delivery methods.
OUR LOCATIONS
The Company
operates from coast-
to-coast and services
all of Canada’s major
geographic markets.
MANAGING RISK
While Bird is capable of self-performing larger projects, particularly in the industrial market and MRO
space, for many projects, the overall construction risk rests with Bird’s subcontractors. The scope of
work of each subcontractor is generally defined by the same contract documents that form the basis
of the Company’s agreements with its clients. The terms of the agreements between the Company
and its clients are generally replicated in the agreements between the Company and its subcontractors.
These “flow-down” provisions substantially mitigate the risk borne by the Company. Depending on the
value of the work, the Company may require bonds or other forms of contract security, including
enrolling our subcontractors in Bird’s subcontractor default insurance program, which should mitigate
exposure to possible additional costs should a subcontractor not be able to meet its contractual
obligations. Bird’s primary constraints on growth are the ability to secure new work at reasonable
margins and the availability of qualified professional staff who can be assigned to manage the projects.
INDUSTRIAL SECTOR
Within the industrial sector, Bird has significant experience executing large and complex projects for
clients primarily operating in the oil and gas, liquefied natural gas (LNG), mining, renewables, water
and wastewater, and nuclear sectors. Bird constructs industrial buildings including manufacturing,
processing, distribution, and warehouse facilities, and performs civil construction operations including
site preparation, concrete foundations, metal and modular fabrication, mechanical process work,
underground piping and earthwork.
These industrial service capabilities have been further enhanced through the recent joining of forces
with Stuart Olson Inc. (“Stuart Olson”). The Company’s industrial self-perform capabilities now include
insulation, metal siding and cladding, ductwork, asbestos abatement, mechanical, and electrical and
instrumentation abilities, including high voltage testing and commissioning, as well as power line
construction. These maintenance service abilities are augmented with civil services as well as facilities
maintenance services, and the combined service offering opens the door to a wider range of clients
including those in the LNG, mining, and nuclear sectors. In general, Bird has gained an expanded
industrial general contracting business and more noticeably is now an industrial maintenance
contractor with opportunities for additional maintenance clients in a broader geographical footprint.
41 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
41
INSTITUTIONAL & COMMERCIAL SECTOR
Within the institutional sector, Bird constructs and renovates hospitals, post-secondary education
facilities, K-12 schools, recreation facilities, prisons, courthouses, government buildings, long term
care and senior housing, as well as environmental facilities that include water and wastewater
treatment centres, composting facilities, and biosolids treatment and management facilities. Within the
commercial sector, Bird's operations include the construction and renovation of office buildings,
shopping malls, big box stores, hotels, and selected mixed-use high-rise residential.
The Company has also developed expertise in the construction of vertical elements and overall
management of transportation-related projects and will continue to enhance its abilities in this market.
Bird also selectively invests equity in PPP projects to support construction operations.
INNOVATIVE SOLUTIONS
Bird also provides innovative solutions within the Institutional and Commercial sectors.
MASS TIMBER
With an extensive resume of mass timber
construction, including post-secondary
education, recreation and seniors living
facilities, Bird is a North American leader
with the expertise, experience and supply
chain knowledge to present an
opportunity for greener buildings by using
a renewable resource as a primary
construction material.
CENTRE FOR BUILDING PERFORMANCE
Paving the way for the future of smart building
technology and seamless construction delivery,
the Centre for Building Performance provides
smart building technologies and life cycle
services, which enables the delivery of
innovation, efficiency and exceptional value by
design.
STACK MODULAR
The Company’s partnership with Stack Modular, a design-build structural steel modular manufacturer
that builds across the USA and Canada, is an innovative solution in the multi-family, hospitality,
resource, and student and senior housing sectors for buildings up to 40 storeys. The partnership is
focused on helping clients leverage the advantages of combining conventional and modular methods
of construction, enabling time and cost savings, and ensuring delivery of high-quality, local code
compliant modules with stakeholder assurance that projects will be executed successfully and safely.
COMMERCIAL SYSTEMS
The newly acquired commercial systems business is one of Canada’s largest electrical and data
system contractors. Services include design, build and installation of core electrical infrastructure,
resulting in high-tech, high-performance buildings. It also provides the services and systems that
support information management, building systems integration, green data centres, security, risk
management and lifecycle services, as well as ongoing maintenance and on-call service to customers.
42 | 2020 Management Discussion and Analysis
42
2020 Management’s Discussion and Analysis
2020 HIGHLIGHTS
(cid:120) The Company completed its acquisition of Stuart Olson on September 25, 2020 and welcomed the additional
employees, clients, shareholders and all other stakeholders to this dynamic organization and new leading
construction company. The business combination is the largest and most transformative transaction in the
Company’s 100 year history. It creates additional opportunity for our people and our customers, and Bird is
well-positioned to play a major role in the Canadian construction industry, creating long-term value for all
stakeholders for decades to come.
(cid:120) The COVID-19 pandemic has added uncertainty to the construction industry as each provincial government
has responded with different measures to address the continuing and evolving threat to public health. Bird has
seen delays in project tenders and awards from clients, and experienced reduced productivity on project sites
as a result of increased safety protocols implemented during the pandemic. Throughout 2020, the Company
experienced delays in smaller sized or short-term projects in locations such as Manitoba and Atlantic Canada.
The health and safety of employees is paramount and, as a result of the pandemic, the Company has increased
health and safety initiatives such as physical distancing and added additional measures to normal safety
protocols. During the early stages of the pandemic in 2020, the Company made a difficult decision and
instituted mandatory wage reductions to its employees to preserve the financial health of the business and
keep it agile through the pandemic. With the Canada Emergency Wage Subsidy (“CEWS”) enacted by the
federal government, the Company was ultimately able to restore and reimburse its employees for the reduced
wages in 2020. The situation remains fluid; however, the Company responded to the challenges presented in
2020 and is well-positioned to respond to fluctuating scenarios in the near term.
(cid:120) During the fourth quarter of 2020, the Company recorded net income of $20.5 million on construction revenue
of $555.0 million compared with net income of $8.2 million on $420.6 million of construction revenue in 2019.
Basic and diluted earnings per share in the fourth quarter of 2020 and 2019 was $0.39 and $0.19, respectively.
The year-over-year increase in fourth quarter revenue is primarily attributable to the inclusion of Stuart Olson.
The year-over-year increase in net income is a combination of the addition of Stuart Olson and the timing of
applications for CEWS. The Company recognized a total pre-tax compensation expense recovery of $21.7
million in the fourth quarter of 2020, of which approximately $11.6 million relates to the first nine months of
2020 ($0.4 million first quarter 2020, $3.8 million second quarter 2020, and $7.4 million third quarter 2020).
Although the timing of recording the CEWS benefit was a significant factor affecting fourth quarter net income,
on a full year basis CEWS did not fully offset the negative impact which COVID-19 had on revenues and
margins.
(cid:120) Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2020 were $21.5 million and $0.41,
respectively, compared with Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2019
of $8.2 million and $0.19, respectively. The year-over-year increase in fourth quarter Adjusted Earnings is
reflective of the improvement in earnings attributable to the inclusion of Stuart Olson and the year to date catch
up in the application for CEWS.
(cid:120) Adjusted EBITDA and Adjusted EBITDA Margin in the fourth quarter of 2020 were $40.0 million and 7.2%,
respectively. Adjusted EBITDA increased $24.0 million from the Adjusted EBITDA of $16.0 million in the fourth
quarter of 2019. Adjusted EBITDA Margin increased 340 basis points from the Adjusted EBITDA margin of
3.8% recorded in the fourth quarter of 2019.
(cid:120)
In 2020, the Company recorded net income of $36.1 million on construction revenue of $1,504.4 million
compared with a net income of $9.5 million on $1,376.4 million of construction revenue in 2019. Basic and
diluted earnings per share in 2020 and 2019 were $0.80 and $0.22, respectively. There was an increase in
revenue year-over-year due to the inclusion of fourth quarter revenue of Stuart Olson. Excluding the revenue
contribution from Stuart Olson, the Company experienced a year-over-year revenue decline in the second,
third and fourth quarters of 2020 attributable to the COVID-19 pandemic. The year-over-year increase in net
income is primarily attributable to the mix of the higher margin industrial work program and the acquisition of
Stuart Olson. An additional significant factor contributing to the year-over-year improvement in net income was
the Company's increased contract pursuit selectivity in its institutional and Public Private Partnership (“PPP”)
43 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
43
business, targeting lower risk opportunities best aligned with execution capabilities. Thereby avoiding notable
underperforming contracts which resulted in headwinds to margins and income in recent years. 2019 net
income was negatively impacted by a PPP project that incurred additional cost due to design related scope
growth and acceleration expenses. There were substantial changes to the scope of the project requested by
the client that are in commercial negotiation. This PPP project achieved substantial performance in the first
quarter of 2020.
(cid:120) Adjusted Earnings and Adjusted Earnings Per Share for fiscal 2020 were $41.6 million and $0.92, respectively,
compared with $9.5 million and $0.22 respectively, in fiscal 2019. The year-over-year increase in Adjusted
Earnings was due to the same reasons noted above that increased net income
(cid:120) Adjusted EBITDA for fiscal 2020 was $81.9 million compared to $32.3 million in the comparable period in 2019.
Adjusted EBITDA Margin in 2020 was 5.5% and increased 310 basis points from the 2.4% recorded in 2019.
The year-over-year improvement was driven by an increase in gross profit due to the revenue mix, the inclusion
of Stuart Olson fourth quarter earnings, and the previously described Company's increased contract pursuit
selectivity, targeting lower risk opportunities best aligned with execution capabilities.
(cid:120)
(cid:120)
In 2020, the Company secured $1,643.8 million of new contract awards and change orders and executed
$1,504.4 million of construction revenues, and $995.7 million of Backlog was contributed at the acquisition date
by recently acquired Stuart Olson. Backlog of $2,682.5 million at December 31, 2020 increased 73.4% from
Backlog of $1,547.4 million at December 31, 2019. Included in Backlog is a $154.0 million design-build contract
for the Nanaimo Correctional Centre (“NCC”) Replacement Project in Nanaimo, British Columbia. The NCC
Replacement Project features modernized spaces for educational, vocational, and certified trades training in
addition to rehabilitative and culturally responsive Indigenous programming. It also includes Vancouver Island’s
first provincial custody capacity for women. Two local First Nations, Snuneymuxw and Snaw’Naw’As, will also
have input into the design as well as job and contract opportunities during construction.
In 2020, cash and cash equivalents increased $31.8 million, before the effects of foreign exchange, to $212.1
million from $180.3 million at the end of 2019. The majority of the change in cash and equivalents during the
period relate to changes in the non-cash net current asset/liability position which can fluctuate significantly in
the normal course of business. Cash flows from operations generated cash of $128.9 million mainly due to
changes in non-cash working capital, including a $75.1 million increase as a result of the substantial completion
of an alternative finance project in the fourth quarter of 2020. Cash flows from investing activities used cash of
$53.9 million mainly related to the purchase of Stuart Olson. Cash flows from financing activities used cash of
$43.3 million mainly due to the net repayment of non-recourse project financing related to an alternative finance
project offset by net credit facility draws and the share issuance related to the purchase of Stuart Olson.
(cid:120) The Board has declared an eligible dividend of $0.0325 per common share for each of March 2021 and April
2021.
(cid:120) Subsequent to fiscal 2020 year-end, the Company announced that it has been awarded the following projects
and contracts:
o
o
A five-year contract valued in excess of $550.0 million to provide MRO services for a longstanding
industrial customer in Alberta. Under the terms of the multi-site, multi-use agreement, the Industrial
Maintenance team will deliver a multi-disciplined offering for maintenance services, turnarounds and
sustaining capital construction projects, drawing on the full suite of services of both Stuart Olson and Bird.
Estimated 2021 revenues will be recorded into Backlog in the first quarter of 2021; the remaining value of
the contract was recorded in Pending Backlog.
A contract was signed with Infrastructure Ontario for the design-build expansion at the Kenora Jail and
the Thunder Bay Correctional Centre. The project will leverage the Company’s integrated conventional
site construction and innovative modular construction solutions through Bird’s valued partnership with
Stack Modular. The Company’s teams in Manitoba and Ontario will bring together experience and local
expertise, reaffirming Bird’s commitment to building meaningful partnerships with regional communities
including engagement with local Indigenous communities.
44 | 2020 Management Discussion and Analysis
44
2020 Management’s Discussion and Analysis
COVID-19 AND COMPANY RESPONSE
On March 11, 2020 the World Health Organization (“WHO”) declared COVID-19 a global pandemic (“COVID-19
pandemic” or “the pandemic”). Since the declaration, the Canadian construction industry has faced uncertainty as
each provincial government has responded by implementing measures to address the public health threat. As this
report is released, we are approaching the one-year anniversary since the pandemic began, and COVID-19 along
with the variants of the virus that have emerged continues to be an important consideration; preventative safety
measures remain in place and continue to vary from province to province as governments respond to fluctuations
in case numbers. The duration of the pandemic and the associated impact to future financial and operational
measures are unknown. As a result, the corresponding impacts to key variables including, our workforce, supply
chain, project pursuit and awards cycle, and project site measures remain uncertain. The situation remains
extremely fluid; however, the Company responded to the challenges presented in 2020 and is well positioned to
continue responding to fluctuating scenarios in the year ahead.
The health and safety of employees is paramount and, as a result of the pandemic, the Company increased health
and safety initiatives to meet or exceed guidance from applicable public health authorities. The Company’s
COVID-19 response plan includes:
(cid:120) Best practices for both office and field employees and managers.
(cid:120) Self-assessment tools and new COVID-19 measure audits.
(cid:120) Enhanced cleaning protocols and hygiene measures and physical distancing practices.
(cid:120) Proximity activity hazard management process,
including additional personal protective equipment
requirements, such as face coverings, mandated for specific circumstances both in offices and in the field.
(cid:120) Strategies to reduce concentrations of site workers such as staggered start times, breaks, and lunch times
have been implemented on construction sites. Online COVID-19 information centres have also been created
for employees and managers to ensure all team members are kept informed as the situation continues to
evolve.
(cid:120) Remote work practices facilitated by information technology have been implemented and offices have also
been adapted to ensure employee safety for those not working remotely.
(cid:120) The Company continues to communicate on a regular basis with all employees and has highlighted the
additional support offered by the provider of the Employee and Family Assistance Program (“EFAP”) to support
employees and their families during this time.
Stuart Olson has exercised similar rigor in safety procedures both in the field and the office. Moving forward
together, best practices will continue to be upheld and consistently applied between the two companies, while
remaining in compliance with all provincial requirements.
At the onset of the pandemic, Bird took decisive measures to mitigate the uncertainty the pandemic presented.
As such, the Company instituted a broad-based wage rollback starting mid-April through the end of May 2020
applicable to the Directors, executives and non-project related employees. Project-related employees were
exempted from the wage rollback. The intent of the rollback was to avoid layoffs, where possible, thereby retaining
its employees while ensuring its operations continued, its clients’ needs were satisfied, and the Company
remained financially healthy.
Construction was generally considered an essential service by most provincial governments and as a result of the
assistance of the federal government through the CEWS program, Bird reinstated wages in full as of June 1, 2020
and implemented a “make-whole” provision in July to ensure its employees were fully reimbursed for their foregone
remuneration. The Company generally maintained employment levels throughout the year with a few exceptions
where some temporary layoffs were implemented on projects that were temporarily slowed down or suspended
by the client or by a provincial government. Additionally, the Company reduced discretionary spending and
deferred capital expenditures where possible out of an abundance of caution. All these efforts contributed to a
strengthened financial position to withstand potential prolonged impacts of COVID-19.
45 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
45
For fiscal full-year 2020, management estimates that the business experienced a reduction in revenues of
approximately $175 million with an associated decrease in profitability, as a direct result of the pandemic. This
impact can be primarily attributed to delays in the conversion of some projects from Pending Backlog to Backlog,
delays in project tenders and awards and was compounded by reduced productivity on project sites.
The Company, its executives and Directors want to acknowledge the continued efforts and sacrifices that our
employees have made to ensure that the Company continues operating safely and effectively, while delivering
upon its project commitments through these unprecedented times. Furthermore, given Bird employees’
unwavering dedication to clients and their projects during these unprecedented times, the Board of Directors
recently approved merit and promotional increases for the upcoming year.
ANNUAL RESULTS OF OPERATIONS
Consolidated Statement of Income and Additional Financial Indicators
(in thousands of Canadian dollars except per share amounts and percentages)
Construction revenue
Costs of construction
Gross profit
Income from equity accounted investments
General and administrative expenses
Income from operations
Finance income
Finance and other costs
Income before income taxes
Income tax expense
Net income for the period
Basic and diluted earnings per share
Adjusted Earnings(1)
Adjusted Earnings Per Share(1)
Adjusted EBITDA(1)
Adjusted EBITDA Margin(1)
For the year ended
2020
1,504,432
1,378,132
126,300
$
2019
1,376,408
1,305,458
70,950
% change
9.3%
5.6%
78.0%
7,792
(78,777)
55,315
1,511
(7,506)
49,320
13,217
36,103
0.80
41,579
0.92
$
$
$
$
2,693
(58,722)
14,921
2,596
(5,558)
11,959
2,475
9,484
0.22
9,484
0.22
81,937
$
32,292
5.5%
2.4%
189.3%
34.2%
270.7%
-41.8%
35.0%
312.4%
434.0%
280.7%
263.6%
338.4%
318.2%
153.7%
131.9%
$
$
$
$
$
$
(1) Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures and do not
have standardized meanings under IFRS. See "Terminology and Non-GAAP Measures."
In fiscal 2020, the Company recorded net income of $36.1 million on construction revenue of $1,504.4 million
compared with net income of $9.5 million on $1,376.4 million of construction revenue respectively in 2019. The
year-over-year increase in revenue was driven by higher industrial project revenues, partially offset by lower
revenues in commercial and institutional projects due to COVID-19 pandemic delays, as well as the contribution
of revenue from Stuart Olson in 2020. Excluding the revenue contribution from Stuart Olson, the Company
experienced a year-over-year revenue decline in the second, third and fourth quarters of 2020 attributable to the
COVID-19 pandemic. The year-over-year increase in net income is reflective of the mix of the higher margin
industrial work program, in addition to less margin erosion on a challenging PPP project in 2019, numerous cost
containment efforts in response to the pandemic, as well as the inclusion of Stuart Olson net income in the fourth
quarter. In fiscal 2020, Company recognized a pre-tax recovery of compensation expense of $24.8 million related
to the CEWS program. Although the timing of recording the CEWS benefit was a significant factor affecting fourth
46 | 2020 Management Discussion and Analysis
46
2020 Management’s Discussion and Analysis
quarter net income, on a full year basis CEWS did not fully offset the negative impact which COVID-19 had on
revenues and margins.
The Company remains focused on investing in both people and technology and in diversifying its earnings base
with a stronger margin profile. The mix of revenue in 2020 differs from that of 2019 as evidenced by the increase
in the industrial work program relative to work performed in the institutional and commercial sectors. This trend is
expected to continue into 2021. The institutional market sector contributed 37% of 2020 revenues (43% in 2019).
The industrial market sector contributed 41% of 2020 revenues (39% in 2019). The retail and commercial sector
contributed 22% of 2020 revenues (18% in 2019).
The Company’s 2020 annual gross profit of $126.3 million was $55.3 million higher than the $71.0 million recorded
for 2019. Gross Profit Percentage in 2020 was 8.4%, an increase of 325 basis points from fiscal 2019 Gross Profit
Percentage of 5.2%. The increase in gross profit is due to a higher-margin work program as revenue continues to
shift from institutional and commercial projects to a more balanced work program including industrial, which has
a higher gross profit profile, as well as the contribution of fourth quarter gross profit from Stuart Olson. Fiscal 2020
gross profit includes a recovery of $21.2 million of compensation expense in costs of construction for the year
ended December 31, 2020, under the CEWS program, increasing gross profit. An additional significant factor
contributing to the year-over-year improvement in gross profit was the Company's increased contract pursuit
selectivity in its institutional and PPP business, targeting lower risk opportunities best aligned with execution
capabilities. Thereby avoiding notable underperforming contracts which resulted in headwinds to gross profit in
recent years. 2019 gross profit was negatively impacted by a PPP project that incurred additional costs due to
design-related scope growth and acceleration expenses.
Income from equity accounted investments in 2020 was $7.8 million, compared with $2.7 million in same period
of 2019. The primary driver of the year-over-year increase was net gains on sale of certain investments in equity
accounted entities of $3.1 million. In addition, equity income increased year-over-year from several equity
accounted investments across Canada.
For the year ended December 31, 2020, general and administrative expenses of $78.8 million (5.2% of revenue)
were $20.1 million higher than $58.7 million (4.3% of revenue) of general and administrative expenses in 2019.
During the year, the Company had higher professional fees of $9.6 million (including $7.2 million related to
acquisition and integration activities associated with the Stuart Olson transaction) and higher compensation costs
of $8.9 million (net of $3.6 million related to cost recoveries from the CEWS program). Also driving the increase
were higher amortization and depreciation of $4.8 million, higher foreign exchange costs of $0.5 million and higher
technology related costs of $1.2 million. Partially offsetting the increases in expense were reduced PPP pursuit
costs of $2.2 million, and lower travel, conference and other discretionary spend of $1.6 million as the Company
managed this spending throughout the COVID-19 pandemic. In addition, gains on sale of property and equipment
were $1.2 million higher than the amounts recorded in the prior year.
47 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
47
Finance income of $1.5 million in 2020 was lower than the $2.6 million recorded in the same period of 2019.
Interest income earned on deposits has been impacted by lower variable interest rates in 2020.
Finance and other costs of $7.5 million were $1.9 million higher than the $5.6 million reported in 2019. The
increase was due to $1.0 million higher interest expense on loans and borrowings and right of use liabilities,$1.5
million higher interest on non-recourse project financing, partially offset by the year-over-year gain on the
Company’s interest rate swaps as the mark-to-market loss was unwound at the end of the swap related to non-
recourse project financing, and a reduction of other interest expenses of $0.6 million.
In 2020, income tax expense was $13.2 million, compared to $2.5 million recorded in 2019. The increase in income
tax expense was in-line with the year-over-year improvement in income before taxes. In addition, certain expenses
attributable to the acquisition of Stuart Olson are non-deductible for tax purposes, which increased the effective
tax rate.
Adjusted Earnings and Adjusted Earnings Per Share for fiscal 2020 were $41.6 million and $0.92, respectively,
compared with $9.5 million and $0.22 respectively, in fiscal 2019. The year-over-year increase in net income is
reflective of the improvement in earnings attributable to the mix of the higher margin industrial work program and
increased costs on a certain contract incurred in 2019 that did not recur in 2020, the inclusion of fourth quarter
earnings from Stuart Olson, and the previously discussed pre-tax compensation cost recovery of $24.8 million
related to CEWS.
Adjusted EBITDA for fiscal 2020 was $81.9 million compared to $32.3 million in the comparable period in 2019.
Adjusted EBITDA Margin in 2020 was 5.5% and increased 310 basis points from the 2019 EBITDA margin of
2.4%. The year-over-year improvement was driven by an increase in gross profit due to the revenue mix, and the
previously described PPP project, the Adjusted EBITDA contribution of Stuart Olson, and the previously discussed
pre-tax compensation cost recovery of $24.8 million related to CEWS.
48 | 2020 Management Discussion and Analysis
48
2020 Management’s Discussion and Analysis
QUARTERLY RESULTS OF OPERATIONS
Consolidated Statement of Income and Additional Financial Indicators
(in thousands of Canadian dollars except per share amounts and percentages)
Construction revenue
Costs of construction
Gross profit
Income from equity accounted investments
General and administrative expenses
Income from operations
Finance income
Finance and other costs
Income before income taxes
Income tax expense
Net income for the period
Basic and diluted earnings per share
Adjusted Earnings(1)
Adjusted Earnings Per Share(1)
Adjusted EBITDA(1)
Adjusted EBITDA Margin(1)
For the three months ended
2020
554,960
493,426
61,534
$
(189)
(32,822)
28,523
178
(1,731)
26,970
6,436
20,534
0.39
21,526
0.41
$
$
$
$
2019
420,612
394,228
26,384
739
(16,302)
10,821
769
(1,553)
10,037
1,870
8,167
0.19
8,167
0.19
40,011
$
16,012
7.2%
3.8%
$
$
$
$
$
$
% change
31.9%
25.2%
133.2%
-125.6%
101.3%
163.6%
-76.9%
11.5%
168.7%
244.2%
151.4%
105.3%
163.6%
115.8%
149.9%
89.2%
(1) Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures and do not have
standardized meanings under IFRS. See "Terminology and Non-GAAP Measures."
During the fourth quarter of 2020, the Company recorded net income of $20.5 million on construction revenue of
$555.0 million compared with net income of $8.2 million on $420.6 million of construction revenue in 2019. The
year-over-year increase of revenue in the fourth quarter of 31.9% was primarily driven by the inclusion of $237.6
million of fourth quarter revenue from Stuart Olson in 2020. The increase in fourth quarter revenue was partially
offset by lower revenues in all work programs of legacy Bird due to delays in securing new projects and projects
that have been temporarily delayed by clients as a result of the COVID-19 pandemic. The year-over-year increase
in fourth quarter net income is primarily attributable to the inclusion of Stuart Olson and a pre-tax recovery of
compensation costs of $21.7 million related to CEWS in the fourth quarter of 2020, of which approximately $11.6
million relates to the first nine months of 2020 ($0.4 million first quarter 2020, $3.8 million second quarter 2020,
and $7.4 million third quarter 2020). This was partially offset by lower fourth quarter earnings in Bird’s work
program due to the effects of the COVID-19 pandemic and the stage of completion in certain industrial projects in
the fourth quarter year-over-year. Although the timing of recording the CEWS benefit was a significant factor
affecting fourth quarter net income, on a full year basis CEWS did not fully offset the negative impact which
COVID-19 had on revenues and margins.
The Company’s 2020 fourth quarter gross profit of $61.5 million was $35.1 million higher than the $26.4 million
recorded a year ago. Gross Profit Percentage in the fourth quarter of 2020 was 11.1%, an increase of 482 basis
points from 6.3% recorded a year ago. The increase in gross profit is due to the recovery of $18.7 million of
compensation expense in costs of construction under the CEWS program and the inclusion of Stuart Olson results.
This was partially offset by lower fourth quarter gross profit in Bird’s work program due to project delays as a result
of the COVID-19 pandemic and the stage of completion in certain industrial projects in the fourth quarter year-
over-year.
49 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
49
The loss from equity accounted investments in the fourth quarter of 2020 was $0.2 million, compared with $0.7
million of income in same period of 2019. The loss in the fourth quarter is primarily due to an equity loss on a
project in Ontario.
In the fourth quarter of 2020, general and administrative expenses of $32.8 million (5.9% of revenue) were $16.5
million higher than $16.3 million (3.9% of revenue) in the corresponding period a year ago. The primary driver for
the increase is the addition of Stuart Olson results in the fourth quarter of 2020. The Company incurred higher
professional fees of $3.4 million (including $2.1 million related to acquisition and integration activities associated
with the Stuart Olson transaction) and higher compensation costs of $9.5 million (net of $3.0 million related to cost
recoveries from the CEWS program). Also driving the year-over-year increase were $4.7 million of higher
amortization and depreciation costs and higher technology costs of $0.8 million. Partially offsetting the increase
in expenses were $1.6 million lower pursuit costs, travel and other discretionary costs of $0.2 million, and lower
foreign exchange expense of $0.1 million than the amounts recorded a year ago.
Finance income of $0.2 million in the fourth quarter of 2020 was lower than the $0.8 million recorded in the same
period of 2019. Interest earned on average cash balances during the quarter was lower due to a reduction in cash
held for joint operations as projects near completion compared to the prior year, combined with lower interest
rates.
Finance and other costs of $1.7 million were comparable to the $1.6 million reported in the fourth quarter of 2019.
In the fourth quarter, the $0.7 million higher interest expense on loans and borrowings and right of use liabilities
was partially offset by $0.5 million lower interest on non-recourse project financing due to the repayment of the
loan facility in the fourth quarter of 2020 as the Ontario Provincial Police (“OPP”) Modernization Phase 2 project
reached substantial completion.
In the fourth quarter of 2020, income tax expense was $6.4 million, compared to $1.9 million recorded in the fourth
quarter of 2019. The increase in income tax expense was in-line with the improvement in year-over-year income
before taxes. In addition, certain expenses attributable to the acquisition of Stuart Olson are non-deductible for
tax purposes, which increased the effective tax rate.
Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2020 were $21.5 million and $0.41,
respectively, compared with Adjusted Earnings and Adjusted Earnings Per Share in the fourth quarter of 2019 of
$8.2 million and $0.19, respectively. The year-over-year increase in fourth quarter Adjusted Earnings is reflective
of the improvement in earnings due to compensation cost recoveries under the CEWS program and the inclusion
of Stuart Olson’s fourth quarter results.
50 | 2020 Management Discussion and Analysis
50
2020 Management’s Discussion and Analysis
Adjusted EBITDA and Adjusted EBITDA Margin in the fourth quarter of 2020 were $40.0 million and 7.2%,
respectively. Adjusted EBITDA increased $24.0 million from the Adjusted EBITDA of $16.0 million in the fourth
quarter of 2019. Adjusted EBITDA Margin increased 340 basis points from the Adjusted EBITDA margin of 3.8%
recorded in the fourth quarter of 2019. The fourth quarter of 2020 includes $21.7 million related to CEWS. In
addition, fourth quarter 2020 includes Adjusted EBITDA from Stuart Olson.
KEY PERFORMANCE INDICATORS
Securements, Pending Backlog and Backlog
Securing profitable construction contracts and then controlling the costs during the execution of that work are the
key drivers of success for the Company. To achieve this, new work must be available, which is a function of the
general state of the economy. In periods of strong economic growth, client capital spending will generally increase
and there will be more opportunities available in the construction industry. In economic downturns, fewer
opportunities typically exist and competition for those opportunities becomes even more intense, generally
resulting in lower Gross Profit Percentages. The Company must be successful in securing profitable work in
various economic conditions. The construction industry is highly fragmented and accordingly, the Company
competes with several international, national, regional and local construction firms. One of the Company’s
competitive advantages rests in its long-standing reputation for successfully delivering high quality projects that
fully meet the needs of the customer, which enables the Company to secure repeat business from existing clients
and win work with new clients.
The Company’s success in securing work is also reflected in the values of its Pending Backlog and Backlog. The
following table shows the Company’s balances at December 31 of the current and prior reporting periods:
51 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
51
(in thousands of Canadian dollars)
2020
2019
Pending Backlog (1)
Backlog
$
$
1,635,900
2,682,498
$
$
625,000
1,547,427
(1) Pending Backlog does not have a standardized meaning under IFRS. See "Terminology and Non-GAAP Measures."
Pending Backlog at December 31, 2020 was approximately $1,635.9 million compared to $625.0 million at
December 31, 2019. Pending Backlog now includes a greater proportion of Master Service Agreement (“MSA”)
contracts from Stuart Olson. These contracts are typically with industrial clients, that span multiple years for MRO
services, and amount to $1,117.6 million, which represents a recurring revenue steam over the next one to six
years. The Company expects to convert these MSAs to Backlog as purchase orders are received. The remaining
projects comprising Pending Backlog are geographically diverse and span multiple sectors and contracting
methods. Projecting the timing of converting these projects into contracts has become more difficult as a result of
the pandemic and several have shifted later into 2021.
The Company’s Backlog of $2,682.5 million at December 31, 2020 increased $1,135.1 million or 73.4% from
December 31, 2019, mainly due to the acquisition of Stuart Olson which contributed $995.7 million of Backlog at
acquisition date, primarily consisting of commercial and institutional projects.
The following table outlines the changes in the amount of the Company’s Backlog throughout the current and prior
reporting periods:
(in millions of Canadian dollars)
Opening balance
Business combination
Securement and change orders
Realized in construction revenues
Closing balance
2020
2019
$
$
1,547.4
995.7
1,643.8
(1,504.4)
1,295.9
-
1,627.9
(1,376.4)
$
2,682.5
$
1,547.4
52 | 2020 Management Discussion and Analysis
52
2020 Management’s Discussion and Analysis
Gross Profit Percentage
Once the Company has secured a contract, the profitability of that contract, measured by the Gross Profit
Percentage, is primarily a function of management’s ability to control costs, achieve productivity objectives
associated with the contract and resolve outstanding commercial issues as they arise.
During 2020 the Company realized a Gross Profit Percentage of 8.4% compared with 5.2% in 2019. The significant
year-over-year improvement is driven by the revenue mix, with a larger portion of revenue recognized from the
Company’s higher margin industrial work program, as well as the inclusion of the results of Stuart Olson.
Recoveries from CEWS reduced compensation expense by $21.2 million or 1.4% of 2020 revenue. 2019 Gross
Profit Percentage was also negatively impacted by a PPP project that incurred additional costs due to design-
related scope growth and acceleration expenses. There were substantial changes to the scope of the project
requested by the client that are in commercial negotiation. This PPP project achieved substantial performance in
the first quarter of 2020.
Financial Condition
The Company must have adequate working capital and equity retained in the business to support its ongoing
operations, including surety and contract security requirements. The Company continually monitors the adequacy
of its working capital and equity to satisfy contract security needs. The following table shows the working capital
and shareholders’ equity balances of the Company at December 31 of the current and prior reporting periods:
(in thousands of Canadian dollars)
Working capital
Shareholders' equity
2020
2019
$
$
135,514
212,610
$
$
80,503
127,720
At December 31, 2020, the Company had working capital of $135.5 million compared with $80.5 million at
December 31, 2019, an increase of $55.0 million, mainly related to the acquisition of Stuart Olson, which added
$38.1 million of working capital. The $16.9 million remaining increase is primarily the result of the Company’s net
income of $36.1 million exceeding the $17.6 million of dividends by $18.5 million. In addition, there was a decrease
in non-cash assets comprised of $5.1 million of investments in equity accounted entities offset by the decrease in
non-current liabilities of $3.5 million.
The $84.9 million increase in the Company’s shareholders’ equity since December 31, 2019 was primarily the
result of the $65.5 million of common shares issued as part of the Stuart Olson acquisition and net income of
$36.1 million, partially offset by $17.9 million dividends declared.
As a result of the strength of the Company’s balance sheet, the Company believes it has sufficient amounts of
both working capital and equity to execute on its diversified work program and to accommodate expected growth
in that work program during 2021.
53 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
53
Safety
Bird’s approach to safety continues to evolve in response to new technologies, tools, strategies, and challenges
such as COVID-19. At Bird, ensuring that all work on the Company’s sites is executed to exacting quality standards
begins with the commitment to creating and sustaining a culture in which the identification, assessment, and
elimination or control of hazards and risks is incorporated into every aspect of operations. This is a cornerstone
of the Company’s operational philosophy and approach.
Ensuring that all workers leave the jobsite everyday just as healthy and safe as when they arrived is a shared
commitment and by working collaboratively with employees and subcontractors to achieve this, the Company
minimizes risk and creates the appropriate conditions for the safe execution of construction activity - on time, on
budget, and to our client’s satisfaction. Bird believes this shared commitment is critical to its overall success.
Through robust orientation and training programs and ongoing communication and engagement activities, the
Company encourages all workers to actively contribute to ongoing efforts to continuously improve not only the
safety program, but overall collaboration and effectiveness. In this way, Bird’s workers not only leave work healthy
and safe every day, but in doing so, help contribute to the Company’s overall operational excellence.
At Bird, Personal Ownership is not just a vision or a philosophy, it is a daily routine practiced with discipline and
rigor on all Bird job sites.
Person-hours of work
Lost time incidents ("LTI")
Lost time incidents frequency ("LTIF")
2020
2019
5,641,819
3,943,846
1
0.04
0
0.00
54 | 2020 Management Discussion and Analysis
54
2020 Management’s Discussion and Analysis
OUTLOOK
The Company had a strong finish to 2020 with financial performance surpassing fourth quarter and full-year 2019
results. Faced with significant uncertainty at the onset of the pandemic, the Company took prudent measures to
ensure it remained financially stable. A healthy Backlog and cash position at the start of 2020, coupled with strong
financial and disciplined operational performance not only allowed Bird to perform well, but also permitted the
Company to undertake the significant and transformational acquisition of Stuart Olson that was completed in the
third quarter of 2020.
Given Bird’s significant financial strength prior to the declaration of the pandemic, the Company completed the
largest and most transformative transaction in the Company’s 100-year history. Since closing the transaction, the
integration of the two companies is well underway. The newly combined Bird team is sharing best practices and
is expected to harmonize under one common employee benefits program, share purchase plan and a Company-
matched registered retirement savings plan commencing in the second quarter of 2021. Integration planning
targets set for the first 100 days have been achieved and the Company is on track to attain the previously stated
$25.0 million in cost synergies by the end of 2021. The Company has set in motion $6.9 million of the $10.0 million
in EBITDA synergies and has realized the full annualized interest and depreciation and amortization savings of
$10.0 million and $5.0 million, respectively. Management has also identified cross-selling opportunities which it is
exploring and are expected to accelerate in the coming years. Stuart Olson contributed to the Company’s net
income in its first full quarter as part of the Company and the combination of its strong core business, and both
expected revenue and expense synergies from combination with the Bird core businesses, are expected to be
accretive to net income per share in 2021 and beyond. The addition of Stuart Olson is also supportive of the
Company’s strategy of diversification into lower risk and sustainable income streams.
Similar to the start of fiscal 2020, the Company started fiscal 2021 with both a strong Backlog and cash position.
At December 31, 2020, Backlog stood at $2.7 billion, with an additional $1.6 billion classified as Pending Backlog,
while cash and cash equivalents were $212.1 million, of which $96.7 million was accessible. The Company
expects to recognize 59% of Backlog to revenue over the next twelve months, with the balance to convert beyond
that period. This expectation is based on management’s best estimate but contains uncertainty as it is subject to
factors outside of management’s control. Management has increased confidence in the acquired Backlog and the
overall embedded margins and risk profile, noting the Company made necessary contingencies at the time of
acquisition.
A key focus of the Company has been to ensure it has an appropriately balanced risk profile of Backlog through
disciplined project selection. The acquired Backlog further reduces this risk profile, but also slightly reduces the
embedded Backlog margin. As the impacts from the pandemic subside, the Company anticipates the margin
profile of the Backlog to increase in a rebounding economy. With the acquisition of Stuart Olson, the overall
Backlog is now more diversified across a broad range of markets and contracting methods. The Company expects
the proportion of revenue earned from higher risk contract types to remain low in 2021 when compared to previous
years. This reduced risk profile is inherently accompanied by a lower Backlog margin profile in components of the
Stuart Olson Backlog and, as such, will slightly reduce the combined company’s margin profile in the near-term
when compared to 2020. Despite this dynamic, the addition of Stuart Olson contributed positively to profitability in
the fourth quarter of 2020. As always, Bird will take a disciplined approach in matching available talent to the risk
profile of a project and overall work program to mitigate risk.
The second wave of the pandemic further pushed projects in the pursuit pipeline out to later dates and has resulted
in delays in the conversion of some projects in Pending Backlog into Backlog. Additionally, Bird has seen delays
in project tenders and awards from clients, and experienced reduced productivity on project sites as a result of
increased safety protocols implemented during the first wave of the pandemic. Throughout 2020, the Company
experienced delays in smaller sized or short-term projects in locations such as Manitoba and Atlantic Canada,
and more recently in the first quarter of 2021 had several large projects in British Columbia impacted when the
BC Public Health Office implemented worksite protocols limiting the number of employees on project sites.
Consequently, and while timing remains uncertain, the Company anticipates governmental restrictions will further
result in project delays in the first half of 2021, shifting portions of the work program into the back half of the year
55 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
55
and into 2022, which will negatively impact both revenue and gross profit in the year. In addition, the Company
does not anticipate that it will qualify to the same extent from the CEWS program in 2021 as it did in 2020 based
on the updated criteria put in place through June 2021 by the federal government. This will place downward
pressure on profitability margin percentages on a year-over-year basis as the Company expects to maintain its
workforce. The Company is well-positioned to benefit from government stimulus spending, given its expanded
capabilities, and will closely monitor projects as they are announced.
With the Build Bird five-year strategic plan nearing completion, the Company plans to release a new three-year
strategic plan in 2021. Bird is committed to prioritizing sustainability and its Sustainability Overview can be viewed
in the 2020 Annual Report.
As always, Bird remains committed to building long-term shareholder value through sustainable profitable growth
as management remains focused on managing the overall risk profile of its Backlog while looking to improve the
margin profile of the newly combined entity, which is a key area of focus for the Company moving forward. From
a capital allocation standpoint, the Company will continue to pursue a balanced mandate. In the short-term,
Management expects to deploy cash generated in operating activities towards strengthening its balance sheet,
which will position the Company to successfully capitalize on both organic and inorganic growth opportunities as
they arise. The acquisition of Stuart Olson creates additional opportunity for our people and our customers, and
Bird is well-positioned to play a major role in the Canadian construction industry with the potential to create long-
term value for all stakeholders for decades to come.
CAPABILITY TO DELIVER RESULTS
Productive capacity relates to the financial and non-financial resources available to the Company to execute its
strategy and achieve planned results. From a financial perspective, the Company believes it has sufficient working
capital and access to operating lines of credit to execute its current operational and growth forecast. The belief is
explained in sections of this MD&A dealing with financial condition and liquidity.
In addition to financial capacity, the success of the Company is dependent upon the management and leadership
skills of senior management. On an annual basis, high-performing candidates are identified for training and
progression into more senior positions within the Company. The Company’s performance management system
emphasizes the development of leadership skills. In addition, the Company sponsors internal and external training
programs, including the Bird Leadership Academy, the Bird Site Management program and the Taking Flight
management training program, to provide a forum for high-potential candidates to develop their leadership skills.
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2020 Management’s Discussion and Analysis
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY
The following table presents a summary of the Company’s financial condition at December 31 of the current and
prior reporting periods:
(in thousands of Canadian dollars)
Cash and cash equivalents
Non-cash working capital
Working capital
Non-current loans and borrowings
Non-current right-of-use liabilities
Shareholders' equity
2020
2019
$
$
212,068
(76,554)
135,514
64,903
59,327
212,610
180,334
(99,831)
80,503
34,738
23,075
127,720
As a result of the strength of the Company’s balance sheet, the Company believes it has sufficient amounts of
both working capital and liquidity to execute its Backlog and to accommodate expected growth in its diversified
work program during 2021.
As a component of working capital, the Company maintains a balance of cash and cash equivalents. At December
31, 2020, this balance totalled $212.1 million. Included in cash and cash equivalents was $60.2 million of cash in
special purpose joint operation bank accounts ($134.0 million at December 31, 2019). Cash and cash equivalents
generally available for operations at December 31, 2020 was $96.7 million ($36.1 million at December 31, 2019)
with the remainder held in trust or joint operations accounts.
Non-cash working capital was in a net liability position of $76.6 million at December 31, 2020, compared to a net
liability position of $99.8 million at December 31, 2019.
The non-cash working capital position fluctuates significantly in the normal course of business from period to
period, primarily due to the timing of differences between the settlement of payables due to subcontractors and
suppliers, billings and collection of receivables from clients, and the timing in the settlement of income taxes
payable. The Company’s cash balances absorb these fluctuations with no net impact to the Company’s net
working capital position or ability to access contract surety support. The Company believes it has sufficient working
capital to support its current and projected contract requirements.
At December 31, 2020, the Company had working capital of $135.5 million compared with $80.5 million at
December 31, 2019, an increase of $55.0 million, mainly related to the acquisition of Stuart Olson, which added
$38.1 million of working capital. The $16.9 million remaining increase is primarily the result of the Company’s net
income $36.1 million exceeding the $17.6 million of dividends by $18.5 million. In addition, there was decrease in
non-cash assets comprising of a $5.1 million investments in equity accounted entities offset by the decrease in
non-current liabilities of $3.5 million.
Credit Facilities
During the fourth quarter of 2020, the Company entered into a three-year, $200.0 million committed, syndicated
credit facility. The Company is well-served by its long-held philosophy of maintaining a strong balance sheet and,
as a result, is well-positioned to weather these uncertain times with $96.7 million of accessible cash and cash
equivalents (excluding cash held in joint ventures and trust accounts) and $167.3 million of capacity available via
its syndicated credit facility, providing adequate liquidity. The Company has also worked closely with Export
Development Canada (“EDC”) and has increased its Account Performance Security Guarantee (“APSG”) limit
from $25 million to $75 million, which increased liquidity for the Company. Despite the negative financial impacts
from the COVID-19 pandemic in 2020, the Company has sufficient funding to meet its foreseeable operating
requirements and expects to remain in compliance with all banking covenants.
57 | 2020 Management Discussion and Analysis
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57
The Company has several credit facilities available to access in order to support the issuance of letters of credit,
finance future capital expenditures and finance the day-to-day operations of the business.
Syndicated Credit Facility
(cid:120) Committed revolving credit facility
As part of the Syndicated facility, the Company replaced its previous committed revolving operating credit
facility of $85.0 million at December 31, 2019, which had increased to $100.0 million during the third quarter
of 2020, with a $165.0 million committed revolving credit facility. The $165.0 million committed revolving credit
facility matures December 7, 2023. As part of the agreement, the Company provides a general secured
interest in the assets of the Company.
At December 31, 2020, the Company has $22.7 million in letters of credit outstanding and has drawn $25.0
million on this facility. The $25.0 million draw is presented as long-term loans and borrowings on the
Company’s statement of financial position. Borrowings under the facility bear interest at a rate per annum
equal to the Canadian prime rate plus a spread. A standby fee is payable quarterly on the unutilized portion
of the facility. The Company was in full compliance with its covenants under each respective facility as at
December 31, 2020 and 2019. Draws of $25.0 million (December 31, 2019 - $15.0 million) on the previous
committed revolving operating credit facility were repaid in full in 2020.
(cid:120) Committed non-revolving term debt facility
As part of the Syndicated facility, the Company replaced its previous $35.0 million committed, term debt
revolving facility with a committed non-revolving term loan facility totalling $35.0 million. As of December 31,
2020, the Company has drawn $35.0 million to finance the acquisition of Stuart Olson. The loan has scheduled
repayments due quarterly until the maturity date of September 24, 2028. Any repayment of the facility cannot
be reborrowed. Borrowings under the facility bear interest at a rate per annum equal to the Canadian prime
rate plus a spread. Draws of $26.3 million (December 31, 2019 - $10.0 million) on the previous committed
revolving term loan facility were repaid in full in 2020.
(cid:120) Accordion
The Company has an accordion of up to an additional $50.0 million to increase the limit of the committed
revolving credit facility and the committed non-revolving term debt facility. The aggregate increase to the
committed revolving credit facility and committed non-revolving term debt facility may not exceed the
combined $50.0 million.
The Company was in full compliance with its covenants under each respective facility as at December 31, 2020
and 2019.
Letters of Credit Facilities
The Company has available $125.0 million of demand facilities used primarily to support the issuance of letters of
credit. All letters of credit issued under these facilities are supported by the pledge of Company-owned financial
instruments, including cash, or through a guarantee from EDC. At December 31, 2020, the Company has $44.5
million in letters of credit outstanding on these facilities (December 31, 2019 - $6.6 million).
The Company has available a facility with EDC to support the issuance of contract performance security letters of
credit issued by financial institutions on behalf of the Company. The Company can use this facility only when
letters of credit have been issued as contract security for projects that meet the EDC mandate.
Letters of credit are typically issued to support the Company’s performance obligations relating to PPP and other
construction projects.
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2020 Management’s Discussion and Analysis
The following table outlines the amount of the credit facilities, the amount of issued letters of credit and the amount
of collateral pledged in support of the outstanding letters of credit at December 31 of the current and prior reporting
periods:
(in thousands of Canadian dollars)
2020
2019
Committed revolving credit facility
Letters of credit issued from committed revolving credit facility
Drawn from committed revolving credit facility
Available committed revolving credit facility
Committed non-revolving term debt facility
Drawn from committed revolving term loan facility
Available committed revolving term loan facility
Accordion
Drawn from Accordion
Available Accordion
Letters of credit facilities
Letters of credit issued from letters of credit facilities
Available letters of credit facilities
Collateral pledged to support letters of credit
Guarantees provided by EDC
Equipment Financing
$
$
$
$
$
$
165,000
22,702
25,000
117,298
35,000
35,000
-
50,000
-
50,000
125,000
44,490
80,510
139
44,353
$
$
$
$
$
$
85,000
28,504
15,000
41,496
35,000
10,000
25,000
-
-
-
80,000
6,559
73,441
139
6,421
The Company and its subsidiaries have term credit facilities of up to $40.0 million to be used to finance equipment
purchases. Borrowings under the facilities are secured with a first charge on the equipment being financed. As of
December 31, 2020, there is $9.2 million outstanding on the facilities of which $0.6 million is classified as ROU
liabilities (December 31, 2019 - $12.4 million of which $2.7 million is classified as ROU liabilities). Interest on the
facilities can be charged at a fixed rate based on the Bank of Canada bond rate plus a spread. Interest is paid
monthly in arrears.
The Company also has multiple, fixed interest rate, term loans which were used to finance equipment purchases.
At December 31, 2020, the balance outstanding on these term loans amounted to $3,639 (December 31, 2019 -
$5,946). Principal and interest are payable monthly, and these term loans are secured by specific equipment of
the Company.
The Company’s total lease commitments are outlined under Contractual Obligations.
At December 31, 2020, the Company was in compliance with all debt covenants relating to its operating and
equipment operating lease lines of credit.
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59
Cash Flow Data
The following table provides an overview of cash flows during the following periods:
(in thousands of Canadian dollars)
Cash flows from operations before changes in non-cash working
capital
Changes in contract assets - alternative finance projects
Changes in non-cash working capital and other
Cash flows from (used in) operating activities
$
Investments in equity accounted entities
Capital distributions from equity accounted entities
Proceeds on sale of investment in equity accounted entities
Additions to property, equipment and intangible assets
Proceeds on sale of property and equipment
Acquisition of Stuart Olson
Other
Cash flows from (used in) investing activities
Proceeds from issue of common shares
Dividends paid on shares
Proceeds from non-recourse project financing
Repayment of non-recourse project financing
Proceeds from loans and borrowings
Repayment of loans and borrowings
Repayment of right-of-use liabilities
Cash flows from (used in) financing activities
(unaudited)
Quarter ended December 31,
2019
2020
Year ended December 31,
2019
2020
$
39,806
139,980
19,145
198,931
$
15,525
(28,367)
67,546
54,704
$
71,696
75,067
(17,816)
128,947
(307)
1,653
-
(6,068)
2,843
-
(1,134)
(3,013)
-
(5,171)
1,891
(131,849)
26,376
(26,684)
(5,589)
(141,026)
112
353
-
(2,807)
733
-
(244)
(1,853)
-
(4,145)
29,039
-
10,000
(1,507)
(2,406)
30,981
(5,088)
5,523
11,034
(14,227)
9,211
(59,960)
(392)
(53,899)
39,876
(17,607)
46,782
(131,849)
88,283
(56,658)
(12,110)
(43,283)
30,201
(68,054)
(223)
(38,076)
-
1,846
-
(14,431)
2,661
-
1,705
(8,219)
-
(16,582)
72,832
-
24,536
(5,113)
(7,615)
68,058
Increase in cash and cash equivalents
$
54,892
$
83,832
$
31,765
$
21,763
Operating Activities
During fiscal 2020, cash flows from operating activities generated cash of $128.9 million compared with cash used
of $38.1 million in 2019.
Cash flows from operations before changes in non-cash working capital of $71.7 million increased $41.5 million
year-over-year from the $30.2 million cash generated in 2019 primarily due to the $26.6 million improvement in
net income, a $10.7 million higher non-cash addback of income tax expense year-over-year, a $5.9 million higher
non-cash addback of amortization and depreciation expense year-over-year, a $1.9 million higher non-cash
addback of finance and other costs and a $1.5 million higher non-cash addback of deferred compensation, partially
offset by $5.1 million higher non-cash reduction for income from equity accounted investments.
Changes in contract assets – alternative finance projects in 2020 increased $143.1 million of cash year-over-year.
This inflow of cash was partially offset by the $131.8 million of repayment of non-recourse project financing during
the fourth quarter of 2020. The activity in 2019 and 2020 relates to the OPP Modernization Phase 2 alternative
finance project. The OPP Modernization project had increased construction activity throughout 2019 and most of
2020 and the resultant contract asset balance increased until the project was completed and billed to the client.
The project obtained substantial completion and was billed and collected during the fourth quarter of 2020,
enabling the full repayment of the non-recourse project financing in the same quarter.
During 2020, the $17.6 million year-over-year decrease in cash from changes in non-cash working capital and
other was primarily due to a $155.2 million increase in accounts receivable and contract assets, collection of other
assets of $6.0 million, partially offset by a $119.9 million increase in accounts payable and a $45.7 million decrease
in contract liabilities. During 2019, the primary drivers of the $0.2 million decrease in cash from the changes in
non-cash working capital and other was a $36.6 million increase in accounts payable, a $52.1 million increase in
contract liabilities and partially offset by a $75.5 million decrease in accounts receivable and contract assets.
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2020 Management’s Discussion and Analysis
The non-cash working capital position fluctuates significantly in the normal course of business from period to
period, primarily due to the timing of differences between the settlement of payables due to subcontractors and
suppliers, billings and collection of receivables from clients, and the timing of the settlement of income taxes
payable.
Investing Activities
During 2020, the Company used $53.9 million of cash from investing activities compared to the $8.2 million used
in 2019. In 2020, the Company used $60.0 million of cash in the acquisition of Stuart Olson. In addition, the
Company received proceeds of $11.0 million from the sale of its investment in equity accounted entities, as well
as incremental distributions from equity investments of $3.7 million, which was partially offset by the additional
investments in equity accounted entities of $5.5 million. The Company also benefited from higher proceeds from
the sale of equipment of $6.5 million compared to the same period in 2019. This was offset by lower proceeds
from the maturity of short-term investments of $1.7 million in 2019.
Financing Activities
During 2020, the Company used $43.3 million of cash from financing activities compared to $68.1 million
generated in 2019. The year-over-year change is primarily driven by the previously described $131.8 million of
repayment of non-recourse project financing during the fourth quarter of 2020, proceeds of $39.9 million from the
issuance of common shares related to the acquisition of Stuart Olson, and higher proceeds of $63.7 million of
loans and borrowings. This was partially offset by repayment of loans and borrowings and right-of-use liabilities
that were $56.0 million higher than the same period in 2019.
CONTRACTUAL OBLIGATIONS
At December 31, 2020, the Company has future contractual obligations of $653.5 million. Obligations for accounts
payable, right-of-use liabilities and loans and borrowings, including principal and estimated interest, over the next
five years and thereafter are:
(in thousands of Canadian dollars)
Accounts payable
Dividends payable
ROU liabilities
Committed revolving credit facility
Committed non-revolving term loan
Equipment financing
Note payable
$
$
Carrying
amount
Contractual
cash flows
Not later
than 1 year
2 - 3
years
4 - 5
years
490,470
1,724
78,075
25,000
35,000
12,315
598
643,182
490,470
1,724
87,881
25,000
35,000
12,807
598
653,480
479,189
1,724
20,646
-
1,750
5,973
598
509,880
11,281
-
32,762
25,000
8,750
6,066
-
83,859
-
-
18,860
-
9,800
768
-
29,428
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2020 Management’s Discussion and Analysis
Later
than 5
years
-
-
15,613
-
14,700
-
-
30,313
61
FINANCIAL INSTRUMENTS
Financial instruments consist of recorded amounts of derivative contracts, accounts receivable and other like
amounts that will result in future cash receipts, as well as accounts payable, dividends payable, loans and
borrowings, and any other amounts that will result in future cash outlays. The fair value of the Company’s loans
and borrowings approximate their carrying values on a discounted cash flow basis as the majority of these
obligations bear interest at market rates. The fair values of the remaining financial instruments approximate their
carrying value due to their relatively short periods to maturity.
The Company uses certain derivative financial instruments which are measured at fair value through profit and
loss (“FVTPL”). These include interest rate swaps to manage its interest rate risk on non-recourse project financing
and Total Return Swap (“TRS”) derivative contracts for the purpose of managing its exposure to changes in the
fair value of its share-based compensation programs due to changes in the Company’s share price. The Company
does not employ hedge accounting for any of its derivative contracts currently in place. The Company does not
hold or use any derivative instruments for trading or speculative purposes. The Board of Directors has overall
responsibility for the establishment and oversight of the Company’s risk management framework and reviews
corporate policies on an ongoing basis. The financial instruments that Bird uses expose the Company to credit,
liquidity, market and currency risks. Refer to Note 31 of the December 31, 2020 consolidated financial statements
for further details.
Credit Risk
The Company is primarily exposed to credit risk through accounts receivable. Before entering into any construction
contract and during the course of the construction project, the Company goes to considerable lengths to satisfy
itself that the customer has adequate resources to fulfil its contractual payment obligations as construction work
is completed. If a customer was unable or unwilling to pay the amount owing, the Company will generally have a
right to register a lien against the project that will normally provide some security that the amount owed would be
realized. The Company reviews impairment of its accounts receivable at each reporting period and reviews the
provision for doubtful accounts for expected future credit losses. The Company takes into consideration the
customer’s payment history, creditworthiness, and the current economic environment in which the customer
operates, to assess impairment. In determining the quality of accounts receivable, the Company considers any
change in the credit quality of customers from the date credit was initially granted up to the end of the reporting
period. As at December 31, 2020, the Company had $57.3 million of accounts receivable (December 31, 2019 –
$45.6 million) which were greater than 90 days past due, with $1.5 million provided for as at December 31, 2020
(December 31, 2019 – $1.5 million). The provision for doubtful accounts has been included in general and
administrative expense in the statement of income and is net of any recoveries that were provided for in a prior
period. Management is not concerned about the credit quality and collectability of these accounts, as the
Company’s customers are predominantly large in scale and of high creditworthiness, and the concentration of
credit risk is limited due to the Company’s sizeable and unrelated customer base.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulties in meeting its financial obligations as they
become due. The Company manages this risk through management of its capital structure, monitoring and
reviewing actual and forecasted cash flows and the effect on bank covenants, and maintaining unused credit
facilities where possible to ensure there are available cash resources to meet the Company’s liquidity needs. In
managing liquidity risk, the Company has access to committed short and long-term debt facilities as well as equity
markets, the availability of which is dependent on market conditions.
Market Risk
Market risk is the risk that changes in market prices, such as interest rates, equity prices and corporate bond
yields, will affect the Company’s income or the value of its holdings in liquid securities. The Company is exposed
to interest rate risk to the extent that its credit facilities and TRS derivatives are based on variable rates of interest.
The Company has certain share-based compensation plans, whereby the values are based on the common share
62 | 2020 Management Discussion and Analysis
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2020 Management’s Discussion and Analysis
price of the Company. The Company has fixed a portion of the settlement costs of these plans by entering into
various TRS derivative contracts.
Currency Risk
Currency risk is the risk that fluctuations in currency exchange rates will affect the Company’s net income. The
Company uses foreign currency to settle payments to vendors and subcontractors in the foreign currency. The
Company’s exposure to currency risk is not significant.
DIVIDENDS
The Company declared monthly eligible dividends on common shares payable on or about the 20th of the month
following the month in which the dividend was declared. The following table outlines Bird’s dividend history:
Dividend Period
January 1 to March 31
April 1 to June 30
July 1 to September 30
October 1 to December 31
2020
$0.0975
$0.0975
$0.0975
$0.0975
2019
$0.0975
$0.0975
$0.0975
$0.0975
As of March 9, 2021, the Board of Directors has declared eligible dividends with a record date subsequent to
December 31, 2020 for the following months:
Eligible dividends declared
January dividend
February dividend
March dividend
April dividend
Record date
January 29, 2021
February 26, 2021
March 31, 2021
April 30, 2021
Payment date
February 19, 2021
March 19, 2021
April 20, 2021
May 20,2021
Dividend per share
$0.0325
$0.0325
$0.0325
$0.0325
OUTSTANDING COMMON SHARE DATA AND STOCK EXCHANGE LISTING
The Company is authorized to issue an unlimited number of common shares. The Company had a total of
53,038,929 common shares outstanding at December 31, 2020 (December 31, 2019 - 42,516,853).
At December 31, 2020 there are nil stock options outstanding (December 31, 2019 – 100,000). With the approval
of the Equity Incentive Plan (EIP) in May 2017, the Board of Directors resolved to suspend the stock option plan.
The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) under the trading symbol BDT.
OFF BALANCE SHEET ARRANGEMENTS
The Company has surety lien bonds issued on behalf of the Company valued at $93.4 million at December 31,
2020 (December 31, 2019 - $56.6 million).
The Company has recognized assets and liabilities for all leases with a term of more than twelve months, excluding
low-value assets, in accordance with IFRS 16 Leases.
Further details of commitments and contingencies are included in Note 33 of the December 31, 2020 consolidated
financial statements.
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63
RELATED PARTY TRANSACTIONS
The Company’s related parties, as defined by IFRS, are its joint arrangements and key management personnel.
A description of any material transactions with these related parties is included in Note 34 of the December 31,
2020 consolidated financial statements.
SUMMARY OF QUARTERLY RESULTS
The Company experiences more seasonality in its business in the first quarter and early second quarter as a
result of the more annualized nature of its mining work program and the timing of new project starts in its industrial
work program. Contracts typically extend over several quarters and often over several years.
For purposes of quarterly financial reporting, the Company must estimate the cost required to complete each
contract to assess the overall profitability of the contract and the amount of gross profit to recognize for the quarter.
Such estimating includes contingencies to allow for certain known and unknown risks. The magnitude of the
contingencies will depend on the nature and complexity of the work to be performed. As the contract progresses
and remaining costs to be incurred and risk exposures become more certain, contingencies will typically decline
or have been utilized, although certain risks will remain until the contract has been completed, and even beyond.
In some cases, variations in earnings may occur where costs incurred to date may be recoverable from insurance
policies or claims to customers at a future date but cannot be recorded in the current quarter. In the case of
insurance claims, financial recovery is not recorded until certainty of the recovery is attained. In the case of claims
against customers that are considered constrained variable consideration, revenue is not recorded until it is highly
probable that there will not be a significant reversal of cumulative revenue to date. As a result, earnings may
fluctuate significantly from quarter-to-quarter, depending on whether large and/or complex contracts are
completed or nearing completion during the quarter, or have been completed in a prior quarter, and may fluctuate
based on timing of resolution of claims.
There are also several other factors that can affect the Company’s revenues and profit from quarter-to-quarter.
These include the timing of contract awards, the value of subcontractor billings and project scheduling.
Management does not believe that any individual factor is responsible for changes in revenue from quarter-to-
quarter, except for seasonality in the first quarter of each year and the impact of the COVID-19 pandemic during
2020.
(in thousands of Canadian dollars, except per share amounts)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2019
2020
Revenue
Net income (loss)
Earnings (loss) per share
Adjusted Earnings(1)
Adjusted Earnings Per Share(1)
$
261,777
$
315,428
$
378,591
$
420,612
$
321,646
$
282,766
$
345,060
$
554,960
(6,466)
(0.15)
(6,466)
(0.15)
1,001
0.02
1,001
0.02
6,782
0.16
6,782
0.16
8,167
0.19
8,167
0.19
1,123
0.03
1,123
0.03
5,624
0.13
6,566
0.15
8,822
0.20
20,534
0.39
12,364
21,526
0.29
0.41
Adjusted EBITDA(1)
(3,132)
5,447
14,021
16,012
7,562
12,328
22,036
40,011
(1) Adjusted Earnings, Adjusted Earnings Per Share and Adjusted EBITDA are non-GAAP measures and do not have standardized meanings
under IFRS. See "Terminology and Non-GAAP Measures."
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ACCOUNTING POLICIES
The Company’s significant accounting policies are outlined in the notes to the audited Consolidated Financial
Statements for the year ended December 31, 2020.
New Accounting Standards, Amendments and Interpretations Adopted
Amendments to IFRS 3 – Definition of a Business
On October 22, 2018, the IASB issued amendments to IFRS 3 Business Combinations that seek to clarify whether
a transaction results in an asset or a business acquisition. The amendments apply to businesses acquired in
annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The definition of
a business is narrower which could result in fewer business combinations being recognized. The Company
adopted the amendments to IFRS 3 on a prospective basis on January 1, 2020. The adoption of the amendments
to IFRS 3 did not have an impact on the financial statements.
Future Accounting Changes
There are new accounting standards, amendments to accounting standards and interpretations that are effective
for annual periods beginning on or after January 1, 2021 and have not been applied in preparing the financial
statements for the year ended December 31, 2020. These standards and interpretations are not expected to have
a material impact on the Company’s financial statements. The following standard is applicable to the Company:
Amendments to IFRS 16 Leases
On May 28, 2020, the IASB issued COVID-19-Related Rent Concessions (Amendment to IFRS 16). The
amendments are effective for annual periods beginning on or after June 1, 2020. Early adoption is permitted.
The amendments exempt lessees from having to consider individual lease contracts to determine whether rent
concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and allows
lessees to account for such rent concessions as if they were not lease modifications. It applies to COVID-19-
related rent concessions that reduce lease payments due on or before June 30, 2021. The Company will adopt
the amendments to IFRS 16 on a prospective basis and the amendments are not expected to have a material
impact on the financial statements.
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CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses,
assets, liabilities and the disclosure of contingent assets and liabilities at the reporting date.
Uncertainty about these assumptions and estimates could result in a material adjustment to the carrying amount
of an asset or liability and/or the reported amount of revenue and expense in future periods. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in
the period in which the estimates are revised and in any future periods affected.
Impact of the COVID-19 pandemic
On March 11, 2020 the WHO declared COVID-19 a global pandemic. Since the declaration, the Canadian
construction industry has faced uncertainty as each provincial government has responded by implementing social
and work restrictions to address the public health threat. COVID-19, along with the variants of the virus that have
emerged, continue to have a significant negative impact on the global and Canadian economy and preventative
safety measures remain in place and continue to vary from province to province as governments respond to
fluctuations in case numbers.
Due to the impact of the COVID-19 pandemic on both current and future market conditions and the economic
environment, there is significant uncertainty and complexity in respect of certain judgements, estimates and
assumptions used in the preparation of these financial statements. These include the amount of CEWS the
Company has accrued or may qualify for in the future, project timing and progress, future contract awards, and
collectability of accounts receivable and contract assets. The Company’s operations could be impacted from
disruptions to projects, the supply chain and shortages of labour. In addition, several projects that were expected
to be awarded and secured have been delayed, suspended, or cancelled, and this could continue as a result of
the pandemic. The future effectiveness of the Company’s business continuity plan and various safety and austerity
measures implemented is also subject to uncertainty.
Assets and liabilities acquired in a business combination
The Company assesses whether an acquisition transaction should be accounted for as an asset acquisition or a
business combination under IFRS 3 Business Combinations. The purchase price related to a business
combination is allocated to the underlying acquired assets and liabilities based on their estimated fair value at the
time of acquisition. The determination of fair value requires the Company to make assumptions, estimates and
judgements regarding cash flow projections, valuation techniques, economic risk, weighted average cost of capital
and future events. The measurement of the purchase consideration and allocation process is therefore inherently
subjective and impacts the amounts assigned to individually identifiable assets and liabilities. As a result, the
purchase price allocation impacts the Company’s reported assets and liabilities (including the amounts allocated
to intangible assets and goodwill), and future earnings due to the associated depreciation and amortization
expense along with the required impairment testing.
Revenue and gross profit recognition
Construction revenue, construction costs, contract liabilities, and contract assets are based on estimates and
judgements used in determining contract revenue and including the calculation of estimated costs to complete in
order to calculate the stage of completion for a particular construction project, depending upon the nature of the
construction contract, as more fully described in the revenue recognition policy. To determine the estimated costs
to complete construction contracts, assumptions and estimates are required to evaluate matters related to
schedule, material and labour costs, labour productivity, changes in contract scope and subcontractor costs. Due
to the nature of construction activities, estimates can change significantly from one accounting period to the next.
The value of many construction contracts increases over the duration of the construction period. Change orders
may be issued by customers to modify the original contract scope of work or conditions. In addition, there may be
disputes or claims regarding additional amounts owing as a result of changes in contract scope, delays, additional
work or changed conditions. Construction work related to a change order or claim may proceed, and costs may
be incurred, in advance of final determination of the value of the change order. Many change orders and claims
may not be settled until the construction project is complete or subsequent to completion and the nature of the
relationship with the other party to the claim and the history of success of these claims may impact the associated
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revenue or cost recovery. Claims against customers for variable consideration due to factors described above are
assessed under the Company’s revenue policy, which requires significant judgement. The amount of variable
consideration that is constrained is the difference between the total claim value and the best estimate of recovery.
This constrained value is reviewed each reporting period.
Provisions
Legal and warranty and other provisions involve the use of estimates. Estimates and assumptions are required to
determine when to record and how to measure a provision in the financial statements. The outcomes may differ
significantly from the estimates used in preparing the financial statements resulting in adjustments to previously
reported financial results.
Impairment of non-financial assets
Management evaluates property and equipment, intangible assets, and right-of-use (“ROU”) assets at the end of
each reporting period to determine if there are events or circumstances which indicate that the carrying value may
not be recoverable. Goodwill is tested for impairment annually, or more frequently if events or changes in
circumstances indicate that the asset may be impaired. Impairment testing is performed by comparing the
recoverable amount of the cash-generating unit ("CGU"), or groups of CGUs to its carrying amount. There is a
significant amount of uncertainty with respect to the estimate of the recoverable amount given the necessity of
making economic projections which employ the following key assumptions: future cash flows, growth
opportunities, including economic risk assumptions, and estimates of achieving key operating metrics and drivers;
and the discount rate. Refer to Note 17 of the December 31, 2020 consolidated financial statements for further
details regarding the assumptions and estimates regarding the Company’s goodwill impairment assessment.
Measurement of pension obligations
The Company’s obligations and expenses related to defined benefit (“DB”) pension plans, including
supplementary executive retirement plans, are determined using actuarial valuations and are dependent on many
significant assumptions. The DB obligations and benefit cost levels will change as a result of future changes in
actuarial methods and assumptions, membership data, plan provisions, legislative rules, and future experience
gains or losses, which have not been anticipated at this time. Actual experience that differs from assumptions will
result in gains or losses that will be disclosed in future accounting valuations. Refer to Note 22 of the December
31, 2020 consolidated financial statements for further details regarding the Company’s DB plans as well as a
sensitivity analysis of a change in the discount rate assumption used in the calculations and the resultant impact
to financial results.
Share-based payments
Compensation expense accrued for performance share units (“PSU”) is dependent on an adjustment to the final
number of PSU awards that will eventually vest based on a performance multiplier that is estimated by
management and approved by the Board of Directors. Large fluctuations in compensation expense may occur
due to changes in the underlying share price or revised management estimates of relevant performance factors.
Leases
The Company applies judgement in reviewing each of its contractual arrangements to determine whether the
arrangement contains a lease within the scope of IFRS 16 Leases. Leases that are recognized are subject to
further management judgement and estimation in various areas specific to the arrangement. In determining the
lease term to be recognized, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not to exercise a termination option.
Lease liabilities have been estimated using a discount rate equal to the Company-specific incremental borrowing
rate. This rate represents the rate that the Company would incur to obtain the funds necessary to purchase an
asset of a similar value, with similar payment terms and security in a similar economic environment.
Income taxes
Tax regulations and legislation are subject to change and there are differing interpretations requiring management
judgement. Deferred tax assets are recognized when it is considered probable that deductible temporary
differences will be recovered in future periods, which requires management judgement. Deferred tax liabilities are
recognized when it is considered probable that temporary differences will be payable to tax authorities in future
periods, which requires management judgement. Income tax filings are subject to audits and re-assessments and
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changes in facts, circumstances and interpretations of tax laws may result in a material increase or decrease in
the Company’s provision for income taxes.
CONTROLS AND PROCEDURES
Controls & Procedures
As permitted by NI 52-109, Certification of Disclosures in Issuers’ Annual and Interim Filings, Bird may limit its
design of Disclosure Controls and Procedures or Internal Controls over Financial Reporting to exclude controls,
policies and procedures of a business that was acquired not more than 365 days before the end of the financial
period.
The controls and procedures set out below are limited to Bird companies and do not include controls, policies and
procedures for Stuart Olson, acquired on September 25, 2020.
Disclosure Controls and Procedures
Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is
gathered and reported to senior management, including the President and Chief Executive Officer (CEO) and
Chief Financial Officer (CFO), on a timely basis so that appropriate decisions can be made regarding information
to be included in public disclosures required under provincial and territorial securities legislation.
In accordance with NI 52-109, an evaluation of the design and operational effectiveness of the disclosure controls
and procedures was carried out under the supervision of management, including the CEO and CFOas of
December 31, 2020. Based on their evaluations, the CEO and CFO have concluded that the disclosure controls
and procedures were designed and operating effectively as at December 31, 2020.
Internal Control over Financial Reporting
Internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.
Absolute assurance cannot be provided that all misstatements have been detected because of inherent limitations
in all control systems. The Company’s management is responsible for designing and maintaining adequate
internal control over financial reporting for the Company.
Under the supervision and with the participation of management, including the CEO and CFO, the design and
operational effectiveness of our internal controls over financial reporting were evaluated using the control
framework issued by the Committee of Sponsoring Organizations of the Treadway Commission on Internal Control
– Integrated Framework (2013). The evaluation included documentation review, enquiries, testing and other
procedures considered by management to be appropriate. In accordance with NI 52-109, the CEO and CFO have
concluded that the internal controls over financial reporting were designed and operating effectively, as at
December 31, 2020.
Material Changes to Internal Controls over Financial Reporting
There have been no material changes in the Company’s internal control over financial reporting during the period
beginning on January 1, 2020 and ending on December 31, 2020 that materially affected, or are reasonably likely
to materially affect, the Company’s internal control over financial reporting.
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RISKS RELATING TO THE BUSINESS
The following discussion addresses the more significant risk factors relating to the business. For a detailed
discussion of all risk factors relating to the business, refer to the Company’s most recently filed Annual Information
Form dated March 9, 2021 which is available through the System for Electronic Document Analysis and Retrieval
(“SEDAR”) at www.sedar.com. Readers are also encouraged to review the “Forward-Looking Information” section
of this MD&A.
Ability to Hire and Retain Qualified and Capable Personnel
The success of Bird is highly influenced by the efforts of key management, technical, project and business
development personnel. The loss of the services of any of Bird’s key management personnel could negatively
impact Bird. The future success of Bird also depends heavily on its ability to attract, retain and develop high-
performing personnel in all areas of its operations.
Most firms throughout the construction industry face this challenge and, accordingly, competition for professional
staff is intense. If Bird ceases to be seen by current and prospective employees as an attractive place to work, it
could experience difficulty in hiring and retaining an adequate level of qualified staff. This could have an adverse
effect on current operations of Bird and would limit its prospects and impair its future success.
Maintaining Safe Work Sites
Despite the Company’s efforts to minimize the risk of safety incidents, they can occur from time to time and, if and
when they do, the impact on Bird can be significant. Bird’s success as a general contractor is highly dependent
on its ability to keep its construction work sites and offices safe and any failure to do so can have serious impact
on the personal safety of its employees and others. In addition, it can expose Bird to contract termination, fines,
regulatory sanctions or even criminal prosecution.
Bird’s safety record and worksite safety practices also have a direct bearing on its ability to secure work,
particularly in the industrial sector. Certain clients will not engage particular contractors to perform work if their
safety practices do not conform to predetermined standards or if the general contractor has an unacceptably high
incidence of safety infractions or incidents.
Bird adheres to very rigorous safety policies and procedures which are continually reinforced on its work sites and
offices. Management is not aware of any pending health and safety legislation or prior incidents which would be
likely to have a material impact on any of Bird’s operations, capital expenditure requirements, or competitive
position. Nevertheless, there can be no guarantee with respect to the impact of future legislation or incidents.
Global Pandemics
On January 30, 2020, the World Health Organization declared the COVID-19 outbreak to be a public health
emergency of international concern, and on March 11, 2020, COVID-19 was declared to be a pandemic. Since
that time the sweeping impacts of the virus and the various countermeasures instituted by governments across
the globe and at all levels have had significant and unparalleled effects on the global economy and society in
general. The operations of the Company are highly sensitive to such sweeping impacts and risks. A global
pandemic can result in widespread illnesses and even deaths, can impact the health of the Company’s workforce
and can prevent the Company from being able to carry on its operations whether due to direct impacts or indirect
impacts through its customers and suppliers. These impacts can severely limit the Company’s ability to operate
and to generate revenues or cash flows, while its ability to eliminate or reduce costs during such times would be
limited. In such circumstances, the Company could suffer significant financial losses and a deterioration in its
creditworthiness and therefore have a material adverse effect on the Company.
Economy and Cyclicality
Activity within the construction industry is generally tied to the state of the economy. Thus, in periods of strong
economic growth, capital spending will generally increase and there will be more and better quality opportunities
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available within the construction industry. Investment decisions by our clients are based on long-term views of the
economic viability of their current and future projects, sometimes based upon the clients’ view of the long-term
prices of commodities which are influenced by many factors. If our clients’ outlook for their current and future
projects is not favourable, this may lead them to delay, reduce or cancel capital project spending and may make
them more sensitive to construction costs. A prolonged downturn in the economy could impact Bird’s ability to
generate new business or maintain a Backlog of contracts with acceptable margins to sustain Bird through such
downturns.
As noted above, Bird attempts to insulate itself in various ways from the effects of negative economic conditions
through diversification of the sources of the Company’s earnings; however, there is no assurance that these
methods will be effective in insulating Bird from a downturn in the economy. Furthermore, as a result of increased
demand in certain regions or industry sectors, the Company has, in the past, earned favourable margins on
particular projects. There is also no assurance that favourable margins that may have been generated on historical
contracts can be generated in the future.
The Company has a 50% interest in Stack, which is based in China. There is uncertainty around how the recent
geopolitical tensions between China and Canada may affect the Company’s investment.
In addition, there is uncertainty around how the public health crisis created by COVID-19 pandemic may affect the
Company, including our contractual commitments, supply chain and labour force. Generally, to the extent that a
severe public health emergency negatively affects the economy due to availability of labour or impacts to the
supply chain, Bird’s business may also be affected.
Design Risks
While many contracts entered into by Bird are for construction or construction services only, certain contracts are
undertaken on a design-build basis, under which Bird is responsible for both design and construction of the project,
which adds design risk assumed by Bird. While Bird subcontracts all of the design scope in such design-build
contracts to reputable designers, there is generally not a full transfer of design-related risks. These risks include
design development and potential resulting scope creep, delays in the design process that may adversely affect
the overall project schedule, and design errors and omissions.
To manage these risks, Bird manages and oversees the design process, coordinates the design deliverables with
the construction process and, for significant design-build projects, purchases errors and omissions insurance.
Ability to Secure Work
Bird generally secures new contracts either through a competitive bid process or through negotiation. Awards in
both the public and private sectors are generally based upon price, but are also influenced and sometimes formally
based on other factors, such as the level of services offered, safety record, construction schedule, design (if
applicable), project personnel, the consortium, joint venture and subcontractor team, prior experience with the
prospective client and/or the type of project, and financial strength including the ability to provide bonds and other
contract security.
In order to be afforded an opportunity to bid for large projects and in the PPP market, a strong balance sheet
measured in terms of an adequate level of working capital and equity is typically required. Bird operates in markets
that are highly competitive and there is constant pressure to find and maintain a competitive advantage. In the
current economic climate, competition is intense. This presents significant challenges for the Company. If those
competitive challenges are not met, Bird’s client base could be eroded or it could experience an overall reduction
in profits.
A decline in demand for Bird’s services from the private sector could have an adverse impact on the Company if
that business could not be replaced within the public sector. A portion of Bird’s construction activity relates to
government-funded institutional projects. Any reduction in demand for Bird’s services by the public sector, whether
as a result of funding constraints, changing political priorities or delays in projects caused by elections or other
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factors, could have an adverse impact on the Company if that business could not be replaced within the private
sector.
Government-funded projects also typically have long and sometimes unpredictable lead times associated with
government review and approval. The time delays associated with this process can constitute a risk to general
contractors pursuing these projects. Certain government-funded projects, particularly PPP and alternative finance
projects, may also require significant bid costs which can only be recovered if Bird is the successful bidder. A
number of governments in Canada have procured a significant value of projects under a PPP and/or alternative
finance contract format, which is an attractive market for the Company. A reduction in the popularity of this
procurement method or difficulties in obtaining financing for these projects would have negative consequences
for Bird.
Performance of Subcontractors
Successful completion of a contract by Bird depends, in large part, on the satisfactory performance of its
subcontractors who are engaged to complete the various components of the work. Subcontractor defaults tend to
increase during depressed market conditions. If subcontractors fail to satisfactorily perform their portion of the
work, Bird may be required to engage alternate subcontractors to complete the work and may incur additional
costs. This can result in reduced profits or, in some cases, significant losses on the contract and possible damage
to Bird’s reputation.
In addition, the ability of Bird to bid for and successfully complete projects is, in part, dependent on the availability
of qualified subcontractors and trades people. Depending on the value of a subcontractor’s work, Bird may require
some form of performance security and achieves this through the use of surety bonds, subcontractor default
insurance or other forms of security from the subcontractor to mitigate Bird’s exposure to the risks associated with
the subcontractor’s performance and completion. A significant shortage of qualified subcontractors and trades
people or the bankruptcy of a subcontractor could have a material impact on Bird’s financial condition and results
of operations.
Accuracy of Cost to Complete Estimates
As Bird performs each construction contract, costs are continuously monitored against the original cost estimates.
On at least a quarterly basis, a detailed estimate of the costs to complete a contract is compiled by Bird. These
estimates are an integral part of Bird’s process for determining construction revenues and profits and depend on
cost data collected over the duration of the project as well as the judgments of Bird’s field and office personnel.
To the extent that the costs to complete estimates are based on inaccurate or incomplete information, or on faulty
judgments, the accuracy of reported construction revenues and profits can be compromised. Bird has adopted
many internal control policies and procedures aimed at mitigating exposure to this risk.
Competitive Factors
Bird competes with many international, national, regional and local construction firms. Competitors often enjoy
advantages in a particular market that Bird does not have, or they may have more experience or a better
relationship with a particular client. On any given contract bid or negotiation, Bird will attempt to assess the level
of competitive pressure it may face, and it will attempt to neutralize or overcome any perceived advantage that its
competitors have. Depending on this assessment, Bird will decide whether or not to pursue a contract. In addition,
this assessment bears directly on decisions that Bird will make, including what level of profit can be incorporated
into its contract price and what personnel should be assigned to the contract. The accuracy of this assessment
and the ability of Bird to respond to competitive factors affect Bird’s success in securing new contracts and its
profitability on contracts that it does secure.
Estimating Costs and Schedules/Assessing Contract Risks
The price for most contracts performed by Bird is based, in part, on cost and schedule estimates that are subject
to a number of assumptions. Erroneous assumptions can result in an incorrect assessment of risks associated
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with a contract or estimates of project costs and schedules that are in error, potentially resulting in lower than
anticipated profit or significant loss. All significant cost and schedule estimates are reviewed by senior
management prior to tender submission in an attempt to mitigate these risks.
Adjustments and Cancellations of Backlog
The performance of the Company in a period depends significantly on the contribution from projects in its Backlog.
There can be no assurance that the revenues or profits included in Backlog at any point in time will be realized.
Contract suspensions, reductions and cancellations, which are beyond the control of Bird, do occur from time-to-
time in the construction industry. Customers may have the right to suspend, cancel or reduce the scope of their
contracts with Bird and, though Bird generally has a contractual right to be reimbursed for certain costs, it typically
has no contractual rights to the total revenue or profit that was expected to be derived from such projects. These
reductions could have a material adverse impact on future revenues and profitability.
PPP Project Risk
Bird is selective in the PPP market. Bird’s role in these projects is typically to provide design-build services to a
concession that is formed to provide design, construction, financing, and management and/or operations to a
public authority. Typical in the design-build contract format are performance guarantees and design-build risks.
Moreover, the performance guarantees on PPP projects often include responsibility for the energy performance
of the facility and achievement of environmental standards. If Bird fails to meet the required standards, it may be
liable for substantial penalties and damages.
The PPP design-build contracts entered into by Bird also typically require Bird to pay significant liquidated
damages and/or other penalties and damages if the projects are not completed on schedule.
The PPP procurement model also typically results in the transfer of certain risks to the contractor beyond what
would be the case for a similar facility under a conventionally non-PPP procurement model. These include
responsibility and potential liability for matters such as changes in law and certain force majeure and delay events.
In addition, if Bird’s contract was terminated for cause, the Company would be exposed to substantial liability for
breakage costs to the concession and its lenders.
The security required to support the obligations that the Company undertakes on these projects typically includes
substantial letters of credit which may be drawn upon in the event the Company fails to meet its obligations.
Work Stoppages, Strikes and Lockouts
Bird is signatory to a number of collective bargaining agreements. Future negotiation of these collective bargaining
agreements could increase Bird’s operating expenses and reduce profits as a result of increased wages and
benefits. Failure to come to an agreement in these collective bargaining negotiations or those of its subcontractors
and suppliers or government agencies could result in strikes, work stoppages, lockouts or other work action, and
increased costs resulting from delays on construction projects. A strike or other work stoppage is disruptive to
Bird’s operations and could adversely affect portions of its business, financial position, results of operations and
cash flows.
Information Systems and Cyber-security Risk
The Company relies on information technology to manage, process, store and transmit electronic information.
Complete, accurate, available and secure information is vital to the Company’s operations and any compromise
in such information could result in improper decision making, inaccurate or delayed operational and/or financial
reporting, delayed resolution to problems, breach of privacy and/or unintended disclosure of confidential
information. Failure in the completeness, accuracy, availability or security of the Company’s information systems,
the risk of system interruption or failure during system upgrades or implementation, or a breach of data security
could adversely affect the Company’s operations and financial results.
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In addition, cyber-security incidents relating to the Company’s information technology systems may disrupt
operations and impact operating results. The COVID-19 pandemic in 2020 has caused an elevated risk and threat
actors may attempt to exploit businesses while there is general instability during the COVID-19 pandemic.
Cyber-security incidents may occur from a range of techniques, from phishing or hacking attacks to sophisticated
malware, hardware or network attacks. While the Company has implemented systems, policies, procedures,
practices, hardware and backups designed to prevent and limit the effect of cyber-security attacks, there can be
no assurance that these measures will be sufficient to prevent, detect or address the attacks in a timely matter or
at all. A successful cyber-attack may allow unauthorized interception, destruction, use or dissemination of the
Company’s confidential information, which could have a material adverse effect on the business. In the fall of
2019, Bird Construction responded to a cyber incident that resulted in the encryption of Company files. Bird
continued to function with no business impact, as management worked with leading cyber security experts to
restore access to the affected files. At the time, the Company disclosed the incident on our website and notified
appropriate authorities.
Integration Risk
With the completion of the Stuart Olson transaction, integration will be key to gaining the cost, revenue and
strategic synergies anticipated. Failure to adequately address differences in technology, culture, customers,
projects, or other issues could negatively affect financial performance.
Climate Change Risk
Risks in Transitioning to a Lower Carbon Economy
The transition to a lower-carbon economy has the potential to be disruptive to traditional business models and
investment strategies. The Company’s private and/or public-sector clients may shift their infrastructure priorities
due to changes in project funding or public perception of sustainable projects. This risk can be mitigated to an
extent by identifying changing market demands to offset lower demand in some sectors with opportunities in
others, forming strategic partnerships and pursuing sustainable innovations.
Government action to address climate change may involve economic instruments such as carbon and energy
consumption taxes as well as restrictions on economic sectors, such as cap-and-trade and more stringent
regulation of greenhouse gas emissions that could also impact the Company’s current or potential clients
operating in industries that extract, distribute and transport fossil fuels.
Financial Risks
As new climate change measures are introduced or strengthened, the Company’s cost of business, including
insurance premiums, may increase, and the Company may incur expenses related to complying with
environmental regulations and policies in countries or regions where it does business. Such costs may include
purchasing new equipment to reduce emissions to comply with new regulatory standards or to mitigate the
financial impact of different forms of carbon pricing. In addition, the Company may incur costs related to engaging
with governments, regulators and industry organizations for new mandates on infrastructure projects, proactively
and regularly monitoring regulatory trends and implementing adequate compliance processes. Although the
Company intends to actively monitor all applicable climate change laws and regulations and to fully comply with
them, and to be proactive in promoting and supporting climate change mitigation actions, inadvertent compliance
shortfalls could result in penalties and reputational damage that may impair the Company's future prospects.
Market and Reputational Risk
Investors and other stakeholders in Canada and worldwide are becoming more attuned to climate change action
and sustainability matters, including the efforts made by issuers to reduce their carbon footprint. The Company’s
reputation may be harmed if it is not perceived by its stakeholders to be sincere in its sustainability commitment
and its long-term results may be impacted as a result. In addition, The Company’s approach to climate change
issues may increasingly influence stakeholders’ views of the company in relation to its peers and their investment
decisions.
Weather Related Risks
73 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
73
Weather Related Risks
Many of the Company’s construction activities are performed outdoors. The probability and unpredictability of
extreme weather events and other associated incidents may continue to increase due to climate change and we
may continue to see longer-term shifts in climate patterns. Although weather risk may be mitigated through
contractual terms or insurance, construction projects are susceptible to delays as a result of extended periods of
poor weather, which can have an adverse effect on profitability arising from either late completion penalties
imposed by the contract or from the incremental costs arising from loss of productivity, compressed schedules,
or from overtime work utilized to offset the time lost due to adverse weather and additional costs to modify means
and methods to perform work in unanticipated weather.
74
2020 Management’s Discussion and Analysis
TERMINOLOGY & NON-GAAP MEASURES
Terminology
Throughout this report, management uses the following terms that may not be comparable with similar terms
presented by other companies and require definition:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
"Backlog" (also referred to in the construction industry as "work on hand") is the total value of all contracts
awarded to the Company, less the total value of work completed on these contracts as of the date of the most
recently completed quarter. This includes all contracts that have been awarded to the Company whether the
work has commenced or will commence in the normal course. It includes all the Company’s remaining
performance obligations in its contracts with its clients, including work orders issued from MSAs related to
MRO services. It does not include amounts for variable consideration that are constrained, agency relationship
construction management projects, and estimated future work orders to be performed as part of master
services agreements. The Company’s Backlog equates to the Company’s remaining performance obligations
as at December 31, 2020 and December 31, 2019; refer to Note 10 of the December 31, 2020 consolidated
financial statements.
“Pending Backlog" is the total potential revenue of awarded but not contracted projects including where the
Company has been named preferred proponent, where a contract has not been executed and where the letter
of intent or agreement received is non-binding. It may also include amounts for agency relationship
construction management projects, pre-construction activities and estimated future work orders to be
performed as part of MSAs. Management does not provide any assurance that a contract will be finalized, or
revenue recognized in the future. Management uses Pending Backlog to assess the future operating
performance of its business. Management believes that investors and analysts use this measure, as it may
provide predictive value to assess the ongoing operations of the business and a more consistent comparison
between financial reporting periods. Pending Backlog cannot be reconciled to any IFRS measure.
"Gross Profit Percentage" is the percentage derived by dividing gross profit by construction revenue. Gross
profit is calculated by subtracting construction costs from construction revenue. Management uses Gross
Profit Percentage as a measure of the profitability of the core operations of its operating groups and
consolidated business.
"Lost Time Incident Frequency" or “LTI Frequency” is the number of lost time incidents recorded per
200,000 person-hours of work by Bird employees.
75 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
75
Non-GAAP Measures
Throughout this MD&A certain measures are used that, while common in the construction industry, do not have a
standardized meaning prescribed by IFRS and are considered non-GAAP measures. The non-GAAP measures
used are: Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA and Adjusted EBITDA Margin.
Therefore, these measures may not be comparable with similar measures presented by other companies.
(cid:120)
“Adjusted Earnings” is defined as IFRS net income excluding asset impairments, acquisition, integration
and restructuring (as defined in accordance with IFRS) costs and the income tax effect of these costs.
Management uses Adjusted Earnings to assess the operating performance of the business. These additional
adjustments are made to exclude items of an unusual nature that are not reflective of ongoing operations.
Management believes that investors and analysts use these measures, as they may provide predictive value
to assess the ongoing operations of the business and are a more consistent comparison between financial
reporting periods.
ANNUAL ADJUSTED EARNINGS
(in thousands of Canadian dollars, except per share amounts)
Net income
Add: Acquisition and integration costs
Add: Restructuring costs (1)
Income tax effect of the above costs
Adjusted Earnings
Adjusted Earnings Per Share (2)
2020
2019
2018
$
36,103
$
9,484
$
(1,013)
7,236
-
(1,760)
41,579
0.92
$
$
$
$
-
-
-
-
-
-
9,484
0.22
$
$
(1,013)
(0.02)
Notes
(1) Restructuring costs as defined in accordance with IFRS.
(2) Calculated as Adjusted Earnings divided by basic weighted average shares.
QUARTERLY ADJUSTED EARNINGS
(in thousands of Canadian dollars, except per share amounts)
Net income
Add: Acquisition and integration costs
Add: Restructuring costs (1)
Income tax effect of the above costs
Adjusted Earnings
Adjusted Earnings Per Share (2)
For the three months ended December 31,
2020
2019
20,534
$
8,167
2,125
-
(1,133)
21,526
$
0.41
$
-
-
-
8,167
0.19
$
$
$
Notes
(1) Restructuring costs as defined in accordance with IFRS.
(2) Calculated as Adjusted Earnings divided by basic weighted average shares.
76 | 2020 Management Discussion and Analysis
76
2020 Management’s Discussion and Analysis
(cid:120)
(cid:120)
“Adjusted Earnings Per Share” is calculated by dividing Adjusted Earnings by the basic weighted average
number of shares.
“Adjusted EBITDA” represents earnings before taxes, interest, depreciation and amortization, finance and
other costs, finance income, asset impairment charges, gain or loss on sale of property and equipment,
restructuring and severance costs outside of normal course, and acquisition, integration and restructuring (as
defined in accordance with IFRS) costs. Adjusted EBITDA is a common financial measure used by investors,
analysts and lenders as an indicator of cash operating performance, as well as a valuation metric and as a
measure of a company’s ability to incur and service debt. The calculation of adjusted EBITDA excludes items
that do not reflect cash flows of the business or continuing operations, including impairment charges,
restructuring charges, and acquisition and integration charges, as Management believes that these items
should not be reflected in a metric used for valuation and debt servicing evaluation purposes.
ANNUAL ADJUSTED EBITDA
(in thousands of Canadian dollars, except percentage amounts)
Income from operations
Add: Depreciation and amortization
Add: Loss (gain) on sale of property and equipment
Add: Restructuring costs (1)
Add: Restructuring and severance costs (2)
Add: Acquisition and Integration costs
Adjusted EBITDA
Adjusted EBITDA Margin (3)
2020
2019
2018
$
$
55,315
21,702
(2,359)
$
14,921
15,814
(1,346)
551
11,236
(873)
-
43
7,236
-
2,903
-
-
-
-
$
81,937
$
32,292
$
10,914
5.5%
2.4%
0.8%
Notes
(1) Restructuring costs as defined in accordance with IFRS.
(2) Restructuring and severance costs that did not meet the criteria to be classified under restructuring costs as defined in accordance with IFRS.
(3) Calculated as Adjusted EBITDA divided by Revenue.
QUARTERLY ADJUSTED EBITDA
(in thousands of Canadian dollars, except percentage amounts)
Income from operations
Add: Depreciation and amortization
Add: Loss (gain) on sale of property and equipment
Add: Restructuring costs (1)
Add: Restructuring and severance costs (2)
Add: Acquisition and Integration costs
Adjusted EBITDA
Adjusted EBITDA Margin (3)
Notes
(1) Restructuring costs as defined in accordance with IFRS.
For the three months ended December 31,
2020
2019
$
$
$
28,523
9,959
(639)
-
43
2,125
10,821
4,468
(255)
-
978
-
40,011
$
16,012
7.2%
3.8%
(2) Restructuring and severance costs that did not meet the criteria to be classified under restructuring costs as defined in accordance with IFRS.
(3) Calculated as Adjusted EBITDA divided by Revenue.
(cid:120)
“Adjusted EBITDA Margin” is the percentage derived by dividing Adjusted EBITDA by construction revenue.
77 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
77
FORWARD-LOOKING INFORMATION
This Annual Report and MD&A contains forward-looking statements and information ("forward-looking
statements") within the meaning of applicable Canadian securities laws. The forward-looking statements are
based on the expectations, estimates and projections of management of Bird as of March 9, 2021 unless otherwise
stated. The use of any of the words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends",
"continue", "may", "will", "should" and similar expressions are intended to identify forward- looking statements.
More particularly and without limitation, this news release contains forward-looking statements concerning: the
anticipated benefits of the acquisition to Bird, its shareholders and all other stakeholders, including anticipated
synergies; and the plans and strategic priorities of the combined company.
In respect of the forward-looking statements concerning the anticipated benefits of the acquisition, Bird has
provided such in reliance on certain assumptions that it believes are reasonable at this time, including in respect
of the combined company's services and anticipated synergies, capital efficiencies and cost- savings.
Since forward-looking statements address future events and conditions, by their very nature they involve inherent
risks and uncertainties. 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 Bird and
Stuart Olson operate in general such as:
(cid:120) Ability to access sufficient capital from
internal and external sources
(cid:120) Ability to secure work
(cid:120) Accuracy of cost to complete estimates
(cid:120) Adjustments and cancellations of Backlog
(cid:120) Changes in legislation, including but not
limited to tax laws and environmental
regulations
(cid:120) Client concentration
(cid:120) Climate change
(cid:120) Collection of recognized revenue
(cid:120) Commodity price, interest rate and exchange
rate fluctuations
(cid:120) Competition, ethics, and reputational risks
(cid:120) Completion and performance guarantees
(cid:120) Compliance with environmental laws risks
(cid:120) Corporate guarantees and letters of credit
(cid:120) Cyber-security risks
(cid:120) Default under the Company’s credit facilities
could result in the suspension of dividends
(cid:120) Delays or changes in plans with respect to
growth projects or capital expenditures, costs
and expenses
(cid:120) Dependence on the public sector
(cid:120) Design and design/build risks
(cid:120) Economy and cyclicality
(cid:120) Estimating costs and schedules/assessing
contract risks
(cid:120) Failure to realize the anticipated benefits of
business acquisitions including the Stuart
Olson transaction
(cid:120) Global pandemics
(cid:120) Health, safety and environmental risks
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120) Labour matters
(cid:120) Litigation risk
(cid:120) Loss of key management; ability to hire and
retain qualified and capable personnel
Industry and inherent project delivery risks
Insurance risk
Internal and disclosure controls
Joint venture risk
(cid:120) Maintaining safe worksites
(cid:120) Operational risks
(cid:120) Payment of dividends
(cid:120) Performance bonds and contract security
(cid:120) Potential for non-payment and credit risk and
ongoing financing availability
(cid:120) Public Private Partnerships equity
investments
(cid:120) Public Private Partnerships project risk
(cid:120) Quality assurance and quality control
(cid:120) Regional concentration
(cid:120) Regulations
(cid:120) Repayment of credit facility
(cid:120) Subcontractor performance
(cid:120) Unanticipated shutdowns, work stoppages,
(cid:120) Failure of clients to obtain required permits
and licenses
strikes and lockouts
(cid:120) Volatility of market trading
78 | 2020 Management Discussion and Analysis
78
2020 Management’s Discussion and Analysis
The forward-looking statements in this Annual Report and MD&A should not be interpreted as providing a full
assessment or reflection of the unprecedented impacts of the recent 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; Stuart Olson's Annual Information Form for the year ended December 31, 2019 and
most recently filed Management’s Discussion and Analysis and Bird's Annual Information Form for the year ended
December 31, 2020, each of which may be accessed on Stuart Olson's and Bird's SEDAR profile, respectively,
at www.sedar.com.
The forward-looking statements contained in this Annual Report and MD&A are made as of the date hereof and
the parties undertake no obligation to update publicly or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, unless so required by applicable securities laws.
79 | 2020 Management Discussion and Analysis
2020 Management’s Discussion and Analysis
79
2020
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
Management’s Responsibility for Financial Reporting
The management of Bird Construction Inc. (the “Company”) is responsible for the preparation and integrity of the
accompanying consolidated financial statements. These consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (“IFRS”) and includes certain estimates that reflect
management’s best judgement.
Management maintains appropriate systems of internal control. Policies and procedures are designed to provide
reasonable assurance that transactions are properly authorized, assets are safeguarded and financial records
are properly maintained to provide reliable information for the preparation of financial statements.
The Board of Directors has reviewed and approved the consolidated financial statements. The Board fulfills its
responsibility in this regard through its Audit Committee. The Audit Committee is composed entirely of independent
Directors and the members are financially literate. The Audit Committee meets regularly with Management and the
external auditors to discuss reporting and control issues and ensures each party is properly discharging its
responsibilities.
The consolidated financial statements have been audited by KPMG LLP, Chartered Professional Accountants, in
accordance with Canadian generally accepted auditing standards on behalf of the shareholders.
Terrance L. McKibbon
President & Chief Executive Officer
Wayne R. Gingrich
Chief Financial Officer
March 9, 2021
Annual 2020 Consolidated Financial Statements
83
KPMG LLP
1900 - 360 Main Street
Winnipeg MB
R3C 3Z3
Telephone (204) 957-1770
Fax (204) 957-0808
www.kpmg.ca
INDEPENDENT AUDITORS’ REPORT
To the Shareholders of Bird Construction Inc.
Opinion
We have audited the consolidated financial statements of Bird Construction Inc. (the Entity), which comprise the consolidated
statements of financial position as at December 31, 2020 and December 31, 2019, the consolidated statements of income,
comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements,
including a summary of significant accounting policies (hereinafter referred to as the “financial statements”).
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position
of the Entity as at December 31, 2020 and December 31, 2019, and its consolidated financial performance and its consolidated
cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS).
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those
standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our
auditors’ report.
We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our auditors’ report.
Estimate of costs to complete and variable consideration to be received for fixed price construction
contracts
Description of the matter
The Entity recognizes revenue from contracts with customers in accordance with the pattern of satisfying the Entity’s
performance obligations under a contract. In fiscal 2020, Entity recognized $1,504,432 thousand in construction revenue.
Revenue from fixed price contracts, which is a significant portion of construction revenue, is recognized using the input method
with reference to costs incurred. To determine the estimated costs to complete for fixed price construction contracts, assumptions
and estimates are required to evaluate matters related to schedule, material and labour costs, labour productivity, and changes
to contract cope and subcontractor costs. Change orders may be issued by customers to modify the original contract scope of
work or conditions, and there may be disputes or claims regarding additional amounts owing.
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English
company limited by guarantee. All rights reserved.
84
Annual 2020 Consolidated Financial Statements
Claims against customers for variable consideration due to delays, scope changes, or other matters are assessed under the
Entity’s revenue recognition policy, which requires significant judgment.
Why the matter is a key audit matter
We identified the evaluation of the estimate of costs to complete and variable consideration to be received for fixed price
construction contracts as a key audit matter. The evaluation of the estimated costs to complete and variable consideration to be
received for fixed price construction contracts involved significant auditor judgment to evaluate the results of audit procedures,
given the significant judgment applied by management in the determination of these estimates.
How the matter was addressed in our audit
The primary procedures we performed to address this key audit matter included the following:
We evaluated the design and implementation, and tested the operating effectiveness, of certain internal controls within the
Entity’s revenue recognition process. This included a control related to the review of estimated costs to complete for construction
contracts at year-end.
We evaluated the Entity’s ability to estimate costs to complete and variable consideration by comparing to the final costs to
complete and variable consideration received for contracts completed in fiscal 2020 and estimated in the prior period.
For a selection of fixed price construction contracts at December 31, 2020, we evaluated the appropriateness of the Entity’s
determination of costs to complete and variable consideration to be received by performing the following:
(cid:120)
(cid:120)
(cid:120)
Agreed estimated costs to complete to appropriate supporting documentation and key contractual terms back to signed
contracts
Performed procedures to compare the estimated total costs to actual costs incurred to date
Inquired with relevant operational Entity personnel to gain an understanding of the status of project activities and factors
impacting the estimate of costs to complete and variable consideration to be received, and corroborated by agreeing to
appropriate supporting documentation
(cid:120) Determined the reasonableness of any variable consideration recognized as revenue on unbilled change orders or claims
by inspecting change orders, directives, or other correspondence with customers, where applicable; considering the
historical outcomes of previously settled claims, and corresponding with internal and external legal counsel, where
applicable.
Evaluation of intangible assets resulting from the acquisition of Stuart Olson Inc.
Description of the matter
We draw attention to notes 3, 4 and note 7 to the financial statements. On September 25, 2020, the Entity acquired all of the
issued and outstanding shares of Stuart Olson Inc. for total consideration of $95,661 thousand In connection with the acquisition,
the Entity recorded intangible assets with an acquisition date fair value of $25,430 thousand. Significant assumptions used in
determining the acquisition date fair value for the intangible assets included cash-flow projections and the weighted average
cost of capital.
Why the matter is a key audit matter
We identified the evaluation of the acquisition date fair value of intangible assets acquired in the Stuart Olson Inc. acquisition as
a key audit matter. This matter represented an area of significant risk. Significant auditor judgment and specialized skills and
knowledge were required in evaluating the audit evidence. The determination of fair value of intangible assets acquired was
sensitive to possible changes to the significant assumptions.
Annual 2020 Consolidated Financial Statements
85
How the matter was addressed in our audit
The primary procedures we performed to address this key audit matter included the following:
We compared the Entity’s cash-flow projections to Stuart Olson Inc.’s historical actual results. We took into account changes in
conditions to assess the adjustments or lack of adjustments made in arriving at the cash flow projections.
We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the weighted average
cost of capital used by the Entity to discount the cash-flow projections, by comparing it against a weighted average cost of capital
range that was independently developed using publicly available market data for comparable entities.
Other Information
Management is responsible for the other information. Other information comprises:
(cid:120) Management’s Discussion and Analysis filed with the relevant Canadian Securities Commissions.
(cid:120)
Information, other than the financial statements and the auditors’ report thereon, included in a document likely to be entitled
“2020 Annual Report”.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit and remain alert for indications that the other information appears to be materially misstated.
We obtained the Management’s Discussion and Analysis filed with the relevant Canadian Securities Commissions as at the date
of this auditors’ report. If, based on the work we have performed on this other information, we conclude that there is a material
misstatement of this other information, we are required to report that fact in the auditors’ report.
We have nothing to report in this regard.
The information, other than the financial statements and the auditors’ report thereon, included in a document likely to be entitled
“2020 Annual Report” is expected to be made available to us after the date of this auditors’ report. If, based on the work we will
perform on this other information, we conclude that there is a material misstatement of this other information, we are required to
report that fact to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and
for such internal control as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going
concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity‘s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian
generally accepted auditing standards will always detect a material misstatement when it exists.
86
Annual 2020 Consolidated Financial Statements
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and
maintain professional skepticism throughout the audit.
We also:
(cid:120)
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(cid:120) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.
(cid:120)
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
(cid:120) Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.
However, future events or conditions may cause the Entity to cease to continue as a going concern.
(cid:120)
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(cid:120) Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
(cid:120)
Provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
(cid:120) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group Entity to express an opinion on the financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
Chartered Professional Accountants
The engagement partner on the audit resulting in this auditors’ report is Austin Abas.
Winnipeg, Canada
March 9, 2021
Annual 2020 Consolidated Financial Statements
87
Bird Construction Inc.
Consolidated Statement of Financial Position
As at December 31, 2020 and 2019
(in thousands of Canadian dollars)
ASSETS
Current assets
Cash and cash equivalents
Accounts receivable
Contract assets
Contract assets - alternative finance projects
Inventory and prepaid expenses
Income taxes recoverable
Other assets
Investments held for sale
Total current assets
Non-current assets
Other assets
Investments in equity accounted entities
Property and equipment
Right-of-use assets
Deferred income tax asset
Intangible assets
Goodwill
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Accounts payable
Contract liabilities
Dividends payable to shareholders
Income taxes payable
Non-recourse project financing
Current portion of loans and borrowings
Current portion of right-of-use liabilities
Provisions
Other liabilities
Total current liabilities
Non-current liabilities
Loans and borrowings
Right-of-use liabilities
Deferred income tax liability
Other liabilities
Pension liabilities
Total non-current liabilities
TOTAL LIABILITIES
SHAREHOLDERS' EQUITY
Shareholders' capital
Contributed surplus
Retained earnings
Accumulated other comprehensive income
Total shareholders' equity
$
$
$
Note
8
9
10
10,11
12
13
12
13
14
15
19
16
17
10
11
18
18
20
21
18
18
19
21
22
24
2020
2019
$
212,068
529,825
60,031
113
8,038
7,484
2,577
-
820,136
13,171
14,710
59,435
61,511
32,253
27,526
33,054
241,660
180,334
413,649
31,018
75,180
3,144
13,083
5,972
6,978
729,358
6,608
10,185
46,016
34,460
11,287
2,484
16,389
127,429
1,061,796
$
856,787
$
490,470
120,054
1,724
20,187
-
8,010
18,748
23,419
2,010
684,622
64,903
59,327
22,956
13,778
3,600
164,564
849,186
108,064
1,956
102,520
70
212,610
419,923
112,126
1,382
6,174
85,374
5,883
8,025
7,763
2,205
648,855
34,738
23,075
13,868
8,531
-
80,212
729,067
42,527
1,956
83,197
40
127,720
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,061,796
$
856,787
The accompanying notes are an integral part of these consolidated financial statements.
Approved on behalf of the Board of Directors
Paul A. Charette
Chairman of the Board
Karyn A. Brooks
Audit Committee Chair
88
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Consolidated Statement of Income
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Construction revenue
Costs of construction
Gross profit
Income from equity accounted investments
General and administrative expenses
Income from operations
Finance income
Finance and other costs
Income before income taxes
Income tax expense
Net income for the period
Basic and diluted earnings per share
Note
2020
2019
10
$
$
1,504,432
1,378,132
126,300
1,376,408
1,305,458
70,950
13
26
27
19
25
$
$
7,792
(78,777)
55,315
1,511
(7,506)
49,320
13,217
36,103
0.80
$
$
2,693
(58,722)
14,921
2,596
(5,558)
11,959
2,475
9,484
0.22
The accompanying notes are an integral part of these consolidated financial statements.
Annual 2020 Consolidated Financial Statements
89
Bird Construction Inc.
Consolidated Statement of Comprehensive Income
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars)
Note
2020
Net income for the period
Other comprehensive income (loss) for the period:
Defined benefit plan actuarial gain
Exchange differences on translating equity accounted investments
Foreign currency translation
Deferred tax recovery on other comprehensive income (loss)
Items that may be reclassified to net income in subsequent periods
Total comprehensive income for the period
22
13
$
$
The accompanying notes are an integral part of these consolidated financial statements.
36,103
$
1,540
47
(17)
(371)
1,199
2019
9,484
-
-
-
37
37
37,302
$
9,521
90
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Consolidated Statement of Changes in Equity
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Note
Shareholders'
capital
Contributed
surplus
Retained
earnings
Accumulated
other
comprehensive
income
Total
equity
Balance at December 31, 2019
$
42,527
$
1,956
$
83,197
$
40
$
127,720
Net income for the period
Other comprehensive income for the period
Total comprehensive income for the period
Contributions by and dividends to owners
Common shares issued on acquisition of Stuart Olson
Dividends declared to shareholders
13, 22
7
Balance at December 31, 2020
Dividends declared per share
Balance at December 31, 2018
Impact on adoption of IFRS 16
Balance at January 1, 2019
Net income for the period
Other comprehensive income for the period
Total comprehensive income for the period
Contributions by and dividends to owners
Dividends declared to shareholders
$
$
-
-
-
65,537
-
65,537
-
-
-
-
-
-
36,103
1,169
37,272
-
(17,949)
(17,949)
30
30
-
-
-
-
36,103
1,199
37,302
65,537
(17,949)
47,588
108,064
$
1,956
$
102,520
$
70
$
212,610
$
42,527
-
42,527
$
1,956
-
1,956
-
-
-
-
-
-
-
-
-
-
$
0.39
$
91,743
(1,448)
90,295
9,484
-
9,484
(16,582)
(16,582)
$
3
3
37
37
-
-
-
-
136,229
(1,448)
134,781
9,484
37
9,521
(16,582)
(16,582)
Balance at December 31, 2019
$
42,527
$
1,956
$
83,197
$
40
$
127,720
Dividends declared per share
$
0.39
The accompanying notes are an integral part of these consolidated financial statements.
Annual 2020 Consolidated Financial Statements
91
Bird Construction Inc.
Consolidated Statement of Cash Flows
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars)
Cash flows from (used in) operating activities
Net income for the period
Items not involving cash:
Amortization
Depreciation
Gain on sale of property and equipment
Income from equity accounted investments
Finance income
Finance and other costs
Deferred compensation plan expense and other
Defined benefit pension plan
Contributions to defined benefit pension plan
Unrealized (gain) loss on investments and other
Income tax expense (recovery)
Cash flows from operations before changes in non-cash working capital
Changes in non-cash working capital relating to operating activities
Interest received
Interest paid
Income taxes paid
Net cash from (used in) operating activities
Cash flows from (used in) investing activities
Investments in equity accounted entities
Capital distributions from equity accounted entities
Proceeds on sale of Investment in equity accounted entities
Additions to property and equipment
Proceeds on sale of property and equipment
Additions to intangible assets
Acquisition of Stuart Olson Inc., net of cash acquired
Proceeds from maturity of short-term investments
Other long-term assets
Net cash used in investing activities
Cash flows from (used in) financing activities:
Proceeds from issue of common shares, net of issue costs
Dividends paid on shares
Proceeds from non-recourse project financing
Repayment of non-recourse project financing
Proceeds from loans and borrowings
Repayment of loans and borrowings
Repayment of right-of-use liabilities
Net cash from (used in) financing activities
Net increase (decrease) in cash and cash equivalents during the period
Effects of foreign exchange on cash balances
Cash and cash equivalents, beginning of the period
Note
2020
2019
$
36,103
$
9,484
16
14,15
13
26
27
22
22
19
30
13
13
13
14
14
16
7
7
11
11
18
18
18
2,370
19,332
(2,359)
(7,792)
(1,511)
7,506
4,699
261
(144)
14
13,217
71,696
69,093
2,037
(7,815)
(6,064)
128,947
(5,088)
5,523
11,034
(12,245)
9,211
(1,982)
(59,960)
-
(392)
(53,899)
39,876
(17,607)
46,782
(131,849)
88,283
(56,658)
(12,110)
(43,283)
31,765
(31)
180,334
873
14,941
(1,346)
(2,693)
(2,596)
5,558
3,156
-
-
349
2,475
30,201
(66,269)
2,521
(3,930)
(599)
(38,076)
-
1,846
-
(13,649)
2,661
(782)
-
1,705
-
(8,219)
-
(16,582)
72,832
-
24,536
(5,113)
(7,615)
68,058
21,763
(349)
158,920
Cash and cash equivalents, end of the period
8
$
212,068
$
180,334
The accompanying notes are an integral part of these consolidated financial statements.
92
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Table of Contents – Notes to the Consolidated Financial Statements
1. Structure of the company ................................................................................................................................ 94
2. Basis of preparation ......................................................................................................................................... 94
3. Use of estimates and judgements ................................................................................................................... 94
4. Significant accounting policies ......................................................................................................................... 97
5. New accounting standards, amendments and interpretations adopted ........................................................ 108
6. Future accounting changes ........................................................................................................................... 108
7. Business combination .................................................................................................................................... 109
8. Cash and cash equivalents ........................................................................................................................... 111
9. Accounts receivable....................................................................................................................................... 112
10. Revenue, contract assets and contract liabilities .......................................................................................... 112
11. Alternative finance projects ........................................................................................................................... 114
12. Other assets .................................................................................................................................................. 115
13. Projects and entities accounted for using the equity method ........................................................................ 116
14. Property and equipment ................................................................................................................................ 118
15. Right-of-use assets ........................................................................................................................................ 118
16.
Intangible assets ............................................................................................................................................ 119
17. Goodwill ......................................................................................................................................................... 120
18. Loans and borrowings and right-of-use liabilities .......................................................................................... 121
19.
Income taxes ................................................................................................................................................. 123
20. Provisions ...................................................................................................................................................... 125
21. Other liabilities ............................................................................................................................................... 125
22. Pension obligations........................................................................................................................................ 125
23. Share-based compensation plans ................................................................................................................. 127
24. Shareholders’ capital ..................................................................................................................................... 129
25. Earnings per share ........................................................................................................................................ 129
26. Finance income ............................................................................................................................................. 129
27. Finance and other costs ................................................................................................................................ 129
28. Personnel costs ............................................................................................................................................. 130
29. Government assistance ................................................................................................................................. 130
30. Other cash flow information ........................................................................................................................... 130
31. Financial instruments ..................................................................................................................................... 131
32. Capital management...................................................................................................................................... 135
33. Commitments and contingencies .................................................................................................................. 135
34. Related party transactions ............................................................................................................................. 136
35. Subsequent event .......................................................................................................................................... 137
Annual 2020 Consolidated Financial Statements
93
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
1. Structure of the company
Bird Construction Inc. (the “Company”) is a corporation incorporated in the province of Ontario, Canada. The
address of the Company’s registered office is 5700 Explorer Drive, Suite 400, Mississauga, Ontario, Canada.
The Company’s common shares are traded on the Toronto Stock Exchange under the symbol BDT.
The Company operates from coast-to-coast and services all of Canada’s major geographic markets. The
Company provides a comprehensive range of construction services from new construction for industrial,
commercial, and institutional markets; to industrial maintenance, repair and operations (“MRO”) services, heavy
civil construction and contract surface mining; as well as vertical infrastructure including, electrical, mechanical,
and specialty trades. The Company uses fixed priced, design-build, unit price, cost reimbursable, guaranteed
upset price, construction management and integrated project delivery (“IPD”) contract delivery methods.
2. Basis of preparation
Statement of compliance
These consolidated financial statements (the “financial statements”) have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board
(“IASB”). These financial statements were authorized for issue on March 9, 2021 by the Company’s Board of
Directors.
Functional and presentation currency
These financial statements are presented in Canadian dollars, which is the Company’s functional currency.
Unless otherwise indicated, all financial information presented has been rounded to the nearest thousand.
Basis of measurement
These financial statements have been prepared on a going concern and historical cost basis, except for certain
financial assets, derivative financial instruments and liabilities for cash settled share-based payment
arrangements which are measured at fair value, as detailed in the accounting policies disclosed in Note 4.
Segmented results
Segment results are reviewed by the Company’s chief operating decision maker to assess performance and
allocate resources within the Company. Management applies judgement in the aggregation of the Company’s
operating segments and has determined that the Company operates in one reportable segment being the
general contracting sector of the construction industry. The Company’s operating segments have similar
economic characteristics in that each of the Company’s operating business units provides comparable
construction services, use similar contracting methods, have similar long term economic prospects, share similar
cost structures and operate in similar regulatory environments.
Comparative figures
Certain comparative figures for the prior period have been reclassified to conform to the presentation adopted in
the current period. The Company restated certain movements within its reconciliation of contract assets in the
comparative period (note 10). The Company restated certain comparative balances between categories in the
composition of its deferred income tax assets and liabilities to align with categorization in the current year to
better reflect the nature of these balances considering the acquisition of Stuart Olson (note 19). There is no
resultant impact on the net income, comprehensive income, cash flow, or financial position of the Company from
this change.
3. Use of estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses,
assets, liabilities and the disclosure of contingent assets and liabilities at the reporting date.
94
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Uncertainty about these assumptions and estimates could result in a material adjustment to the carrying amount
of an asset or liability and/or the reported amount of revenue and expense in future periods. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in
the period in which the estimates are revised and in any future periods affected.
Impact of the COVID-19 pandemic
On March 11, 2020 the World Health Organization (“WHO”) declared COVID-19 a global pandemic (“COVID-19
pandemic” or “the pandemic”). Since the declaration, the Canadian construction industry has faced uncertainty
as each provincial government has responded by implementing social and work restrictions to address the public
health threat. COVID-19, along with the variants of the virus that have emerged, continue to have a significant
negative impact on the global and Canadian economy and preventative safety measures remain in place and
continue to vary from province to province as governments respond to fluctuations in case numbers.
Due to the impact of the COVID-19 pandemic on both current and future market conditions and the economic
environment, there is significant uncertainty and complexity in respect of certain judgements, estimates and
assumptions used in the preparation of these financial statements. These include the amount of Canada
Emergency Wage Subsidy (“CEWS”) the Company has accrued or may qualify for in the future, project timing
and progress, future contract awards, and collectability of accounts receivable and contract assets. The
Company’s operations could be impacted from disruptions to projects, the supply chain and shortages of labour.
In addition, several projects that were expected to be awarded and secured have been delayed, suspended or
cancelled, and this could continue as a result of the pandemic. The future effectiveness of the Company’s
business continuity plan and various safety and austerity measures implemented is also subject to uncertainty.
Assets and liabilities acquired in a business combination
The Company assesses whether an acquisition transaction should be accounted for as an asset acquisition or
a business combination under IFRS 3 Business Combinations. The purchase price related to a business
combination is allocated to the underlying acquired assets and liabilities based on their estimated fair value at
the time of acquisition. The determination of fair value requires the Company to make assumptions, estimates
and judgements regarding cash flow projections, valuation techniques, economic risk, weighted average cost of
capital and future events. The measurement of the purchase consideration and allocation process is therefore
inherently subjective and impacts the amounts assigned to individually identifiable assets and liabilities. As a
result, the purchase price allocation impacts the Company’s reported assets and liabilities (including the amounts
allocated to intangible assets and goodwill), and future earnings due to the associated depreciation and
amortization expense along with the required impairment testing.
Revenue and gross profit recognition
Construction revenue, construction costs, contract liabilities, and contract assets are based on estimates and
judgements used in determining contract revenue and including the calculation of estimated costs to complete
in order to calculate the stage of completion for a particular construction project, depending upon the nature of
the construction contract, as more fully described in the revenue recognition policy. To determine the estimated
costs to complete construction contracts, assumptions and estimates are required to evaluate matters related to
schedule, material and labour costs, labour productivity, changes in contract scope and subcontractor costs.
Due to the nature of construction activities, estimates can change significantly from one accounting period to the
next.
The value of many construction contracts increases over the duration of the construction period. Change orders
may be issued by customers to modify the original contract scope of work or conditions. In addition, there may
be disputes or claims regarding additional amounts owing as a result of changes in contract scope, delays,
additional work or changed conditions. Construction work related to a change order or claim may proceed, and
costs may be incurred, in advance of final determination of the value of the change order. Many change orders
and claims may not be settled until the construction project is complete or subsequent to completion and the
nature of the relationship with the other party to the claim and the history of success of these claims may impact
the associated revenue or cost recovery. Claims against customers for variable consideration due to factors
described above are assessed under the Company’s revenue policy, which requires significant judgement. The
Annual 2020 Consolidated Financial Statements
95
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
amount of variable consideration that is constrained is the difference between the total claim value and the best
estimate of recovery. This constrained value is reviewed each reporting period.
Provisions
Legal and warranty and other provisions involve the use of estimates. Estimates and assumptions are required
to determine when to record and how to measure a provision in the financial statements. The outcomes may
differ significantly from the estimates used in preparing the financial statements resulting in adjustments to
previously reported financial results.
Impairment of non-financial assets
Management evaluates property and equipment, intangible assets and right-of-use (“ROU”) assets at the end of
each reporting period to determine if there are events or circumstances which indicate that the carrying value
may not be recoverable. Goodwill is tested for impairment annually, or more frequently if events or changes in
circumstances indicate that the asset may be impaired. Impairment testing is performed by comparing the
recoverable amount of the cash-generating unit ("CGU"), or groups of CGUs to its carrying amount. There is a
significant amount of uncertainty with respect to the estimate of the recoverable amount given the necessity of
making economic projections which employ the following key assumptions: future cash flows, growth
opportunities, including economic risk assumptions, and estimates of achieving key operating metrics and
drivers, and the discount rate. Refer to note 17 for further details regarding the assumptions and estimates
regarding the Company’s goodwill impairment assessment.
Measurement of pension obligations
The Company’s obligations and expenses related to defined benefit (“DB”) pension plans, including
supplementary executive retirement plans, are determined using actuarial valuations and are dependent on
many significant assumptions. The DB obligations and benefit cost levels will change as a result of future
changes in actuarial methods and assumptions, membership data, plan provisions, legislative rules, and future
experience gains or losses, which have not been anticipated at this time. Actual experience that differs from
assumptions will result in gains or losses that will be disclosed in future accounting valuations. Refer to note 22
for further details regarding the Company’s DB plans as well as a sensitivity analysis of a change in the discount
rate assumption used in the calculations and the resultant impact to financial results.
Share-based payments
Compensation expense accrued for performance share units (“PSU”) is dependent on an adjustment to the final
number of PSU awards that will eventually vest based on a performance multiplier that is estimated by
management and approved by the Board of Directors. Large fluctuations in compensation expense may occur
due to changes in the underlying share price or revised management estimates of relevant performance factors.
Leases
The Company applies judgement in reviewing each of its contractual arrangements to determine whether the
arrangement contains a lease within the scope of IFRS 16 Leases. Leases that are recognized are subject to
further management judgement and estimation in various areas specific to the arrangement. In determining the
lease term to be recognized, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not to exercise a termination option.
Lease liabilities have been estimated using a discount rate equal to the Company-specific incremental borrowing
rate. This rate represents the rate that the Company would incur to obtain the funds necessary to purchase an
asset of a similar value, with similar payment terms and security in a similar economic environment.
Income taxes
Tax regulations and legislation are subject to change and there are differing interpretations requiring
management judgement. Deferred tax assets are recognized when it is considered probable that deductible
temporary differences will be recovered in future periods, which requires management judgement. Deferred tax
liabilities are recognized when it is considered probable that temporary differences will be payable to tax
authorities in future periods, which requires management judgement. Income tax filings are subject to audits and
96
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
re-assessments and changes in facts, circumstances and interpretations of tax laws may result in a material
increase or decrease in the Company’s provision for income taxes.
4. Significant accounting policies
Consolidation
The financial statements include the accounts of the Company, its subsidiaries and partnerships, as well as its
pro-rata share of assets, liabilities, revenues, expenses and cash flows from joint operations. Subsidiaries are
entities controlled by the Company. The financial statements of subsidiaries are included in the financial
statements from the date that control commences until the date that control ceases. All inter-company balances,
transactions, revenues and expenses have been eliminated on consolidation. The financial statements include
the accounts of the following significant subsidiaries:
Company
Fully consolidated subsidiaries
Bird Construction Inc.
Bird Construction Company Limited
Bird Construction Company (Limited Partnership)
Bird Management Ltd.
Bird Design-Build Limited
Bird Capital Limited
Bird Capital Limited Partnership
Bird Industrial Group Limited
Bird Design-Build Construction Inc.
Westrac Resources Ltd.
Westrac Resources Limited Partnership
Bird Construction Group (Limited Partnership)
Bird Construction Group Limited
Bird General Contractors Ltd.
Bird Civil et mines Ltee
Bird Heavy Civil Ltd.
Nason Contracting Group Ltd.
Bird Casey House Limited Partnership
Bird Capital MDC Project Co. Inc.
Bird Construction Industrial Services Ltd.
Bird Construction Group Ltd.
NCGL Industrial Ltd.
NCGL Construction Ltd.
BFL Fabricators Ltd.
Canadian Consulting Group Limited
Innovative Trenching Solutions Ltd.
Innovative Trenching Solutions Field Services Ltd.
Innovative Trenching USA Inc.
Bird Capital OMP Project Co. Inc.
Stuart Olson Buildings Ltd.*
Stuart Olson Industrial Inc.*
411007 Alberta Ltd.*
TCC Holdings Inc.*
The Churchill Corporation*
Stuart Olson Asset Corp.*
Proportionately consolidated joint arrangements
Bird Kiewit Joint Venture
Pomerleau/O’Connell JV
Bird – Maple Reinders JV
Maple Reinders – Bird JV
Bird – ATCO Joint Venture
Ownership / Voting Interest
2020
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
50%
50%
50%
60%
2019
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
n/a
100%
n/a
n/a
n/a
n/a
n/a
n/a
60%
50%
50%
50%
60%
Annual 2020 Consolidated Financial Statements
97
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
CBS Joint Venture
Chandos Bird Joint Venture
Acciona Stuart Olson Joint Venture*
Stuart Olson/Nunavut Ltd.*
Canem/Plan Group Joint Venture*
Stuart Olson Industrial Contractors/Andritz Hydro Canada Inc.*
FCG Construction/Stuart Olson, a Joint Venture*
* Acquired on September 25, 2020 (note 7)
42.5%
50%
50%
40%
50%
50%
50%
42.5%
50%
n/a
n/a
n/a
n/a
n/a
The Company has invested in a number of Public Private Partnership (“PPP”) concession ventures, usually
holding a minority interest position in the venture. The Company has also invested in the Stack Modular group
of companies. In these instances, the Company can either exercise significant influence or joint control over the
financial and operational policies of the venture (or investee). The Company uses the equity method of
accounting to account for these investments. The investment is recorded as the amount of the initial investment
adjusted for the pro-rata share of the investee’s earnings less any distributions received from the investment.
Company
Equity accounted investment in associates/joint ventures
Boreal Health Partnership*
Chinook Resources Management General Partnership
Harbour City Solutions General Partnership
Hartland Resource Management General Partnership
Joint Use Mutual Partnership #1*
Joint Use Mutual Partnership #2*
Plenary Infrastructure ERMF GP
Stack Modular Structures Ltd.
Stack Modular Structures Hong Kong Limited
Niagara Falls Entertainment Partners
Timmiak Construction Limited Partnership
* Disposed during the year ended December 31, 2020 (note 13)
Ownership / Voting Interest
2020
2019
n/a
50%
20%
20%
n/a
n/a
10%
50%
50%
20% / 16.2%
69.99% / 33.33%
25%
50%
20%
20%
20%
20%
10%
50%
50%
20% / 16.2%
69.99% / 33.33%
All of the above subsidiaries, joint arrangements, joint ventures and associates are incorporated or registered in
Canada except Stack Modular Structure Hong Kong Limited which is incorporated and registered in Hong Kong
and Innovative Trenching USA Inc which is incorporated and registered in Delaware.
Revenue recognition
Contract revenue is recognized in the consolidated statement of income (the “statement of income”) in
accordance with the pattern of satisfying the Company’s performance obligations under a contract. This
satisfaction occurs when control of a good or service transfers to the customer. In the majority of the Company’s
contracts, the customer controls the work in process as evidenced by the right to payment for work performed
to date plus a reasonable profit to deliver products or services that do not have an alternative use to the
Company, and the work is performed on the customer’s property. Based on the nature of these contractual
arrangements, control is transferred over time and revenue is recognized over time.
For each performance obligation satisfied over time, the Company recognizes revenue by measuring progress
toward complete satisfaction of that performance obligation. Using output or input methods based on the type of
contract, the Company recognizes revenue in a pattern that reflects the transfer of control of the promised goods
or services to the customer. Revenue from fixed price (including PPP, alternative finance, design-build, and
stipulated sum) and cost reimbursable (including cost plus and IPD) contracts is recognized using the input
method with reference to costs incurred. Revenue from unit price contracts in the heavy construction, civil
construction and contract surface mining construction sectors is recognized based on the amount of billable work
completed, established by surveys of work performed, an output method. For agency relationships, such as
98
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
construction management contracts, where the Company acts as an agent for its customers, fee revenue only
is recognized, generally in accordance with the contract terms. Some contracts, particularly master service
agreements and maintenance service contracts, do not specify the amount of fixed consideration at contract
inception, but will have a transaction price assigned to it once a work order is issued. For the purpose of revenue
recognition and disclosure, only the transaction price of secured work, as evidenced by work orders, would be
included in revenue. If the outcome of a construction contract cannot be estimated reliably for management to
estimate the ultimate profitability of the contract with a reasonable degree of certainty, no profit is recognized.
As the contract progresses further, the constrained margin and associated revenue are reassessed.
Revenue from contract modifications, commonly referred to as change orders and claims, is recognized to the
extent that the contract modifications have been approved by the customer and the amount can be measured
reliably. In cases where the contract modification is approved, but the price has not been finalized, the Company
accounts for the contract modification using variable consideration guidance described below. A claim against
or dispute with a customer is considered variable consideration as it is in addition to the agreed upon
performance obligations outlined in the original contract because of additional costs incurred due to delays and/or
scope changes, for example. The subsequent settlement of a claim or dispute through negotiation results in
uncertainty as to the likelihood and amount that will be ultimately collected.
The amount of variable consideration included in the transaction price may be constrained due to the uncertain
nature of the recovery of the associated revenue. The Company will make an estimate of the amount to be
constrained by using either the most likely amount or the expected value method, by contract, depending which
method is considered to best predict the amount of consideration to which the Company will be entitled. The
amount of variable consideration to be included in the transaction price is only that to which it is highly probable
that a significant reversal of cumulative revenue recognized to date will not occur. Management considers the
following factors in their assessment of the probability of reversal:
i. Susceptibility of consideration to factors outside the Company’s influence.
ii. Length of time, that is commercially unusual, before resolution of the uncertainty associated with the amount
of consideration is expected.
iii. The Company’s experience with similar types of contracts is limited or the experience is not relevant or has
iv.
limited predictive value.
If, historically the Company has a practice of offering a broad range of pricing concessions or changing the
payment terms and conditions of similar contracts in similar situations.
v. The contract has a larger number and broad range of possible consideration amounts.
Where the above factors indicate uncertainty associated with the outcome of the transaction price, the Company
reviews the historical performance under similar contracts in order to determine the appropriate proportion of the
variable consideration to be included in the transaction price.
For most arrangements, the customer contracts with the Company to provide a significant service of integrating
a complex set of tasks and components into a single project or capability (even if that single project results in
the delivery of multiple units). The Company therefore considers that the entire contract results in the delivery of
a single performance obligation. Less commonly, the Company may promise to provide distinct goods or services
within a contract, in which case the contract is separated into the associated performance obligations as
assessed from the customer’s perspective. If a contract contains multiple performance obligations, the Company
allocates the total transaction price to each performance obligation in an amount based on the estimated relative
standalone selling prices of the promised goods or services underlying each performance obligation. When the
Company is contracted to construct projects, the budgets and overall transaction prices are built up using the
Company’s best estimate of costs associated to complete the project using the appropriate overhead and
subcontractor rates for a given project and location. This approach to estimate the overall costs and associated
revenues is considered the most appropriate assessment of the standalone selling price for the associated
performance obligations.
Annual 2020 Consolidated Financial Statements
99
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Where costs are determined to be greater than total revenues, losses from any construction contracts are
recognized in full in the period the loss becomes known. Losses are recorded within provisions on the statement
of financial position.
Costs of construction
Construction costs are expensed as incurred unless they result in an asset related to future contract activity and
meet the criteria to be capitalized as contract assets. Construction costs include all expenses that relate directly
to execution of the specific contract, including site labour and site supervision, direct materials, subcontractor
costs, equipment rentals and depreciation, design and technical assistance, and warranty claims. Construction
costs also include overheads that can be attributed to the project in a systematic and consistent manner and
include general insurance and bonding costs, and staff costs relating to project management.
Contract assets and liabilities
Any excess of costs and estimated earnings over progress billings on construction contracts is carried as a
contract asset in the financial statements. Contract assets also arise when the Company capitalizes incremental
costs of obtaining contracts with customers and the costs incurred in fulfilling those contracts, such as
mobilization costs. Costs to fulfill a contract are required to be capitalized where they are determined to relate
directly to a contract or an anticipated contract that the entity can specifically identify, they generate or enhance
resources of the Company that will be used in satisfying performance obligations in the future, and they are
expected to be recovered under that specific contract.
In all cases, the specific contract asset is amortized with reference to the same pattern of recognition as the
revenue recognized on the associated project.
Any excess of progress billings over earned revenue on construction contracts is carried as a contract liability in
the financial statements.
Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each
reporting period. All contract assets and liabilities are classified as current in the financial statements as they are
expected to be settled within the Company’s normal operating cycle. The operating cycle of many of the
Company’s contracts exceed 12 months, depending on the type of project or the nature of the service being
provided.
Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values
of the assets transferred to the Company, liabilities assumed by the Company and the equity interests issued or
cash paid by the Company in exchange for control of the acquiree. Acquisition-related costs are expensed as
incurred, unless related to the issuance of debt or equity.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair
value, except that:
(cid:120) Deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are
recognized and measured in accordance with IAS 12 Income taxes, and IAS 19 Employee benefits,
respectively;
(cid:120) For any ROU (i.e. lease) assets and ROU liabilities identified in which the acquiree is the lessee, IFRS 3
Business combinations requires the lease liability to be measured at the present value of the remaining lease
payments as if the acquired lease were a new lease at the acquisition date. The ROU asset is measured at
an amount equal to the lease liability, adjusted to reflect the favourable or unfavourable terms of the lease
when compared with market terms.
The Company measures goodwill as the excess of the sum of the fair value of the consideration transferred, if
any, over the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities
assumed, all measured as of the acquisition date.
100
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Government assistance
Government grants are recognized when there is reasonable assurance that the Company will comply with the
conditions attached to them and the grant will be received. When the conditions of a grant relate to income or
expense, to the extent possible, it is recognized in the statement of income in the period in which eligible
expenses were incurred or when the services have been performed. There may be circumstances in which the
determination of applicability of the government grant may cross over reporting periods and cannot be recorded
in the period in which eligible expenses were incurred or when the services have been performed. For grants
related to expense, the Company deducts the grant in reporting the related expense.
Property and equipment
Property and equipment is measured at cost less accumulated depreciation and accumulated impairment losses,
if any. The cost of property and equipment includes the purchase price and the directly attributable costs required
to bring the asset to the condition necessary for the asset to be capable of operating in the manner intended by
management. The cost of replacing or repairing a component of an item of property and equipment is recognized
in the carrying amount of the item if it is probable that future economic benefits will occur and the cost can be
measured reliably. The costs of routine maintenance of property and equipment are recognized in the statement
of income as incurred.
Depreciation is calculated based on the cost of an asset (or deemed cost) less its residual value. Depreciation
commences when the asset is available for use and ceases on the earliest of when the asset is derecognized
or classified as held-for-sale. When parts of an item of property and equipment have different useful lives, they
are accounted for as separate components of property and equipment and depreciated accordingly. The carrying
amount of a replaced component is derecognized. The Company reviews the residual value, useful lives and
depreciation methods used on an annual basis and, where revisions are required, the Company applies such
changes in estimates on a prospective basis.
Depreciation of property and equipment over the estimated useful lives of the assets is as follows:
Diminishing balance method
Buildings
Equipment, trucks and automotive
Heavy equipment
Furniture, fixtures and office equipment
Straight line method
Leasehold improvements
4%
20% - 40%
Hours of use
20% - 55%
Over the lease term
Gains and losses on disposals of property and equipment are determined by comparing the proceeds with the
carrying amount of the asset and are included as part of general and administrative expenses in the statement
of income.
Leases
Lessee arrangements
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. On the date that the leased asset becomes available for use, the
Company recognizes a ROU asset and a corresponding ROU liability. Finance costs associated with the lease
obligation are charged to the statement of income over the lease period with a corresponding increase to the
ROU liability. The ROU liability is reduced as payments are made against the principal portion of the lease. The
ROU asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Depreciation of the ROU asset is recognized as part of costs of construction or general and administrative
expenses, depending on the nature of the leased asset.
Annual 2020 Consolidated Financial Statements
101
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
ROU assets and liabilities are initially measured on a present value basis. Lease obligations are measured as
the net present value of the lease payments which may include: fixed lease payments, variable lease payments
that are based on an index or a rate, amounts expected to be payable under residual value guarantees, and
payments to exercise an extension or termination option, if the Company is reasonably certain to exercise either
of those options. ROU assets are measured at cost, which is composed of the amount of the initial measurement
of the ROU liability, less any incentives received, plus any lease payments made at, or before, the
commencement date and initial direct costs and asset restoration costs, if any. The rate implicit in the lease is
used to determine the present value of the liability and asset arising from a lease, unless this rate is not readily
determinable, in which case the Company's incremental borrowing rate is used.
The Company has applied a number of practical expedients identified in the standard as follows:
(cid:120) Short-term leases and leases of low-value assets are not recognized in the statement of financial
position and lease payments are instead recognized in the financial statements as incurred.
(cid:120) For certain classes of leases, the Company has elected not to separate lease and non-lease
components (which transfer a separate good or service under the same contract) and instead the
Company accounts for these leases as a single lease component.
(cid:120) Certain leases having similar characteristics are accounted for as a portfolio.
Lessor arrangements
When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or
an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease
transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the
case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the
Company considers certain indicators, such as whether the lease is for the major part of the economic life of the
asset.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease
separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from
the head lease, not with reference to the underlying asset.
Goodwill
Goodwill is the residual amount that results when the purchase price of an acquired business exceeds the sum
of the amounts allocated to the identifiable assets acquired less liabilities assumed, based on their fair values.
Subsequently, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortized.
Intangible assets
Intangible assets with finite lives are comprised of computer software, and assets related to the acquisition of a
business, including backlog and agency contracts and customer relationships. These intangible assets are
measured at cost less accumulated amortization and accumulated impairment losses, if any. Amortization is
calculated using the cost of the asset, and commences once the asset is available for use and is recognized in
the statement of income based on the expected pattern of consumption of the economic benefits of the asset.
Amortization methods, useful lives and residual values are reviewed on an annual basis and adjusted where
appropriate. Intangible assets with indefinite lives comprising of trade names are not amortized.
The estimated useful lives of each class of intangible assets are as follows:
Asset
Computer software
Backlog and agency contracts
Customer relationships
Trade names
Basis
Straight line
As related revenue is earned
Straight line
Useful Life
1 to 10 years
1 to 3 years
3 to 7 years
Indefinite
102
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Impairment of non-financial assets
The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets for
which separate processes apply, are reviewed at each reporting date to determine whether there is any indication
of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For intangible
assets that have an indefinite useful life or intangible assets that are not yet available for use, the recoverable
amount is estimated annually.
The recoverable amount of a CGU is the greater of its value-in-use and its fair value less costs of disposal. In
assessing value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into
the smallest group of assets that generates cash inflows from continuing use that are largely independent of the
cash inflows of other assets or groups of assets (i.e. a CGU). For the purpose of goodwill impairment testing,
goodwill acquired in a business combination is allocated to the CGU, or the group of CGUs, that is expected to
benefit from the synergies of the combination. This allocation is subject to an operating segment ceiling and
reflects the lowest level at which the goodwill is monitored for internal reporting purposes.
An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable
amount. Impairment losses are recognized in the statement of income. Impairment losses recognized in respect
of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGUs, and then to
reduce the carrying amounts of the other assets in the CGUs on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased
or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does
not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no
impairment loss had been recognized.
Provisions and contingent assets
Provisions
Provisions are recognized when, at the financial statement date, the Company has a present obligation as a
result of a past event, it is more likely than not that the Company will be required to settle that obligation, and
the cash outflow can be estimated reliably. The amount recognized for provisions is the best estimate of the
expenditure to be incurred. Where the Company expects some or all of the provision to be reimbursed, for
example through insurance, the reimbursement is recognized as an asset only when it is virtually certain of
realization. The recoverable amount will not exceed the amount of the provision. Provisions include:
i. Provisions for potential legal claims relating to the Company’s performance and completion of construction
contracts. The Company attempts to settle claims within the construction period of the contracts, but a legal
claim may take years to settle.
ii. Provisions for potential warranty claims relating to construction projects. These claims are usually settled
during the project’s warranty period.
iii. Provisions for loss contracts are recorded when costs are estimated to be greater than total revenues for
the contract. Losses from construction contracts are recognized in full in the period the loss becomes known.
The loss provision will be net of management’s estimate of probable expected recoveries, which differs from
the criterion used for revenue recognition.
Contingent assets
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity. Cost recovery claims associated with claims against subcontractors and parties other than customers are
considered contingent assets until it is virtually certain that the claims will be settled. Contingent assets are not
recorded or disclosed in the financial statements.
Annual 2020 Consolidated Financial Statements
103
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Subcontractor/ supplier performance default insurance
The Company maintains an insurance policy which provides the Company with comprehensive coverage in
respect of subcontractor or supplier default on certain projects where the subcontractor or supplier is enrolled in
the program. The total insurance premium paid by the Company to the insurer is comprised of a non-refundable
premium and a deposit premium. The deposit premium paid by the Company is included in other non-current
assets on the consolidated statements of financial position (the “statements of financial position”). The liabilities
included in provisions on the statements of financial position relate to management’s best estimate of exposures
and costs associated with prior or existing subcontractor or supplier performance defaults. Management
conducts a thorough review of the liability every reporting period and takes into consideration the Company’s
experience to date with those subcontractors or suppliers that are enrolled in the program.
Foreign currency translation
Foreign currency transactions
Foreign currency transactions and balances are recorded in the accounts as follows:
i. Monetary assets and liabilities at the exchange rate in effect at the financial statement date;
ii. Non-monetary assets and liabilities at exchange rates prevailing at the time of the transaction;
iii. Depreciation expense at the exchange rate in effect at the time the related assets are acquired; and
iv. Revenue and expenses at the average exchange rate prevailing on the date of the transaction.
Translation of equity accounted foreign entities
Assets and liabilities of equity accounted foreign entities are translated from the functional currency to the
Company’s presentation currency at the closing rate at the end of the reporting period. The statements of income
are translated at exchange rates at the dates of the transactions or at the average rate if it approximates the
actual rates. All resulting exchange differences are recognized in other comprehensive income.
Income taxes
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in the
statement of income except to the extent that it relates to a business combination, or items recognized directly
in equity or in other comprehensive income.
Current income taxes are recognized for the estimated income taxes payable based on applying enacted income
tax rates to the taxable income realized in the current year. Current tax includes adjustments to taxes payable
or recoverable in respect of previous years.
Deferred income tax assets and liabilities are recognized for temporary differences between the tax basis of
assets and liabilities and their carrying amounts for financial reporting purposes, as well as for the benefit of tax
losses available to be carried forward to future years provided they are likely to be realized. Deferred taxes are
recognized using enacted or substantively enacted rates expected to apply in the periods in which the asset is
realized or the liability is settled. Deferred taxes are measured on an undiscounted basis. Deferred taxes are
presented as non-current. Current and deferred tax assets and liabilities are offset only when a legally
enforceable right exists to offset current tax assets against current tax liabilities relating to the same taxable
entity and the same tax authority.
Basic and diluted earnings per share
The Company’s basic earnings per share calculation is based on the net income available to common
shareholders for the period divided by the weighted average number of common shares outstanding for the
period. Diluted earnings per share is calculated by dividing the net income available to common shareholders
for the period by the weighted average number of common shares outstanding for the period, adjusted for the
effects of all dilutive potential common shares, including stock options granted to employees.
104
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Post-employment benefits
The Company maintains two registered pension plans. Each plan includes a defined contribution (“DC”) provision
and a non-contributory DB provision. The DB provision covers salaried employees for two of its subsidiaries.
Annual employer contributions to the DB provision of each plan, which are actuarially determined by an
independent actuary, are made on the basis of being not less than the minimum amounts required by provincial
pension supervisory authorities. Unlike the DB provision, there is no obligation recorded for the DC provision.
The DC contributions made by the Company are measured on an undiscounted basis and are expensed as the
related services are provided.
DB pension costs are actuarially determined using the projected unit credit method and management’s best
estimate of salary escalation and retirement age of employees. The Company’s net obligation in respect of DB
pension plans is calculated separately for each plan by estimating the amount of future benefits that employees
have earned in return for their service in the current and prior periods; that benefit is discounted to determine its
present value. Any recognized past service costs and the fair value of plan assets are deducted. The discount
rate used to establish the pension obligation was determined by reference to market interest rates on AA-rated
corporate bonds with cash flows that approximate the timing and amount of expected benefit payments. When
the calculation results in a benefit to the Company, the recognized asset is limited to the total of any unrecognized
past service costs and the present value of economic benefits available in the form of any future refunds from
the plan or reductions in future contributions to the plan. In order to calculate the present value of economic
benefits, consideration is given to any minimum funding requirements that apply to any plan within the Company.
An economic benefit is available to the Company if it is realizable during the life of the plan, or on settlement of
the plan liabilities.
The pension deficit or surplus is adjusted for any material changes in underlying assumptions. The Company
recognizes all actuarial gains and losses arising from the DB plans in other comprehensive earnings in the period
in which they occur. When the benefits of a plan are improved, the portion of the increased benefit related to
past service by employees is recognized in the statement of income on a straight-line basis over the average
service period until the benefits become vested. To the extent that the benefits vest immediately, the expense is
recognized immediately in the statement of income.
Stock option plan
The Company's Stock Option Plan, as described in note 23, is a share-based payment plan which provides for
the granting of stock options. The fair value of share-based payment awards is recognized as an employee
expense, with a corresponding increase in contributed surplus, on a straight-line basis over the vesting period.
The amount recognized as an expense is adjusted to reflect the number of awards for which the related service
conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the
number of awards that do meet the related service conditions at the vesting date.
Medium term incentive plan
The Company’s Medium Term Incentive Plan (“MTIP”) is a cash-settled share-based payment plan which
provides for the granting of phantom shares. The phantom shares provide the holder with the opportunity to earn
a cash benefit in relation to the value of a specified number of underlying notional shares. MTIP awards for 2018
and 2019 grants vest on November 30 of the third year following the year to which the award relates, and for
2020 grants vest between November and December of the second and third year following the year to which the
award relates, if the employee has maintained continuous employment with the Company, or at the Company’s
discretion. Annually, the Board of Directors determines the amount of the initial award, which is then used to
determine the number of shares allocated to the employee. The total liabilities for this plan are computed based
on the estimated number of phantom shares expected to vest at the end of the vesting period. The liability is
measured at each reporting date at fair value with changes in fair value recognized in income. The fair value of
the phantom shares outstanding at the end of a reporting period is measured based on the quoted market price
of the Company’s shares. The phantom shares earn notional dividends, equivalent to actual dividends declared
on the Company’s shares. Compensation expense relating to the initial award, notional dividends and changes
in the market price of the phantom shares is recognized on a straight-line basis in the statement of income over
the vesting period.
Annual 2020 Consolidated Financial Statements
105
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Equity incentive plan
The Company has an Equity Incentive Plan (“EIP”) as part of the Company’s executive compensation plan. The
purpose of the EIP is to provide certain officers and employees of the Company with the opportunity to be granted
performance share units (“PSU”) or time-based restricted share units (“RSU”), and together with PSUs, the
(“Units”). The EIP is a full-value share unit plan using the value of the Company’s shares as the basis for the
Units. In the case of the PSUs, the amount of award payable at the end of the vesting period will be determined
by a performance multiplier. Under the EIP, the Company is entitled, in its sole discretion, to settle the Units in
either cash or the Company’s Shares purchased on the TSX or issued from treasury, or a combination thereof.
The Company intends to settle the EIP in cash.
As a cash-settled compensation arrangement, the fair value of the amount payable is recognized as an expense
with a corresponding increase in liabilities over the vesting period. The Units will vest and be settled on their
issue date, which will be no later than December 31 in the third year following the date of grant, or in accordance
with the EIP, participant’s award agreement, or the Company’s discretion. The liabilities for this plan are
calculated based on the estimated number of Units expected to vest at the end of the vesting period. The Units
earn notional dividends, equivalent to actual dividends declared on the Company’s shares. The liability is
remeasured at each reporting date at fair value with changes in fair value recognized in income. The fair value
of the Units outstanding at the end of a reporting period is measured based on the quoted market price of the
Company’s shares, with PSUs also adjusted by a performance multiplier. Compensation expense relating to the
initial award, notional dividends and changes in the market price of the Units is recognized on a straight-line
basis in the statement of income over the vesting period.
Deferred share unit plan
The Company has a Deferred Share Unit Plan ("DSU Plan"), which is a cash-settled share-based payment plan.
The fair value of the amount payable to eligible Directors in respect of Deferred Share Units ("DSU") is equivalent
to the cash value of the common shares at the reporting date. The DSUs earn notional dividends, equivalent to
actual dividends declared on the Company's shares. DSUs are cash-settled when the eligible Director ceases
to hold any position within the Company. The liability associated with the DSU Plan is recalculated at each
reporting date and at settlement. Any change in the fair value of the liability is recognized as an expense in
general and administrative expenses in the statement of income.
Cash and cash equivalents
The Company considers cash, bank indebtedness, if any, bankers’ acceptances and short-term deposits with
original maturities of three months or less, as cash and cash equivalents.
Financial instruments
Classification and measurement of financial instruments
Financial assets and liabilities are recognized on the statement of financial position when the Company becomes
a party to the contractual provisions of the financial instrument or derivative contract. The Company derecognizes
a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to
receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is
created or retained by the Company is recognized as a separate asset or liability. Financial liabilities are
derecognized when their contractual obligations are discharged, cancelled or have expired. Financial
instruments are initially measured at fair value and are subsequently accounted for based on their classification
as described below. The classification of financial assets is determined by their context in the Company’s
business model and by the characteristics of the financial asset’s contractual cash flows.
(cid:120) Amortized cost: The contractual cash flows received from the financial assets are solely payments of
principal and interest and are held within a business model whose objective is to collect the contractual cash
flows. The financial assets and financial liabilities are subsequently measured at amortized cost using the
effective interest method.
106
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
(cid:120) Fair value through profit or loss (“FVTPL”): A financial asset is measured at FVTPL if it does not meet the
criteria for assets measured at amortized cost or FVTOCI. Financial assets at FVTPL include held for trading
assets and derivative instruments. Financial assets at FVTPL are measured at fair value with changes
recognized in the statement of income. Transaction costs associated with assets classified as FVTPL are
expensed as incurred.
(cid:120) Fair value through other comprehensive income (“FVTOCI”): The Company does not have any financial
assets held at FVTOCI at December 31, 2020 or 2019.
The Company has the following financial assets and liabilities:
Classification & basis of measurement
Financial assets:
Cash and cash equivalents
Accounts receivable
Notes receivable
Derivative contracts
Financial liabilities:
Accounts payable
Dividends payable to shareholders
Loans and borrowings
Non-recourse project financing – loan facilities
Right-of-use liabilities
Derivative contracts
Amortized cost
Amortized cost
Amortized cost
FVTPL
Amortized cost
Amortized cost
Amortized cost
Amortized cost
Amortized cost
FVTPL
Derivative financial instruments
The Company uses interest rate swaps to manage its interest rate risk on non-recourse project financing and its
variable rate loans and borrowings. The Company also uses Total Return Swap (“TRS”) derivative contracts for
the purpose of managing its exposure to changes in the fair value of its MTIP, EIP and DSU share-based
compensation plans due to changes in the fair value of the Company’s common shares. The Company does not
employ hedge accounting for any of its derivative contracts currently in place.
Impairment of financial assets
Financial assets measured at amortized cost are assessed at each reporting date to determine whether there is
objective evidence of impairment. An expected credit loss (“ECL”) impairment model is applied, where the ECL
is the present value of all cash shortfalls over the expected life of the financial asset. Impairment is measured at
either the 12-month ECL or lifetime ECL. The Company recognizes the 12-month ECL in the statement of
income; however, for trade receivables and contract assets that do not contain a significant financing component,
a lifetime ECL is measured at the date of initial recognition.
A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial
recognition of the asset, and that the loss event will have a negative effect on the estimated future cash flows of
the asset that can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s
original effective interest rate. The carrying amounts of financial assets are reduced by the amount of the ECL
through an allowance account and losses are recognized in general and administrative expenses in the
statement of income.
Annual 2020 Consolidated Financial Statements
107
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Joint arrangements
A joint arrangement is an arrangement in which the Company has joint control, established by contractual
agreements requiring unanimous consent for decisions about activities that significantly affect the
arrangement's returns. Joint arrangements are classified as either a joint operation or a joint venture. A joint
operation is an arrangement where the joint controlling parties have direct rights to the assets and direct
obligations for the liabilities of the arrangement in the normal course of business. Interests in a joint operation
are accounted for by recognizing the Company's share of assets, liabilities, revenues and expenses. A joint
venture is an arrangement where the joint controlling parties have rights to the net assets of the arrangement.
Interests in a joint venture are recognized as an investment and accounted for using the equity method. The
determination as to whether a joint arrangement is a joint venture or a joint operation requires significant
judgement based on the structure of the arrangement, the legal form of any separate vehicle, the contractual
terms of the arrangement and other facts and circumstances. The joint arrangements in which Bird participates
are typically formed to undertake a specific construction project, are jointly controlled by the parties, and are
dissolved upon completion of the project.
Finance income and finance costs
Finance income is comprised of interest earned on cash and cash equivalents, interest earned on lease
receivables, gains/losses on disposal of investments and changes in the fair value of financial assets classified
as fair value through profit and loss. Interest income is recognized as it accrues in the income statement.
Finance costs are comprised of interest on loans and borrowings including non-recourse project financing using
the effective interest rate method, interest expense related to ROU liabilities, interest expense related to the net
gain or loss on interest rate swaps, interest associated with TRS contracts, fees associated with credit facilities,
bank charges and other interest expenses.
5. New accounting standards, amendments and interpretations adopted
Amendments to IFRS 3 - Definition of a Business
On October 22, 2018, the IASB issued amendments to IFRS 3 Business Combinations that seek to clarify
whether a transaction results in an asset or a business acquisition. The amendments apply to businesses
acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The
definition of a business is narrower which could result in fewer business combinations being recognized. The
Company adopted the amendments to IFRS 3 on a prospective basis on January 1, 2020. The adoption of the
amendments to IFRS 3 did not have an impact on the financial statements.
6. Future accounting changes
There are new accounting standards, amendments to accounting standards and interpretations that are
effective for annual periods beginning on or after January 1, 2021 and have not been applied in preparing the
financial statements for the year ended December 31, 2020. These standards and interpretations are not
expected to have a material impact on the Company’s financial statements. The following standard is applicable
to the Company:
Amendments to IFRS 16 Leases
On May 28, 2020, the IASB issued COVID-19-Related Rent Concessions (Amendment to IFRS 16). The
amendments are effective for annual periods beginning on or after June 1, 2020. Early adoption is permitted.
The amendments exempt lessees from having to consider individual lease contracts to determine whether rent
concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and allows
lessees to account for such rent concessions as if they were not lease modifications. It applies to COVID-19-
related rent concessions that reduce lease payments due on or before June 30, 2021. The Company will adopt
the amendments to IFRS 16 on a prospective basis and the amendments are not expected to have a material
impact on the financial statements.
108
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
7. Business combination
On July 29, 2020, the Company entered into an arrangement agreement (“Arrangement Agreement”) pursuant
to which, among other things, the Company agreed to acquire all of the outstanding common shares of Stuart
Olson Inc. (“Stuart Olson”) by way of a plan of arrangement under the Business Corporations Act (Alberta) (the
"Arrangement").
The principal activities of Stuart Olson and its subsidiaries are to provide general contracting and electrical
building systems contracting in the public and private construction markets, as well as general contracting,
electrical, mechanical and specialty trades, such as insulation, cladding and asbestos abatement, in the
industrial construction and services market. Stuart Olson provides its services to a wide array of clients within
Canada. One of the key rationales for the business combination was to further diversify the Company’s risk
profile by expanding its service offerings and revenue streams. The Company has grown its industrial general
contracting business, including industrial maintenance, repair and operations. In the institutional and
commercial sectors, the Company has added capability in construction management services, and its newly
acquired commercial systems business is one of Canada’s largest electrical and data system contractors. The
acquisition further enhances the Company’s ability to service maintenance, repair and operations.
On September 25, 2020, the Arrangement was completed, pursuant to which the Company acquired all of the
issued and outstanding common shares of Stuart Olson in exchange for common shares of the Company and
cash consideration, and completed the payout and termination of all indebtedness as detailed below. Under the
terms of the Arrangement:
(cid:120) Stuart Olson's secured creditors received an aggregate cash payment of $70.0 million in full satisfaction of
all obligations, indebtedness and liabilities of Stuart Olson and its affiliates under the bank credit facility,
including unpaid interest, fees and expenses;
(cid:120) Canso Investment Counsel Ltd. ("Canso"), in its capacity as portfolio manager for and on behalf of certain
accounts managed by it, acquired an aggregate of 6,329,114 common shares for gross proceeds of
approximately $40.0 million;
(cid:120) Those accounts managed by Canso, in its capacity as portfolio manager, that held the convertible
unsecured subordinated debentures due September 20, 2024 (the “Debentures”), received 3,560,127
common shares valued at $21.8 million based on a deemed issue price equal to $6.32 per share for $22.5
million of principal value of Debentures in full satisfaction of all indebtedness, accrued interest and
obligations of Stuart Olson and its affiliates under the indenture governing the Debentures; and
(cid:120) Stuart Olson shareholders received an aggregate of 632,835 common shares, based on an exchange ratio
of 0.02006051 common shares for each Stuart Olson common share. Those Stuart Olson shareholders
entitled to receive less than one common share for all Stuart Olson shares received a cash payment
determined by reference to the volume weighted average trading price of the Company’s common shares
on the Toronto Stock Exchange for the five trading days immediately preceding September 25, 2020.
In connection with this acquisition, the Company incurred acquisition costs of approximately $5,570 comprised
mainly of consulting and other professional fees. These costs have been included in general and administrative
expenses in the statement of income. Transaction costs of $124 directly attributable to the issue of common
shares are recognized as a deduction from shareholders' capital.
The Arrangement has been accounted for as a business combination using the acquisition method of
accounting whereby the assets acquired, and liabilities assumed are recognized at their fair value, except for
deferred tax assets or liabilities, assets or liabilities related to employee benefit arrangements and any ROU
assets and ROU liabilities identified in which the acquiree is the lessee.
Annual 2020 Consolidated Financial Statements
109
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
The value of the assets and liabilities associated with the Stuart Olson acquisition were not finalized by March
9, 2021, and therefore are preliminary figures. If new information obtained within one year of the date of
acquisition about facts and circumstances that existed at the date of acquisition that identifies adjustments to
the amounts noted below, or any additional provisions that existed at the date of acquisition, then the
accounting for the acquisition will be revised.
During the three months ended December 31, 2020, measurement period adjustments were made to the
purchase price allocation to reflect new information obtained by management with respect to facts and
circumstances that existed as of September 25, 2020. The impact of these measurement period adjustments
were: $5,010 increase in accounts receivable, $991 increase in contract assets, $126 increase in income taxes
recoverable, $10 decrease in other assets, $232 increase in property and equipment, $2,146 decrease in ROU
assets, $3,000 decrease in intangible assets, $1,816 decrease in the net deferred tax assets, $1,695 decrease
in accounts payable, $4,478 increase in contract liabilities, $1,806 decrease in income taxes payable, $5,929
increase in provisions, $1,578 decrease in other liabilities and $5,941 increase in goodwill.
Number of common shares issued to Stuart Olson shareholders
Number of common shares issued on settlement of Debentures
Total common shares issued as consideration
Common share price at close on September 25, 2020
Equity consideration
Cash consideration
Total Consideration
Fair value of assets and liabilities of Stuart Olson acquired:
Assets acquired
Cash and cash equivalents
Accounts receivable
Contract assets
Income taxes recoverable
Lease receivables
Other assets
Property and equipment
Right-of-use assets
Intangible assets
Net deferred tax assets
Liabilities assumed
Accounts payable
Contract liabilities
Income taxes payable
Provisions
Pension liabilities
Loans and borrowings
Right-of-use liabilities
Other liabilities
Net identifiable assets acquired
Goodwill
Net assets acquired
632,835
3,560,127
4,192,962
6.12
25,661
70,000
95,661
10,040
269,736
33,534
622
7,506
3,634
15,483
26,728
25,430
8,262
(190,450)
(56,316)
(7,913)
(14,482)
(5,023)
(667)
(46,887)
(241)
78,996
16,665
95,661
$
$
$
$
$
$
110
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Goodwill and intangible assets
Goodwill of $16,665 recognized as part of the acquisition is attributed to expected revenue growth, future
market development, the assembled workforce and the synergies achieved from the integration of Stuart Olson
into the Company’s business. These benefits are not recognized separately from goodwill, as the future
economic benefits arising from them cannot be reliably measured. The goodwill recognized is not deductible
for tax purposes. Identifiable intangible assets acquired of $25,430 includes computer software, backlog and
agency contracts, customer relationships and trade names.
The fair value of the trade receivables acquired amounts to $269,736. The gross amount of trade receivables
was $282,443, of which $12,707 was expected to be uncollectible at acquisition date. From the date of
acquisition, Stuart Olson has contributed $251,663 of revenue and $3,476 of net income. If the acquisition had
occurred on January 1, 2020, revenue for the combined entity would be $2,179,178 and net income would be
$31,512 for the year ended December 31, 2020.
8. Cash and cash equivalents
Cash and cash equivalents
Cash
Restricted cash and blocked accounts*
Cash held for joint operations
Short-term deposits held to support letters of credit*
$
$
2020
96,671 $
55,107
60,200
90
212,068 $
2019
36,127
10,102
134,015
90
180,334
* Cash and cash equivalents include the following restricted cash and blocked accounts. These amounts are not
available for general operating purposes.
Restricted cash and cash equivalents
Cash and cash equivalents held to support letters of credit (note 18) $
Cash deposited in blocked accounts for special projects (note 11)
Restricted cash
$
2020
139 $
1,033
54,025
55,197 $
2019
139
212
9,841
10,192
Support for Letters of Credit
In the normal course of business, the Company issues letters of credit on certain projects to guarantee its
performance. These projects are typically design-build contracts relating to PPP arrangements and other major
construction projects. In certain instances, the letters of credit are supported by the hypothecation of cash and
cash equivalents that are not available for general corporate purposes (note 18).
Blocked Accounts
The terms of non-recourse project financing require scheduled loan advances to be deposited in a blocked
bank account which cannot be accessed directly by the Company for general corporate purposes. Upon
recommendation by the lender’s technical advisor, cash is released monthly from the blocked account and
paid to the Company based on the progress made on the related construction project. Once PPP projects that
only involve short term financing reach final completion and the debt is repaid, any remaining amounts in the
project accounts become unrestricted and available for general corporate purposes.
Restricted Cash
Under the Construction Act in Ontario, a bank account has been established for the benefit of persons who
have supplied services or materials to the improvement for specific projects subject to the legislation. The
funds remain in the account until all subcontractors, suppliers and direct labour are paid, as appropriate.
Annual 2020 Consolidated Financial Statements
111
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
9. Accounts receivable
Progress billings on construction contracts
Holdbacks receivable (due within one operating cycle)
Other
$
$
2020
336,286 $
160,364
33,175
529,825 $
2019
271,931
134,751
6,967
413,649
Accounts receivable are reported net of an allowance for doubtful accounts of $1,471 as at December 31, 2020
(December 31, 2019 - $1,538). Holdbacks receivable represent amounts billed on construction contracts which
are not due until the contract work is substantially complete and the applicable lien period has expired.
Included in other accounts receivable are government assistance receivables of $25,847 at December 31, 2020
(December 31, 2019 - $nil) related to the Canada Emergency Wage Subsidy (“CEWS”). See note 29.
10. Revenue, contract assets and contract liabilities
Disaggregation of revenue
The Company disaggregates revenue from contracts with customers by contract type, as this best depicts how
the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Public Private Partnerships (“PPP”)
Alternative finance projects and complex design-build
Stipulated sum, unit price and standard specification
design-build
Construction management, cost plus and IPD
$
$
2020
28,760 $
100,572
942,776
432,324
1,504,432 $
2019
102,105
176,887
792,492
304,924
1,376,408
Remaining performance obligations
The total value of all contracts awarded to the Company, less the total value of work completed on these
contracts as of the reporting date is referred to as remaining performance obligations. This includes all contracts
that have been awarded to the Company whether the work has commenced or will commence in the normal
course.
As at December 31, 2020 the aggregate amount of the transaction price allocated to total remaining
performance obligations from construction contracts was $2,682,498. The value of remaining performance
obligations does not include amounts for variable consideration that are constrained, agency relationship
construction management projects, and estimated future work orders to be performed as part of master services
agreements.
The Company expects to recognize approximately 59% of the remaining performance obligations over the next
12 months with the remaining balance being recognized beyond 12 months. This expectation is based on
management’s best estimate but contains uncertainty as it is subject to factors outside of management’s control.
The Company’s measure of remaining performance obligations is also referred to as “Backlog”; this measure
may not be comparable with the calculation of similar measures by other entities as Backlog is not a term
defined under IFRS.
112
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Summary of contract balances
The following table provides information about receivables, contract assets and contract liabilities from
contracts with customers:
Progress billings and holdbacks receivable (note 9)
Contract assets
Contract assets – alternative finance projects (note 11)
Contract liabilities
$
$
2020
496,650 $
60,031
113
(120,054)
436,740 $
2019
406,682
31,018
75,180
(112,126)
400,754
Progress billings and holdbacks receivable
The Company issues invoices in accordance with the billing schedule or contract terms. These invoices trigger
recognition of accounts receivable.
Contract assets including alternative finance projects
The Company receives payments from customers based on a billing schedule, as established in the contracts.
A contract asset relates to the conditional right to consideration for completed performance under the contract.
Accounts receivable are recognized when the right to consideration becomes unconditional. Contract assets
related to construction contracts are typically invoiced within a year, while alternative finance projects (note 11)
follow a contractually agreed billing schedule and contract assets are recognized in accounts receivable upon
substantial performance.
Balance, December 31, 2019
Acquisition (note 7)
Reduction of contract assets due to progress billings
Additions to contract assets
Balance, December 31, 2020
Balance, December 31, 2018
Reduction of contract assets due to progress billings
Additions to contract assets
Balance, December 31, 2019
Construction
contracts
2020
Alternative
finance
projects
31,018 $
33,534
(325,692)
321,171
60,031 $
75,180 $
–
(149,837)
74,770
113 $
Construction
contracts
2019
Alternative
finance
projects
28,412 $
7,126 $
(390,054)
392,660
31,018 $
–
68,054
75,180 $
$
$
$
$
Total
106,198
33,534
(475,529)
395,941
60,144
Total
35,538
(390,054)
460,714
106,198
Contract liabilities
Contract liabilities relate to payments received in advance of performance under the contract. Contract
liabilities are recognized as revenue as (or when) the Company performs under the contract. Typically, contract
liabilities are recognized within a year as performance is achieved per contractual terms.
For the year ended December 31, 2020, $112,126 of revenue (2019 – $60,003) was recognized that was
included in the contract liability balance at the beginning of the year.
Annual 2020 Consolidated Financial Statements
113
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
For the year ended December 31, 2020, $nil (2019 – $1,203) of revenue was recognized from the satisfaction
of performance obligations related to previous periods. This amount represents changes in the transaction
price due to contract modifications and various other cumulative catch up adjustments.
11. Alternative finance projects
During 2018, the Company was awarded a fixed-price design-build-finance contract to construct the Ontario
Provincial Police (“OPP”) Modernization Phase 2 project. The project obtained substantial completion and was
billed during the fourth quarter of 2020.
The Company had arranged a $138,475 loan facility related to the project, of which $nil is outstanding at
December 31, 2020, as the loan was repaid in full in the fourth quarter of 2020. The terms of the debt financing
agreement require that scheduled loan advances be deposited into a bank account that cannot be accessed
directly by the Company. Upon recommendation by the lender’s technical advisor, cash is released monthly
based on the progress of the work (note 8).
Interest is paid monthly in arrears. Borrowings under the facility bear interest at a rate per annum equal to the
bankers’ acceptance rate plus a spread. Interest expense on the loan during the year ended December 31,
2020 of $3,522 (2019 – $1,995) is included in finance costs. As part of the loan facility, the Company entered
into an interest rate swap agreement that effectively fixes the interest rate at 3.29%. The interest rate swap
agreement was settled in the fourth quarter of 2020. The notional amounts of the interest rate swap agreement
matched the estimated draws under the loan facility. The interest rate swap agreement is not designated as a
hedge, and changes in the fair market value are recorded in finance costs in the statement of income.
Balance, December 31, 2019
Proceeds
Repayment of debt
Transaction costs, net of amortization
Change in fair value of interest rate swap
Balance, December 31, 2020
$
$
2020
Loan
facility
85,067 $
46,782
(131,849)
–
–
– $
Transaction
costs
(369) $
–
–
369
–
– $
Interest
rate swap
676 $
–
–
–
(676)
– $
Total
85,374
46,782
(131,849)
369
(676)
–
Balance, December 31, 2018
Proceeds
Repayment of debt
Transaction costs, net of amortization
Change in fair value of interest rate swap
Balance, December 31, 2019
2019
Loan
facility
12,235 $
72,832
–
–
–
85,067
$
$
Transaction
costs
(1,024) $
–
–
655
–
(369)
Interest
rate swap
613 $
–
–
–
63
676
Total
11,824
72,832
–
655
63
85,374
114
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
12. Other assets
Subcontractor / Supplier insurance deposits
Notes receivable
Lease receivables (note 7)
TRS derivatives (note 21)
Other assets
Less: current portion
TRS derivatives (note 21)
Notes receivable
Lease receivables
Current portion
Non-current portion
$
$
2020
5,197 $
1,806
7,141
1,604
15,748
1,330
–
1,247
2,577
13,171 $
2019
4,511
8,069
–
–
12,580
–
5,972
–
5,972
6,608
Subcontractor/Supplier insurance deposits relate to the Company's insurance policies which provide Bird with
comprehensive coverage, subject to a deductible, in respect of subcontractor or supplier default on certain
projects where the subcontractor or supplier is enrolled in the program.
The Company has promissory notes (Notes receivable) outstanding from an equity accounted joint
arrangement. One promissory note is available to the borrower for working capital purposes and is due on
September 8, 2022. The second promissory note is available to the borrower for a specific project, was due
upon completion of the project, and was fully repaid in 2020.
The Company entered into TRS derivative contracts for the purpose of managing its exposure to changes in
the fair value of its MTIP, EIP and DSU share-based compensation plans, due to changes in the fair value of
the Company’s common shares. The TRS derivative contracts are not designated as a hedge and changes in
the fair market value are recorded as compensation expense in general and administrative expenses in the
statement of income.
The Company subleases certain facilities, resulting from the acquisition of Stuart Olson (note 7). The following
is a detailed maturity analysis of the undiscounted finance lease payments receivable as at December 31, 2020:
Lease receivables
$
7,141 $
Carrying
amount
Contractual
cash flows
7,757
$
Not later
than 1
year
1,429 $
Later than 1
year and
less than 3
years
2,746 $
Later than 3
years and
less than 5
years
2,284
$
Later
than 5
years
1,298
Annual 2020 Consolidated Financial Statements
115
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
13. Projects and entities accounted for using the equity method
The Company performs some construction and concession related projects through joint ventures and
associates which are accounted for using the equity method. The Company’s joint ventures and associates
are private entities and there is no quoted market value available for their shares.
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets – 100%
Attributable to the Company
Revenue – 100%
Total comprehensive income – 100%
Attributable to the Company
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets – 100%
Attributable to the Company
Revenue – 100%
Total comprehensive income – 100%
Attributable to the Company
Joint
Ventures
100,893 $
163,170
264,063
13,150
214,239
227,389
2020
Associates
38,966 $
167,778
206,744
12,840
167,759
180,599
36,673 $
12,008 $
26,145 $
2,615 $
56,009 $
7,205 $
8,074 $
2,379 $
Total
139,859
330,948
470,807
25,990
381,998
407,988
62,818
14,623
64,083
9,584
4,456 $
232 $
4,688
Joint
Ventures
124,396 $
615,582
739,978
88,152
614,137
702,289
2019
Associates
31,607 $
171,015
202,622
14,634
171,544
186,178
37,689 $
10,938 $
16,444 $
1,644 $
155,380 $
6,784 $
9,160 $
2,395 $
Total
156,003
786,597
942,600
102,786
785,681
888,467
54,133
12,582
164,540
9,179
2,459 $
234 $
2,693
$
$
$
$
$
$
$
$
$
$
$
$
116
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
The movement in the investment in projects and entities accounted for using the equity method is as follows:
Investments in equity accounted entities
Balance, beginning of period
Share of net income for the year
Share of other comprehensive income for the year
Investments in equity accounted entities
Capital distributions received
Investments in equity accounted entities reclassified as held
for sale
Balance, end of period
Investments held for sale
Balance, beginning of period
Investments in equity accounted entities classified as held for sale
Capital distributions received
Sale of investment
Balance, end of period
Share of net income for the year
Gain on sale of investments in equity accounted entities
Income from equity accounted investments
$
$
$
$
$
$
$
$
$
2020
10,185
4,688
47
5,088
20,008
(5,298)
–
14,710
2020
6,978
–
(225)
(6,753)
–
$
2020
4,688
3,104
7,792
$
$
2019
12,517
2,693
37
–
15,247
(1,223)
(3,839)
10,185
2019
3,762
3,839
(623)
–
6,978
2019
2,693
–
2,693
The Company recognizes the income and losses related to its investments in associates and joint ventures,
as the Company has an obligation to fund its proportionate share of the net liabilities of these entities.
The carrying amount of investments in equity accounted entities may not always equal the Company’s share
of the net assets or net liabilities of these joint ventures and associates due to fair value adjustments including
goodwill and the timing of capital contributions or distributions in accordance with contract terms.
Transactions with these related parties are described in note 34. Amounts committed for future capital
injections to concession entities are described in note 33.
Investments in equity accounted entities classified as held for sale
During the year ended December 31, 2020, the Company disposed of investments in three entities accounted
for using the equity method for proceeds of $11,034 (2019 - $nil) and received distributions of $225 (2019 -
$623). The Company recognized net gains on the transactions of $3,104 (2019 - $nil) which is included in
income from equity accounted entities on the statement of income. These investments were previously
classified as investments held for sale on the statement of financial position.
Annual 2020 Consolidated Financial Statements
117
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
14. Property and equipment
Land
Buildings
Leasehold
improvements
2020
Equipment,
trucks and
automotive
Furniture
and office
equipment
Cost
Balance, December 31, 2019
Acquisition (note 7)
Additions
Disposals
Balance, December 31, 2020
$
$
2,130
436
–
(9)
2,557
$
12,129
–
52
–
12,181
$
8,932
6,848
950
–
16,730
$
92,114
8,027
13,061
(14,394)
98,808
Accumulated depreciation
Balance, December 31, 2019
Disposals
Depreciation expense
Balance, December 31, 2020
–
–
–
–
6,192
–
527
6,719
4,478
–
1,358
5,836
59,415
(8,497)
8,397
59,315
2,752
172
270
(38)
3,156
1,956
(30)
201
2,127
$
Total
118,057
15,483
14,333
(14,441)
133,432
72,041
(8,527)
10,483
73,997
Net book value
$
2,557
$
5,462
$
10,894
$
39,493
$
1,029
$
59,435
Land
Buildings
Leasehold
improvements
Equipment,
trucks and
automotive
Furniture
and office
equipment
Total
2019
Cost
Balance, January 1, 2019
Additions
Disposals
Balance, December 31, 2019
$
$
1,716
414
–
2,130
$
12,432
65
(368)
12,129
$
8,041
891
–
8,932
$
88,148
12,003
(8,037)
92,114
$
2,592
276
(116)
2,752
112,929
13,649
(8,521)
118,057
Accumulated depreciation
Balance, January 1, 2019
Disposals
Depreciation expense
Balance, December 31, 2019
–
–
–
–
5,583
(19)
628
6,192
3,844
–
634
4,478
58,473
(7,111)
8,053
59,415
1,876
(99)
179
1,956
69,776
(7,229)
9,494
72,041
Net book value
$
2,130
$
5,937
$
4,454
$
32,699
$
796
$
46,016
15. Right-of-use assets
Cost
Balance, December 31, 2019
Acquisition (note 7)
Additions
Disposals
Balance, December 31, 2020
Accumulated depreciation
Balance, December 31, 2019
Disposals
Depreciation expense
Balance, December 31, 2020
Land
Buildings
$
$
53
–
–
–
53
–
–
–
–
$
17,511
15,286
2,415
(180)
35,032
2,572
(140)
3,625
6,057
2020
Equipment,
trucks and
automotive
Furniture
and office
equipment
$
26,125
9,827
9,587
(4,486)
41,053
6,759
(1,506)
4,990
10,243
$
136
1,615
275
(126)
1,900
34
(41)
234
227
Total
43,825
26,728
12,277
(4,792)
78,038
9,365
(1,687)
8,849
16,527
Net book value
$
53
$
28,975
$
30,810
$
1,673
$
61,511
118
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Land
Buildings
2019
Equipment,
trucks and
automotive
Furniture
and office
equipment
Cost
Balance, January 1, 2019
Additions
Disposals
$
53
–
–
$
Balance, December 31, 2019
53
$
15,569
1,942
–
17,511
$
17,411
8,829
(115)
26,125
Accumulated depreciation
Balance, January 1, 2019
Disposals
Depreciation expense
Balance, December 31, 2019
–
–
–
–
–
–
2,572
2,572
4,017
(99)
2,841
6,759
$
140
12
(16)
136
9
(9)
34
34
Total
33,173
10,783
(131)
43,825
4,026
(108)
5,447
9,365
Net book value
$
53
$
14,939
$
19,366
$
102
$
34,460
16. Intangible assets
2020
Trade
Names
Backlog and
Agency
Contracts
Customer
Relationships
Computer
Software
Cost
Balance, December 31, 2019
Acquisition (note 7)
Additions
Balance, December 31, 2020
Accumulated amortization
Balance, December 31, 2019
Amortization expense
Balance, December 31, 2020
$
– $
– $
– $
7,000
–
7,000
–
–
–
4,000
–
4,000
–
333
333
11,000
–
11,000
–
393
393
8,542 $
3,430
1,982
13,954
6,058
1,644
7,702
Total
8,542
25,430
1,982
35,954
6,058
2,370
8,428
Net book value
$
7,000 $
3,667 $
10,607 $
6,252 $
27,526
Trade
Names
Backlog and
Agency
Contracts
Customer
Relationships
Computer
Software
2019
Cost
Balance, December 31, 2018
Additions
Balance, December 31, 2019
$
Accumulated amortization
Balance, December 31, 2018
Amortization expense
Balance, December 31, 2019
– $
–
–
–
–
–
– $
–
–
–
–
–
– $
–
–
7,760 $
782
8,542
–
–
–
5,185
873
6,058
Total
7,760
782
8,542
5,185
873
6,058
Net book value
$
– $
– $
– $
2,484 $
2,484
Annual 2020 Consolidated Financial Statements
119
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
17. Goodwill
Cost
Balance, beginning of period
Acquisition (note 7)
Balance, end of period
Accumulated impairment
Balance, beginning of period
Balance, end of period
Net book value
$
2020
30,540
16,665
47,205
14,151
14,151
2019
$
30,540
–
30,540
14,151
14,151
$
33,054
$
16,389
At December 31, 2020 and 2019, the Company conducted an impairment test of its goodwill. The carrying
value of goodwill at December 31, 2020 and 2019 was determined to not be impaired as the recoverable
amount of the Company’s CGUs exceeded their carrying values.
The Company allocated the carrying value of goodwill to the following CGUs:
Goodwill
Rideau CGU
Nason CGU
Stuart Olson CGU (note 7)
2020
9,294
7,095
16,665
$
2019
9,294
7,095
–
33,054
$
16,389
$
$
Key assumptions and sensitivity analysis
The recoverable amount of the CGUs was determined based on a value-in-use calculation using cash flow
projections from financial forecasts approved by senior management covering a three-year period. A three-
year period for the discounted cash flow analysis was used since financial projections beyond a three-year
time period are generally best represented by a terminal value. This period is appropriate given the timing of
the project backlog and the predictability of CGU cash flows. Cash flows from growth opportunities are
probability-weighted and relate to initiatives management expects to progress on in the medium to long-term
time frame. These cash flows require assumptions to be made regarding the likelihood of projects progressing
and the future economics of those projects.
There is a significant amount of uncertainty with respect to the estimates of the recoverable amounts of the
CGUs’ assets given the necessity of making key economic assumptions about the future. Significant
assumptions used in the calculation of value-in-use were the level of new awards, the construction gross
margin percentage, the level of operating and capital costs, the discount rate and the terminal value growth
rate. Budgeted net income was based on expectation of future outcomes considering past experience, the
Company’s annual business plan and the Company’s strategic plan adjusted for a number of weighted
probabilities based on current economic conditions. Cash flows for the remaining periods were extrapolated
using a growth rate of 2.5%. An after-tax discount rate of 15.0%, which is based on a market-based cost of
capital, was applied in determining the recoverable amounts. The same discount rate has been used in each
of the CGUs, given the similarity in the business and the fact that business-specific risks were adjusted for in
the forecasted cash flows. In addition, entity-specific risks were separately factored into each CGU forecast.
They take into consideration market rates of return, capital structure, company size, industry risk and the after-
tax cost of debt and equity.
120
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
A sensitivity analysis of significant estimates is conducted as part of the Company’s impairment testing. A 1%
change in the discount rate and a 0.5% change in the growth rate did not materially change the recoverable
amount of the CGUS’s, which continue to remain in excess of their carrying values.
18. Loans and borrowings and right-of-use liabilities
Loans and borrowings
Maturity
Interest rate
Committed revolving facility
Committed revolving term loan facility
Committed revolving credit facility
Committed non-revolving term loan facility
fully repaid
fully repaid
Dec 7, 2023
Dec 7, 2023
Variable $
Variable
Variable
Variable
Equipment financing
Note payable (note 7)
Current portion
Non-current portion
2020 – 2024 Fixed 2.04%-3.73%
Variable
$
$
$
$
2020
–
–
25,000
35,000
12,315
598
72,913 $
8,010 $
2019
15,000
10,000
–
–
15,621
–
40,621
5,883
64,903 $
34,738
Syndicated credit facility
During the fourth quarter of 2020, the Company entered into a three-year, $200,000 committed, syndicated
credit facility (the “Syndicated facility”) consisting of the following:
Committed revolving credit facility
As part of the Syndicated facility, the Company replaced its previous committed revolving operating credit
facility of $85,000 at December 31, 2019, which was increased to $100,000 during the third quarter of 2020,
with a $165,000 committed revolving credit facility. The $165,000 committed revolving credit facility matures
December 7, 2023. As part of the agreement, the Company provided a general secured interest in the assets
of the Company. At December 31, 2020, the Company has $22,702 letters of credit outstanding on the facility
and has drawn $25,000 on the facility. The full amount is recorded as non-current, as the facility is due and
payable December 7, 2023. Borrowings under the facility bear interest at a rate per annum equal to the
Canadian prime rate plus a spread. A standby fee is payable quarterly on the unutilized portion of the facility.
Draws of $25,000 (December 31, 2019 - $15,000) on the previous committed revolving operating credit
facility were repaid in full in 2020.
Committed non-revolving term debt facility
As part of the Syndicated facility, the Company replaced its previous $35,000 committed, term debt revolving
facility with a committed non-revolving term loan facility totalling $35,000. As of December 31, 2020, the
Company has drawn $35,000 to finance the acquisition of Stuart Olson (note 7). The loan has scheduled
repayments due quarterly until the maturity date of September 24, 2028. Any repayment of the facility cannot
be reborrowed. Borrowings under the facility bear interest at a rate per annum equal to the Canadian prime
rate plus a spread. Draws of $26,250 (December 31, 2019 - $10,000) on the previous committed revolving
term loan facility were repaid in full in 2020.
Accordion
The Company has an accordion of up to an additional $50,000 to increase the limit of the committed revolving
credit facility and the committed non-revolving term debt facility. The aggregate increases to the committed
revolving credit facility and committed non-revolving term debt facility combined may not exceed $50,000.
Annual 2020 Consolidated Financial Statements
121
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
The Company was in full compliance with its covenants under each facility as at December 31, 2020 and 2019.
Equipment financing
The Company has committed term credit facilities of up to $40,000 to be used to finance equipment purchases.
At December 31, 2020, $9,248 is outstanding, of which $572 is classified as ROU liabilities (December 31,
2019 - $12,397 is outstanding, of which $2,722 is classified as ROU liabilities). Borrowings under the facilities
are secured by a first charge against the equipment financed using the facilities. Interest on the facilities is
charged at a fixed rate based on the Bank of Canada bond rate plus a spread. Interest is paid monthly in arrears.
The Company also has multiple, fixed interest rate, term loans which were used to finance equipment
purchases. At December 31, 2020, the balance outstanding on these term loans amounted to $3,639
(December 31, 2019 - $5,946). Principal and interest are payable monthly, and these term loans are secured
by specific equipment of the Company.
Letters of credit facilities
The Company has authorized operating letters of credit facilities totalling $125,000. At December 31, 2020 the
facilities were drawn for outstanding letters of credit of $44,490 (December 31, 2019 - $6,559). All letters of
credit issued under these facilities are supported by the pledge of Company-owned financial instruments,
including cash, or through a guarantee from EDC.
The Company has an agreement with Export Development Canada (“EDC”) to provide performance security
guarantees of up to $75,000 for letters of credit issued by financial institutions on behalf of the Company. The
Company uses this facility when letters of credit have been issued as contract security for projects that meet
the EDC criteria. At December 31, 2020 EDC has issued performance security guarantees totalling $44,353
(December 31, 2019 - $6,421).
The letters of credit represent performance guarantees primarily issued in connection with design-build
construction contracts related to PPP and other major construction projects. These letters of credit are
supported through the hypothecation of certain financial instruments having a market value at December 31,
2020 of $139 (December 31, 2019 - $139).
The following table provides details of the changes in the Company’s Loans and Borrowings during the year
ended December 31, 2020:
Revolving
Credit
Facility
15,000
10,000
–
(25,000)
–
$
$
Syndicated
Revolving
Credit
Facility
–
25,000
–
–
25,000
$
$
Committed
Revolving
Term Loan
Facility
10,000
16,250
–
(26,250)
–
$
$
Syndicated
Committed
Non-
Revolving
Term Loan
Facility
Note
Payable
Equipment
financing
–
35,000
–
–
35,000
$
$
–
–
667
(69)
598
$
$
15,621
2,033
–
(5,339)
12,315
$
$
Total
40,621
88,283
667
(56,658)
72,913
Balance, December 31, 2019
Proceeds
Acquisition (note 7)
Repayment
Balance, December 31, 2020
$
$
122
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
ROU liabilities
The Company’s lease contracts are effective for periods of one to fifteen years but may have extension options.
The following table provides details of the changes in the Company’s ROU liabilities during the period ended
December 31, 2020:
Balance, beginning of period
Acquisition (note 7)
Additions
Interest
Lease terminations
Repayment
Balance, end of period
Current portion
Non-current
$
$
$
$
2020
31,100
46,887
12,277
1,262
(79)
(13,372)
78,075
18,748
59,327
$
$
$
$
2019
27,029
–
10,783
903
–
(7,615)
31,100
8,025
23,075
Potential undiscounted cash outflows of $50,636 have not been included in the measurement of the Company’s
ROU liabilities as at December 31, 2020 because it is not reasonably certain that particular leases will be
extended. Included in the statement of income were expenses related to short-term leases and leases of low-
value assets amounting to $5,697 for the year ended December 31, 2020 (2019 - $6,943). Total cash outflows
for leases for the year ended December 31, 2020 were $19,069 (2019 - $14,558).
Subsidiaries of the Company have established operating lease lines of credit of $31,800 with the financing arms
of major heavy equipment suppliers to finance equipment leases. Draws under these facilities are generally
recognized as right of use liabilities, with the lease obligations being secured by the specific leased equipment
(note 15). At December 31, 2020, the subsidiaries had used $10,008 (December 31, 2019 - $11,653) under
these facilities.
19. Income taxes
Provision for income taxes
Income tax expense (recovery) comprised of:
Current income taxes
Deferred income taxes
Income tax rate reconciliation
Combined federal and provincial income tax rate
Increase (reductions) applicable to:
Effect of different tax rate on equity investments
Non-taxable items
Other
Effective rate
$
$
2020
18,382 $
(5,165)
13,217 $
2020
26.6%
(1.5%)
0.4%
1.3%
26.8%
2019
(4,194)
6,669
2,475
2019
27.5%
(10.4%)
1.0%
2.6%
20.7%
The Company's statutory tax rate is the combined federal and provincial tax rates in the jurisdictions in which
the Company operates. The year-over-year decline in the statutory rate reflects the decline in the Alberta
corporate income tax rate in 2020.
Annual 2020 Consolidated Financial Statements
123
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Composition of deferred income tax assets and liabilities
Provisions and accruals
Pension and other compensation
Timing of recognition of construction profits
Property and equipment
Right of use assets and liabilities and lease receivables
Intangible assets
Investment in equity accounted entities
Other
Tax loss carry forward
Presentation in the statement of financial position
Deferred income tax asset
Deferred income tax liability
$
$
2020
4,187 $
4,544
(17,748)
(4,305)
3,464
(5,792)
(911)
(2,191)
28,049
9,297 $
2019
2,559
2,245
(35,745)
(3,854)
620
(203)
(2,715)
195
34,317
(2,581)
32,253
(22,956)
$
9,297 $
11,287
(13,868)
(2,581)
The Company has deferred tax assets in the amount of $945 that have not been recognized in these financial
statements in respect of capital losses realized on the disposal of bonds and preferred share investments in
2011, 2013 and 2015. A deferred tax asset has not been recognized because it is not probable the Company
will generate future taxable capital gains.
Included in the tax loss carry forward balance in 2019 is $21,768 related to an alternative finance project, which
was off-set by a deferred tax liability of $21,793 included in timing of recognition of construction profits, and a
deferred tax asset of $179 included in provisions and accruals. In 2020 this project achieved substantial
completion and the tax loss carry forward balance was utilized to off-set the tax liability.
2020
Balance
December 31,
2019
Recognized
in profit or
loss
Recovery in
Other
Comprehensive
Income
Disposition
of equity
investment
(note 13)
Acquisition
(note 7)
Balance
December 31,
2020
Provisions and accruals
Pension and other compensation
Timing of recognition of construction
profits
Property and equipment
ROU assets and liabilities
Intangible assets
Investments in equity accounted
entities
Other
Tax loss carry forward
$
$
2,559
2,245
$
(35,745)
(3,854)
620
(203)
(2,715)
195
34,317
(2,581)
$
1,175
1,436
22,060
(562)
(117)
653
2,982
(826)
(21,636)
5,165
–
(371)
–
–
–
–
–
–
–
(371)
–
–
–
–
–
–
(1,178)
–
–
(1,178)
2019
453
1,234
$
(4,063)
111
2,961
(6,242)
–
(1,560)
15,368
8,262
$
4,187
4,544
(17,748)
(4,305)
3,464
(5,792)
(911)
(2,191)
28,049
9,297
Provisions and accruals
Other compensation
Timing of recognition of construction profits
Property and equipment
Right of use assets and liabilities
Intangible assets
Investments in equity accounted entities
Other
Tax loss carry forward
Balance
December 31,
2018
2,306
1,175
(9,028)
(1,083)
(736)
(321)
(3,293)
701
13,833
3,554
$
$
$
$
Recognized
$
in profit or loss
253
1,070
(26,717)
(2,771)
822
118
578
(506)
20,484
(6,669) $
Adoption of
IFRS 16
–
$
–
–
534
–
–
–
–
534
$
Balance
December 31,
2019
2,559
2,245
(35,745)
(3,854)
620
(203)
(2,715)
195
34,317
(2,581)
124
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
20. Provisions
Balance, December 31, 2019
Acquisition (note 7)
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Balance, December 31, 2020
Balance, December 31, 2018
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Balance, December 31, 2019
Warranty
claims and
other
$
5,218 $
9,076
22,578
(16,761)
(7,400)
12,711 $
$
$
6,666 $
20,588
(20,416)
(1,620)
5,218 $
$
Legal
Total
2,545 $
5,406
6,903
(986)
(3,160)
10,708 $
$
1,927
1,365
(549)
(198)
2,545 $
7,763
14,482
29,481
(17,747)
(10,560)
23,419
8,593
21,953
(20,965)
(1,818)
7,763
Various claims and litigation arise in the normal course of the construction business. It is management’s opinion
that adequate provision has been made for any potential settlements relating to such matters and that they will
not materially affect the financial position or future operations of the Company.
21. Other liabilities
Liabilities for cash-settled share-based compensation plans
(note 23)
Leasehold inducements
TRS derivatives (note 12)
Interest rate swaps
Less: current portion
Cash-settled share-based compensation plans (note 23)
Leasehold inducements
TRS derivatives (note 12)
Interest rate swaps
Current portion
Non-current portion
$
$
$
$
2020
13,929 $
1,808
–
51
15,788 $
1,795
164
–
51
2,010 $
13,778 $
2019
8,443
1,964
271
58
10,736
1,762
261
175
7
2,205
8,531
As at December 31, 2020, the Company recognized an asset on the TRS derivatives which are recorded in
other assets on the statement of financial position (note 12).
22. Pension obligations
The following pension obligations were acquired on the acquisition of Stuart Olson (note 7):
DC Pension Plans
The total expense recognized in the statement of income during the year ended December 31, 2020 of $154
represents contributions to these plans by the Company at rates specified in the rules of the plans.
Annual 2020 Consolidated Financial Statements
125
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
DB Pension Plans
The Company maintains two non-contributory DB provisions that cover salaried employees for two of the
operating entities. Annual employer contributions to the DB provisions, determined by an independent actuary,
meet minimum amounts required by provincial pension supervisory authorities. The benefits provided by the
DB provisions of the pension plans are based on years of service and final average earnings of the employees
who are members of the plans.
Future benefits
Wholly or partially funded defined benefit obligation
Fair value of plan assets
Recognized liability for defined benefit obligations
Fair market value of plan assets
Equity securities
Debt securities
Cash and cash equivalents
Reconciliation of amounts in the financial statements
Accrued benefit obligation
Balance, at acquisition (note 7)
Employer current service cost
Interest cost on the defined benefit obligation
Benefit payments
Actuarial loss due to changes in financial assumptions
Balance, end of period
Fair value of plan assets
Balance, at acquisition (note 7)
Employer contributions
Interest income on plan assets
Actuarial gain on plan assets, excluding interest income
Benefit payments
Administration costs
Balance, end of period
Net pension liability
Funded status - deficit
$
$
$
$
$
$
$
$
$
$
2020
39,912
36,312
3,600
2020
23,188
12,916
208
36,312
2020
39,065
64
291
(469)
961
39,912
2020
34,042
144
269
2,501
(469)
(175)
36,312
2020
3,600
3,600
During the period ended December 31, 2020, $228 was recorded in general and administrative expenses in
the statement of income, and a gain of $1,540 before tax, was recorded in other comprehensive income, relating
to the DB plans. The gain relates to investment earnings being greater than the expected interest income on
the plans' assets, and is partially offset by a loss due to changes in financial assumptions, specifically a
decrease in the assumed discount rate from September 30, 2020 to December 31, 2020.
126
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Actuarial assumptions
Discount rate on net benefit obligations
Rate of compensation increase
Inflation rate
2020
2.5%
3.0%
2.0%
The discount rate used to establish the pension obligation is based on AA-rated Canadian corporate bond yields
at the measurement date. A change of 100 basis points in the discount rate at the reporting date would have
increased or decreased the accrued benefit obligation by $5,659.
23. Share-based compensation plans
Medium term incentive plan (“MTIP”), Equity incentive plan (“EIP”) and Deferred share unit (“DSU”)
plan
The terms of the Company’s MTIP, EIP and DSU plan are described in note 4.
MTIP liability
EIP liability
DSU liability
Liabilities for cash-settled share-based
compensation plans
Less: current portion
MTIP liability
EIP liability
Current portion
Non-current portion
Balance, beginning of the period
Granted
Vested and paid
Granted – notional dividends
Change in fair value and forfeitures
Balance, end of the period *
Less: current portion
Non-current portion
$
$
$
$
$
$
$
2020
2,865
5,618
5,446
13,929
491
1,304
1,795
12,134
2020
4,994
1,849
(1,486)
182
2,944
8,483
1,795
6,688
$
$
$
$
MTIP & EIP
$
$
$
2019
1,069
3,925
3,449
8,443
257
1,505
1,762
6,681
2019
2,562
2,011
(1,295)
116
1,600
4,994
1,762
3,232
* Includes the effects of the performance multiplier on PSUs of $3,102 (December 31, 2019 - $1,718).
During the year ended December 31, 2020 the Company granted 664,821 units, 499,398 units, and 198,314
units under the MTIP, EIP and DSU plans respectively (2019 - 163,143 units, 582,226 units, and 185,867
units under the MTIP, EIP and DSU plans respectively).
Annual 2020 Consolidated Financial Statements
127
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
As at December 31, 2020, a total of 2,212,754 unvested phantom units of the MTIP and EIP (December 31,
2019 – 1,482,683) are outstanding and valued at $19,718 (December 31, 2019 - $11,057) of which $8,483
has been recognized to date in the statement of income (December 31, 2019 - $4,994).
As at December 31, 2020, a total of 680,718 DSU phantom units (December 31, 2019 – 482,404) were
outstanding and valued at $5,446 (December 31, 2019 - $3,449).
Compensation expense accrued for PSUs issued under the Company’s EIP is dependent on an adjustment to
the final number of PSUs that will vest based on a performance multiplier that is estimated by management
and approved by the Board of Directors. The performance multiplier applicable to the PSUs is determined
based on relative total shareholder return (“TSR”) and based on the achievement of earnings before income
tax compared to the Company’s business plan. The performance multiplier for achievement of TSR is based
on a comparison against TSR achieved in the performance period by comparative companies. The range of
the performance multiplier for the TSR and the achievement of earnings before income tax is between zero to
a maximum of 2, if the Company performs within the highest range of its performance targets. RSU awards
are set at a specific number of shares which are time-vested with no performance multiplier.
The Company entered into TRS derivative contracts for the purpose of managing its exposure to changes in
the fair value of its MTIP, EIP and DSU share-based compensation plans, due to changes in the fair value of
the Company’s common shares. The Company recognized a gain on these derivatives in the statement of
income in general and administrative expenses for the year ended December 31, 2020 of $1,875 (2019 -
$1,947 gain).
Stock option plan
The Company has a Stock Option Plan that provides all option holders the right to receive common shares in
exchange for the options exercised. The Board of Directors selects eligible employees to be granted options,
the number of options granted, the exercise price, the term of the option and the vesting periods. The number
of common shares issuable under the Stock Option Plan shall not exceed 10% of the number of common
shares outstanding. With the approval of the Equity Incentive Plan in May 2017, the Board of Directors has
resolved to suspend the stock option plan.
Outstanding at December 31, 2018
Expired during the year
Outstanding at December 31, 2019
Forfeited during the year
Outstanding at December 31, 2020
Number of
stock options
outstanding
490,000
(390,000)
100,000
(100,000)
–
$
$
Weighted
average
exercise price
13.55
13.98
11.87
11.87
–
There was $nil share-based compensation expense related to the stock options recognized during the year
ended December 31, 2020 (2019 – $nil).
128
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
24. Shareholders’ capital
The Company is authorized to issue an unlimited number of common shares. The Company is authorized to
issue preference shares in series with rights set by the Board of Directors, up to a balance not to exceed 35%
of the outstanding common shares. As at December 31, 2020 and 2019, no preferred shares have been
issued. Transaction costs of $124 directly attributable to the issuance of common shares are recognized as a
deduction from shareholders’ capital.
2020
Number of
shares
42,516,853 $
10,522,076
53,038,929 $
Amount
42,527
65,537
108,064
2019
Number of
shares
42,516,853 $
–
42,516,853 $
Balance, beginning of period
Common shares issued (note 7)
Balance, end of period
25. Earnings per share
Net income (basic and diluted)
$
36,103
$
2020
Amount
42,527
–
42,527
2019
9,484
Weighted average number of common shares
(basic and diluted)
45,334,239
42,516,853
Basic and diluted earnings per share
$
0.80
$
0.22
For the year ended December 31, 2020, nil options (2019 - 100,000 options) were excluded from the diluted
weighted average number of common shares calculation, as their effect would have been anti-dilutive.
26. Finance income
Interest income on lease receivables
Other interest income
27. Finance and other costs
Interest on loans and borrowings
Interest on ROU liabilities
(Gain) loss on interest rate swaps (note 11 and note 21)
Interest on non-recourse project financing (note 11)
Other
Annual 2020 Consolidated Financial Statements
$
$
$
$
2020
51 $
1,460
1,511 $
2020
2,989 $
1,262
(683)
3,522
416
7,506 $
2019
–
2,596
2,596
2019
2,331
903
67
1,995
262
5,558
129
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
28. Personnel costs
Short-term employee benefits
Defined benefit and defined contribution plan expense (note 22)
Deferred compensation
$
$
2020
330,580
322
6,971
337,873
$
$
2019
233,634
–
5,354
238,988
For the year ended December 31, 2020, personnel costs of $291,433 were included in costs of construction
(2019 – $202,450) and $46,440 in general and administrative expenses (2019 – $36,538). Short-term employee
benefits consist primarily of salaries and bonuses, as well as employee share purchase plan (“ESPP”) expense
and employee registered retirement savings plan (“RRSP”) matching contributions. Deferred compensation
consists of share-based compensation expenses.
29. Government assistance
On April 11, 2020, the Government of Canada passed the CEWS to support employers facing financial hardship
as measured by certain revenue declines as a result of the COVID-19 pandemic. Certain entities of the
Company qualified for CEWS in the March to December 2020 qualification periods. During the year ended
December 31, 2020, the Company recognized a recovery of compensation expense in costs of construction of
$21,196 and general and administrative expenses of $3,590. As at December 31, 2020, the Company
recognized an amount receivable related to CEWS of $25,847 included in accounts receivable in the statement
of financial position. Included in the amount receivable is an amount of $9,995 from the acquisition of Stuart
Olson, net of acquisition adjustments of $144. The Government of Canada announced they will extend CEWS
until at least June 2021 and the Company will continue to monitor its eligibility under the program.
30. Other cash flow information
Changes in non-cash working capital relating to operating activities
Accounts receivable
Contract assets
Contract assets – alternative finance projects*
Inventory and prepaid expenses
Other assets
Accounts payable
Contract liabilities
Provisions
EIP and other
$
$
2020
153,398
4,521
75,067
(1,260)
5,971
(119,903)
(48,388)
1,173
(1,486)
69,093
$
$
2019
(75,911)
(2,606)
(68,054)
(262)
(5,240)
36,563
52,123
(830)
(2,052)
(66,269)
* Contract assets – alternative finance project changes are driven by design-build-finance projects. Refer to note 11
for loan proceeds to fund contract assets – alternative finance projects.
130
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
Change in liabilities arising from financing activities
Dividend
payable
Non-
recourse
project
financing
Loans and
borrowings
ROU
liabilities
Balance, December 31, 2019
Acquisition (note 7)
$
1,382 $
–
85,374 $
–
40,621 $
667
31,100 $
46,887
Total
158,477
47,554
Cash flows
Proceeds
Repayments
Dividends paid on shares
Non-cash changes
Net additions to ROU liabilities
Transaction costs, net of amortization
Change in fair value of interest rate
swaps
Interest accretion
Dividends declared
–
–
(17,607)
–
–
–
–
17,949
46,782
(131,849)
–
88,283
(56,658)
–
–
(13,372)
–
135,065
(201,879)
(17,607)
–
369
(676)
–
–
–
–
–
–
–
12,198
–
–
1,262
–
12,198
369
(676)
1,262
17,949
Balance, December 31, 2020
$
1,724
$
– $
72,913
$
78,075 $
152,712
Dividend
payable
Non-
recourse
project
financing
Loans and
borrowings
ROU
liabilities
Balance, December 31, 2018
$
1,382 $
11,824 $
21,198 $
27,029 $
Cash flows
Proceeds
Repayments
Dividends paid on shares
Non-cash changes
Net additions to ROU liabilities
Transaction costs, net of amortization
Change in fair value of interest rate
swaps
Interest accretion
Dividends declared
–
–
(16,582)
–
–
–
–
16,582
72,832
–
–
–
655
63
–
–
24,536
(5,113)
–
–
–
–
–
–
–
(7,615)
–
10,783
–
–
903
–
Total
61,433
97,368
(12,728)
(16,582)
10,783
655
63
903
16,582
Balance, December 31, 2019
$
1,382
$
85,374 $
40,621
$
31,100 $
158,477
31. Financial instruments
Fair values
Determination of fair value and the resulting hierarchy requires the use of observable market data whenever
available. The classification of a financial instrument in the hierarchy is based upon the lowest level of input
that is significant to the measurement of fair value.
The hierarchy of inputs is summarized below:
i. Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
ii. Level 2 - inputs other than quoted prices included in level 1 that are observable for the asset or liability,
either directly or indirectly; and
iii. Level 3 - inputs used in a valuation technique are not based on observable market data in determining fair
values of the instruments.
Annual 2020 Consolidated Financial Statements
131
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
The Company’s non-recourse project financing interest rate swaps (note 11), interest rate swaps and total
return swap derivative contracts (note 12 and note 21) are classified as Level 2 measurements in the fair value
hierarchy. The Company does not have any financial instruments classified as Level 3 that are carried at fair
value. There were no transfers between levels in the fair value hierarchy during the years ended December 31,
2020 and 2019.
The fair value of the Company’s loans and borrowings approximate their carrying values on a discounted cash
flow basis as the majority of these obligations bear interest at market rates. The fair values of the remaining
financial instruments approximate their carrying value due to their relatively short periods to maturity.
Financial Risk Management
In the normal course of business, the Company is exposed to several risks related to financial instruments that
can affect its operating performance. These risks and the actions taken to manage them are as follows:
i. Credit Risk
Credit risk relates to the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet their contractual obligation.
With respect to accounts receivable, concentration of credit risk is limited due to the geographic dispersion of
revenues and a diversified customer base. Before entering into any construction contract and during the
course of the construction project, the Company goes to considerable lengths to satisfy itself that the customer
has adequate resources to fulfil its contractual payment obligations as construction work is completed. If a
customer was unable or unwilling to pay the amount owing, the Company will generally have a right to register
a lien against the project that will normally provide some security that the amount owed would be realized.
A significant customer is one that represents 10% or more of contract revenue earned during the year. For
the year ended December 31, 2020, the Company had revenue of $206,255 from one significant customer
(2019 - $188,070).
Short-term deposits and short-term investments are subject to minimal credit risk as they are placed with only
major Canadian financial institutions. As is reasonably practical, these investments are placed with several
different Canadian financial institutions, thereby reducing the Company’s exposure to a default by any one
financial institution.
At December 31, 2020, accounts receivable outstanding for greater than 90 days and considered past due
by the Company’s management represent 17.2% (December 31, 2019 – 17.1%) of the balance of progress
billings on construction contracts receivable. Management has recorded an allowance of $1,471 (December
31, 2019 - $1,538) against these past due receivables, net of amounts recoverable from others.
Up to 12
months
Over 12
months
Trade receivables
Impairment
Total Trade receivables
$
$
30,223 $
28,517 $
(8)
30,215 $
(1,463)
27,054
$
2020
58,740 $
(1,471)
57,269 $
2019
47,174
(1,538)
45,636
Amounts past due
132
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
The movement in the allowance for impairment in respect of loans and receivables during the period was as
follows:
Balance, beginning of period
Impairment loss recognized
Amounts written off as uncollectible
Amounts recovered
Balance, end of period
ii. Liquidity risk
$
$
2020
1,538 $
747
(814)
–
1,471 $
2019
1,271
313
–
(46)
1,538
Liquidity risk relates to the risk that the Company will not be able to meet its financial obligations as they
become due. The Company manages this risk through management of its capital structure, monitoring and
reviewing actual and forecasted cash flows and the effect on bank covenants, and maintaining unused
credit facilities where possible to ensure there are available cash resources to meet the Company’s liquidity
needs. In managing liquidity risk, the Company has access to committed short and long-term debt facilities
as well as equity markets, the availability of which is dependent on market conditions.
The Company has working capital of $135,514 which is available to support surety requirements related to
construction projects. As a component of working capital, the Company maintains significant balances of
cash and cash equivalents and investments in liquid securities. These investments, less $139 hypothecated
to support outstanding letters of credit and $55,058 held in restricted accounts, are available to meet the
financial obligations of the Company as they become due. Refer to note 18 in respect of the Syndicated
facility entered into in the fourth quarter of 2020 and the Company’s other debt instruments, which further
improves the Company’s access to liquidity. As at December 31, 2020, the Company had a total undrawn
balance on its Syndicated facility of $167,298 (December 31, 2019 - $81,496 undrawn on its revolving credit
facility and committed revolving term loan facility). The Company also has committed term credit facilities
of up to $40,000 to be used to finance equipment purchases of which $30,752 is undrawn as at December
31, 2020 (December 31, 2019 - $22,603). The Company believes that it has access to sufficient funding
through the use of these facilities and its cash and cash equivalents to meet its foreseeable operating
requirements.
The following are the contractual obligations, including estimated interest payments, as at December 31,
2020, in respect of the financial obligations of the Company. Interest payments on the committed revolving
credit facility, committed non-revolving term loan facility and note payable are not included in the table
below since they are subject to variability based upon outstanding balances at various points throughout
the period.
Trade payables
Dividends payable
ROU liabilities
Committed revolving credit
facility
Committed non-revolving term
loan
Equipment financing
Note payable
Carrying
amount
Contractual
cash flows
Not later
than 1
year
2 – 3
years
4 – 5
years
$
490,470 $
490,470 $ 479,189 $
11,281 $
Later
than 5
years
–
–
– $
–
1,724
78,075
1,724
87,881
1,724
20,646
–
32,762
18,860
15,613
25,000
25,000
–
25,000
–
–
35,000
12,315
598
35,000
12,807
598
1,750
5,973
598
8,750
6,066
–
9,800
14,700
768
–
–
–
$
643,182 $
653,480 $ 509,880 $
83,859 $
29,428 $ 30,313
Annual 2020 Consolidated Financial Statements
133
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
As disclosed in notes 4 and 23, payments required pursuant to the Company’s MTIP granted in 2018 and
2019 are due on the vesting dates of November 2021 and November 2022 respectively, or upon retirement,
if earlier. Pursuant to the Company’s MTIP granted in 2020, payments are due on the vesting dates between
December 2022 and November 2023 respectively, or upon retirement, if earlier. Payments pursuant to the
Company's EIP granted in 2018, 2019 and 2020 are due by December 2021, December 2022 and
December 2023, respectively. Payments pursuant to the Company's DSU Plan are cash settled when the
eligible Director ceases to hold any position within the Company.
iii. Market risk
Market risk is the risk that changes in market prices, such as interest rates, equity prices and corporate
bond yields, will affect the Company’s income or the value of its holdings in liquid securities. The discount
rate used to establish the pension obligation was determined by reference to market interest rates on AA-
rated corporate bonds with cash flows that approximate the timing and amount of expected benefit
payments.
At December 31, 2020, the interest rate profile of the Company's loans and borrowings and non-recourse
project financing was as follows:
Fixed-rate facilities
Variable-rate facilities
Non-recourse project financing facilities
Total loans and borrowings and non-recourse project financing
$
$
2020
12,315 $
60,598
–
72,913 $
2019
15,621
25,000
85,067
125,688
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company is exposed to interest rate risk to the extent
that its credit facilities and TRS derivatives are based on variable rates of interest. Interest rate risk is
managed through the use of interest rate swaps.
For the year ended December 31, 2020, a one percent change in the interest rate applied to the Company's
variable rate long-term debt would change annual income before income taxes by approximately $606
(2019 – $250).
The Company has certain share-based compensation plans, whereby the values are based on the common
share price of the Company. The Company has fixed a portion of the settlement costs of these plans by
entering into various TRS derivatives maturing between 2021 and 2022. The TRS derivatives are not
designated as a hedge. The change in the value of the TRS derivatives is recorded each quarter based on
the difference between the fixed price and the market price of the Company’s common shares at the end
of each quarter. The TRS derivatives are classified as derivative financial instruments. For the year ended
December 31, 2020, a 10 percent change in the share price applied to the Company's TRS derivatives
would change income before income taxes by approximately $1,175 (2019 – $987).
iv.
Currency risk
Currency risk is the risk that fluctuations in currency exchange rates will affect the Company’s net income.
The Company uses foreign currency to settle payments to vendors and subcontractors in the foreign
currency. For the year ended December 31, 2020, a 10% movement in the Canadian and U.S. dollar
exchange rate would have changed income by approximately $210 (2019 – $141).
134
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
32. Capital management
The Company’s capital management objectives are to:
i. Ensure that the Company has the financial capacity to support its current and anticipated volume and mix
of business and to manage unforeseen operational and industry developments.
ii. Ensure that the Company has sufficient financial capacity to support the execution of its longer-term growth
strategies.
iii. Provide its investors with the maximum long-term returns on equity and to generate sufficient cash flow to
sustain shareholder dividends and payments on long-term debt.
In the management of capital, the Company defines capital as shareholders’ equity and loans and borrowings.
Loans and borrowings include the current and non-current portions of long-term debt and finance leases.
The Company manages its capital within the investment policy approved by the Board of Directors. The
Company makes changes to capital based on changes in business conditions and the mix of construction
contracts. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
paid to Company shareholders, issue new debt or repay existing debt, issue new Company shares, and to a
lesser degree, may adjust capital expenditures.
As a component of working capital, the Company maintains significant balances of cash and cash equivalents.
These cash and cash equivalents are intended to cover net current liabilities, fund current dividends payable
to shareholders and provide capital to support surety and contract security requirements, including issuing
letters of credit relating to the current and near-term backlog of construction projects.
The amounts of shareholders’ equity, working capital and loans and borrowings at December 31, 2020 and
December 31, 2019 are as follows:
Shareholders’ equity
Working capital
Loans and borrowings
33. Commitments and contingencies
Commitments
$
$
$
2020
212,610
135,514
72,913
$
$
$
2019
127,720
80,503
40,621
Outstanding surety lien bonds issued on behalf of the Company in connection with liens by subcontractors and
suppliers at December 31, 2020 totalled $93,375 (December 31, 2019 - $56,606). The Company has acquired
minority equity interests in a number of PPP concession entities (note 13), which require the Company to make
$768 in future capital injections. These commitments have been secured by letters of credit totalling $1,918
(December 31, 2019 - $5,859).
Contingencies
The Company is contingently liable for the usual contractor’s obligations relating to performance and
completion of construction contracts. These include the Company’s contingent liability for the performance
obligations of its subcontractors. Where possible and appropriate, the Company obtains performance bonds,
subcontract/supplier insurance or alternative security from subcontractors. However, where this is not possible,
the Company is exposed to the risk that subcontractors will fail to meet their performance obligations. In that
eventuality, the Company would be obliged to complete the subcontractor’s contract, generally by engaging
another subcontractor, and the cost of completing the work could exceed the original subcontract price. The
Company makes appropriate provision in the financial statements for all known liabilities relating to
subcontractor defaults.
Annual 2020 Consolidated Financial Statements
135
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
34. Related party transactions
Balances and transactions between the Company and its subsidiaries, which are related parties, have been
eliminated on consolidation. Each of the related party transactions described below was made on terms
equivalent to those that prevail in arm’s length transactions unless otherwise noted.
Compensation of key management personnel represents the aggregate amounts paid and accrued to the
Company’s Named Executives and the Company’s Board of Directors.
Short-term benefits
Share-based compensation
$
$
2020
6,808 $
3,388
10,196 $
2019
4,375
4,126
8,501
A Director or related parties hold positions in other entities that result in them having control over the financial
reporting or operating policies of those entities. The aggregate value of transactions during the year with entities
over which Directors have control was $657 (2019 - $1,935) and the outstanding balance receivable at
December 31, 2020 was $nil (December 31, 2019 - $891).
Transactions with proportionally consolidated joint arrangements
The Company provides services of its employees, management services, cost reimbursements, parental
guarantees and letters of credit to the joint arrangements. These services were transferred at the exchange
amount, agreed to between the parties. The amounts recognized for services provided by the Company for the
year ended December 31, 2020 totalled $47,349 (2019 - $35,565).
The Company has accounts receivable from the joint arrangements at December 31, 2020 totalling $22,314
(December 31, 2019 - $4,154).
Transactions with equity accounted joint arrangements
The Company and its proportionately consolidated joint arrangements (note 3), provide development and
construction services to its concession investments in associates and joint ventures which are in the normal
course of business and on commercial terms. The Company’s proportionate share of the amounts billed for
construction services provided by these joint arrangements for the year ended December 31, 2020 totalled
$16,492 (2019 – $98,889), of which $28,257 has been recognized in revenue in 2020 (2019 - $109,574). The
Company’s proportionate share of payments made to the joint arrangements for the year ended December 31,
2020 totalled $11,849 (2019 - $6,827). These amounts are not eliminated as they are deemed to be realized
by the Company.
The Company and its proportionately consolidated joint arrangements have accounts receivable from these
concession investment entities. The Company’s proportionate share of accounts receivable at December 31,
2020 totalled $14,341 (December 31, 2019 - $39,867). The Company also has notes receivable from an equity
accounted joint arrangement at December 31, 2020 totalling $1,806 (December 31, 2019 - $8,069).
136
Annual 2020 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2020 and 2019
(in thousands of Canadian dollars, except per share amounts)
35. Subsequent event
Eligible dividends declared with a record date subsequent to the financial statement date
As of the date of the approval of these financial statements, the Board of Directors has declared eligible
dividends with a record date subsequent to the financial statement date for the following months:
Eligible dividends declared
January dividend
February dividend
March dividend
April dividend
Record date
January 29, 2021
February 26, 2021
March 31, 2021
April 30, 2021
Payment date
February 19, 2021
March 19, 2021
April 20, 2021
May 20,2021
Dividend per share
$0.0325
$0.0325
$0.0325
$0.0325
Annual 2020 Consolidated Financial Statements
137
Bird Construction Inc.
Five Year Summary
December 31, 2020
(in thousands of Canadian dollars, except Other Information)
OPERATING RESULTS
Revenue
Income before income taxes
Income taxes
Net income
Dividends declared to shareholders
Cash flows from operations before changes
in non-cash working capital
Notes:
2020
2019
2018
2017 (1)
2016 (2)
1,504,432
1,376,408
1,381,784
1,418,557
1,589,868
49,320
13,217
36,103
17,949
11,959
(2,674)
2,475
(1,661)
9,484
(1,013)
16,582
16,582
13,078
4,242
8,836
16,582
34,327
9,325
25,002(2)
32,297
71,696
30,201
12,320
26,938
48,449
$
$
$
$
$
(1) 2017 reported figures have been restated applying IFRS 15.
(2) Adjusting 2016 net income for the non-cash impairment charge, the Company's adjusted earnings was $27,741 (a non-GAAP measure).
FINANCIAL POSITION
Current assets
Current liabilities
Working capital
Property and equipment
Right-of-use assets
Shareholders’ equity
Notes:
2020
2019
2018(1)
2017(2)
2016(3)
$
$
$
$
$
820,136
684,622
135,514
59,435
61,511
212,610
729,358
648,855
80,503
46,016
34,460
546,553
476,338
70,215
43,153
13,073
607,979
523,901
84,078
52,397
n/a
729,799
614,527
115,272
45,517
n/a
127,720
136,229
153,816
161,543
(1) 2018 Property and equipment figures have been reclassified following the adoption of IFRS 16 on January 1, 2019.
(2) 2017 reported figures have been restated applying IFRS 15.
(3) 2016 reported figures have been restated on January 1, 2017 after the adoption of IFRS 15.
BACKLOG
$
2,682,498
1,547,427
1,295,940
1,186,000
1,137,000
2020
2019
2018
2017
2016
OTHER INFORMATION
Weighted average number of shares
outstanding
Return on revenue (1)
45,334,239
42,516,853
42,516,853
42,516,853
42,516,853
% 2.40
0.69
(0.07)
0.62
1.57
Return on prior year shareholders’ equity (2)
%
28.27
6.96
(0.66)
5.47
14.63
Net income per share
Book value per share
$ 0.80
0.22
(0.02)
0.21
0.59
$ 4.69
3.00
3.20
3.62
3.80
(1) Return on revenue is derived by dividing net income by construction revenue.
(2) Return on prior year shareholders' equity is derived by dividing current year net income by the prior year's shareholders' equity balance.
Eligible Dividends
Bird Construction Inc. designates any and all dividends paid or deemed for Canadian federal, provincial or territorial
income tax purposes to be paid on or after January 1, 2007 to be “eligible dividends”, unless indicated otherwise in
respect of dividends paid subsequent to this notification, and thereby notifies all recipients of such dividends of this
designation.
138
(cid:50)(cid:88)(cid:85)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:3)(cid:36)(cid:71)(cid:71)(cid:85)(cid:72)(cid:86)(cid:86)(cid:72)(cid:86)
Halifax
20 Duke Street,
Suite 201
Bedford, NS B4A 2Z5
T: 902.835.8205
St. John’s
90 O’Leary Avenue,
Suite 101
St. John’s, NL A1B 2C7
T: 709.726.9095
Saint John
120 Millenium Drive
Quispamsis, NB E2E 0C6
T: 506.849.2473
Wabush
2 Old Airport Road
Wabush, NL A0R 1B0
T: 709.282.5633
Montreal
1868 Boul. Des Sources,
Suite 200
Pointe-Claire, QC H9R 5R2
T: 514.426.1333
Ottawa
150 Isabella Street,
Suite 1200
Ottawa, ON K1S 1V7
(cid:13)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:50)(cid:3067)(cid:70)(cid:72)(cid:86)
Toronto *
5700 Explorer Drive,
Suite 400
Mississauga, ON L4W 0C6
T: 905.602.4122
Calgary *
600 - 4820 Richard Road SW
Calgary, AB T3E 6L1
T: 403.685.7777
Cambridge
500 Jamieson Pkwy #4
Cambridge, ON N3C 4N3
T: 226.566.9652
Edmonton
17007 - 107 Avenue NW
Edmonton, AB T5S 1G3
T: 780.452.8770
Sudbury
670 Falconbridge Road,
Unit 1
Sudbury, ON P3A 4S4
T: 705.222.4848
Thunder Bay
946 Cobalt Crescent,
Unit 1
Thunder Bay, ON P7B 5W3
T: 807.768.9753
Red Deer
102 - 8024 Edgar Industrial
Crescent
Red Deer, AB T4P 3R3
T: 403.342.1666
Fort McMurray
Bay 45, 925 Memorial Drive
Fort McMurray, AB T9K 0K4
T: 780.790.3424
Winnipeg
1055 Erin Street
Winnipeg, MB R3G 2X1
T: 204.775.7141
Vancouver
300 - 13777 Commerce Pkwy
Richmond, BC V6V 2X3
Tel: 604.273.7765
Saskatoon
306 Ontario Avenue
Saskatoon, SK S7K 2H5
T: 306.565.3120
(cid:55)(cid:75)(cid:76)(cid:86)(cid:3)(cid:69)(cid:82)(cid:82)(cid:78)(cid:79)(cid:72)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:70)(cid:92)(cid:70)(cid:79)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:83)(cid:72)(cid:85)(cid:17)
(cid:55)(cid:75)(cid:72)(cid:3)(cid:191)(cid:85)(cid:86)(cid:87)(cid:3)(cid:76)(cid:80)(cid:68)(cid:74)(cid:72)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:72)(cid:73)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:68)(cid:70)(cid:78)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:88)(cid:85)(cid:87)(cid:72)(cid:86)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:37)(cid:76)(cid:79)(cid:79)(cid:3)(cid:58)(cid:76)(cid:79)(cid:79)(cid:76)(cid:68)(cid:80)(cid:86)
Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6
Tel: (905) 602-4122
www.bird.ca
annual report 2020