2021 Annual Report
Major Industrial Site, BC
ANNUAL REPORT 2021
BIRD CONSTRUCTION INC.
CONTENTS
Letter to Shareholders
2021 Financial Highlights
Health and Safety
Year in Review
ESG in Action
Project Highlights and Milestones
Our Strategy for 2022-2024
Management’s Discussion & Analysis
Consolidated Financial Statements
Five Year Summary
1
4
5
7
9
14
26
27
70
128
1
LETTER TO SHAREHOLDERS
Over our 100 year history, Bird has evolved from humble beginnings in Moose Jaw,
Saskatchewan, to a nationally recognized and respected publicly-traded company
with over $2 billion in revenue, operations from coast-to-coast, and an exceptional
team of over 5,000 dedicated employees. More recently, we have positioned ourselves
to accelerate future growth through the acquisitions of Stuart Olson and Dagmar.
These acquisitions have strengthened our combined team, diversified our
geographical reach and capabilities, and afforded us the opportunity to
successfully pursue projects that were traditionally beyond Bird’s reach. This,
coupled with a continued focus on collaborative contracting methods and the
de-risking of our project portfolio, has resulted in the execution and delivery of
higher margin work.
Revenue
$2.2B
Throughout our evolution, Bird has remained rooted in a culture of prudence
and pragmatism that is driven by our dedicated employees. Our focus on world
-class safety and superior customer service, while maintaining a healthy balance
sheet, has resulted in a strong work program, and increased overall visibility to
future opportunities and improved margins. Bird’s 2021 results highlight the
combined strengths of the organization and the execution against our strategic
priorities, with record revenue and over $3 billion of Backlog at year-end.
Record Backlog
$3.0B
Putting safety first
Safety has always been our top priority. We are committed to work in
collaboration with all employees, trade contractors, clients, and suppliers to
achieve the healthy and safe work environment that every worker deserves
so that everyone goes home safe every day. This commitment was further
embedded during the COVID-19 pandemic, which continued to disrupt global
health and the economy in 2021. Bird’s robust approach to health and safety
measures mitigated major disruptions to the business. Our approach included
the introduction of a testing and vaccination policy that allowed our teams to
reduce the threat of COVID-19. The health and safety of our employees remains
paramount, which is why we believe that by working together, we can protect
those around us, and ensure a safe and healthy workplace.
Bird’s robust
approach to
health and safety
measures mitigated
major disruptions
to the business.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
2
Bird’s three-year
Strategic Plan
is built upon
three key pillars:
TEAM
PERFORM
DIVERSIFY
Creating value through diversification
The transformational acquisition of Stuart Olson in 2020 increased our geographic
footprint and service offering, and enhanced our extremely talented pool of
employees. We have since realized over $25 million in annualized cost synergies,
and expect to realize further cost savings as we continue our integration journey.
The acquisition of Dagmar in 2021 will provide additional opportunities for
growth, particularly within Ontario – Canada’s largest civil infrastructure market.
Dagmar’s extensive experience within the specialized civil infrastructure market,
specifically within the rail sector, expands Bird’s capabilities and relationships,
and will be a significant catalyst for long-term growth within this sector. These
acquisitions, combined with organic growth, cross-selling opportunities, and a
focus on collaborative contracting methods, will continue to drive growth and
generate value for our shareholders.
Embedding sustainability
Bird’s long-term Environmental, Social, and Governance (ESG) vision remains
rooted in our belief that the construction industry plays an important role
in providing sustainable, innovative, and lasting solutions not only for our
employees, clients, and partners, but also for the communities in which we live
and work. We strive to maximize our positive social and environmental impact,
such as through our Mass Timber Centre of Excellence, robust health and safety
programs, and respectful engagement with Indigenous communities. Our strong
corporate governance framework ensures accountability and stewardship across
all our operations. We look forward to sharing more about our ESG Program in
the 2021 Sustainability Overview, which will be released in May of this year.
Charting a course for future success
In September, Bird held its inaugural virtual Investor Day where we outlined
the Company’s 2022-2024 Strategic Plan, which is built upon three key pillars:
Team, Perform and Diversify. The plan focuses on the further development of
Bird’s team, strong project execution, and the geographic diversification of our
expanded service offerings. We believe that the achievement of our strategic
objectives in three years’ time will position Bird as a leader across our industry
with world-class safety, high employee engagement, and strong collaboration
across our teams and operating groups.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. 3
Executing excellence with strong teams
As we close out 2021 and look to the future, we are proud of the company that Bird is today. We have made tremendous
strides to build a solid foundation for the execution of our strategic priorities by leveraging our deep roots, maintaining a
measured and consistent approach, and capitalizing on a robust pipeline of opportunities that were not available to our
organization prior to the acquisitions of Stuart Olson and Dagmar. We believe the priorities Bird will execute over the near
to medium term will drive superior, risk-adjusted shareholder returns.
We expect Bird’s momentum to continue to build as we remain focused on our collaborative approach and continue to
deliver on our strategic priorities. With a strong balance sheet and record Backlog, as well as a favourable backdrop of
strong infrastructure spending and a positive commodity price environment, we are ideally situated to capitalize on the
significant growth opportunities ahead of us.
Thank you for your support as we continue our journey,
Paul R. Raboud
Chairman of the Board
Terrance L. McKibbon
President and CEO
Industrial
Maintenance
Modular
Power
Coast-to-Coast
Environmental
Buildings
Industrial
Agriculture
Utilites
Mass Timber
Natural Resources
Collaborative
Contracting
Transportation
Civil Infrastructure
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
2021 FINANCIAL HIGHLIGHTS
4
Revenue
$2.2B
Net Income
$43M
Record Backlog(1)
$3.0B
Pending Backlog(1)
$1.6B
Adjusted EBITDA(2)
Adjusted Earnings(2)
$108M
$51M
Diversifying Risk: Revenue by Contract Type
Higher risk
• Public Private Partnership
(PPP)
• Design-Build-Finance
• Complex Design-Build
• Stipulated Sum
• Unit Price
• Specified Design-Build
$135
$179
$102
$177
$806
$792
Lower risk
• Construction Management
• Integrated Project Delivery
• Cost-Plus
$261
$305
$29
$101
$943
$432
in $millions of Canadian dollars
$15
$59
$1
$21
$8
$17
$1,236
$336
$335
$910
$197
$237
• Increased diversification across services, end-markets and geographies; well-balanced portfolio of low-to-medium risk projects.
• Over 95% percent of 2021 revenue is considered low-to-medium risk and supports the company balanced revenue mix target.
• Focus on maintaining balance going forward.
2018A
2019A
2020A
2021A
2020 Q 4
2021 Q 4
Backlog and Pending Backlog
Backlog expected
to convert into
Revenue over the
next 12 months
Backlog
Pending Backlog
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
in $millions of Canadian dollars
in millions of Canadian dollars
1,625
1,788
1,636 1,685 1,648
1,300
750
600
625 625
575
500
300
225
2,590 2,682 2,627 2,709 2,828
3,003
1,249 1,244 1,347
1,186 1,297 1,240 1,235 1,296 1,283 1,380 1,441 1,547 1,427
1,645
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2017
2018
2019
2020
2021
(1) Adjusted EBITDA and Adjusted Earnings are non-GAAP financial measures. Refer to the Terminology and Non-GAAP & Other Financial Measures section of
Pending Backlog
Backlog
Management’s Discussion and Analysis.
(2) Refer to the Terminology and Non-GAAP & Other Financial Measures section of Management’s Discussion and Analysis.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
HEALTH AND SAFETY
COVID-19 Response
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. Adding to its repertoire of robust protocols,
the Company released a vaccination and testing policy to reduce
the threat of COVID-19.
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 is uncertain. The situation remains
extremely fluid; however, the Company responded well to the
challenges presented to date and is well-positioned to continue
reacting appropriately to fluctuating scenarios.
Throughout the pandemic, our employees
have remained dedicated to safely and
effectively delivering on project commitments.
Their ability to navigate through fluid situations
is both recognized and appreciated by the
Company, its executives, and Directors.
5
HEALTH
AND SAFETY
HIGHLIGHTS
2021 Canadian Safety
Achievement Awards
The Industrial Maintenance, Repair, and
Operations (MRO) team was awarded the
General Presidents’, Safety Excellence
Award, the William Warchow Safety
Leadership & Innovation Award, the
Tripartite Zero Injury Turnaround Award,
and the 365 Daily Maintenance Award.
General Presidents’
Safety Excellence Award:
Quartile 4 – 1,024,497 Injury Free
Craft Hours & 0.00 TRIR
William Warchow Safety
Leadership & Innovation Award:
COVID-19 Pandemic Program
Tripartite Zero Injury
Turnaround Award:
TA – 220,754 Injury Free Craft Hours
365 Daily Maintenance Award:
803,743 Injury Free Craft Hours
New Brunswick District
recognized at 2021
NBCSA Awards
The New Brunswick Construction Safety
Association awarded Bird’s local team with
the Best Practice Award for their ongoing
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
6
National Construction Safety Officer™
(NCSO™) of the Year
Industrial team member, Kayla Smith, was awarded the NCSO™
of the Year Award. This achievement recognizes individuals
who are dedicated to their careers in safety, and go beyond
managing projects and initiatives, partaking in extracurricular
activities such as training and volunteering. An NCSO™ is a
valuable resource for a company’s management, ensuring the
diligent implementation and administration of its health and
safety programs.
Safety Professional of the Year
Alex Webb of Bird’s New Brunswick district was awarded Safety
Professional of the Year from the New Brunswick Construction
Safety Association
to
Bird’s safety culture. Recognized as a leader on site, Alex
continuously strives to meet industry best practices and provide
a safe environment.
for his outstanding contributions
Pacesetter Award
The Industrial MRO team secured an Alberta Construction
Safety Award with Catherine Connauton being awarded the
Pacesetter Award. This award recognizes a safety professional
for outstanding service to their teams, and for their commitment
in their
and
communities.
in promoting health and safety
leadership
HEALTH & SAFETY continued
Highlights Continued
work with an electronic mobile safety
the
software, which has enhanced
documents,
accessibility
expediting records requests for auditors,
inspectors, and officers.
project
of
56%
Notably, since implementing the software,
the time required for corrective actions has
been lowered by 56%.
Distinguished Achievement
in Health and Safety
Bird’s
team
in Ontario
received
the
Distinguished Achievement in Health
and Safety from the Ontario General
Contractors Association for the second year
in a row for achieving a zero-injury frequency.
2021 Alberta Construction
Safety Association
Achievement Awards
The Industrial MRO team was awarded
the Lakeland Regional Trailblazer Award
as part of the Alberta Construction Safety
Association 2021 Achievement Awards.
The award is presented to organizations
that demonstrate their commitment to
enhancing workplace safety and their
dedication in promoting health and safety
within the communities they serve.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. YEAR IN REVIEW
Building Long-term
Shareholder Value
• On September 1, 2021, Bird announced the acquisition of
Dagmar Construction, a high-performing Ontario-based
civil infrastructure construction business. The acquisition
created a significant opportunity to leverage Dagmar’s
experience in delivering complex, specialized projects ,
and drive higher self-perform margins. Through Dagmar’s
extensive experience across key civil infrastructure sub-
sectors including bridge, rail, sewer and water, road and
commercial-institutional sites, Bird achieved increased
diversification in Ontario’s established, high growth market.
The Dagmar acquisition is a catalyst for long-term growth
in the infrastructure sector and has provided opportunities
for Bird to combine its national civil resources with
Dagmar’s extensive experience in Ontario. The acquisition
supports the strategy to diversify across both geography
and market segments.
• Consistent with its strategic priorities, Bird maintained a
strong balance sheet with significant financial flexibility and
strong liquidity in 2021. In September, Bird extended its
Syndicated Credit Facility by an additional year, to mature
into 2024, and expanded the committed Syndicated Credit
Facility to $235 million. These adjustments to the credit
facility allow Bird to continue to capitalize on a robust
bidding pipeline and improving growth prospects.
•
In September, Bird hosted its inaugural virtual Investor
Day. The event featured presentations from the Company’s
senior executive leadership team and Chair of the Board of
Directors. Topics covered included operational priorities,
ESG and people strategy updates, financial overview and
outlook, and an overview of the Company’s 2022-2024
Strategic Plan.
7
Consistent with its
strategic priorities,
Bird maintained a
strong balance sheet
with significant financial
flexibility and strong
liquidity in 2021.
August 31, 2021, Bird announced the
acquisition of Dagmar Construction
Bird extended its Syndicated
Credit Facility by an additional year,
to mature into 2024, and expanded
the committed Syndicated
Credit Facility to
$235M
Bird hosted its inaugural
virtual Investor Day
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. 8
Top: Barrett Centre for Technology
Innovations (BCTI), Toronto, ON
Bottom: Edmonton Convention
Centre Atrium Skylight,
Edmonton, AB
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. ANNUAL REPORT 2021
9
BIRD CONSTRUCTION INC.
9
ESG in Action
is committed
to entrenching
Bird
sustainability best practices within all
areas of the business, transforming
the way we work, build, and live. Bird’s
ESG Program is based on research,
industry best practices, materiality to
the business and stakeholders, and
expert external guidance. Last year, the
Company released its first Sustainability
Overview, which provided a snapshot
of some of the ESG initiatives at Bird.
The 2021 Sustainability Overview will
be released in the second quarter of
2022 and will showcase some of the
achievements from the past year as
Bird continues the journey of learning,
evolving, innovating, and growing.
10
•
Bird received the Top Employer of Indigenous
Apprentices Award for 2020, presented by
Alberta Apprenticeship and Industry Training
(AIT). This award recognizes employers who have
an outstanding commitment to recruiting and
training Indigenous apprentices, which helps to
strengthen and diversify the apprenticeship and
industry training system, now and into the future.
Bird was the recipient of the Top Employer of
Indigenous Apprentices Award for 2020, presented
by Alberta Apprenticeship and Industry Training.
•
Bird was awarded
the 2021 Employer
Partnership of the Year Award and acknowledged
inclusive
for outstanding efforts to create
workplaces
employment
programs in partnership with an Indigenous
community at the BC Career Development
Association Top Achievement Awards.
innovative
and
$87.5+ million in
subcontracts and joint
ventures to Indigenous
groups and partners.
An Indigenous fancy dancer performing at a Bird Industrial site.
— Indigenous Relations
Bird strives to be a positive contributor
to the overall well-being of Indigenous
Peoples and groups with whom we interact
across Canada.
on
founded
relationships
is demonstrated by building
This commitment
respectful
open
communication and seeking collaborative business
Indigenous partners, as well
opportunities with
skills development
as
initiatives
in
investing
the aspirations
and scholarships
that support
in the
of
construction industry.
Indigenous Peoples pursuing careers
• Over the past year, Bird has entered into new
partnerships, built upon existing relationships,
and undertaken a range of initiatives with and
within
Indigenous communities across the
country. This includes awarding more than
$87.5 million in subcontracts and joint ventures
to Indigenous groups and partners, investing
more than $50,000 in community initiatives,
and providing $7,500
to
Indigenous students.
in scholarships
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
11
— Indigenous Relations continued
— Build Green
•
•
the
reach of online
Bird has expanded
Training
Indigenous Cultural Awareness
Program, which was developed in cooperation
with NVision, an Inuit-owned company. It aims
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
including
is mandatory
the recently acquired companies as well as
Stack Modular, and is the first step each Bird
employee takes to promote positive relationships
with Indigenous individuals, businesses, and
communities.
for all employees,
The Bird Construction/Paul and Gerri Charette
Endowment Fund was established which will
ensure the ongoing financing of a new bursary
offered to
Indigenous students across the
country. The Charettes generously seeded
the fund with $100,000, which was matched
by Bird. The vision is to advance reconciliation
individuals and
Indigenous
and empower
communities by removing barriers to education
learners, while promoting a culture of
for
respect and
the 2021-2022
inclusion. For
school year, the first distribution of the Bird
Construction/Paul and Gerri Charette Fund
will include four bursaries of $2,500 each.
Independent
is currently an
Paul Charette
Director on Bird’s Board of Directors, having
previously served as Chair of the Board for
20 years.
The MacKimmie Tower Project at the University
of Calgary achieved substantial completion
in
2021. The
innovative and sustainable design
incorporated cutting edge technology and building
analytics to deliver one of the most energy efficient
buildings on a Canadian post-secondary campus.
The new tower envelope consists of a state-of-the-art
double
to
changing weather and works in concert with the
photovoltaic panels on
the
mechanical system to decrease energy consumption
and improve the indoor environment. The complex
system for air quality and temperature control is
facade curtain wall
rooftop and
responds
that
the
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. — Build Green continued
supported by a Gigabit Passive Optical Network
(GPON). Real time building analytics provided
by reporting through Bird’s Centre for Building
Performance gave the team accurate insights into
the building’s system performance throughout the
project and allowed the team to understand the best
way forward for the complex integrations associated
with the project. Targeting Net Zero Carbon Building
Certification, the Tower achieved net zero carbon
standards in 2020, and the team was awarded the
2020 Zero Carbon Green Building Excellence Award
by the Canada Green Building Council.
In October 2021, Bird entered
into an Alliance
Agreement with renewable energy company
Noventa Energy Partners to pursue opportunities
for wastewater energy transfer (WET) projects across
Canada. The WET projects will deploy the Huber
ThermWin® System, for which Noventa Energy is
the exclusive distributor in Canada and the United
States. Bird’s first project with Noventa is the Toronto
Western Hospital WET project. This is the world’s
largest raw wastewater energy transfer project and,
once complete, it will provide over 19MW of low-
carbon thermal energy to the hospital facility, which
is approximately 90 percent of the hospital’s heating
and cooling requirements.
12
— Work Green
Bird and Chandos Construction entered
a three-year strategic partnership for the
Building Good initiative. This thought
leadership
to catalyze
initiative aims
owners and industry partners to change
the way the architecture, engineering,
and construction industry designs and
builds for the betterment of people and
this partnership,
the planet. Through
Bird and Chandos will drive sustainable
change through the promotion, discussion,
and execution of Building Good’s three
Industry Transformation,
focus areas –
Equity and Inclusion, and Sustainability.
Through Building Good’s key channels,
including the Building Good blog and
podcast, partners and industry guests
will discuss architecture, engineering, and
construction’s (AEC) biggest challenges,
innovative solutions, and the opportunities
that these changes bring organizations,
government, and the public.
THREE FOCUS AREAS
1
2
3
Industry
Transformation
Diversity, Equity,
and Inclusion
Sustainability
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. 13
— Live Green
Bird teams across the country gave back through a variety of community
initiatives this year.
HIGHLIGHTS
•
•
•
$70,000
Team members across the country participated in
the Sunrise Challenge in support of the Centre for
Addiction and Mental Health by rising with the sun
for one week. The goal was to raise $20,000 across
all groups, and Bird’s fundraising efforts totaled
over $70,000.
The Annual Festival of Trees is a major fundraising
event for the Northern Lights Regional Health
Foundation and serves as the Foundation’s
largest source of unrestricted revenue, supporting
operations and health initiatives. Bird’s donation
of $10,000 to the 32nd Festival of Trees fundraiser
contributed to the event’s fundraising total of
$410,000.
Go Girls!
The St. John’s team participated in the Big
Brothers Big Sisters of Canada annual Go Girls
Golf Tournament, raising money to support
the “Go Girls! Healthy Bodies, Healthy Minds”
mentoring program.
•
•
The nine-metre Four Food Chiefs Indigenous
sculpture at the new Okanagan College Health
Sciences Centre was unveiled in 2021. Created
by local Indigenous artist Clint George, the
sculpture was cosponsored with GEC and
Faction Projects.
$12,000
Bird was proud to support the sixth Annual
Adopt-a-Family event, organized by the
Children’s Centre, which pairs donors with
families in need to assist in making their
holidays brighter. This year, the team adopted
two seniors and three local families to help
make their Christmas merry and raised
over $12,000.
• Our teams from coast-to-coast raised
awareness and over $7,450 in support of men’s
health during Movember.
•
The Annual 2021 Bird Golf Tournament raised
$3,720 for the Awasisak Indigenous Health
Program at the Stollery Children’s Hospital
in Edmonton.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
ANNUAL REPORT 2021
BIRD CONSTRUCTION INC.
14
PROJECT HIGHLIGHTS
AND MILESTONES
Through the strength of our diverse
team, Bird continues to evolve its well-
developed suite of service offerings.
With a continuous focus on innovation,
we can deliver traditional, complex, and
highly specialized projects from coast
to coast.
15
PROJECT HIGHLIGHTS
Delivering Beyond
Expectations
As leaders in Canadian construction, we are constantly
evolving. We continue to
invest, develop, and
challenge the status quo. Our mission is to go beyond
the norm to bring value to our clients, partners,
and communities.
Appleby GO Transit Station,
Burlington, ON
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
PROJECT HIGHLIGHTS
16
On the heels of the significant KIP I and KIP II developments
in Toronto for Concert Properties, in 2021, Bird was also
awarded their Sherborne Project, or the Burke. This
53-storey residential tower is also located in Toronto
and valued at approximately $172 million. This will
be a ‘best-in-class’ building that demonstrates Bird’s
expertise in sustainable construction, as it will add The
Burke to its 200+ Leadership in Energy and Environmental
Design (LEED®) project portfolio. The new building will be
constructed to a LEED® Gold standard, leveraging green
building practices and environmentally sound solutions.
The Sherbourne Project (Burke) Rendering, Toronto, ON
In 2021, Bird was also awarded a construction services
contract with the international real estate firm Hines
for a 17-storey, mixed-use project in the heart of
Toronto. Hines is globally recognized as a leader in
environmental stewardship, and the new building will
be constructed according to leading green building
practices and sustainable solutions.
The Kip District, Toronto, ON
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. 17
PROJECT HIGHLIGHTS
Modular Momentum
The Bird and Stack Modular strategic partnership continues to
demonstrate unique value offerings, which led to the first-place award
from the Modular Building Institute for “Permanent Modular Hotel
Over 10,000 square feet” for their work on the Aqsarniit Hotel and
Conference Centre. The award-winning property is owned by the
Qikiqtaaluk Business Development Corporation, a wholly Inuit-owned
development corporation. This full-service energy-efficient hotel is
equipped with 94 rooms, a 5,000 square feet conference centre, lounge,
restaurant, gym, spa, and commercial space. This important build marked
a significant milestone for Bird and Stack Modular, completing their first
project as partners, and delivering a sophisticated turnkey modular
construction solution with an integrated conventional build.
Photo credit: Bill Williams
Aqsarniit Hotel & Conference Centre,
Iqaluit, NU
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. PROJECT HIGHLIGHTS
Underpinning Bird and Stack Modular’s proven
ability to provide rapid delivery solutions, the valued
partnership was awarded the contract for the
accelerated builds at Kenora Jail and Thunder
Bay Correctional Centre. This award came on
the heels of the successful delivery of Phases I and
II of the Ontario Provincial Police Modernization
Projects, executed through a consortium led by
Bird, and delivered for Infrastructure Ontario and
the Ministry of the Solicitor General. The Kenora Jail
and Thunder Bay Correctional Centre expansions
leverage both Bird’s
integrated conventional
site construction and Stack Modular’s innovative
modular construction solutions. When complete,
the additions will address capacity pressures and
provide additional space for effective programming
and improved services.
Rendering of Kenora Jail & Thunder Bay Correctional Centre
Expansion Projects
18
Indigenous Social Housing Tower, Vancouver, BC
Bird and Stack Modular are collaborating with additional
partners for the design of an Indigenous social housing
tower for Indigenous individuals experiencing or at risk
of homelessness, in Vancouver. The permanent modular
volumetric steel building solution will allow for quick
construction, passive house features, and minimization
of construction waste. At this stage of design, the new
14-storey social housing tower will contain over 100
modular studio units complete with bathrooms, kitchens,
a living area, and storage. The ground and second floors
will be utilized as service spaces and offices for tenant
support workers, as well as a shared laundry facility and
a common dining area. Outdoor amenity spaces will also
be provided on nine decks, along with a large outdoor
rooftop area.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. 19
PROJECT HIGHLIGHTS
Consistent Performance
Driving Repeat Business
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
20
PROJECT HIGHLIGHTS
•
Bird was awarded a three-year contract with a
two-year extension option for mechanical and
electrical maintenance services for the North
West Redwater Partnership. The total value
of the multi-year contract award is valued at
upwards of $75 million. This award highlights
Bird’s ability to bundle services and create
efficiencies for valued industry partners, which is
being recognized by existing long-term clients.
Through the consistent performance and strong
client service approach of our operations team,
this multi-year award positively contributes to
our growing recurring revenue streams.
Bird was awarded two contracts for civil works
on two separate sites: an existing project site in
northwestern British Columbia, and a site in northern
Alberta. The combined value of the contracts
awarded is approximately $135 million.
At the existing project site in British Columbia, the
contracted work includes the construction of two
storm and effluent ponds, primarily utilizing Bird’s
own forces to complete the substantial earthworks,
piping, and concrete placement.
“One of the key pillars of Bird’s growth strategy is to continue to increase our
recurring revenue streams as they reduce seasonality and provide good visibility
over time. These contract awards further validate our Stuart Olson acquisition
and exemplifies our strategic focus and commitment to deliver sustainable,
profitable growth and build long-term shareholder value.”
- Mr. Teri McKibbon, President and CEO of Bird Construction
• A five-year contract valued in excess of $550
million was awarded for the services for a
long-standing industrial customer in Alberta.
Under the terms of the multi-site, multi-use
agreement, the Industrial MRO 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.
The Industrial MRO team has maintained a
best-in-class service offering in addition to an
unparalleled client-first relationship that has
successfully translated into the renewal of this
significant contract for an additional five years.
The complex works will be executed over an 18-month
period and will be supported through Bird’s growing
self-perform capabilities and its familiarity with the
site. Bird’s sustained presence in this region has
led to strong relationships with local Indigenous
communities and the forging of partnerships for
training, procurement, and employment.
the
lump-sum contract
In Alberta,
includes
construction of an overpass that will facilitate
access to the ore preparation plant from the mine.
Installation of the cast-in-place concrete structure will
be supported by substantial earthworks and a high
voltage electrical relocation.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
21
PROJECT HIGHLIGHTS
Strong Relationships
Supporting Long-Term
Value Creation and
Shareholder Returns
• Bird was awarded the first phase of the Engineering,
Procurement, and Construction contract for the
Ontario Power Generation Clarington Corporate
Campus. Developed in collaboration with Stantec
and Indigenous Firm Two Row Architect, designs
for the campus will include optimization of building
performance and energy conservation to align with
OPG’s long term strategic goals. The first phase of the
contract is expected to continue through most of 2022.
Nanaimo Correctional Centre Rendering, Nanaimo, BC
• A $154 million design-build contract for the
Nanaimo Correctional Centre (NCC) Replacement
Project in Nanaimo was also awarded in 2021. 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. The 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.
Lake City Studios Rendering, Burnaby, BC
• Bird was awarded the contract, in excess of
$200 million, for construction of Lake City Studios in
Burnaby. Once complete, Lake City Studios will create
a significant economic development opportunity
in the community, and result in a world-class film
studio with the potential to attract major productions
and support the overall growth of the film industry
locally. The project includes over 1.3 million sq.ft. of
space and incorporates 21 sound stages, production
offices, general office space, storage and workshops,
an underground parkade, as well as site works and
landscaping.
• Concert-Bird Partners achieved financial close in
September, 2021, for the contract with Alberta’s
government for the Design, Build, Finance, and
Maintain (DBFM) contract for five Alberta high
schools. The project has a total combined contract
value in excess of $300 million. Designs for the
schools will include considerations for optimized
building performance, energy conservation and other
sustainable building features, including achieving a
LEED® Silver Certification. The target total availability
date for all five schools is May 31, 2024.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
22
PROJECT HIGHLIGHTS
Collaborating for Success
•
In November 2021, Bird announced that in a joint
venture with Chandos Construction Inc. and
M. Sullivan & Son Limited, it had successfully
completed the validation phase of the Integrated
Project Delivery contract for the Advanced
Nuclear Materials Research Centre (ANMRC) for
Canadian Nuclear Laboratories. Bird’s share of
the joint venture is 44% or over $220 million, and it
has been reporting its share of the Project in Pending
Backlog.
is considered Canada’s
The ANMRC
largest
Integrated Project Delivery (IPD) project. It will
be one of the largest nuclear research facilities ever
constructed in Canada, and will enable world-class
research in nuclear energy, health, environmental
stewardship, and global security. Overall, services
provided at the ANMRC will be critical to the life
long-term reliability of existing
extension and
including Canada’s fleet of Canada
reactors,
Deuterium Uranium
(CANDU) nuclear power
reactors and other designs deployed around
the world.
•
In October, Bird announced it had been selected
to participate in three IPD contracts in Western
Canada with a combined value in excess of $150
million, providing construction services from early
planning through construction and commissioning.
• Bird was given a limited notice to proceed
as the constructor for a substantial food and
beverage facility expansion project and has
continued to work with the client and other
parties to form the multi-party agreement and
advance early planning activities.
• Bird also announced that it has been selected
as the successful proponent for the Okanagan
Indian Band water system upgrade project.
This is the first IPD project in Canada for an
Indigenous owner group, and it will be executed
in cooperation with local trade contractorsand
local
Indigenous workers. This project will
provide clean drinking water for the Indigenous
community.
• Bird has been selected as the successful IPD
General Contractor proponent for the North
Okanagan Wastewater Recovery Project
(NOWRP). The project will replace aging septic
systems and provide sewer service to the
Township of Spallumcheen’s industrial area, and
residents and businesses in the Regional District
of North Okanagan (RDNO) and parts of OKIB.
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
23
PROJECT MILESTONES
Delivering Excellence
for Our Clients
The Louvre Project, awarded in 2020, is now well
underway. It is a seven-storey, wood frame, mixed-
used residential project comprising of 358 residential
dwellings and over 800 square metres of commercial
space. The interior finishings draw inspiration from
the project’s namesake, the Louvre Museum in Paris. A
soaring two-storey mural of another Paris landmark, the
Eiffel Tower, provides a dramatic feature in the lobby.
The Louvre is part of the greater development project of
Century Park, Edmonton and is scheduled for completion
in 2022.
The Louvre, Edmonton, AB
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. 24
PROJECT MILESTONES
Projects Progressing From Coast-To-Coast
•
In October, Bird and representatives from
Ontario Provincial Police (OPP), and the Ontario
Government celebrated the groundbreaking
for Cambridge’s new OPP detachment. This is
the final detachment
in a series of nine
detachments in Phase I and ten in Phase II of
the OPP Modernization Project. Bird was tasked
with completing the design, build, and finance,
of the OPP detachments in various communities
across Ontario.
Ontario Provincial Police Detachment, Cambridge, ON
Work continues at The Leaf at Canada’s
Diversity Gardens in Winnipeg. The Leaf will be
a magnificent
indoor, multi-seasonal attraction,
and one of the most visually stunning places of
its kind in North America. The project includes
event spaces, retail, office and support spaces,
classrooms with outdoor teaching areas, and a
restaurant with a kitchen and outdoor terrace.
The Leaf at Canada’s Diversity Gardens, Winnipeg, MB
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC. PROJECT MILESTONES
25
• Awarded
in
late 2019, Bird has made
great progress in its delivery of seven
of the sixteen Confederation Line Stage
2 light rail transit stations and one light
maintenance and storage facility for the
East-West Connectors. This consortium was
contracted by the City of Ottawa to design,
build, and finance the Stage 2 Confederation
Line Extension project in Ottawa. This project
represents a significant advancement
for
commuter travel in the Greater Ottawa Area.
technology is effectively utilized throughout
construction, Bird has employed modeling
and digitization to minimize construction risk
by enhancing schedule,
rework,
improving information availability for decision
making, and
facilitating coordination of
construction teams and activities.
reducing
• Richmond Yards is one of Halifax’s newest
mixed-used
developments,
community
consisting of residential, retail, office, and
commercial space. The large development is
well underway, and Bird’s teams have optimized
the use of BIM/VDC technology on the project,
for enhanced collaboration
which allows
between client, designers, builders, and
future building operations and function. This
Richmond Yards Rendering, Halifax, NS
In the third quarter of 2021, Bird through its joint venture with ATCO Structures, reached final
completion on the LNG Canada Cedar Valley Lodge design-build project in Kitimat. The facility
was built to house workers involved in the construction of LNG Canada’s natural gas liquefaction and
export facility, and is one of the largest accommodation facilities ever built in Canada.
LNG Canada Cedar Valley Lodge, Kitimat, BC
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
26
OUR STRATEGY FOR 2022-2024
Bird’s 2022-2024 Strategic Plan focuses on further development
of Bird’s team, strong project execution, and the diversification
of service offerings across Canada.
Management
believes that the
achievement of its
strategic objectives
in three years’ time
will position Bird as a leader across
the industry with world class safety,
high employee engagement, and
collaboration across Bird’s teams
and operating groups.
The plan keeps
true to Bird’s roots
while providing superior
client service, delivering first
class project execution, and
maintaining a strong balance
sheet with a balanced approach
to capital allocation.
PERFORM
DIVERSIFY
is
rooted
is a key driver
Accountability
for success and
in
exceptional project delivery and
client service, and supported by a
strong financial framework, robust
risk management, and continued
focus on accretively building the
Company’s Backlog.
forward
Leveraging and expanding our diverse
capabilities and services across the
country will support the Company
its well-balanced
in maintaining
portfolio of low to medium risk projects
and continue to drive
its
improving margin profile. Diversification
opportunities will continue to arise
organically
leverage our
competitive strengths, and through
mergers and acquisitions where we
see a strategic fit that will allow us to
accelerate our growth and become
larger, stronger, and more competitive
in the construction arena.
as we
TEAM
A highly engaged, high-
performance team with industry-
leading people programs will
to
enable
continue building a world-
class safety program and fully
realize the One Bird approach.
the Company
ANNUAL REPORT 2021 BIRD CONSTRUCTION INC.
2021
MANAGEMENT’S
DISCUSSION & ANALYSIS
for the years ended December 31, 2021 and 2020
Management’s Discussion and Analysis
TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................................................................................... 29
NATURE OF THE BUSINESS .............................................................................................................................. 30
2021 HIGHLIGHTS ................................................................................................................................................ 33
ANNUAL RESULTS OF OPERATIONS ............................................................................................................... 35
QUARTERLY RESULTS OF OPERATIONS ....................................................................................................... 39
KEY PERFORMANCE INDICATORS ................................................................................................................... 41
COVID-19 AND COMPANY RESPONSE ............................................................................................................. 44
2022-2024 STRATEGIC PLAN ............................................................................................................................. 45
OUTLOOK ............................................................................................................................................................. 47
CAPABILITY TO DELIVER RESULTS ................................................................................................................. 48
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY ................................................................. 48
CONTRACTUAL OBLIGATIONS ......................................................................................................................... 53
FINANCIAL INSTRUMENTS ................................................................................................................................ 54
DIVIDENDS ........................................................................................................................................................... 55
OUTSTANDING COMMON SHARE DATA AND STOCK EXCHANGE LISTING .............................................. 55
OFF BALANCE SHEET ARRANGEMENTS ........................................................................................................ 56
RELATED PARTY TRANSACTIONS ................................................................................................................... 56
SUMMARY OF QUARTERLY RESULTS ............................................................................................................. 56
ACCOUNTING POLICIES .................................................................................................................................... 57
CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS ................................................................................. 57
CONTROLS AND PROCEDURES ....................................................................................................................... 59
RISKS RELATING TO THE BUSINESS............................................................................................................... 60
TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES ........................................................... 65
FORWARD-LOOKING INFORMATION ............................................................................................................... 68
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 month periods ended December 31,
2021, should be read in conjunction with the December 31, 2021 consolidated annual financial statements. This
MD&A has been prepared as of March 8, 2022. 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 8, 2022. 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.
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 specified financial measures. These include non-
GAAP financial measures, non-GAAP financial ratios and supplementary financial measures. These measures may
not be comparable with similar measures presented by other companies. Further information regarding these
measures can be found in the “Terminology and Non-GAAP & Other Financial Measures” section of this MD&A.
28 | 2021 Management’s Discussion and Analysis
EXECUTIVE SUMMARY
29 | 2021 Management’s Discussion and Analysis
Income Statement Data202120202019(in thousands of Canadian dollars, except per share amounts)Revenue$2,220,026 $1,504,432 $1,376,408 Net income 42,783 36,103 9,484 Basic and diluted earnings per share ("EPS")0.800.80 0.22 Adjusted Earnings (1)50,954 41,579 9,484 Adjusted Earnings Per Share (1)0.960.92 0.22 Adjusted EBITDA (1)108,136 81,937 32,292 Adjusted EBITDA Margin (1)4.9%5.5%2.4%Cash Flow DataNet (decrease) increase in cash and cash equivalents $ (21,725)$31,765 $21,763 Cash flows from operations before changes in non-cash working capital 102,623 71,696 30,201 Capital expenditures(2) 11,756 14,227 14,431 Cash dividends paid20,749 17,607 16,582 Cash dividends declared per share0.390.39 0.39 Balance Sheet DataTotal assets$1,137,148 $1,067,550 $856,787 Working capital151,810 130,255 80,503 Loans and borrowings78,681 72,913 40,621 ROU Liabilities79,358 78,075 31,100 Shareholders' equity243,488 212,610 127,720 Key Performance IndicatorsPending Backlog (1)$1,624,700 $1,635,900 $625,000 Backlog (3)3,002,509 2,682,498 1,547,427 (3) Backlog is a measure that may not be comparable with a similar measure presented by other companies. See "Terminology and Non-GAAP & Other Financial Measures." (1) Adjusted Earnings and Adjusted EBITDA are non-GAAP financial measures. These measures, along with Adjusted Earnings Per Share, Adjusted EBITDA Margin and Pending Backlog do not have standardized meanings under IFRS and may not be comparable with similar measures presented by other companies. See "Terminology and Non-GAAP & Other Financial Measures." (2) Represented by "Additions to property and equipment and intangible assets" in the consolidated statement of cash flows.
NATURE OF THE BUSINESS
operational
Bird’s comprehensive and diverse range of
services provide integrated solutions for the entire
project
lifecycle. Bird deploys cutting edge
technology and draws on the vast experience of a
workforce of over 5,000 employees to deliver
and
exceptional
collaborative execution across all project sizes
and delivery models
for new construction,
renovations, and retrofits; industrial maintenance,
repair and operations services (“MRO”); heavy
civil construction and mine support services; civil
infrastructure; modular construction; and vertical
infrastructure and specialty trades.
performance
PROJECT DELIVERY METHODS
OUR LOCATIONS
The Company operates from coast-to-coast and
services all of Canada’s major geographic markets.
a
using
combination
In all sectors, Bird contracts with its
clients
of
Construction Management, Cost Plus,
(“IPD”),
Integrated Project Delivery
Stipulated Sum, Unit Price, Standard
Specification Design-Build, Alternative
Finance Projects, Complex Design-Build,
Progressive Design Build, and Public
Private Partnerships (“PPP”).
to
Bird selectively invests equity in PPP
construction
support
projects
operations, and has enhanced its ability
to deliver collaborative contracting such
IPD and Alliance, which are
as
to project
contractual approaches
co-operative
delivery designed as
arrangements
that are premised on
complementary strengths and mutual
benefit, offering strategic advantages to
all parties particularly in terms of better
sharing of risks and rewards.
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.
30 | 2021 Management’s Discussion and Analysis
INDUSTRY SECTORS
INDUSTRIAL
Within the industrial sector, Bird has substantial 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. Additionally, Bird constructs large, complex industrial buildings
including manufacturing, processing, distribution, and warehouse facilities.
Bird has significant self-perform capabilities for structural, mechanical, piping, electrical and
instrumentation, including off-site metal and modular fabrication. These industrial service capabilities
have been further enhanced with the addition of Stuart Olson Inc. (“Stuart Olson”), which was acquired
on September 25, 2020. 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 and facilities maintenance services, and
the combined service offering opens the door to a wider range of clients including those in the oil and
gas, mining, and nuclear sectors. In general, Bird has gained an expanded industrial general contracting
business and more notably is now an industrial maintenance contractor with opportunities for additional
maintenance clients in a broader geographical footprint.
INFRASTRUCTURE
Within the infrastructure sector, Bird has a well-developed offering of civil construction capabilities
including site preparation and earthworks, underground piping, and foundations and other concrete
services. Bird also has broad capabilities in mine support services and hydroelectric construction.
The Company’s acquisition of Dagmar Construction Inc. (“Dagmar”) on September 1, 2021 provides a
platform to expand Bird’s national civil capabilities, including self-perform capacity across key civil
infrastructure sub-sectors including road, bridge, rail, and underground utilities installation. Dagmar’s
capabilities and service offerings, integrated with Bird’s existing civil business, improves Bird’s
competitive position nationally as well as enables access to the attractive Ontario market. Enhanced
access to these markets contributes to increased diversification in a growing end-market with a strong
outlook bolstered by government infrastructure commitments. Opportunities to capitalize on a higher
portion of self-perform work in larger, complex projects further reinforces the future potential of the
integrated business.
INSTITUTIONAL, COMMERCIAL, AND RESIDENTIAL
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
facilities, and senior housing. Within the commercial and residential sector, Bird's operations include the
construction and renovation of office buildings, shopping malls, big box stores, hotels, and selected
mixed-use high-rise and mid-rise residential. The Company has 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.
COMMERCIAL SYSTEMS
Within the commercial systems business, Bird provides electrical and related system services such as
complex electrical and mechanical infrastructure design and installation, data communications, security,
and lifecycle services, including national roll-out services that provide private and public sector clients
with a range of ongoing electrical maintenance service functions across Canada. The Company’s
commercial systems business is one of Canada’s largest electrical and data system contractors.
31 | 2021 Management’s Discussion and Analysis
INNOVATIVE SOLUTIONS
Bird provides many innovative solutions to all of the sectors it services, including:
including
MASS TIMBER
Bird is a North American leader in mass
timber construction, with an extensive
post-secondary
resume
education, recreation and seniors’ living
facilities. Bird
expertise,
has
experience, and supply chain knowledge to
for greener
present an opportunity
buildings by using a renewable resource as
a primary construction material.
the
In addition to its carbon capture benefits,
studies have shown that visible wood in
buildings has various psychological and
physical impacts that can lead to higher
occupant satisfaction, lower stress levels
and blood pressure, better concentration,
and increased optimism.
The growing popularity of mass timber as a
primary building material for structures
from high-rise wood
frame housing
developments to large-scale institutional
buildings is indicative of a shift to buildings
that are good for the environment and good
for people.
INNOVATIVE TRENCHING SOLUTIONS
Innovative Trenching Solutions provides
single-pass trenching with the use of
custom-built, proprietary equipment that
expedites
installation of underground
utilities, laying multiple lines and several
kilometers of material per day. The system
impact by
minimizes environmental
reducing
and
construction footprint while maintaining
better stability across a variety of terrain.
disturbance
ground
CENTRE FOR BUILDING PERFORMANCE
The Centre for Building Performance facilitates
seamless construction delivery that minimizes
environmental impacts throughout every step of
the construction process and supports
the
lifecycle of a building asset. The effective
deployment of technology, including the use of
sensors and BIM/VDC, reduces waste generated
during the construction process and optimizes the
use of fuel resources, for example, during heating
and curing cycles.
Integrating all building systems data provides
visibility into a building’s performance, ensuring it
performs as designed. These
insights can
generate analytics, reports, and trends through a
single customized dashboard for asset owners to
ensure efficiency is maintained.
Building performance solutions can
reduce
overall capital budgets by optimizing building
systems and infrastructure while ensuring a high-
performance building and
faster occupancy
handover. Post occupancy, in-house designed
solutions provide valuable insights that help
simplify building management and maintenance
decisions,
costs and
reducing operating
improving efficiency, and ultimately impacting the
overall carbon intensity of the building.
CENTRES OF EXCELLENCE
Drawing expertise from across Bird’s districts,
the Centres of
divisions, and businesses,
leadership and
thought
Excellence provide
direction in key areas, leading the way in
exploring and adopting new technology, tools,
relationships, techniques, and/or best practices
that reduce risk and improve Bird’s profitability,
effectiveness, and reputation in a particular focus
area, such as Net Zero.
STACK MODULAR
Bird’s partnership with Stack Modular, a global design-build structural steel modular manufacturer, is an
innovative solution in the multi-family, hospitality, resource, and student and senior housing sectors. 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.
32 | 2021 Management’s Discussion and Analysis
2021 HIGHLIGHTS
FULL-YEAR 2021 COMPARED TO FULL-YEAR 2020
• Construction revenue of $2,220.0 million compared to $1,504.4 million, representing a 47.6% increase year-
over-year.
• Net income and earnings per share were $42.8 million and $0.80, respectively, compared to $36.1 million
and $0.80 in 2020.
• Backlog of $3,002.5 million, an increase of $320 million or 11.9% from the $2,682.5 million reported at the
end of 2020.
• Adjusted Earnings1 and Adjusted Earnings Per Share were $51.0 million and $0.96, respectively, compared
to $41.6 million and $0.92 in 2020.
• Adjusted EBITDA1 of $108.1 million, or 4.9% of revenues, reflects a 32.0% increase in Adjusted EBITDA.
FOURTH QUARTER 2021 COMPARED TO FOURTH QUARTER 2020
• Construction revenue of $597.8 million compared to $555.0 million, representing an 7.7% increase year-
over-year.
• No recoveries were recorded under the Canada Emergency Wage Subsidy (“CEWS”) program in Q4 2021,
compared to the $21.7 million 9-month cumulative recoveries recorded in Q4 2020.
• Net income and earnings per share were $9.9 million and $0.18, respectively, compared to $20.5 million
and $0.39 in Q4 2020.
• Adjusted Earnings1 and Adjusted Earnings Per Share were $13.0 million and $0.24, respectively, compared
to $21.5 million and $0.41 in Q4 2020.
• Adjusted EBITDA1 of $28.4 million, or 4.8% of revenues, compared to $40.0 million, or 7.2% of revenues
in Q4 2020.
•
In September 2021, the Company completed its acquisition of Dagmar, an Ontario-based construction company
with extensive experience across key civil infrastructure sub-sectors including road, bridge, rail, sewer and water,
and commercial-institutional sites. Dagmar’s capabilities and service offerings for both private and public owners
across Ontario, integrated with Bird’s existing civil business, will act as a catalyst in this attractive end market.
In selected national markets where Bird has civil activity, Dagmar will add specialized capabilities to broaden
client service offerings and increase diversification.
• Fiscal 2021 represents the first full year consolidating the results of Stuart Olson following the Company’s
transformational acquisition of the business on September 25, 2020. Since the acquisition, Bird has worked to
successfully combine the two strong, experienced workforces and integrate and harmonize their policies,
processes and people. Annualized cost synergies resulting from the integration of Stuart Olson exceeded $25.0
million, and were achieved as expected in 2021. The Company has also benefitted, and will continue to benefit,
from revenue synergies and cross-selling opportunities of the combined operations.
• The Company further improved its record-setting Backlog at December 31, 2021 to $3,002.5 million, growing
11.9% year-over-year, while maintaining a strong Pending Backlog of $1,624.7 million. During 2021, the
Company secured $2,540.0 million of new contract awards and change orders and executed $2,220.0 million of
construction revenues. Compared to Backlog and Pending Backlog of $2,682.5 million and $1,635.9 million,
respectively, at December 31, 2020, the net growth in combined Backlog and Pending Backlog was achieved
despite timing delays in project tenders and awards from clients related to COVID-19.
1 Adjusted Earnings and Adjusted EBITDA are non-GAAP financial measures. See “Terminology and Non-GAAP & Other Financial
Measures.”
33 | 2021 Management’s Discussion and Analysis
• During 2021, Bird extended the maturity date of its Syndicated Credit Facility (the “Credit Facility”) by an
additional year and expanded the committed Credit Facility to $235.0 million, consisting of a $185.0 million
revolving credit facility, and a $50.0 million non-revolving term debt facility. At December 31, 2021, amounts
available under this revolving facility of $140.3 million, in addition to the Company’s accessible cash balance of
$103.0 million, provide the Company with substantial liquidity to support the execution of its strategic initiatives.
• During the fourth quarter of 2021, the Company announced that it was awarded the following projects and
contracts:
o
o
o
o
The first phase of a progressive Design-Build contract with early collaborative contractor involvement for
the Ontario Power Generation (“OPG”) Clarington Corporate Campus Project. Construction is expected to
begin in 2022, with completion in 2024.
The Company will participate in three IPD contracts in Western Canada with a combined value in excess
of $150 million. The contracts include a substantial food and beverage facility expansion project, the
Okanagan Indian Band water system upgrade and the North Okanagan Wastewater Recovery Project.
Through its Alliance Agreement with the renewable energy company, Noventa Energy Partners, the
Company announced the successful financial close of the recently announced Toronto Western Hospital
wastewater energy transfer (“WET”) project valued at approximately $42.9 million. The alliance was formed
to jointly pursue opportunities for WET projects across Canada, with Bird acting as the exclusive
constructor.
The Company, in a joint venture has successfully completed the validation phase of the IPD contract for
the Advanced Nuclear Materials Research Centre (“ANMRC” or “the Project”) for Canadian Nuclear
Laboratories ("CNL"). The approximate project value is over $500 million, and the completion of the
validation phase means that the project will now proceed. Bird’s share of the project value is expected to
exceed $220 million.
o
The Company has been awarded a contract for construction of Lake City Studios, in Burnaby, British
Columbia. The project has a contract value in excess of $200 million.
• The Board has declared an eligible dividend of $0.0325 per common share for each of March and April 2022.
34 | 2021 Management’s Discussion and Analysis
ANNUAL RESULTS OF OPERATIONS
In fiscal 2021, the Company recorded net income of $42.8 million on construction revenue of $2,220.0 million
compared with net income of $36.1 million on $1,504.4 million of construction revenue in 2020.
The year-over-year increase in revenue of 47.6% was mainly driven by the inclusion of post-acquisition revenue
from Stuart Olson which was completed late in the third quarter of 2020. The Company’s year-to-date revenues
were impacted by certain restrictive provincial measures, particularly in the first quarter of 2021 in British Columbia,
where worksite protocols limited the number of employees on specific project sites, impacting several large
contracts. As certain COVID-19 restrictive measures implemented in some provinces were eased during the second
and third quarters of 2021, the Company experienced an increase in revenues for certain projects that were
previously temporarily delayed by clients. Notwithstanding ongoing vaccination programs and government policies
enacted in response to the pandemic, the Canadian construction industry continued to face volatility late in the
fourth quarter as a result of the Omicron variant.
35 | 2021 Management’s Discussion and Analysis
Consolidated Statement of Income and Additional Financial Indicators(in thousands of Canadian dollars except per share amounts and percentages)20212020% changeConstruction revenue$2,220,026 $1,504,432 47.6%Costs of construction 2,033,341 1,378,132 47.5%Gross profit186,685 126,300 47.8%Income from equity accounted investments4,187 7,792 -46.3%General and administrative expenses(127,014) (78,777) 61.2%Income from operations63,858 55,315 15.4%Finance income1,322 1,511 -12.5%Finance and other costs(7,550) (7,506) 0.6%Income before income taxes57,630 49,320 16.8%Income tax expense14,847 13,217 12.3%Net income for the period$42,783 $36,103 18.5%Total comprehensive income for the period$45,128 $37,302 21.0%Basic and diluted earnings per share$0.80 $0.80 0.0%Adjusted Earnings(1)$50,954 $41,579 22.5%Adjusted Earnings Per Share$0.96 $0.92 4.3%Adjusted EBITDA(1)$108,136 $81,937 32.0%Adjusted EBITDA Margin4.9%5.5%-0.6%(1) Adjusted Earnings and Adjusted EBITDA are non-GAAP financial measures. See "Terminology and Non-GAAP & Other Financial Measures." For the year ended
The Company’s 2021 annual gross profit of $186.7 million was $60.4 million higher than the $126.3 million gross
profit recorded in 2020. Gross Profit Percentage1 for 2021 was 8.4%, similar to the 8.4% recorded a year ago. The
year-over-year increase in gross profit is due to a combination of additional gross profit from the inclusion of Stuart
Olson for the full year in 2021 and continued diversification of the Company’s work program, as well as improving
year-over-year margins in operations, particularly due to increased activity in the Company’s self-perform industrial
projects. During the year, the Company’s gross profit and Gross Profit Percentage continued to be impacted by
reduced productivity and project delays resulting from the pandemic, which were partially offset by recoveries of
compensation expense under the CEWS program of $18.8 million that were included in costs of construction,
compared to $21.2 million of recoveries in 2020 when revenues were lower.
The year-over-year increase in net income reflects the Company’s increased gross profit offset by a corresponding
increase in general and administrative expenses resulting from the full-year inclusion of Stuart Olson, inclusive of
synergies and non-recurring integration and restructuring costs, as well as reduced income from equity accounted
investments and other changes further described below. Net income in both 2021 and 2020 was negatively
impacted by the pandemic, as noted above, but was partially offset by aggregate pre-tax compensation expense
recoveries, included in costs of construction and general and administrative expenses, of $21.9 million in 2021 and
$24.8 million in 2020 recognized under the CEWS program.
Income from equity accounted investments in 2021 was $4.2 million, compared with $7.8 million in 2020. Increased
equity earnings from Stack Modular in 2021 were offset by lower equity income from PPP concession entities and
lower activity in equity accounted projects in Eastern Canada compared to 2020. In addition, prior year amounts
included $3.1 million of gains related to the sale of equity accounted investments during 2020.
For the year ended December 31, 2021, general and administrative expenses of $127.0 million (5.7% of revenue1)
were $48.2 million higher than $78.8 million (5.2% of revenue) in the corresponding period a year ago. The primary
driver for the year-over-year increase was the addition of Stuart Olson results post-acquisition, which was completed
late in the third quarter of 2020. Compensation costs were higher year-over-year by $27.4 million, net of $3.1 million
related to cost recoveries from the CEWS program (2020 - $3.6 million). The increase in compensation costs was
due to the addition of Stuart Olson employees, and higher share-based compensation expense due to the
improvement in the Company’s share price year-over-year. Also driving the year-over-year increase were $12.9
million of higher amortization and depreciation costs, higher technology costs of $4.9 million and higher professional
fees of $2.1 million related to integration activities. During 2021, the Company also recorded lower gains on disposal
of property and equipment of $1.7 million which contributed to the higher expenses. Partially offsetting the increase
in expenses were lower discretionary costs of $1.2 million, largely due to COVID-19 restrictions, and an
1 “Gross Profit Percentage” and “General and Administrative expenses as a percentage of revenue” do not have standardized
meanings under IFRS and may not be comparable with similar measures presented by other companies. See "Terminology and
Non-GAAP & Other Financial Measures."
36 | 2021 Management’s Discussion and Analysis
improvement in foreign exchange of $0.4 million. General and administrative expenses for 2021 and 2020 included
non-recurring acquisition and integration costs of $10.8 million and $7.2 million, respectively.
Finance income of $1.3 million in fiscal 2021 was $0.2 million lower than the $1.5 million recorded in fiscal 2020
due to lower average cash balances during 2021, combined with lower interest rates.
Finance and other costs of $7.6 million were $0.1 million than the $7.5 million reported in fiscal 2020. Interest
expense on loans and borrowings and right-of-use (“ROU”) liabilities was higher by $2.5 million and other finance
costs were higher by $0.5 million due to the addition of Stuart Olson results post-acquisition. This was offset by
$3.5 million of lower interest on non-recourse project financing, net of $0.6 million lower gains on interest rate
swaps, due to the repayment of the loan facility on completion of the project in the fourth quarter of 2020 .
In 2021, income tax expense was $14.8 million, compared to $13.2 million recorded in 2020. The increase in income
tax expense was in line with the improvement in year-over-year income before taxes, partially offset by a lower
effective tax rate. The effective tax rate was 25.8% in 2021 compared to 26.8% in 2020 primarily due to a lower
average combined federal and provincial statutory income tax rate and lower non-deductible transaction costs.
In 2021, total comprehensive income was $45.1 million, compared to $37.3 million in 2020. In addition to the year-
over-year improvement in net income discussed above, the Company recorded an higher gain of $1.2 million, net
of deferred tax, on its defined benefit pension plans, as a result of an increase in the discount rate and gains on the
plans’ assets due to investment earnings being higher than the expected investment income for the year.
Adjusted Earnings1 for fiscal 2021 was $51.0 million compared with Adjusted Earnings of $41.6 million for fiscal
2020. The year-over-year increase of $9.4 million in Adjusted Earnings is reflective of the improvement in net
income described above and the year-over-year increase of $2.7 million of tax effected acquisition, integration and
restructuring expenses, which are excluded from Adjusted Earnings.
1.00
0.80
0.60
0.40
0.20
-
Basic & Diluted Earnings Per Share
0.80
0.80
0.26
0.13
0.13
0.03
0.39
0.23
0.20
0.18
Q1
Q2
Q3
Q4
YTD
2020
2021
1.20
1.00
0.80
0.60
0.40
0.20
-
Adjusted Earnings Per Share
0.96
0.92
0.41
0.28
0.29
0.26
0.24
0.17
0.15
0.03
Q1
Q2
Q3
Q4
YTD
2020
2021
Basic and diluted earnings per share was $0.80 in fiscal 2021 and 2020. Adjusted Earnings Per Share was $0.96
and $0.92 for fiscal 2021 and 2020, respectively. The weighted average shares outstanding used to calculate basic
and diluted earnings per share and Adjusted Earnings Per Share was 53,258,316 for 2021, compared to 45,334,239
for the 2020 year-end.
1 Adjusted Earnings is a non-GAAP financial measure. See “Terminology and Non-GAAP & Other Financial Measures.”
37 | 2021 Management’s Discussion and Analysis
Adjusted EBITDA1 in 2021 was $108.1 million and increased $26.2 million from Adjusted EBITDA of $81.9 million
in 2020. The year-over year increase is reflective of the improvement in earnings described above and a year-over-
year increase in the addback for amortization and depreciation of $12.8 million and the year-over-year increase of
$3.5 million of pre-tax acquisition, integration and restructuring expenses, which are excluded from Adjusted
EBITDA. Adjusted EBITDA Margin was 4.9% and 5.5% in 2021 and 2020, respectively, with the decrease consisent
with the items discussed above.
1 Adjusted EBITDA is a non-GAAP financial measure. See “Terminology and Non-GAAP & Other Financial Measures.”
38 | 2021 Management’s Discussion and Analysis
QUARTERLY RESULTS OF OPERATIONS
During the fourth quarter of 2021, the Company earned net income of $9.9 million on construction revenue of $597.8
million, compared with net income of $20.5 million on $555.0 million of construction revenue in 2020. In the fourth
quarter of 2021, despite the ongoing COVID-19 pandemic, the Company observed modest increases in revenues
across all of its work programs as the market began to recover to pre-pandemic levels.
The Company’s 2021 fourth quarter gross profit of $51.3 million was $10.2 million lower than the $61.5 million gross
profit recorded a year ago. Gross Profit Percentage in the fourth quarter of 2021 was 8.6% compared to 11.1%
recorded a year ago. The year-over-year decrease in gross profit and Gross Profit Percentage is primarily due to
the recovery of $18.7 million of compensation expense in costs of construction under the CEWS program recorded
the fourth quarter of 2020 which helped to offset additional costs incurred by the Company related to the pandemic,
whereas no amounts for CEWS were recognized in the fourth quarter of 2021. Overall, diversification of the
Company’s work program, particularly in the Company’s self-perform industrial projects continues to positively
impact Gross Profit Percentage. The pandemic continued to have a negative impact on gross profit due to project
delays, increased costs due to reduced productivity and additional personal protective equipment required on
project sites.
The year-over-year decrease in fourth quarter net income is consistent with the Company’s lower gross profit and
increases in general and administrative expenses, partially offset by increased income from equity accounted
investments, lower income taxes and other items further discussed below.
Income from equity accounted investments in the fourth quarter of 2021 was $0.9 million, compared with losses of
$0.2 million in same period of 2020. The higher income in the fourth quarter of 2021 was primarily due to higher
39 | 2021 Management’s Discussion and Analysis
Consolidated Statement of Income and Additional Financial Indicators(in thousands of Canadian dollars except per share amounts and percentages)20212020% changeConstruction revenue$597,803 $554,960 7.7%Costs of construction 546,489 493,426 10.8%Gross profit51,314 61,534 -16.6%Income (loss) from equity accounted investments901 (189) -576.7%General and administrative expenses(37,135) (32,822) 13.1%Income from operations15,080 28,523 -47.1%Finance income426 178 139.3%Finance and other costs(1,890) (1,731) 9.2%Income before income taxes13,616 26,970 -49.5%Income tax expense3,699 6,436 -42.5%Net income for the period$9,917 $20,534 -51.7%Total comprehensive income for the period$10,039 $21,771 -53.9%Basic and diluted earnings per share$0.18 $0.39 -53.8%Adjusted Earnings(1)$13,046 $21,526 -39.4%Adjusted Earnings Per Share$0.24 $0.41 -41.5%Adjusted EBITDA(1)$28,399 $40,011 -29.0%Adjusted EBITDA Margin4.8%7.2%-2.4%(1) Adjusted Earnings and Adjusted EBITDA are non-GAAP financial measures. See "Terminology and Non-GAAP & Other Financial Measures." Three months ended December 31,
earnings related to Stack Modular, while in the fourth quarter of 2020 lower equity income from PPP concession
entities contributed to the losses in that period.
In the fourth quarter of 2021, general and administrative expenses were $37.1 million (6.2% of revenue) versus
$32.8 million (5.9% of revenue) in the corresponding period a year ago. The primary drivers for the $4.3 million
year-over-year increase were higher compensation costs of $2.2 million, including the impact of a $3.0 million
CEWS recovery of compensation costs in 2020, and higher on-going integration activities associated with the Stuart
Olson acquisition of $2.0 million. Also driving the year-over-year increase were $0.8 million of higher amortization
and depreciation costs and higher technology costs of $0.3 million. Partially offsetting the increase in expenses
were lower discretionary costs of $0.9 million. General and administrative expenses for the quarter included non-
recurring acquisition and integration costs of $4.1 million compared to $2.1 million in the prior year.
Finance income of $0.4 million in the fourth quarter of 2021 was higher than the $0.2 million recorded in the same
period of 2020 due to higher average cash balances arising from higher cash collections.
Finance and other costs of $1.9 million were higher than the $1.7 million reported in the fourth quarter of 2020. The
increase of $0.2 million was due to higher interest expense on loans and borrowings.
In the fourth quarter of 2021, income tax expense was $3.7 million, compared to $6.4 million recorded in the fourth
quarter of 2020. The decrease in income tax expense was primarily due to the decrease in year-over-year income
before taxes.
In the fourth quarter of 2021, total comprehensive income was $10.0 million, compared to $21.8 million in the fourth
quarter of 2020. The year-over-year decrease of $11.8 million was primarily due to the decrease in net income of
$10.6 million described above, and a $1.1 million lower gain, net of tax, on its defined benefit pension plans as a
result of a decrease in the discount rate impacting the pension obligation and a small loss on the plans’ assets due
to investment earnings being lower than the expected interest income.
Adjusted Earnings1 in the fourth quarter of 2021 was $13.0 million, compared with Adjusted Earnings in the fourth
quarter of 2020 of $21.5 million. The year-over-year decrease in fourth quarter Adjusted Earnings of $8.5 million is
reflective of the decrease in net income of $10.6 million, partially offset by the year-over-year increase of $2.1 million
of tax effected acquisition, integration and restructuring expenses, which are excluded from Adjusted Earnings.
Basic and diluted earnings per share was $0.18 in the fourth quarter of 2021, compared to $0.39 in 2020. Adjusted
Earnings Per Share was $0.24 and $0.41 in the fourth quarter of 2021 and 2020, respectively. In addition to the
impacts of changes in Net Income and Adjusted Earnings discussed above, the basic weighted average shares
outstanding at the end of fourth quarter of 2021 was higher by 656,364 common shares issued in connection with
the Dagmar acquisition.
1 Adjusted Earnings is a non-GAAP financial measure. See “Terminology and Non-GAAP & Other Financial Measures.”
40 | 2021 Management’s Discussion and Analysis
Adjusted EBITDA1 in the fourth quarter of 2021 was $28.4 million compared to $40.0 million recorded in the fourth
quarter of 2020. The year-over year decrease was consistent with the decrease in quarterly net income, partially
offset by $2.0 million of higher pre-tax acquisition, integration and restructuring expenses, which are excluded from
Adjusted EBITDA. Adjusted EBITDA Margin was 4.8% and 7.2% in the fourth quarter of 2021 and 2020,
respectively.
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. The Company’s competitive advantages
include its long-standing reputation for successfully delivering high quality projects that fully meet the needs of the
customer and in delivering projects collaboratively 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 reflected in the values of its Pending Backlog and Backlog. The
following table shows the Company’s balances at the end of the following reporting periods:
Pending Backlog at December 31, 2021 was $1,624.7 million compared to $1,635.9 million at December 31, 2020,
a decrease of $11.2 million or 0.7%. The Company’s Backlog of $3,002.5 million at December 31, 2021 increased
$320.0 million or 11.9% from December 31, 2020. The growth in Backlog compared to December 31, 2020 and
added visibility to the Company’s work program through strong Pending Backlog reflects the Company’s expanded
1 Adjusted EBITDA is a non-GAAP financial measure. See “Terminology and Non-GAAP & Other Financial Measures.”
41 | 2021 Management’s Discussion and Analysis
(in thousands of Canadian dollars)20212020Pending Backlog $1,624,700 $1,635,900 Backlog $3,002,509 $2,682,498
capabilities and scale, the addition of Dagmar and an improvement in market conditions, notwithstanding the
continued impact of the COVID-19 pandemic.
Pending Backlog includes approximately $800 million of Master Service Agreement (“MSA”)-type contracts. These
contracts are typically with industrial clients, that span multiple years for MRO services, and represent a recurring
revenue steam over the next one to five years. The Company expects to convert these MSAs to Backlog on a
regular basis as purchase orders are received. The remaining projects comprising Pending Backlog are
geographically diverse and span multiple sectors and contracting methods.
The following table outlines the changes in the amount of the Company’s Backlog throughout the current and prior
reporting periods:
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 commercial issues if they arise.
For the fiscal year ended December 31,2021 and 2020, the Company realized a Gross Profit Percentage of 8.4%.
During the fourth quarter of 2021 the Company realized a Gross Profit Percentage of 8.6% compared with 11.1%
in fourth quarter of 2020. The year-over-year change in Gross Profit Percentage for the fourth quarter and 2021 is
discussed in the sections above entitled “Quarterly Results of Operations”.
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. Working capital is calculated as total current
assets less total current liabilities.
The following table shows the working capital and shareholders’ equity balances of the Company at the end of the
following current and prior reporting periods:
Further discussion of the change in the Company’s working capital and shareholders’ equity balances is provided
in the section entitled “Financial Condition, Capital Resources & Liquidity”.
42 | 2021 Management’s Discussion and Analysis
(in millions of Canadian dollars)20212020Opening balance$2,682.5 $1,547.4 Acquisition of Stuart Olson- 995.7 Securements, change orders & other adjustments2,540.0 1,643.8 Realized in construction revenues(2,220.0) (1,504.4) Closing balance$3,002.5 $2,682.5 (in thousands of Canadian dollars)20212020Working capital$151,810 $130,255 - Shareholders' equity$243,488 $212,610
Health, Safety & Environment
Bird’s approach to health, safety & the environment (“HS&E”) continues to evolve and advance 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 HS&E hazards and risks is incorporated into
every aspect of operations. This is a cornerstone of the Company’s philosophy and approach towards operational
excellence.
Bird’s approach to developing a healthy safety culture begins with senior leadership articulating HS&E values and
policy coupled with an integrated/ long-term strategic focus on risk reduction. This foundation extends to project risk
mitigation beginning with pre-project safety planning and strong safety execution practices ranging from competent
project leadership, thorough frontline onboarding routines, through to regular HS&E program oversight and
evaluation. The Company’s HS&E philosophy subscribes to being a learning organization constantly seeking
opportunities to improve. All the foregoing is underpinned by all workers and trade partners being highly engaged
in day-to-day safety expectations.
Ensuring that all workers leave the jobsite every day just as healthy and safe as when they arrived is a shared
commitment and, by working collaboratively with employees and trade partners 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 client’s satisfaction. The Company believes this shared commitment is critical to its overall success.
The Bird HS&E strategy is foundational to achieving all the foregoing. At Bird we are focused on three strategic
HS&E pillars – engagement, culture, and effective safeguards. Each of these pillars aims and anchors the
Company’s efforts towards establishing sustainable HS&E systems and results, a leadership team that cares, an
engaged workforce, and robust controls that prevent loss.
At Bird, personal engagement & ownership is not just a vision or a philosophy, it is a daily routine practiced with
discipline and rigour on all Bird job sites.
The following table shows the Company’s safety key performance indicators for the following current and prior
reporting periods:
43 | 2021 Management’s Discussion and Analysis
20212020Person-hours of work10,131,291 5,641,819 Lost time incidents ("LTI")11Lost time incidents frequency ("LTIF")0.020.04
COVID-19 AND COMPANY RESPONSE
The COVID-19 pandemic continued to disrupt global health and the economy in 2021. Notwithstanding ongoing
vaccination programs and government policies enacted in response to the pandemic, the Canadian construction
industry continued to face volatility as each provincial government responded by implementing measures to address
the public health threat. With the identification and global transmission of new COVID-19 variants, some of which
may have greatly increased transmission risk and health impacts, many regions in Canada experienced a
resurgence of daily cases and at year-end 2021 had reintroduced additional preventative safety measures that
varied from province to province. The highly contagious Omicron variant has impacted some project sites late in
the fourth quarter, and into the first quarter of 2022; however, the Company has mitigated major disruption through
a continued approach to robust health and safety measures as outlined below in our COVID-19 response plan.
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 well to the challenges presented to date and is well positioned to continue responding to
fluctuating scenarios.
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. Adding to its repertoire
of robust protocols, the Company released its vaccination and testing policy in October 2021 to continue to work
together to stop the spread of COVID-19.
In addition to this new policy, other elements of the Company’s COVID-19 response plan include:
• Best practices for both office and field employees and managers.
• Self-assessment tools and new COVID-19 measure audits.
• Enhanced cleaning protocols and hygiene measures and physical distancing practices.
• 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.
• 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.
• 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.
• 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.
Throughout the pandemic, Bird’s employees have remained dedicated to safely and effectively delivering on project
commitments. Their ability to navigate through fluctuating situations is both recognized and appreciated by the
Company, its executives, and Directors.
44 | 2021 Management’s Discussion and Analysis
2022-2024 STRATEGIC PLAN
Bird’s 2022-2024 Strategic Plan, approved in the third quarter, focuses on the further development of the Company’s
team, strong project execution, and the diversification of service offerings across Canada. Management believes
that the achievement of its strategic objectives in three years’ time will position Bird as a leader across the industry
with world class safety, high employee engagement, and collaboration across Bird’s teams and operating groups.
The plan keeps true to Bird’s roots of providing superior client service, delivering first class project execution, and
maintaining a strong balance sheet with a balanced approach to capital allocation. Further details of the plan were
presented as a part of Bird’s investor day materials, which can be found under the “Investors” section on the
Company’s website. Bird’s Strategic Plan is built upon the three pillars of Team, Perform and Diversify:
Team: A highly engaged, high-performance team with industry leading people programs
will enable the Company to continue building a world class safety program and fully
realize the One Bird approach.
The Company will focus on internal partnerships and shifting from a district focus to a national
focus by leveraging cross-selling opportunities between teams, as well as sharing expertise in
certain sectors nationally.
Perform: Accountability is a key driver for success and is rooted in exceptional project
delivery and client service, and supported by a strong financial framework, robust risk
management, and continued focus on accretively building the Company’s backlog.
The Company will maintain a diligent focus on capitalizing on cross-selling opportunities,
increasing its project self-perform capabilities, pursuing higher margin potential projects, and
providing innovative client solutions. The harmonization and development of new processes,
tools, and systems to support consistent performance and efficiency will ensure that Bird
employees will have a common and nimble technology platform that provides the necessary
agility, consistency, and innovation required to successfully respond to the constantly evolving
landscape.
The Company is committed to entrenching sustainability best practices within all areas of the
business and will develop and execute a comprehensive strategy that will result in the
recognition of Bird as a sustainable organization within the construction industry. Providing
sustainable, innovative, and lasting solutions for communities, as well as clients, partners, and
employees, aligns with the Company’s core values and contributes to the achievement of
accountability and stewardship across all operations.
Diversify: Leveraging and expanding our diverse capabilities and services across the
country will support the Company in maintaining its well-balanced portfolio of low to
medium risk projects and continue to drive forward its improving margin profile.
Diversification opportunities will continue to arise organically as we leverage our
competitive strengths, and through mergers and acquisitions where we see a strategic
fit that will allow us to accelerate our growth and become larger, stronger, and more
competitive in the construction arena.
Within the industrial sector, Bird will pursue a strategy of continued organic growth coupled with
increasing the geographic balance of operations through expansion. This will be supported by
strategic, accretive acquisitions, and by providing existing service offerings to long-standing
clients’ eastern operations. The augmentation of self-perform maintenance, repair, and
operations services provides a source of consistent recurring revenue.
45 | 2021 Management’s Discussion and Analysis
For Bird’s institutional, commercial and residential sector, the combined experience and talent
pool as a result of the acquisition of Stuart Olson will drive the successful pursuit of projects that
neither company could do on its own previously. This, coupled with collaborative contracting
methods will continue to de-risk Bird’s project portfolio, and allow the company to deliver higher
margin projects with less volatility. Additionally, establishing Centres of Excellence to leverage
experience in key sectors nationally will support an appropriately balanced mix of projects
through various project delivery models, geographic representation, and higher margin potential
projects.
Bird’s continued partnership with Stack Modular, a global design-build structural steel frame
modular manufacturer, will provide opportunities for innovative solutions in the multi-family,
hospitality, resource, and student and senior housing sectors, and complements the Company’s
diversification strategy by leveraging specialty service offerings in a sector with high growth
potential.
The commercial systems business will expand targeted capabilities nationally and grow in
markets with limited competition. This will include the expansion of the specialized security and
facilities maintenance services portfolios with current clients, as well as expanding mechanical
service offerings nationally.
The recent acquisition of Dagmar provides a platform to expand Bird’s national civil capabilities,
including self-perform capacity, across key civil infrastructure sub-sectors including road,
bridge, rail, and underground utilities installation. In addition to enhancing Bird’s competitive
position nationally, it also contributes to increased diversification in a growing end-market with
a strong outlook bolstered by government infrastructure commitments.
The transformative acquisition of Stuart Olson on September 25, 2020 significantly expanded Bird’s geographic
footprint and service offering, further balancing the Company’s risk profile and enhancing Bird’s talented pool of
constructors. The acquisition of Dagmar Construction on September 1, 2021 provided additional geographic and
client diversification, as Dagmar’s specialized civil infrastructure offerings provide Bird a platform to expand
capabilities and relationships in Canada’s largest civil infrastructure market. The rail sector in particular will be a
significant catalyst for long-term growth in the civil infrastructure sector for Bird.
Overall, the culmination of the Company’s efforts has resulted in Bird becoming more diversified by geography and
end market and having increased overall visibility to forward revenue generation and improved operating margins.
Bird’s 2022-2024 Strategic Plan expands upon these achievements and is bolstered by the solid foundation for
resilient operating margin accretion that has been established, and which will continue to create sustainable,
profitable growth for shareholders.
46 | 2021 Management’s Discussion and Analysis
OUTLOOK
Bird’s overall outlook remains optimistic for 2022 with positive market conditions foreseeable in the
near- to medium-term and encouraging growth prospects. The Company’s bidding pipeline remains
robust, and the acquisitions of Stuart Olson and Dagmar Construction are bearing fruit as
significant cross-selling opportunities continue to emerge.
Throughout the second half of 2021, market conditions continued to improve and the Company was able to leverage
its combined expertise to grow Backlog 11.9% year-over-year. Cross-selling opportunities were realized, as
evidenced by Bird’s fourth quarter 2021 Backlog and Pending Backlog of $3.0 billion and $1.6 billion respectively,
which are comparable to the record combined Backlog and Pending Backlog reported at the end of the third quarter.
Notably, contracts announced in the fourth quarter, including the Alliance Agreement with Noventa Energy Partners,
the Ontario Power Generation Clarington Corporate Campus Project, and the completion of the validation phase
for the IPD contract for Canadian Nuclear Laboratories are attributable to the concerted effort by management to
further diversify its industrial capabilities throughout Canada and to leverage cross-selling in order to penetrate new
end markets. Recent awards, including the substantial Lake City Studios project in BC announced prior to year-
end, exemplify the positive momentum resulting from the combined team’s expertise, its further development of
collaborative contracting experience and formation of important external partnerships.
Providing additional stability and strong visibility to the Company’s future work program is approximately $800
million in MSA contracts within Pending Backlog that represent a recurring revenue stream over the next five years.
With the backdrop of a healthy combined Backlog and Pending Backlog providing good visibility, coupled with
expected substantial government stimulus spending and a higher commodity price environment which are driving
increased capital expenditure budgets in LNG, agriculture, oil and gas and mining, revenues are expected to see
solid organic growth in 2022 and in the years following.
Despite the overall positive results and outlook, the emergence of the COVID-19 Omicron variant late in the fourth
quarter resulted in an increase in employee absenteeism, modest delays in project tenders and awards from clients,
and intermittent supply chain challenges - all which combined to restrain revenues and associated profitability in
the fourth quarter of 2021. These pressures continued to have an impact in January and early February of 2022,
but have started to subside in March. Management has had a strong focus over the past several years to secure
projects with an appropriate and manageable risk profile in our portfolio of services and enter 2022 with a Backlog
that reflects this focus. Management expects conditions to improve throughout 2022 and remains optimistic on the
year.
The key strategic priorities to diversify across geographies and end markets, pursue collaborative contracting
methods and drive top-line synergies across its platform, bolstered by the acquisitions of Stuart Olson and Dagmar
Construction, are yielding tangible benefits. The Company is well positioned to capitalize on top-line growth
opportunities and deliver an improved margin profile.
Consistent with its strategic priorities, Bird maintains a strong balance sheet with significant financial flexibility and
significant liquidity, which allows management to uphold its disciplined and balanced approach to capital allocation.
In the short term, management expects to deploy cash generated from operating activities towards investments in
the business and in further strengthening its balance sheet, which will position the Company to successfully
capitalize on additional productivity advancements, organic growth, and suitable acquisition opportunities if they
arise.
Overall, we expect the healthy economic backdrop combined with Bird’s trusted position with its clients and within
its end markets to provide a solid foundation that allows the Company to grow profitably, improve its overall margin
profile, and build shareholder value.
47 | 2021 Management’s Discussion and Analysis
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 near term 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. A highly engaged, high-performance team with industry leading people programs is a
key objective outlined in the Company’s 2022-2024 strategic plan. 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.
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY
The following table presents a summary of the Company’s financial condition at the end of the following reporting
periods:
As a result of the strength of the Company’s balance sheet and its recently expanded and extended Credit Facility,
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. The Company believes it has sufficient working
capital to support its current and projected contractual requirements.
As a component of working capital, the Company maintains a balance of cash and cash equivalents. At December
31, 2021, this balance totalled $190.2 million. Accessible cash at December 31, 2021 was $103.0 million ($96.7
million at December 31, 2020) with the remaining cash and cash equivalents balance held in trust or in joint
operations’ accounts. Accessible cash improved year over year due to improvement in working capital.
Non-cash working capital was in a net liability position of $38.4 million at December 31, 2021, compared to a net
liability position of $81.8 million at December 31, 2020. The decrease in the net liability position utilized $43.4 million
of cash in 2021. The overall use of cash is consistent with the Company’s expectations and is mainly due to the
shifts in project mix and the stage of completion on certain major projects.
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.
48 | 2021 Management’s Discussion and Analysis
(in thousands of Canadian dollars)20212020Cash and cash equivalents$190,191 $212,068 Non-cash working capital(38,381) (81,813) Working capital$151,810 $130,255 Non-current loans and borrowings$71,211 $64,903 Non-current right-of-use liabilities$59,576 $59,327 Shareholders' equity$243,488 $212,610
At December 31, 2021, the Company had working capital of $151.8 million compared with $130.3 million at
December 31, 2020, an increase of $21.5 million. The $21.5 million increase is primarily the result of the Company’s
net income of $42.8 million exceeding the $20.8 million of dividends by $22.1 million. The Company’s current ratio1
at December 31, 2021 was 1.21, which is comparable to the current ratio of 1.19 at December 31, 2020.
The $30.9 million increase in shareholders’ equity since December 31, 2020 was primarily the result of the
Company’s 2021 net income of $42.8 million, other comprehensive income of $2.3 million and $6.5 million of share
capital issued in connection with the Dagmar acquisition, partially offset by $20.8 million of dividends declared.
During the third quarter of 2021, the Company extended its Credit Facility by an additional year and expanded the
committed Credit Facility to $235.0 million, adding further scale and liquidity. The Company is well-served by its
long-held philosophy of maintaining a strong balance sheet and, as a result, is well-positioned at December 31,
2021 with $103.0 million of accessible cash and cash equivalents (excluding cash held in joint ventures and trust
accounts) and $140.3 million of capacity available via its committed, Credit Facility, as well as a non-committed
accordion option of up to an additional $50.0 million.
During the third quarter of 2021, Bird also amended its agreement with EDC to provide for an increase in
performance security guarantees from $75.0 million to $100.0 million for letters of credit issued by financial
institutions on behalf of the Company. Bird uses this facility when letters of credit have been issued as contract
security for projects that meet the EDC criteria, which further increases liquidity. Despite the negative financial
impacts from the COVID-19 pandemic, the Company has sufficient funding to meet its foreseeable operating
requirements and expects to remain in compliance with all banking covenants.
Credit Facilities
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
The Company has a three-year committed, syndicated credit facility (the “Syndicated Facility”) secured by a general
interest in the assets of the Company. The Syndicated Facility consists of the following:
Committed revolving credit facility
The Company has a committed revolving credit facility up to $185.0 million, maturing on September 1, 2024.
The revolving credit facility includes a $20.0 million swingline which allows the Company to enter into an overdraft
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.
At December 31, 2021, the Company has $22.0 million (December 31, 2020 - $22.7 million) in letters of credit
outstanding on the facility and has drawn $22.7 million on the facility (December 31, 2020 - $25.0 million). The
$22.7 million draw amount is presented as non-current loans and borrowings on the Company’s statement of
financial position.
Committed non-revolving term loan facility
The Company has a committed non-revolving term loan facility totalling $50.0 million which was used to finance
the acquisitions of Stuart Olson and Dagmar. The term loan has scheduled repayments due quarterly until the
maturity date of September 1, 2024. 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.
At December 31, 2021, the Company has an outstanding balance of $49.4 million on the term loan facility
(December 31, 2020 - $35.0 million).
Accordion
1 "Current ratio" is the percentage derived by dividing total current assets by total current liabilities. See "Terminology and Non-GAAP
& Other Financial Measures."
49 | 2021 Management’s Discussion and Analysis
The Company has a non-committed 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 $50.0
million. Any increases under the accordion require creditor approval before becoming available to the Company.
The Company was in compliance with its covenants under each respective facility at December 31, 2021 and
December 31, 2020.
Letters of Credit Facilities
The Company has available $150.0 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, 2021, the Company has $67.4
million in letters of credit outstanding on these facilities (December 31, 2020 - $44.5 million).
The Company has an agreement with EDC to support the issuance of contract performance security letters of credit
issued by financial institutions on behalf of the Company. The Company is able 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 on major construction projects.
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 the end of the current and prior reporting
periods:
Equipment Financing
The Company has committed term credit facilities of up to $40.0 million that may be used to finance equipment
purchases. Borrowings under the facilities are secured with a first charge on the equipment being financed. At
December 31, 2021, there is $5.2 million outstanding on the facilities of which $nil is classified as ROU liabilities
(December 31, 2020 - $9.2 million of which $0.6 million is classified as ROU liabilities). 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, 2021, the balance outstanding on these term loans amounted to $1.3 million (December 31, 2020
- $3.6 million). Principal and interest are payable monthly, and these term loans are secured by a first charge against
the specific equipment financed using these facilities.
At December 31, 2021 and December 31, 2020, the Company was in compliance with the covenants relating to
these equipment financing loans and facilities.
50 | 2021 Management’s Discussion and Analysis
(in thousands of Canadian dollars) 2021 2020Committed revolving credit facility$185,000 $165,000 Letters of credit issued from committed revolving credit facility21,989 22,702 Drawn from committed revolving credit facility22,725 25,000 Available committed revolving credit facility140,286 117,298 Committed non-revolving term loan facility$50,000 $35,000 Repayment of committed non-revolving term loan facility(625) - Drawn committed non-revolving term loan facility49,375 35,000 Non-committed Available Accordion$50,000 $50,000 Letters of credit facilities$150,000 $125,000 Letters of credit issued from letters of credit facilities67,426 44,490 Available letters of credit facilities82,574 80,510 Collateral pledged to support letters of credit$139 $139 Guarantees provided by EDC$67,289 $44,353
Annual Cash Flow Data
The following table provides an overview of cash flows for the years ended December 31, 2021 and 2020:
Operating Activities
During 2021, cash flows from operating activities generated cash of $35.8 million, a decrease of $93.1 million from
the cash of $128.9 million generated in 2020.
Cash flows from operations before changes in non-cash working capital of $102.6 million increased $30.9 million
year-over-year from the $71.7 million of cash generated in 2020 primarily due to the $6.7 million improvement in
net income and higher non-cash addbacks for income tax ($1.6 million), amortization and depreciation ($12.8
million) and deferred compensation ($5.4 million). In addition, there was a $3.6 million lower non-cash deduction
for income from equity accounted investments, and a $0.8 million lower gain on sale of property and equipment.
Changes in contract assets – alternative finance projects in 2021 decreased $75.0 million from the change in 2020.
This variance relates to the OPP Modernization Phase 2 alternative finance project which reached substantial
completion and was billed and collected during the fourth quarter of 2020, enabling the full repayment of the non-
recourse project financing discussed under Financing Activities below.
Cash use driven by changes in non-cash working capital and other was $66.9 million in 2021 compared to $17.8
million in the prior year. As discussed previously, the Company’s non-cash working capital position fluctuates
significantly in the normal course of business from period to period. In 2021, the cash use related to changes in
non-cash working capital and other relates primarily to increases in accounts receivable and higher income tax
related payments, partially offset by an increase in accounts payable. In contrast, during 2020, the slowdown in
activity as a result of the COVID-19 pandemic resulted in the conversion of non-cash working capital to cash.
Investing Activities
During 2021, the Company used $23.3 million of cash in investing activities compared to the $53.9 million used in
2020. The year-over-year change of $30.6 million was primarily driven by a decrease in cash requirements related
to acquisitions. In 2020, the Company used $60.0 million of cash in its acquisition of Stuart Olson while in 2021, the
51 | 2021 Management’s Discussion and Analysis
(in thousands of Canadian dollars)20212020$ changeCash flows from operations before changes in non-cash working capital$102,623 $71,696 $30,927 Changes in contract assets - alternative finance projects113 75,067 (74,954) Changes in non-cash working capital and other(66,910) (17,816) (49,094) Cash flows from operating activities35,826 128,947 (93,121) Investments net of capital distributions from equity accounted entities1,425 435 990 Proceeds on sale of investment in equity accounted entities- 11,034 (11,034) Additions to property, equipment and intangible assets(11,756) (14,227) 2,471 Proceeds on sale of property and equipment3,614 9,211 (5,597) Acquisitions, net of cash acquired(20,563) (59,960) 39,397 Other long-term assets3,975 (392) 4,367 Cash flows used in investing activities(23,305) (53,899) 30,594 Proceeds from issue of common shares- 39,876 (39,876) Dividend paid on shares(20,749) (17,607) (3,142) Proceeds from non-recourse project financing- 46,782 (46,782) Repayment of non-recourse project financing- (131,849) 131,849 Proceeds from loans and borrowings58,600 88,283 (29,683) Repayment of loans and borrowings(52,832) (56,658) 3,826 Repayment of right-of-use liabilities(19,265) (12,110) (7,155) Cash flows used in financing activities(34,246) (43,283) 9,037 (Decrease) increase in cash and cash equivalents(21,725) 31,765 (53,490)
Company used $20.6 million of cash in its acquisition of Dagmar. Also contributing to the change were lower
additions to property, equipment and intangible assets of $2.5 million, an increase in other long-term assets of $4.3
million and $1.0 million net lower incremental investments in equity accounted entities. This was offset by lower
proceeds on the sale of property and equipment of $5.6 million and lower proceeds from the sale of investments in
equity accounted entities of $11.0 million.
Financing Activities
During 2021, the Company used $34.2 million of cash in financing activities compared to $43.3 million used in 2020.
The year-over-year change of $9.1 million was primarily driven by the net lower repayment of non-recourse project
financing of $85.1 million related to the alternative finance project described in Operating Activities above. This was
offset by a decrease in proceeds from the issuance of common shares of $39.9 million related to the Stuart Olson
acquisition completed in the third quarter of 2020 and lower proceeds on loans and borrowings of $29.7 million.
Additionally, repayment of loans and borrowings and ROU liabilities were $3.3 million higher than in 2020 and
dividend payments in 2021 increased by $3.1 million as a result of additional shares issued in relation to the Stuart
Olson and Dagmar acquisitions.
Quarterly Cash Flow Data
The following table provides an overview of cash flows during the three months ended December 31, 2021 and
2020:
Operating Activities
During the fourth quarter of 2021, cash flows from operating activities generated cash of $57.2 million, a decrease
of $142.2 million from the $199.4 million of cash generated in the fourth quarter of 2020.
Cash flows from operations before changes in non-cash working capital of $25.8 million decreased $14.0 million
from the $39.8 million cash generated in 2020 primarily due to the $10.6 million decrease in net income, lower non-
cash addbacks for income taxes ($2.7 million), amortization and depreciation ($0.5 million), income from equity
accounted investments ($1.1 million), partially offset by higher deferred compensation ($0.8 million).
52 | 2021 Management’s Discussion and Analysis
(in thousands of Canadian dollars)20212020$ changeCash flows from operations before changes in non-cash working capital$25,791 $39,806 $(14,015) Changes in contract assets - alternative finance projects- 139,980 (139,980) Changes in non-cash working capital and other31,398 19,650 11,748 Cash flows from operating activities57,189 199,436 (142,247) Investments net of capital distributions from equity accounted entities205 1,346 (1,141) Additions to property, equipment and intangible assets(5,539) (6,068) 529 Proceeds on sale of property and equipment1,117 2,843 (1,726) Other long-term assets(944) (1,134) 190 Cash flows used in investing activities(5,161) (3,013) (2,148) Dividend paid on shares(5,235) (5,171) (64) Proceeds from non-recourse project financing- 1,891 (1,891) Repayment of non-recourse project financing- (131,849) 131,849 Proceeds from loans and borrowings- 26,376 (26,376) Repayment of loans and borrowings(6,984) (26,684) 19,700 Repayment of right-of-use liabilities(4,953) (6,094) 1,141 Cash flows used in financing activities(17,172) (141,531) 124,359 Increase in cash and cash equivalents34,856 54,892 (20,036) Three months ended December 31,
Changes in contract assets – alternative finance projects decreased $140.0 million year-over-year. This change
was partially offset by the $131.8 million reduction in repayment of non-recourse financing. These variances relate
to the OPP Modernization Phase 2 alternative finance project which reached 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.
Cash from changes in non-cash working capital and other increased $11.7 million year-over-year and was driven
mainly by decreases in accounts receivable and contract assets ($29.4 million), provisions ($4.6 million), lower
outflows for income taxes ($4.1 million) and other items ($0.2 million). This was partially offset by increases in
accounts payable and contract liabilities ($40.2 million) and prepaid expenses (1.6 million). The year-over-year
impact on working capital in 2021 results from the Stuart Olson acquisition due to a shift in project mix and increased
activity on self-perform projects. 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 the fourth quarter of 2021, the Company used $5.2 million of cash in investing activities compared to $3.0
million used in 2020. The change of $2.2 million was primarily due to net lower distributions of $1.1 million from
equity accounted entities and lower proceeds on sale of property and equipment of $1.7 million. Offsetting this were
lower additions to property, equipment and intangible assets of $0.5 million and a decrease in other long-term
assets.
Financing Activities
During the fourth quarter of 2021, the Company used $17.2 million of cash related to financing activities, comprised
of a $5.0 million voluntary repayment of non-current loans and borrowings, $5.2 million of dividend payments and
$6.9 million of scheduled repayments of other loans and borrowings and ROU liabilities. In the same period of 2020,
the Company made net repayments of non-recourse project financing of $130.0 million related to the alternative
finance project described above, dividend payments of $5.2 million and net repayments of other loans and
borrowings and ROU liabilities of $6.4 million.
CONTRACTUAL OBLIGATIONS
At December 31, 2021, the Company has future contractual cash flow obligations of $711.0 million. Interest
payments on the committed revolving credit facility and committed non-revolving term loan facility are not included
in the table below since they are subject to variability based upon outstanding balances at various points throughout
the period.
53 | 2021 Management’s Discussion and Analysis
(in thousands of Canadian dollars)Not later than 1 year2 - 3 years4 - 5 yearsLater than 5 yearsContractual cash flowsCarrying amountAccounts payable$452,697 59,863 1,770 - 514,330 514,330 Dividends payable1,745 - - - 1,745 1,745 Right-of-use liabilities22,157 34,191 18,302 14,801 89,451 79,358 Committed revolving credit facility- 22,725 - - 22,725 22,725 Committed non-revolving term loan3,125 46,250 - - 49,375 49,375 Equipment financing4,476 2,159 126 - 6,761 6,581 Acquisition holdback1,364 1,000 - - 2,364 2,364 Lease commitments4,989 - - - 4,989 n/aOther purchase commitments2,597 6,188 6,146 4,349 19,280 n/a$493,150 172,376 26,344 19,150 711,020 676,478
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, forward contracts to manage its foreign
exchange risk on foreign currency payments and 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 33 to the December 31, 2021 annual
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 satisfies 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. At December 31, 2021, accounts
receivable outstanding for greater than 90 days and considered past due by the Company’s management represent
14.8% (December 31, 2020 – 17.5%) of the balance of progress billings on construction contracts receivable.
Management has recorded an allowance of $1.5 million (December 31, 2020 - $1.5 million) against these past due
receivables, net of amounts recoverable from others. Management does not believe there is additional material risk
regarding 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.
A significant customer is one that represents 10% or more of contract revenue earned during the year. For the year
ended December 31, 2021, the Company had revenue of $323.6 million from one significant customer (2020 -
$206.3 million).
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.
54 | 2021 Management’s Discussion and Analysis
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. For the
year ended December 31, 2021, 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 $0.7 million (2020 – $0.6
million).
The Company has certain share-based compensation plans where 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 derivative contracts maturing in 2022. For the year ended December 31, 2021, a 10 percent change
in the share price applied to the Company's TRS derivatives would change income before income taxes by
approximately $1.5 million (2020 – $1.2 million).
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. During
2021, the Company entered into foreign currency forward contracts to buy US dollars for the purpose of managing
its foreign currency risk. These derivative contracts have settlement dates extending to November 2022. For the
year ended December 31, 2021, a 10% movement in the Canadian and U.S. dollar exchange rate would have
changed income by approximately $0.2 million (2020 – $0.2 million).
DIVIDENDS
The Company declared monthly eligible dividends on common shares payable on or about the 20th of the month
following the month in which the dividend was declared. The following table outlines Bird’s dividend history:
As of March 8, 2022, the Board of Directors has declared eligible dividends with a record date subsequent to
December 31, 2021 for the following months:
OUTSTANDING COMMON SHARE DATA AND STOCK EXCHANGE LISTING
The Company is authorized to issue an unlimited number of common shares. The Company had a total of
53,695,293 common shares outstanding at March 8, 2022 (December 31, 2020 - 53,038,929). The Company’s
common shares are listed on the Toronto Stock Exchange (“TSX”) under the trading symbol BDT.
55 | 2021 Management’s Discussion and Analysis
Dividend Period 20212020January 1 to March 310.0975$ 0.0975$ April 1 to June 300.0975$ 0.0975$ July 1 to September 300.0975$ 0.0975$ October 1 to December 310.0975$ 0.0975$ Eligible dividends declaredRecord datePayment dateDividend per shareJanuary dividendJanuary 31, 2022February 18, 20220.0325$ February dividendFebruary 28, 2022March 18, 20220.0325$ March dividendMarch 31, 2022April 20, 20220.0325$ April dividendApril 29, 2022May 20, 20220.0325$
OFF BALANCE SHEET ARRANGEMENTS
The Company has surety lien bonds issued on behalf of the Company valued at $93.1 million at December 31,
2021 (December 31, 2020 - $93.4 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 35 to the December 31, 2021 consolidated
financial statements.
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 36 to the December 31, 2021
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. In addition, seasonal activity
often increases in both the spring and fall for the Company’s MRO services, related to plant turnarounds that are
typically completed in this timeframe.
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.
56 | 2021 Management’s Discussion and Analysis
(in thousands of Canadian dollars, except per share amounts)Q1Q2Q3Q4Q1Q2Q3Q4Revenue321,646$ 282,766$ 345,060$ 554,960$ 444,637$ 556,362$ 621,224$ 597,803$ Net income 1,123 5,624 8,822 20,534 7,119 13,630 12,117 9,917 Earnings per share0.03 0.13 0.20 0.39 0.13 0.26 0.23 0.18 Adjusted Earnings1,123 6,566 12,364 21,526 9,137 14,950 13,821 13,046 Adjusted Earnings Per Share0.03 0.15 0.29 0.41 0.17 0.28 0.26 0.24 Adjusted EBITDA7,562 12,328 22,036 40,011 21,040 30,112 28,585 28,399 20212020
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. The COVID-19 pandemic
impact has put downward pressure on the Company’s revenue and earnings with more significant impacts in the
second quarter of 2020 and the first half of 2021. The transformational acquisition of Stuart Olson on September
25, 2020 led to the significant change in quarterly results between the third and fourth quarters of 2020.
ACCOUNTING POLICIES
The Company’s significant accounting policies are outlined in the notes to the annual consolidated financial
statements for the year ended December 31, 2021.
New Accounting Standards, Amendments and Interpretations Adopted
The Company adopted amendments to IFRS 16 Leases on a prospective basis on January 1, 2021. On May 28,
2020, the IASB issued COVID-19-Related Rent Concessions (Amendment to IFRS 16). 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. Subsequently, on March 31, 2021, the IASB extended the practical
expedient by 12 months; permitting lessees to apply it to rent concessions that reduce lease payments originally
due on or before June 30, 2022. The new 2021 amendments are effective for annual periods beginning on or after
April 1, 2021. Early adoption is permitted. The adoption of these amendments to IFRS 16 did not have a material
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, 2022 and have not been applied in preparing the financial
statements for the period ended December 31, 2021. These standards and interpretations are not expected to have
a material impact on the Company’s financial statements.
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
The COVID-19 pandemic has continued to disrupt global health and the economy in 2021. Notwithstanding ongoing
vaccination programs and government policies enacted in response to the pandemic, the Canadian construction
industry continues to face volatility as each provincial government has responded, and continues to respond, by
implementing measures to address the public health threat. 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 has responded well to the challenges
presented to date and is well positioned to continue responding to fluctuating scenarios.
57 | 2021 Management’s Discussion and Analysis
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 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 18 of the December 31, 2021 consolidated financial statements for further details
regarding the assumptions and estimates regarding the Company’s goodwill impairment assessment.
58 | 2021 Management’s Discussion and Analysis
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 24 of the December 31, 2021
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 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
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 do not include controls, policies and procedures for Dagmar, acquired
on September 1, 2021.
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.
59 | 2021 Management’s Discussion and Analysis
An evaluation of the effectiveness of the design of the Company’s disclosure controls and procedures was carried
out under the supervision of management, including the CEO and CFO, with oversight by the Board of Directors
and Audit Committee, as at December 31, 2021. Based on this evaluation, the Company’s CEO and CFO have
concluded that the design of the Company’s disclosure controls and procedures, as defined in NI 52-109, was
effective as at December 31, 2021.
Internal Controls 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.
An evaluation of the effectiveness of the design of the Company’s internal controls over financial reporting was
carried out under the supervision of management, including the CEO and CFO, with oversight by the Board of
Directors and Audit Committee, as at December 31, 2021. Based on this evaluation, the Company’s CEO and CFO
have concluded that the design of the Company’s internal controls over financial reporting, as defined in NI 52-109,
was effective as at December 31, 2021.
There have been no material changes in the Company’s internal controls over financial reporting for the year ended
December 31, 2021 that materially affected, or are reasonably likely to materially affect, the Company’s internal
controls over financial reporting.
RISKS RELATING TO THE BUSINESS
The following are 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 8, 2022
which is available through SEDAR at www.sedar.com and on the Company’s website at www.bird.ca. 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.
60 | 2021 Management’s Discussion and Analysis
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
A global pandemic can result in widespread illnesses and 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 may
be limited. Accordingly, with any threat of a pandemic or similar public health emergency, the Company could suffer
significant financial losses and a deterioration in its creditworthiness and therefore have a material adverse effect
on the Company.
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 within Canada 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. At this
time the Company cannot accurately predict what effects these conditions will continue to have on our operations
or financial results, including uncertainties relating to the geographic spread of the virus and future variants, the
severity of the disease, the duration of the pandemic, the duration of restrictive public health measures that have
been or may be imposed by either the Federal government or the governments of impacted provinces in Canada,
and increased costs or project delays due to pandemic-related personnel or supply chain issues.
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
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.
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.
61 | 2021 Management’s Discussion and Analysis
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
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.
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 judgements 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
judgements, 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.
62 | 2021 Management’s Discussion and Analysis
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, including assumptions as to inflationary impacts. Erroneous assumptions can result in
an incorrect assessment of risks associated 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.
Litigation/Potential Litigation
In the normal course of the construction business, disputes sometimes arise between parties to construction
contracts. While Bird attempts to resolve any disagreements or disputes before they escalate to litigation, in some
situations this is not possible. At any given time, Bird may be involved in a number of disputes that could lead to
litigation and there may be a number of disputes in various stages of litigation.
It is management’s opinion that adequate provision has been made in Bird’s consolidated financial statements for
any potential settlements relating to such matters and management does not believe that any existing litigation or
pending litigation will ultimately result in a final judgment against Bird that would have a materially adverse impact
on the operations of Bird.
Litigation is, however, inherently uncertain and, accordingly, adverse outcomes not currently provided for in any
current litigation or pending litigation are possible. These potentially adverse outcomes could include financial loss,
damage to Bird’s reputation or a reduction in prospects for future contract awards.
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.
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.
63 | 2021 Management’s Discussion and Analysis
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. In addition, cyber-security incidents relating
to the Company’s information technology systems may disrupt operations and impact operating results. The COVID-
19 pandemic 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.
The Company has a dedicated team of technology and cybersecurity professionals that manage a comprehensive
program to help protect the organization against breaches and other incidents with appropriate security and
operational controls in place, including the monitoring of threats. The Company also has a continual training and
compliance program that all employees must adhere to. The Company’s risk management activities include
ensuring sufficient information security insurance coverage and the regular engagement of third-party expertise to
assess our information security systems.
Acquisition and Integration Risk
The Company has made acquisitions, and may continue to pursue acquisition opportunities to advance its strategic
plan. The successful integration of an acquired business typically requires the management of the pre-transaction
business strategy, including the retention and addition of customers, realization of identified cost, revenue and
strategic synergies, retention of key staff and the development of a common corporate culture. Failure to adequately
address differences in technology, culture, customers, projects, or other issues could negatively affect financial
performance. There is no assurance that the Company will be able to successfully integrate an acquired business
in order to maximize or realize the benefits associated with an acquisition.
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 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
64 | 2021 Management’s Discussion and Analysis
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
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 there
may continue to be 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. These negative effects can arise from late
completion penalties imposed by the contract, the incremental costs arising from loss of productivity, compressed
schedules, overtime work utilized to offset the time lost due to adverse weather or additional costs to modify
methods to perform work in unanticipated weather.
TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL 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.
•
“Backlog” 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 MSAs. The Company’s Backlog equates to the Company’s remaining performance
obligations as at December 31, 2021 and December 31, 2020; refer to Note 10 of the December 31, 2021
consolidated financial statements.
•
“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.
Non-GAAP and Other Financial Measures
Throughout this MD&A certain measures are used that do not have a standardized meaning prescribed by IFRS
and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP financial
ratios and supplementary financial measures. The Company’s specified financial measures are detailed below.
These measures may not be comparable with similar measures presented by other companies.
Non-GAAP Financial Measures
•
“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. Acquisition,
integration and restructuring (as defined in accordance with IFRS) costs are a component of Costs of
construction and General and administrative expenses presented in the statement of income. Management
65 | 2021 Management’s Discussion and Analysis
uses Adjusted Earnings to assess the operating performance of the business. These 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.
•
“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. Acquisition costs, integration costs, restructuring (as defined in
accordance with IFRS) costs, and other restructuring and severance costs are a component of Costs of
construction and General and administrative expenses presented in the statement of income. 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 ongoing 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.
66 | 2021 Management’s Discussion and Analysis
ANNUAL ADJUSTED EARNINGS(in thousands of Canadian dollars, except per share amounts)202120202019Net income$42,783 $36,103 $9,484 Add: Acquisition and integration costs10,780 7,236 - Add: IFRS restructuring costs (1)- - - Income tax effect of the above costs(2,609) (1,760) - Adjusted Earnings$50,954 $41,579 $9,484 Adjusted Earnings Per Share (2)$0.96 $0.92 $0.22 Notes(1) Restructuring costs as defined in accordance with IFRS.(2) Calculated as Adjusted Earnings divided by basic weighted average shares outstanding.QUARTERLY ADJUSTED EARNINGS(in thousands of Canadian dollars, except per share amounts)20212020Net income$9,917 $20,534 Add: Acquisition and integration costs4,111 2,125 Add: IFRS restructuring costs (1)- - Income tax effect of the above costs(982) (1,133) Adjusted Earnings$13,046 $21,526 Basic weighted average shares outstanding53,695 53,039 Adjusted Earnings Per Share (2)$0.24 $0.41 Notes(1) Restructuring costs as defined in accordance with IFRS.(2) Calculated as Adjusted Earnings divided by basic weighted average shares.Three months December 31,
Non-GAAP Financial Ratios
•
“Adjusted Earnings Per Share” is calculated by dividing Adjusted Earnings by the basic weighted average
number of shares.
•
“Adjusted EBITDA Margin” is the percentage derived by dividing Adjusted EBITDA by construction revenue.
67 | 2021 Management’s Discussion and Analysis
ANNUAL ADJUSTED EBITDA(in thousands of Canadian dollars, except percentage amounts)202120202019Net income $42,783 $36,103 $9,484 Add: Income tax expense14,847 13,217 2,475 Add: Depreciation and amortization34,537 21,702 15,814 Add: Finance and other costs7,550 7,506 5,558 Less: Finance income(1,322) (1,511) (2,596) Add: Loss (gain) on sale of property and equipment(1,576) (2,359) (1,346) Add: IFRS restructuring costs (1)- - - Add: Other restructuring and severance costs (2)537 43 2,903 Add: Acquisition and integration costs10,780 7,236 - Adjusted EBITDA$108,136 $81,937 $32,292 Adjusted EBITDA Margin (3)4.9%5.5%2.4%Notes(1) Restructuring costs as defined in accordance with IFRS.(3) Calculated as Adjusted EBITDA divided by Revenue.(2) Restructuring and severance costs that did not meet the criteria to be classified under restructuring costs as defined in accordance with IFRS.QUARTERLY ADJUSTED EBITDA(in thousands of Canadian dollars, except percentage amounts)20212020Net income $9,917 $20,534 Add: Income tax expense3,699 6,436 Add: Depreciation and amortization9,714 9,959 Add: Finance and other costs1,890 1,731 Less: Finance income(426) (178) Add: Loss (gain) on sale of property and equipment(608) (639) Add: IFRS restructuring costs (1)- - Add: Other restructuring and severance costs (2)102 44 Add: Acquisition and integration costs4,111 2,125 Adjusted EBITDA$28,399 $40,012 Adjusted EBITDA Margin (3)4.8%7.2%Notes(1) Restructuring costs as defined in accordance with IFRS.(3) Calculated as Adjusted EBITDA divided by Revenue.Three months December 31,(2) Restructuring and severance costs that did not meet the criteria to be classified under restructuring costs as defined in accordance with IFRS.
Supplementary Financial Measures
•
“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 estimated amounts for agency relationship
construction management projects, pre-construction activities, collaborative contracting arrangements and
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.
•
•
•
“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.
“Current ratio” is the percentage derived by dividing total current assets by total current liabilities.
“General and Administrative expenses as a percentage of revenue” is the percentage derived by dividing
general and administrative expenses by construction revenue.
FORWARD-LOOKING INFORMATION
This MD&A contains forward-looking statements and information ("forward-looking statements") within the meaning
of applicable Canadian securities laws. The forward-looking statements contained in this MD&A are based on the
expectations, estimates and projections of management of Bird as of the date of this MD&A 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 MD&A contains forward-looking statements concerning: the anticipated benefits of the
Stuart Olson and Dagmar acquisitions to Bird, its shareholders and all other stakeholders, including anticipated
synergies; the plans and strategic priorities of the combined company; and with respect to Bird’s share of the project
value for certain joint venture projects.
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. Investors are cautioned that forward-looking statements are based on the opinions,
assumptions and estimates of management considered reasonable at the date the statements are made, and actual
results could differ materially from those currently anticipated due to a number of factors and risks. These include,
but are not limited to the risks associated with the industries in which Bird operates in general, such as:
• Ability to access sufficient capital from
internal and external sources
• Ability to secure work
• Accuracy of cost to complete estimates
• Adjustments and cancellations of Backlog
• Changes in legislation, including but not
limited to tax laws and environmental
regulations
• Client concentration
• Climate change
• Collection of recognized revenue
• Commodity price, interest rate and exchange
rate fluctuations
• Competition, ethics, and reputational risks
• Completion and performance guarantees
• Compliance with environmental laws risks
• Corporate guarantees and letters of credit
• Cyber-security risks
• Failure to realize the anticipated benefits of
business acquisitions including the Stuart
Olson and Dagmar transactions
Industry and inherent project delivery risks
Insurance risk
Internal and disclosure controls
Joint venture risk
• Global pandemics
• Health, safety and environmental risks
•
•
•
•
• Labour matters
• Litigation risk
• Loss of key management; ability to hire and
retain qualified and capable personnel
• Maintaining safe worksites
• Operational risks
• Payment of dividends
• Performance bonds and contract security
68 | 2021 Management’s Discussion and Analysis
• Default under the Company’s credit facilities
• Potential for non-payment and credit risk and
could result in the suspension of dividends
• Delays or changes in plans with respect to
growth projects or capital expenditures, costs
and expenses
• Dependence on the public sector
• Design and design/build risks
• Economy and cyclicality
• Estimating costs and schedules/assessing
contract risks
ongoing financing availability
• PPP equity investments
• PPP project risk
• Quality assurance and quality control
• Regional concentration
• Regulations
• Repayment of credit facility
• Subcontractor performance
• Unanticipated shutdowns, work stoppages,
• Failure of clients to obtain required permits
and licenses
strikes and lockouts
• Volatility of market trading
The forward-looking statements in this MD&A should not be interpreted as providing a full assessment or reflection
of the unprecedented impacts of the COVID-19 pandemic 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; Annual Information Form for the year ended December 31, 2021, each of which may be accessed
on Bird's SEDAR profile at www.sedar.com.
The forward-looking statements contained in this MD&A are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as, and to the extent required by applicable securities laws.
69 | 2021 Management’s Discussion and Analysis
2021
CONSOLIDATED
FINANCIAL STATEMENTS
for the years ended December 31, 2021 and 2020
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 8, 2022
71 | Annual 2021 Consolidated Financial Statements
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, 2021 and December 31, 2020, 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, 2021 and December 31, 2020, 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, 2021. 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 matter described below to be the key audit matter 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 2021, Entity recognized $2,220,026 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. 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.
KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. KPMG Canada provides services to KPMG LLP.
72 | Annual 2021 Consolidated Financial Statements
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 2021 and estimated in the prior period.
For a selection of fixed price construction contracts at December 31, 2021, we evaluated the appropriateness of the Entity’s
determination of costs to complete and variable consideration to be received by performing the following:
• 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
• 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.
Other Information
Management is responsible for the other information. Other information comprises:
• Management’s Discussion and Analysis filed with the relevant Canadian Securities Commissions.
•
Information, other than the financial statements and the auditors’ report thereon, included in a document likely to be entitled
“2021 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.
73 | Annual 2021 Consolidated Financial Statements
The information, other than the financial statements and the auditors’ report thereon, included in a document likely to be entitled
“2021 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.
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:
•
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.
• 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.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• 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.
74 | Annual 2021 Consolidated Financial Statements
• 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.
• 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.
• 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.
• 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 8, 2022
75 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Consolidated Statement of Financial Position
As at December 31, 2021 and 2020
(in thousands of Canadian dollars)
Approved on behalf of the Board of Directors
Paul R. Raboud
Chairman of the Board
Karyn A. Brooks
Audit Committee Chair
76 | Annual 2021 Consolidated Financial Statements
Note 2021 2020 (1)ASSETSCurrent assetsCash and cash equivalents8$190,191 $212,068 Accounts receivable9597,814 530,166 Contract assets1055,949 60,031 Contract assets - alternative finance projects10,11- 113 Inventory and prepaid expenses9,406 8,038 Income taxes recoverable9,175 7,484 Other assets126,119 2,577 Assets held for sale 144,416 - Total current assets873,070 820,477 Non-current assetsOther assets129,104 13,171 Investments in equity accounted entities1313,471 14,710 Property and equipment1555,004 59,435 Right-of-use assets1667,497 61,511 Deferred income tax asset2132,784 33,760 Intangible assets1730,478 27,526 Goodwill1855,740 36,960 Total non-current assets264,078 247,073 TOTAL ASSETS$1,137,148 $1,067,550 LIABILITIES Current liabilitiesAccounts payable$514,330 $490,470 Contract liabilities10130,315 121,504 Dividends payable to shareholders1,745 1,724 Income taxes payable7,991 20,187 Current portion of loans and borrowings197,470 8,010 Current portion of right-of-use liabilities2019,782 18,748 Provisions2227,316 27,569 Other liabilities2312,311 2,010 Total current liabilities721,260 690,222 Non-current liabilitiesLoans and borrowings1971,211 64,903 Right-of-use liabilities2059,576 59,327 Deferred income tax liability2124,798 23,110 Other liabilities2316,583 13,778 Pension liabilities24232 3,600 Total non-current liabilities172,400 164,718 TOTAL LIABILITIES893,660 854,940 SHAREHOLDERS' EQUITYShareholders' capital26114,584 108,064 Contributed surplus1,956 1,956 Retained earnings126,935 102,520 Accumulated other comprehensive income 13 70 Total shareholders' equity243,488 212,610 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,137,148 $1,067,550 The accompanying notes are an integral part of these consolidated financial statements.(1) December 31, 2020 comparatives have been restated as a result of measurement period adjustments made to the purchase price allocation at September 25, 2020. (See note 7b).
Bird Construction Inc.
Consolidated Statement of Income
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
77 | Annual 2021 Consolidated Financial Statements
Note20212020Construction revenue10$2,220,026 $1,504,432 Costs of construction302,033,341 1,378,132 Gross profit186,685 126,300 Income from equity accounted investments134,187 7,792 General and administrative expenses30(127,014) (78,777) Income from operations63,858 55,315 Finance income281,322 1,511 Finance and other costs29(7,550) (7,506) Income before income taxes57,630 49,320 Income tax expense21 14,847 13,217 Net income for the period$42,783 $36,103 Basic and diluted earnings per share27$0.80 $0.80 The accompanying notes are an integral part of these consolidated financial statements.
Bird Construction Inc.
Consolidated Statement of Comprehensive Income
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars)
78 | Annual 2021 Consolidated Financial Statements
Note20212020Net income for the period$42,783 $36,103 Other comprehensive income (loss) for the period:Items that will not be reclassified to net income in subsequent periods: Defined benefit plan actuarial gain (loss)243,197 1,540 Deferred tax recovery (expense) (795) (371) 2,402 1,169 Items that may be reclassified to net income in subsequent periods: Foreign currency translation on equity accounted investments13(21) 47 Other foreign currency translation(18) (17) Deferred tax recovery (expense)(18) - (57) 30 Total comprehensive income for the period$45,128 $37,302 The accompanying notes are an integral part of these consolidated financial statements.
Bird Construction Inc.
Consolidated Statement of Changes in Equity
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
79 | Annual 2021 Consolidated Financial Statements
NoteShareholders' capitalContributed surplusRetained earningsAccumulated other comprehensive incomeTotal equityBalance at December 31, 2020$108,064 $1,956 $102,520 $70 $212,610 Net income for the period- - 42,783 - 42,783 Other comprehensive income (loss) for the period13,24- - 2,402 (57) 2,345 Total comprehensive income (loss) for the period- - 45,185 (57) 45,128 Contributions by and dividends to ownersCommon shares issued on acquisition of Dagmar7(a)6,520 - - - 6,520 Dividends declared to shareholders- - (20,770) - (20,770) 6,520 - (20,770) - (14,250) Balance at December 31, 2021$114,584 $1,956 $126,935 $13 $243,488 Dividends declared per share 0.39$ Balance at December 31, 201942,527 $1,956 $83,197 $40 $127,720 Net income for the period- - 36,103 - 36,103 Other comprehensive income (loss) for the period- - 1,169 30 1,199 Total comprehensive income (loss) for the period- - 37,272 30 37,302 Contributions by and dividends to ownersCommon shares issued on acquisition of Stuart Olson7(b)65,537 - - - 65,537 Dividends declared to shareholders- - (17,949) - (17,949) 65,537 - (17,949) - 47,588 Balance at December 31, 2020$108,064 $1,956 $102,520 $70 $212,610 Dividends declared per share 0.39$ The accompanying notes are an integral part of these consolidated financial statements.
Bird Construction Inc.
Consolidated Statement of Cash Flows
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars)
80 | Annual 2021 Consolidated Financial Statements
Note20212020Cash flows from (used in) operating activitiesNet income for the period$42,783 $36,103 Items not involving cash:Amortization176,258 2,370 Depreciation15,1628,279 19,332 Gain on sale of property and equipment(1,576) (2,359) Income from equity accounted investments13(4,187) (7,792) Finance income28(1,322) (1,511) Finance and other costs297,550 7,506 Deferred compensation plan expense and other10,056 4,699 Defined benefit pension plan expense, net of contributions24(171) 117 Unrealized (gain) loss on investments and other24106 14 Income tax expense (recovery)2114,847 13,217 Cash flows from operations before changes in non-cash working capital102,623 71,696 Changes in non-cash working capital relating to operating activities32(31,535) 69,093 Interest received1,321 2,037 Interest paid(7,243) (7,815) Income taxes recovered (paid)(29,340) (6,064) Net cash from (used in) operating activities35,826 128,947 Cash flows from (used in) investing activitiesInvestments in equity accounted entities13(768) (5,088) Capital distributions from equity accounted entities132,193 5,523 Proceeds on sale of investment in equity accounted entities14- 11,034 Additions to property and equipment and intangible assets15,17(11,756) (14,227) Proceeds on sale of property and equipment153,614 9,211 Acquisitions, net of cash acquired7(20,563) (59,960) Other long-term assets3,975 (392) Net cash from (used in) investing activities(23,305) (53,899) Cash flows from (used in) financing activitiesProceeds from issue of common shares, net of issue costs7- 39,876 Dividends paid on shares(20,749) (17,607) Proceeds from non-recourse project financing11- 46,782 Repayment of non-recourse project financing11- (131,849) Proceeds from loans and borrowings1958,600 88,283 Repayment of loans and borrowings19(52,832) (56,658) Repayment of right-of-use liabilities20(19,265) (12,110) Net cash from (used in) financing activities(34,246) (43,283) Net increase (decrease) in cash and cash equivalents during the period(21,725) 31,765 Effects of foreign exchange on cash balances(152) (31) Cash and cash equivalents, beginning of the period 212,068 180,334 Cash and cash equivalents, end of the period 8$190,191 $212,068 The accompanying notes are an integral part of these consolidated financial statements.
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
Table of Contents – Notes to the Consolidated Financial Statements
1.
2.
Structure of the company ................................................................................................................................................ 82
Basis of preparation ......................................................................................................................................................... 82
3. Use of estimates and judgements ................................................................................................................................... 82
4.
Significant accounting policies ......................................................................................................................................... 84
5. New accounting standards, amendments and interpretations adopted ........................................................................... 96
6.
7.
Future accounting changes ............................................................................................................................................. 96
Business combinations .................................................................................................................................................... 96
8. Cash and cash equivalents ........................................................................................................................................... 100
9.
Accounts receivable ...................................................................................................................................................... 101
10. Revenue ........................................................................................................................................................................ 101
11. Alternative finance projects ........................................................................................................................................... 103
12. Other assets .................................................................................................................................................................. 103
13. Projects and entities accounted for using the equity method ......................................................................................... 104
14. Assets held for sale ....................................................................................................................................................... 106
15. Property and equipment ................................................................................................................................................ 107
16. Right-of-use assets ........................................................................................................................................................ 108
17.
Intangible assets............................................................................................................................................................ 109
18. Goodwill ......................................................................................................................................................................... 110
19. Loans and borrowings ................................................................................................................................................... 111
20. Leases and right-of-use liabilities .................................................................................................................................. 113
21.
Income taxes ................................................................................................................................................................. 113
22. Provisions ...................................................................................................................................................................... 115
23. Other liabilities ............................................................................................................................................................... 116
24. Pension obligations ....................................................................................................................................................... 116
25. Share-based compensation plans ................................................................................................................................. 118
26. Shareholders’ capital ..................................................................................................................................................... 119
27. Earnings per share ........................................................................................................................................................ 120
28. Finance income ............................................................................................................................................................. 120
29. Finance and other costs ................................................................................................................................................ 120
30. Personnel costs ............................................................................................................................................................. 120
31. Government assistance ................................................................................................................................................. 121
32. Other cash flow information ........................................................................................................................................... 121
33. Financial instruments ..................................................................................................................................................... 122
34. Capital Management ..................................................................................................................................................... 125
35. Commitments and contingencies................................................................................................................................... 126
36. Related party transactions ............................................................................................................................................. 126
37. Eligible dividends declared with a record date subsequent to the financial statement date ........................................... 127
81 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(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 (“TSX”) 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, institutional markets and civil infrastructure markets; to industrial maintenance, repair and
operations (“MRO”) services, heavy civil construction and mine support services; as well as vertical
infrastructure including, electrical, mechanical, and specialty trades. The Company uses a variety of contract
delivery methods including fixed price, 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 8, 2022 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.
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.
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
The COVID-19 pandemic continued to disrupt global health and the economy in 2021. Notwithstanding ongoing
vaccination programs and government policies enacted in response to the pandemic, the Canadian construction
industry continues to face volatility as each provincial government has responded, and continues to respond,
82 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
by implementing measures to address the public health threat. 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 has responded well to the
challenges presented to date and is well positioned to continue responding to fluctuating scenarios.
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 the determination 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
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
83 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
opportunities, including economic risk assumptions, and estimates of achieving key operating metrics and
drivers, and the discount rate. Refer to note 18 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 24
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 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.
84 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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 Construction Inc.
Bird Construction Group (Limited Partnership)
Bird Construction Group Ltd.
Bird Construction Industrial Services Ltd.
Bird General Contractors Ltd.
Stuart Olson Inc.1
Stuart Olson Buildings Ltd.1
Stuart Olson Construction Ltd.1
Stuart Olson Industrial Inc.1
Stuart Olson Industrial Services Ltd.1
Stuart Olson Industrial Projects Inc.1
Stuart Olson Industrial Constructors Inc.1
Canem Systems Ltd.1
The Churchill Corporation1
Dagmar Construction Inc. 2
Proportionately consolidated joint arrangements
Bird Kiewit Joint Venture
Pomerleau/O’Connell JV
Bird – Maple Reinders JV
Maple Reinders – Bird JV
Bird – ATCO Joint Venture
CBS Joint Venture
Chandos Bird Joint Venture
BCIFSL – TCMLP JV
Acciona Stuart Olson Joint Venture1
Stuart Olson/Nunavut Ltd.1
Canem/Plan Group Joint Venture1
Stuart Olson Industrial Contractors/Andritz Hydro Canada Inc.1
FCG Construction/Stuart Olson, a Joint Venture1
1 Acquired on September 25, 2020 (note 7b)
2 Acquired on September 1, 2021 (note 7a)
Ownership / Voting Interest
2020
2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
60%
50%
50%
50%
60%
42.5%
50%
49%
50%
40%
50%
50%
50%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
n/a
60%
50%
50%
50%
60%
42.5%
50%
n/a
50%
40%
50%
50%
50%
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.
85 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
Company
Equity accounted investment in associates/joint ventures
Chinook Resources Management General Partnership
Harbour City Solutions General Partnership
Hartland Resource Management General Partnership
Plenary Infrastructure ERMF GP
Stack Modular Structures Ltd.
Stack Modular Structures Hong Kong Limited
Niagara Falls Entertainment Partners
Timmiak Construction Limited Partnership
Bird Capital P3SB2 Holdings Inc.
Ownership / Voting Interest
2021
2020
50%
20%
20%
10%
50%
50%
20% / 16.2%
69.99% / 33.33%
20%
50%
20%
20%
10%
50%
50%
20% / 16.2%
69.99% / 33.33%
n/a
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 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.
86 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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
iv.
has 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.
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
87 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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:
• 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;
• 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.
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
88 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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.
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:
• 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.
89 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
• 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.
• 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 ROU 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
Straight line
Useful Life
1 to 10 years
1 to 3 years
3 to 7 years
Indefinite or 5 years
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
90 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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.
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.
91 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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.
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
92 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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.
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. 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.
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.
93 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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.
• 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.
• 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.
• Fair value through other comprehensive income (“FVTOCI”): The Company does not have any financial
assets held at FVTOCI at December 31, 2021 or 2020.
94 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
The Company has the following financial assets and liabilities:
Financial assets:
Cash and cash equivalents
Accounts receivable
Notes receivable
Subcontractor / Supplier insurance deposits
Derivative contracts
Lease receivables
Financial liabilities:
Accounts payable
Dividends payable to shareholders
Loans and borrowings
Right-of-use liabilities
Acquisition holdback liability
Derivative contracts
Classification & basis of measurement
Amortized cost
Amortized cost
Amortized cost
Amortized cost
FVTPL
Amortized cost
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 uses
foreign currency forward contracts to buy US dollars for the purpose of managing its foreign currency risk. The
fair value of the foreign currency forward contracts is recognized in general and administrative expenses in the
statement of income. 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.
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
95 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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 FVTPL. 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
The Company adopted amendments to IFRS 16 Leases on a prospective basis on January 1, 2021. 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. Subsequently, on March
31, 2021, the IASB extended the practical expedient by 12 months; permitting lessees to apply it to rent
concessions that reduce lease payments originally due on or before June 30, 2022. The new 2021 amendments
are effective for annual periods beginning on or after April 1, 2021. Early adoption is permitted. The adoption of
these amendments to IFRS 16 did not have a material 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, 2022 and have not been applied in preparing the
financial statements for the period ended December 31, 2021. These standards and interpretations are not
expected to have a material impact on the Company’s financial statements.
7. Business combinations
(a) Acquisition of Dagmar Construction Inc.
Effective September 1, 2021, the Company acquired all of the issued and outstanding shares of Dagmar
Construction Inc. (“Dagmar”). Dagmar is an Ontario-based construction company with extensive experience
across key civil infrastructure sub-sectors including road, bridge, rail, sewer and water, and commercial-
institutional sites. One of the key rationales for the business combination was to combine and integrate
Dagmar’s capabilities and service offerings for both private and public owners across Ontario, acting as a
catalyst in this attractive end market. In selected national markets where Bird has civil activity, Dagmar will add
specialized capabilities to broaden client service offerings and increase diversification.
96 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
The purchase price of the transaction totalled $32,502 and included cash of $23,600, equity of $6,538 and a
holdback and other liability of $2,364. The $2,364 holdback and other liability consists of $1,364 related to a
final working capital reconciliation and $1,000 relating to any indemnities provisions to be reconciled as at the
second anniversary of the closing date.
In connection with this acquisition, the Company incurred acquisition costs of approximately $787, comprised
mainly of consulting and other professional fees, which are presented in general and administrative expenses
in the statement of income. Transaction costs of $18 directly attributable to the issue of common shares related
to the transaction are recognized as a reduction from shareholders' capital.
The Dagmar acquisition 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 and ROU assets and ROU liabilities identified in which the acquiree is the
lessee. The value of the assets and liabilities associated with the Dagmar acquisition were not finalized by
March 8, 2022 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, 2021, 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 1, 2021. The impact of these measurement period adjustments
include: $3,945 decrease in ROU assets and $3,945 decrease in ROU liabilities.
Total common shares issued as consideration
Common share price at close on September 1, 2021
Equity consideration
Acquisition holdback and other liability
Cash consideration
Total Consideration
Fair value of assets and liabilities of Dagmar acquired:
Assets acquired
Cash and cash equivalents
Accounts receivable
Contract assets
Income taxes recoverable
Prepaid expenses
Property and equipment
ROU assets
Intangible assets
Liabilities assumed
Accounts payable
Contract liabilities
ROU liabilities
Net deferred income tax liabilities
Net identifiable assets acquired
Goodwill
Net assets acquired
$
$
$
$
$
656,364
9.96
6,538
2,364
23,600
32,502
3,055
6,887
50
332
74
3,211
5,489
6,004
(2,058)
(1,043)
(5,489)
(2,790)
13,722
18,780
32,502
$
The fair value and gross amount of the trade receivables acquired amounted to $6,887.
97 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
Goodwill and intangible assets
Goodwill of $18,780 recognized as part of the acquisition is attributed to expected revenue growth and future
market development specifically in the civil infrastructure sector. 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 $6,004 include computer
software, backlog and agency contracts, customer relationships and trade names.
(b) Acquisition of Stuart Olson Inc.
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 provide MRO services.
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:
• Stuart Olson's secured creditors received an aggregate cash payment of $70,000 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;
• 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 $40,000;
• 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 $21,800 based on a deemed issue price equal to $6.32 per share for $22,500
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
• 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 TSX for the five trading days immediately preceding September 25, 2020.
98 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
In connection with this acquisition, the Company incurred acquisition costs of approximately $5,570
comprised mainly of consulting and other professional fees, which were presented 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 reduction 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 income 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.
The value of the assets and liabilities associated with the Stuart Olson acquisition were finalized on
September 25, 2021. During the nine month period ended September 30, 2021, 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 include a: $341 increase in accounts receivable, $1,353 increase in net
deferred tax assets, $1,450 increase in contract liabilities, $4,150 increase in provisions and $3,906 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
ROU assets
Intangible assets
Net deferred income tax assets
Liabilities assumed
Accounts payable
Contract liabilities
Income taxes payable
Provisions
Pension liabilities
Loans and borrowings
ROU liabilities
Other liabilities
Net identifiable assets acquired
Goodwill
Net assets acquired
99 | Annual 2021 Consolidated Financial Statements
632,835
3,560,127
4,192,962
6.12
25,661
70,000
95,661
10,040
270,077
33,534
622
7,506
3,634
15,483
26,728
25,430
9,615
(190,450)
(57,766)
(7,913)
(18,632)
(5,023)
(667)
(46,887)
(241)
75,090
20,571
95,661
$
$
$
$
$
$
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
The fair value of the trade receivables acquired amounts to $270,077. The gross amount of trade receivables
was $282,443, of which $12,366 was expected to be uncollectible at the acquisition date.
Goodwill and intangible assets
Goodwill of $20,571 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.
8. Cash and cash equivalents
Cash and cash equivalents
Accessible cash
Cash held for joint operations
Restricted cash and blocked accounts
Restricted short-term deposits held to support letters of credit
$
$
Restricted cash and cash equivalents
Cash and cash equivalents held to support letters of credit (note 19) $
Cash deposited in blocked accounts for special projects
Restricted cash held in trust
$
2021
102,972 $
22,708
64,421
90
190,191 $
2021
139
–
64,372
64,511
$
$
2020
96,671
60,200
55,107
90
212,068
2020
139
1,033
54,025
55,197
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 19).
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
Restricted cash and cash equivalents represent amounts that are not available for general operating
purposes. Restricted cash held in trust relates to trust obligations on certain projects for which we have
segregated accounts.
100 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(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
$
$
2021
412,674
178,898
6,242
597,814
$
$
2020
336,627
160,364
33,175
530,166
Accounts receivable are reported net of an allowance for doubtful accounts of $1,527 as at December 31,
2021 (December 31, 2020 - $1,471). 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 $nil as at December 31, 2021
(December 31, 2020 - $25,847) related to the Canada Emergency Wage Subsidy (“CEWS”). See note 31.
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
$
$
2021
14,920 $
58,883
1,235,828
910,395
2,220,026 $
2020
28,760
100,572
942,776
432,324
1,504,432
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, 2021, the aggregate amount of the transaction price allocated to total remaining
performance obligations from construction contracts was $3,002,509. 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 58% 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” and additions
to remaining performance obligations are also referred to by the Company as “Securements"; these measures
may not be comparable with the calculation of similar measures by other entities as Backlog and Securements
are not terms defined under IFRS.
101 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(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
$
$
2021
591,572 $
55,949
–
(130,315)
517,206 $
2020
496,991
60,031
113
(121,504)
435,631
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, 2020
Acquisition (note 7a)
Reduction of contract assets due to progress billings
Additions to contract assets
Balance, December 31, 2021
Balance, December 31, 2019
Acquisition (note 7b)
Reduction of contract assets due to progress billings
Additions to contract assets
Balance, December 31, 2020
Construction
contracts
$
60,031 $
50
(1,139,620)
1,135,488
$
55,949 $
Construction
contracts
31,018 $
33,534
(325,692)
321,171
60,031 $
$
$
2021
Alternative
finance
projects
113 $
–
(113)
–
– $
2020
Alternative
finance
projects
75,180 $
–
(149,837)
74,770
113 $
Total
60,144
50
(1,139,733)
1,135,488
55,949
Total
106,198
33,534
(475,529)
395,941
60,144
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, 2021, $121,504 of revenue (2020 – $112,126) was recognized that was
included in the contract liability balance at the beginning of the year.
102 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
For the year ended December 31, 2021, $3,964 of revenue ($nil - December 31, 2020) was recognized from
the satisfaction of performance obligations related to previous periods. Amounts represent 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 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, and the loan was repaid in full in
the fourth quarter of 2020. The terms of the debt financing agreement required that scheduled loan advances
be deposited into a bank account that could not be accessed directly by the Company unless recommended
by the lender’s technical advisor that cash was to be released monthly based on the progress of the work
(note 8).
Borrowings under the facility had 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, 2021 of $nil (2020 – $3,522) were
included in finance costs. As part of the loan facility, the Company entered into an interest rate swap
agreement that effectively fixed 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 was not designated as a hedge, and changes
in the fair market value were recorded in finance costs in the statement of income.
12. Other assets
Subcontractor / Supplier insurance deposits
Notes receivable
Lease receivables
Total Return Swap (“TRS”) derivatives
Foreign currency forward swaps
Other assets
Less: current portion
TRS derivatives
Lease receivables
Foreign currency forward swaps
Current portion
Non-current portion
$
$
2021
4,403 $
–
5,895
4,896
29
15,223
4,896
1,194
29
6,119
9,104 $
2020
5,197
1,806
7,141
1,604
–
15,748
1,330
1,247
–
2,577
13,171
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) 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.
As at December 31, 2021 the balance outstanding on this note was $nil (December 31, 2020 - $1,806). During
the year ended December 31, 2021 the Company issued an additional promissory note available to the
borrower for a specific project, that was due upon completion of the project, and was fully repaid in 2021.
103 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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 also entered into foreign currency forward contracts to buy US dollars for the purpose of
managing its foreign currency risk. The foreign currency derivatives are not designated as a hedge and
unrealized gains and losses in the fair value of the foreign currency forward contracts are recognized in general
and administrative expenses in the statement of income. These derivative contracts have settlement dates
extending to November 2022. During the year ended December 31, 2021, the Company recognized a gain on
these derivatives of $29 (2020 - $nil).
The Company subleases certain facilities. The following is a detailed maturity analysis of the undiscounted
finance lease payments receivable as at December 31, 2021:
Lease receivables
$
5,895 $
6,328 $
Carrying
amount
Contractual
cash flows
Not later
than 1
year
1,344 $
Later than 1
year and
less than 3
years
2,826
Later than 3
years and
less than 5
years
1,742
$
$
Later
than 5
years
416
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.
Joint
ventures
2021
Associates
$
29,070 $
26,717 $
243,749
272,819
19,246
213,177
232,423
176,342
203,059
8,694
167,867
176,561
Total
55,787
420,091
475,878
27,940
381,044
408,984
$
$
$
$
$
40,396 $
14,742 $
26,498 $
2,650 $
66,894
17,392
115,822 $
11,679 $
7,373 $
2,108 $
123,195
13,787
3,982 $
205 $
4,187
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
104 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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
$
$
$
$
$
$
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 period
Share of other comprehensive income (loss) for the period
Investments in equity accounted entities
$
2021
14,710 $
4,187
(21)
768
19,644
2020
10,185
4,688
47
5,088
20,008
Capital distributions received
(2,193)
(5,298)
Investments in equity accounted entities reclassified as held for sale (note 14)
Balance, end of period
$
(3,980)
13,471 $
–
14,710
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.
Share of net income for the year
Gain on sale of investments in equity accounted entities (note 14)
Income from equity accounted investments
$
$
2021
4,187
-
4,187
$
$
2020
4,688
3,104
7,792
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.
Transactions with these related parties are described in note 36. Amounts committed for future capital
injections to concession entities are described in note 35.
105 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
14. Assets held for sale
Assets held for sale
Balance, beginning of period
Investments in equity accounted entities classified as held for sale
Property classified as held for sale
Capital distributions received
Sale of investment
Balance, end of period
2021
–
3,980
436
–
–
4,416
2020
6,978
–
–
(225)
(6,753)
–
$
$
$
$
Investments in equity accounted entities classified as held for sale
During the year, the Company initiated plans to sell two of its investments in entities accounted for using the
equity method. Buyers have been located and the sales are expected to be completed within the next 12
months. As at December 31, 2021, the investments are classified as an asset held for sale on the statement
of financial position at the lesser of its carrying amount and fair value less costs to sell. The estimated fair
value less cost to sell of the two investments are expected to exceed their carrying value.
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 and received distributions of $225. The Company
recognized net gains on these transactions of $3,104 which was 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.
Property classified as held for sale
The Company has initiated plans to sell land located in Northern Alberta. The sale is expected to be completed
within the next 12 months. As at December 31, 2021, the asset is classified as an asset held for sale on the
statement of financial position at the lesser of its carrying amount and fair value less costs to sell. The estimated
fair value less cost to sell of the property is expected to exceed its carrying value.
106 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
15. Property and equipment
Land
Buildings
Leasehold
improvements
2021
Equipment,
trucks and
automotive
Furniture
and office
equipment
Cost
Balance, December 31, 2020
Acquisition (note 7a)
Reclassified as held for sale (note 14)
Additions
Disposals
Balance, December 31, 2021
Accumulated depreciation
Balance, December 31, 2020
Disposals
Depreciation expense
Balance, December 31, 2021
$
$ 2,557
–
(436)
231
–
2,352
$
12,181
–
–
504
–
12,685
$
16,730
26
–
619
(93)
17,282
$
98,808
3,069
–
7,089
(10,271)
98,695
–
–
–
–
6,719
–
491
7,210
5,836
(53)
2,669
8,452
59,315
(8,436)
10,463
61,342
$
3,156
116
–
107
(195)
3,184
2,127
(173)
236
2,190
Total
133,432
3,211
(436)
8,550
(10,559)
134,198
73,997
(8,662)
13,859
79,194
Net book value
$
2,352
$
5,475
$
8,830
$
37,353
$
994
$
55,004
Cost
Balance, December 31, 2019
Acquisition (note 7b)
Additions
Disposals
Balance, December 31, 2020
Accumulated depreciation
Balance, December 31, 2019
Disposals
Depreciation expense
Balance, December 31, 2020
Land
Buildings
Leasehold
improvements
2020
Equipment,
trucks and
automotive
Furniture
and office
equipment
$
$
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
–
–
–
–
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
107 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
16. Right-of-use assets
Cost
Balance, December 31, 2020
Acquisition (note 7a)
Additions
Disposals
Balance, December 31, 2021
Accumulated depreciation
Balance, December 31, 2020
Disposals
Depreciation expense
Balance, December 31, 2021
2021
Equipment,
trucks and
automotive
Furniture
and office
equipment
41,053 $
585
11,775
(1,972)
51,441
10,243
(1,637)
7,651
16,257
1,900 $
–
–
(52)
1,848
227
(29)
767
965
Buildings
$
35,085 $
4,904
4,222
(818)
43,393
6,057
(96)
6,002
11,963
Total
78,038
5,489
15,997
(2,842)
96,682
16,527
(1,762)
14,420
29,185
Net book value
$
31,430 $
35,184 $
883 $
67,497
Cost
Balance, December 31, 2019
Acquisition (note 7b)
Additions
Disposals
Balance, December 31, 2020
Accumulated depreciation
Balance, December 31, 2019
Disposals
Depreciation expense
Balance, December 31, 2020
2020
Equipment,
trucks and
automotive
Furniture and
office
equipment
26,125 $
136 $
9,827
9,587
(4,486)
41,053
6,759
(1,506)
4,990
10,243
1,615
275
(126)
1,900
34
(41)
234
227
$
Buildings
17,564 $
15,286
2,415
(180)
35,085
2,572
(140)
3,625
6,057
Total
43,825
26,728
12,277
(4,792)
78,038
9,365
(1,687)
8,849
16,527
Net book value
$
29,028 $
30,810 $
1,673 $
61,511
108 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
17. Intangible assets
2021
Trade
names
Backlog and
agency
contracts
Customer
relationships
Computer
software
Cost
Balance, December 31, 2020
Acquisition (note 7a)
Additions
Balance, December 31, 2021
$
7,000 $
1,000
–
8,000
Accumulated amortization
Balance, December 31, 2020
Amortization expense
Balance, December 31, 2021
–
67
67
4,000 $
500
–
4,500
333
1,457
1,790
11,000 $
4,500
–
15,500
13,954 $
4
3,206
17,164
Total
35,954
6,004
3,206
45,164
393
1,796
2,189
7,702
2,938
10,640
8,428
6,258
14,686
Net book value
$
7,933 $
2,710 $
13,311 $
6,524 $
30,478
2020
Trade
names
Backlog and
agency
contracts
Customer
relationships
Computer
software
Cost
Balance, December 31, 2019
Acquisition (note 7b)
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
Total
8,542
25,430
1,982
35,954
6,058
1,644
7,702
6,058
2,370
8,428
Net book value
$
7,000 $
3,667 $
10,607 $
6,252 $
27,526
109 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
18. Goodwill
Cost
Balance, December 31, 2020
Acquisition (note 7a)
Acquisition (note 7b)
Balance, December 31, 2021
Accumulated impairment
Balance, December 31, 2020
Balance, December 31, 2021
$
$
2021
51,111
18,780
–
69,891
14,151
14,151
2020
30,540
–
20,571
51,111
14,151
14,151
Net book value
$
55,740
$
36,960
At December 31, 2021 and 2020, the Company conducted an impairment test of its goodwill and indefinite
life intangible asset. The carrying value of goodwill and the Company’s indefinite life intangible asset at
December 31, 2021 and 2020 was determined to not be impaired as the recoverable amount of the
Company’s CGUs exceeded their carrying values.
For the purposes of impairment testing, the Company allocated the carrying value of goodwill to the following
groups of CGUs:
Goodwill
Industrial
Buildings
Commercial Systems Group
2021
41,375
12,794
1,571
55,740
$
$
$
$
2020
22,595
12,794
1,571
36,960
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 derived from the Company’s 2022 Business Plan and the 2022-2024
Strategic Plan, which was reviewed by management with the Board of Directors.
The Company selected a three-year forecast period for the discounted cash flow analysis with the belief that
further periods are adequately represented by a terminal value. 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. Cash flows for the remaining periods were extrapolated using a
growth rate of 2.0%. 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.
Sensitivity analyses of significant estimates and assumptions was conducted as part of the Company’s
impairment testing. The sensitivity ranges were selected based on management’s expectations for inflationary
growth and knowledge of weighted average cost of capital within the construction industry. A 1% change in
the discount rate and a 0.5% change in the growth rate would not result in the carrying values of the CGUs
exceeding their recoverable amounts.
110 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
19. Loans and borrowings
Loans and borrowings
Maturity
Interest rate
Committed revolving credit facility
Committed non-revolving term loan facility
Sept 1, 2024
Sept 1, 2024
Variable
Variable
Equipment financing
Note payable (note 7b)
2022 – 2025 Fixed 2.04%-3.73%
Fully repaid
Current portion
Non-current portion
$
$
$
2021
22,725
49,375
6,581
–
78,681 $
2020
25,000
35,000
12,315
598
72,913
7,470 $
8,010
71,211 $
64,903
Syndicated credit facility
The Company has a three-year committed, syndicated credit facility (the “Syndicated Facility”) secured by a
general interest in the assets of the Company. The Syndicated Facility consists of the following:
Committed revolving credit facility
The Company has a committed revolving credit facility of up to $185,000 (December 31, 2020 - $165,000)
that includes a $20,000 swingline which allows the Company to enter into an overdraft position. At
December 31, 2021, the Company has $21,989 letters of credit outstanding on the facility (December 31,
2020 - $22,702) and has drawn $22,725 on the facility (December 31, 2020 - $25,000). The full amount
outstanding is recorded as non-current, as the facility is due and payable on September 1, 2024. 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.
Committed non-revolving term loan facility
The Company has a committed non-revolving term loan facility totalling $50,000 used to finance the
acquisitions of Stuart Olson and Dagmar (note 7). As at December 31, 2021, the Company has an
outstanding balance of $49,375 on the facility (December 31, 2020 - $35,000). The term loan has scheduled
repayments due quarterly until the maturity date of September 1, 2024. 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.
Accordion
The Company has a non-committed 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. The accordion requires creditor approval before it is available.
The Company was in compliance with its covenants under each facility as at December 31, 2021 and
December 31, 2020.
111 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
Equipment financing
The Company has committed term credit facilities of up to $40,000 to be used to finance equipment purchases.
At December 31, 2021, $5,242 is outstanding, of which $nil is classified as ROU liabilities (December 31, 2020
- $9,248 was outstanding, of which $572 was 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, 2021, the balance outstanding on these term loans amounted to $1,339
(December 31, 2020 - $3,639). Principal and interest are payable monthly, and these term loans are secured
by a first charge against the specific equipment financed using these facilities.
Letters of credit facilities
The Company has authorized operating letters of credit facilities totalling $150,000. At December 31, 2021 the
facilities were drawn for outstanding letters of credit of $67,426 (December 31, 2020 - $44,490). 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 Export Development Canada (“EDC”).
The Company has an agreement with EDC to provide performance security guarantees of up to $100,000 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,
2021 EDC has issued performance security guarantees totalling $67,289 (December 31, 2020 - $44,353).
The letters of credit represent performance guarantees issued to support the Company’s performance
obligations on major construction projects. These letters of credit are supported through the hypothecation of
certain financial instruments having a market value at December 31, 2021 of $139 (December 31, 2020 -
$139).
The following table provides details of the changes in the Company’s Loans and Borrowings during the year
ended December 31, 2021:
Syndicated
revolving
credit
facility
25,000 $
42,725
(45,000)
22,725 $
Syndicated
committed
non-revolving
term loan
facility
35,000 $
15,875
(1,500)
49,375 $
Note
payable
Equipment
financing
598 $
–
(598)
– $
12,315 $
–
(5,734)
6,581 $
Total
72,913
58,600
(52,832)
78,681
Balance, December 31, 2020
Proceeds
Repayment
Balance, December 31, 2021
$
$
112 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
20. Leases and right-of-use 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 year ended
December 31, 2021:
Balance, beginning of period
Acquisition (note 7b)
Additions
Interest
Lease terminations and modifications
Repayment
Balance, end of period
Current portion
Non-current
$
$
$
$
2021
78,075 $
5,489
15,997
2,937
(938)
(22,202)
79,358 $
19,782 $
59,576 $
2020
31,100
46,887
12,277
1,262
(79)
(13,372)
78,075
18,748
59,327
Potential undiscounted cash outflows of $55,328 (December 31, 2020 - $50,636) have not been included in
the measurement of the Company’s ROU liabilities as at December 31, 2021 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 $2,423 for the year ended December 31, 2021
(2020 - $5,697). Total cash outflows for leases for the year ended December 31, 2021 were $24,625 (2020 -
$19,069).
The Company has established operating lease lines of credit of $25,000 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. At December
31, 2021, the Company had used $6,864 (December 31, 2020 - $10,008) under these facilities.
21. 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
2021
15,786
(939)
14,847
$
$
2020
18,382
(5,165)
13,217
$
$
2021
25.9%
–
0.3%
(0.4%)
25.8%
2020
26.6%
(1.5%)
0.4%
1.3%
26.8%
The Company's statutory tax rate is the combined federal and provincial tax rates in the jurisdictions in which
113 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
the Company operates. The year-over-year decline in the statutory rate reflects the decline in the Alberta
corporate income tax rate in 2020.
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
$
$
$
2021
5,255 $
7,658
(22,007)
(7,254)
3,342
(6,258)
(1,653)
(3,270)
32,173
7,986 $
2020
4,325
4,544
(16,533)
(4,305)
3,464
(5,792)
(911)
(2,191)
28,049
10,650
32,784
(24,798)
7,986 $
33,760
(23,110)
10,650
The deferred tax asset balances recognized by the Company are supported by the reversal of existing taxable
temporary differences and expected future taxable income in excess of deductible temporary differences. 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.
Balance
December
31, 2020
Recognized
in profit or
loss
2021
Recovery in
other
comprehensive
income
Acquisition
(note 7a)
Balance
December
31, 2021
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
$
4,325 $
4,544
(16,533)
(4,305)
3,464
(5,792)
(911)
(2,191)
28,049
10,650 $
$
930
3,909
(5,063)
(2,270)
(122)
1,234
(724)
(1,079)
4,124
939
–
(795)
–
–
–
–
(18)
–
–
(813)
– $
–
5,255
7,658
(411)
(679)
–
(1,700)
–
–
–
(2,790) $
(22,007)
(7,254)
3,342
(6,258)
(1,653)
(3,270)
32,173
7,986
114 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
2020
Balance
December 31,
2019
2,559
2,245
$
(35,745)
(3,854)
620
(203)
(2,715)
195
34,317
(2,581)
$
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
$
$
22. Provisions
Balance, December 31, 2020
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Balance, December 31, 2021
Balance, December 31, 2019
Acquisition (note 7b)
Provisions made during the period
Provisions used during the period
Provisions reversed during the period
Balance, December 31, 2020
Recognized
Recovery in
other
comprehensive
income
Disposition
of equity
investment
(note 13)
Acquisition
(note 7b)
Balance
December 31,
2020
in profit or
loss
1,175
1,436
22,060
(562)
(117)
653
2,982
(826)
(21,636)
5,165
–
(371)
–
–
–
–
–
–
–
(371)
–
–
–
–
–
–
(1,178)
–
–
(1,178)
591
1,234
$
(2,848)
111
2,961
(6,242)
–
(1,560)
15,368
9,615
$
4,325
4,544
(16,533)
(4,305)
3,464
(5,792)
(911)
(2,191)
28,049
10,650
Warranty
claims and
other
16,311 $
24,254
(15,578)
(8,561)
16,426 $
$
$
$
5,218 $
12,676
22,578
(16,761)
(7,400)
16,311 $
$
Legal
Total
11,258 $
5,775
(834)
(5,309)
10,890 $
$
2,545
5,956
6,903
(986)
(3,160)
11,258 $
27,569
30,029
(16,412)
(13,870)
27,316
7,763
18,632
29,481
(17,747)
(10,560)
27,569
Various claims and litigation arise in the normal course of the construction business. It is management’s
opinion that an 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.
115 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
23. Other liabilities
Liabilities for cash-settled share-based compensation plans (note 25) $
Leasehold inducements
Acquisition holdback and other liability (note 7a)
Interest rate swaps
2021
24,918
1,612
2,364
–
$
Less: current portion
Cash-settled share-based compensation plans (note 25)
Leasehold inducements
Acquisition holdback and other liability (note 7a)
Interest rate swaps
Current portion
Non-current portion
24. Pension obligations
$
28,894
$
10,630
317
1,364
–
12,311
16,583
$
$
$
$
2020
13,929
1,808
–
51
15,788
1,795
164
–
51
2,010
13,778
DC pension plans
The total expense recognized in the statement of income during the year ended December 31, 2021 of $274
(2020 - $154) represents contributions to these plans by the Company at rates specified in the rules of the
plans.
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.
Fair market value of plan assets
Equity securities
Fixed income allocation
Debt securities
Other return seeking investments
Cash and cash equivalents
$
$
2021
8,255 $
24,907
–
4,649
117
37,928 $
2020
23,188
–
12,916
–
208
36,312
116 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
Reconciliation of amounts in the financial statements
Accrued benefit obligation
Balance, beginning of period
Acquisition (note 7b)
Employer current service cost
Interest cost on the defined benefit obligation
Benefit payments
Actuarial loss due to experience adjustments
Actuarial (gain) loss due to changes in financial assumptions
Balance, end of period
Fair value of plan assets
Balance, beginning of period
Balance, at acquisition (note 7b)
Employer contributions
Interest income on plan assets
Actuarial gain on plan assets, excluding interest income
Benefit payments
Administration costs
Balance, end of period
Funded status – (surplus) deficit
Unrecognized amount due to asset ceiling
Recognized liability for defined benefit obligations
Change in asset ceiling
Balance, beginning of period
Change in asset ceiling
Balance, end of period
$
$
$
$
$
$
$
$
2021
39,912 $
–
275
980
(1,937)
60
(1,951)
37,339 $
2021
36,312
–
867
892
2,127
(1,937)
(333)
37,928
2021
(589)
821
$
$
$
232
$
2021
$
–
821
821
$
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
2020
–
–
–
During the period ended December 31, 2021, $696 (2020 – $261) was recorded in general and administrative
expenses in the statement of income, and a gain of $3,197 (2020 – $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 changes in financial assumptions, which is partially
offset by the impact of an asset ceiling.
Actuarial assumptions
Discount rate on net benefit obligations
Rate of compensation increase
Inflation rate
2021
2.9%
3.0%
2.0%
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 $4,983 (December 31, 2020 – $5,659).
117 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
25. 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
$
$
$
$
2021
6,347
10,585
7,986
$
2020
2,865
5,618
5,446
24,918
$
13,929
5,540
5,090
10,630
14,288
$
$
491
1,304
1,795
12,134
MTIP
2021
EIP1
DSUs
MTIP
EIP1
DSUs
2020
Units, beginning of period
Granted 2
Forfeited
Change in estimate
Vested and paid
1,082,701
36,741
(152,522)
(61,597)
(96,110)
1,130,053
561,016
(83,580)
–
(209,460)
680,718
132,540
–
–
–
408,181
697,498
(34,358)
60,016
(48,636)
1,136,098
499,398
(260,402)
–
(245,041)
482,404
198,314
–
–
–
Units, end of period
809,213
1,398,029
813,258
1,082,701
1,130,053
680,718
1 Based on underlying units before the impact of a performance multiplier, but after the effects of the dividend adjustment
ratio and the estimated forfeiture rate.
2 MTIP and DSU grants include dividend reinvestments.
The Company’s EIP provides certain officers and employees of the Company with the opportunity to be
granted PSUs or time-based RSUs. As at December 31, 2021, the Company had 715,155 outstanding RSUs
and 682,874 outstanding PSUs, before the impact of the performance multiplier (December 31, 2020 –
585,667 and 544,386 units, respectively). The outstanding PSU balance as at December 31, 2021, adjusted
for the performance conditions that modify the vested value, is 999,422 units (December 31, 2020 – 796,428
units).
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.
118 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
In the second quarter of 2021, the Company granted 505,815 units under the EIP plan at a fair market value
of $8.96, excluding dividend reinvestments. Payments pursuant to the Company's EIP granted in 2021 are
due by December 2024.
During the first, second, third and fourth quarter of 2021, the Company granted 26,054, 26,221, 23,244 and
23,635 units under the DSU plan at a fair market value of $8.74, $8.75, $9.94 and $9.77 respectively,
excluding dividend reinvestments. Payments pursuant to the Company's DSU Plan are cash settled when the
eligible Director ceases to hold any position within the Company.
As at December 31, 2021, a total of 2,207,242 unvested phantom units of the MTIP and EIP (December 31,
2020 – 2,212,754) are outstanding and valued at $24,686 (December 31, 2020 - $19,718) of which $16,932
has been recognized to date in the statement of income (2020 - $8,483).
Payments required pursuant to the Company’s MTIP granted in 2019 are due on the vesting dates of
November 2022, 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 2019, 2020 and 2021 are due by December
2022, December 2023 and December 2024, respectively. Payments pursuant to the Company's DSU Plan
are cash settled when the eligible Director ceases to hold any position within the Company.
Expenses arising from share-based payment transactions1
MTIP
EIP
DSU
$
$
2021
4,420
6,583
2,540
13,543
$
$
2020
2,116
2,858
1,996
6,970
1 Expenses are before the effect of the TRS derivative contracts.
The Company enters 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 of $3,292 on these derivatives in the
statement of income in general and administrative expenses for the year ended December 31, 2021 (2020 -
$1,875).
26. 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, 2021 and December 31, 2020, no preferred shares
have been issued. Transaction costs of $18 directly attributable to the issuance of common shares for the
acquisition of Dagmar (2020 - $124 directly attributable to the issuance of common shares for the acquisition
of Stuart Olson) are recognized as a deduction from shareholders’ capital (note 7).
Balance, beginning of period
Common shares issued (note 7)
Balance, end of period
2021
Number of
shares
53,038,929 $
656,364
53,695,293 $
Amount
108,064
6,520
114,584
2020
Number of
shares
42,516,853 $
10,522,076
53,038,929 $
Amount
42,527
65,537
108,064
119 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
27. Earnings per share
Net income (basic and diluted)
Weighted average number of common shares (basic and diluted)
Basic and diluted earnings per share
28. Finance income
Interest income on lease receivables
Other interest income
29. Finance and other costs
Interest on loans and borrowings
Interest on ROU liabilities
Loss (gain) on interest rate swaps (note 23)
Interest on non-recourse project financing
Other
30. Personnel costs
Short-term employee benefits
Defined benefit and defined contribution plan expense (note 24)
Deferred compensation (note 25)
2021
42,783
$
2020
36,103
53,258,316
45,334,239
0.80
$
0.80
$
$
$
$
$
$
$
$
$
$
$
2021
183
1,139
1,322
2021
3,785
2,937
(51)
–
879
7,550
$
2021
644,463
970
13,543
658,976
$
$
2020
51
1,460
1,511
2020
2,989
1,262
(683)
3,522
416
7,506
2020
330,580
322
6,971
337,873
For the year ended December 31, 2021, personnel costs of $577,845 were included in costs of construction
(2020 – $291,433) and $81,131 in general and administrative expenses (2020 – $46,440). 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.
120 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
31. Government assistance
On April 11, 2020, the Government of Canada passed the CEWS to support a company’s ability to continue
employing its workforce in the face of revenue declines because of the COVID-19 pandemic. During the year
ended December 31, 2021, the Company recognized a recovery of compensation expense in costs of
construction of $18,798 (2020 - $21,196) and general and administrative expenses of $3,141 (2020 - $3,590).
As at December 31, 2021, the Company has no receivable related to CEWS included in accounts receivable
in the statement of financial position (December 31, 2020 - $25,847).
32. 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
Deferred compensation plan expense and other
2021
(60,944)
4,132
113
(1,294)
53
21,444
7,768
(253)
(2,554)
(31,535)
$
$
2020
153,398
4,521
75,067
(1,260)
5,971
(119,903)
(48,388)
1,173
(1,486)
69,093
$
$
* Contract assets – alternative finance project changes are driven by design-build-finance projects.
Change in liabilities arising from financing activities
Balance, December 31, 2020
Acquisition (note 7a)
Cash flows
Proceeds
Repayments
Dividends paid on shares
Non-cash changes
Net additions to ROU liabilities
Interest accretion
Dividends declared
2021
Dividend
payable
Loans and
borrowings
$
1,724 $
–
72,913 $
–
ROU
liabilities
78,075
5,489
$
–
–
(20,749)
–
–
20,770
58,600
(52,832)
–
–
–
–
–
(22,202)
–
15,059
2,937
–
Total
152,712
5,489
58,600
(75,034)
(20,749)
15,059
2,937
20,770
Balance, December 31, 2021
$
1,745 $
78,681
$
79,358
$
159,784
121 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
2020
Dividend
payable
Non- recourse
project
financing
Loans and
borrowings
ROU
liabilities
Balance, December 31, 2019
Acquisition (note 7b)
$
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
33. Financial instruments
Carrying values and 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.
The Company’s foreign currency forward contract (note 12), interest rate swaps (note 23) and TRS derivative
contracts (note 12) 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, 2021 and 2020.
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:
122 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
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 satisfies 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, 2021, the Company had revenue of $323,648 from one significant customer
(2020 - $206,255).
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, 2021, accounts receivable outstanding for greater than 90 days and considered past due
by the Company’s management represent 14.8% (December 31, 2020 – 17.5%) of the balance of progress
billings on construction contracts receivable. Management has recorded an allowance of $1,527 (December
31, 2020 - $1,471) against these past due receivables, net of amounts recoverable from others.
Amounts past due
Trade receivables
Impairment
Total Trade receivables
$
$
Up to 12
months
Over 12
months
22,798 $
38,409 $
2021
61,207 $
(41)
22,757 $
(1,486)
36,923
$
(1,527)
59,680 $
2020
59,081
(1,471)
57,610
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
$
$
2021
1,471 $
280
(104)
(120)
1,527 $
2020
1,538
747
(814)
–
1,471
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.
123 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
The Company has working capital of $151,810 (December 31, 2020 - $130,255) which is available to support
surety requirements related to construction projects. Working capital is calculated as total current assets
less total current liabilities. As a component of working capital, the Company maintains significant balances
of cash and cash equivalents. These balances, less $139 hypothecated to support outstanding letters of
credit and $64,372 held in restricted trust accounts, are available to meet the general financial obligations
of the Company as they become due. Restricted cash in trust is held in segregated accounts for payment
obligations on certain projects. Refer to note 19 in respect of the Syndicated facility and the Company’s other
debt instruments, which further improves the Company’s access to liquidity. At December 31, 2021, the
Company had a total undrawn balance on its committed revolving credit facility and committed non-revolving
term loan facility of $140,286 (December 31, 2020 - $117,298). Also, the Company has a non-committed
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 Company also has committed term credit facilities of up
to $40,000 to be used to finance equipment purchases of which $34,758 is undrawn as at December 31,
2021 (December 31, 2020 - $30,752). 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,
2021, in respect of the financial obligations of the Company. Interest payments on the committed revolving
credit facility and committed non-revolving term loan facility are not included in the table below since they
are subject to variability based upon outstanding balances at various points throughout the period.
Carrying
amount
514,330 $
$
Contractual
cash flows
514,330 $
Not later
than 1
year
452,697 $
2 – 3
years
59,863 $
4 – 5
years
1,770 $
Later
than 5
years
–
–
1,745
79,358
22,725
49,375
6,581
2,364
1,745
89,451
22,725
49,375
6,761
1,745
22,157
–
3,125
4,476
–
34,191
22,725
46,250
2,159
2,364
1,364
1,000
–
18,302
–
14,801
–
–
126
–
–
–
–
$
676,478 $
686,751 $
485,564 $ 166,188 $ 20,198 $ 14,801
Trade payables
Dividends payable
ROU liabilities
Committed revolving credit facility
Committed non-revolving term loan
Equipment financing
Acquisition holdback and other
liability (note 7a)
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.
The interest rate profile of the Company's loans and borrowings was as follows:
Fixed-rate facilities
Variable-rate facilities
Total loans and borrowings
$
$
2021
6,581 $
72,100
78,681 $
2020
12,315
60,598
72,913
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.
124 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
For the year ended December 31, 2021, a one percent change in the interest rate applied to the Company's
variable rate long-term debt would change income before income taxes by approximately $721 (2020 –
$606).
The Company has certain share-based compensation plans, where 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 derivative contracts maturing in 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, 2021, a 10 percent change in the share price applied to the Company's TRS derivatives
would change income before income taxes by approximately $1,502 (2020 – $1,175).
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. Foreign currency risk is managed by the Company through the use of foreign currency
derivatives. For the year ended December 31, 2021, a 10% movement in the Canadian and U.S. dollar
exchange rate would have changed income before income taxes by approximately $246 (2020 – $210).
34. Capital management
The Company’s capital management objectives are to:
i.
ii.
iii.
iv.
v.
ensure that the Company has the financial capacity and liquidity to achieve its strategic objectives and
support its current and anticipated volume and mix of business consistent with the risk tolerance of the
Company;
have the financial flexibility to absorb the seasonality and cyclicality of the construction industry, as well
as unforeseen events with an appropriate level of investment in working capital and available committed
credit capacity;
pursue a balanced capital allocation strategy that will deliver superior shareholder value;
generate sufficient cash flow to maintain and grow the dividend in a consistent and sustainable way as
determined by the Board of Directors; and
provide investors with maximum risk adjusted long-term returns on equity.
In the management of capital, the Company defines capital as the aggregate of its shareholders’ equity and
non-current loans and borrowings.
The Company manages its capital within the capital management policy approved by the Board of Directors.
The Company adjusts its capital structure in light of changes in economic conditions. In order to maintain or
adjust its capital structure, the Company may adjust the amount of dividends paid to shareholders, issue new
debt or repay existing debt, issue share capital, issue convertible debt, or may adjust capital expenditures.
Financing decisions are generally made on a specific transaction basis and depend on such things as the
Company’s needs, capital markets and economic conditions at the time of the transaction.
The Company monitors its capital on a number of bases; the amounts of shareholders’ equity, working capital
and non-current loans and borrowings are as follows:
Shareholders’ equity
Working capital
Loans and borrowings – non current
$
$
$
2021
243,488
151,810
71,211
$
$
$
2020
212,610
130,255
64,903
125 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
35. Commitments and contingencies
Commitments
Outstanding surety lien bonds issued on behalf of the Company in connection with liens by subcontractors and
suppliers at December 31, 2021 totalled $93,135 (December 31, 2020 - $93,375). The Company has acquired
minority equity interests in a number of PPP concession entities (note 13), which require the Company to make
$1,816 in future capital injections. These commitments have been secured by letters of credit totalling $1,816
(December 31, 2020 - $1,918).
During the year ended December 31, 2021, the Company signed orders with a fleet management provider for
leases totalling $4,989 that have not been recognized in the statement of financial position. The leases are
expected to commence and be recognized in the statement of financial position within the next 12 months.
At December 31, 2021, the Company has minimum payments under contracts for other purchase obligations
that are not recognized as liabilities in the statement of financial position of $2,597 due within the next 12
months, $6,188 from 1 to 3 years, $6,146 from 3 to 5 years, and $4,349 thereafter.
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.
36. 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 key management personnel and the Company’s Board of Directors.
Short-term benefits
Share-based compensation
$
$
2021
6,615 $
7,059
13,674 $
2020
6,808
3,388
10,196
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 $1,030 (2020 - $657) and the outstanding balance receivable
at December 31, 2021 was $2 (December 31, 2020 - $nil).
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
126 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except per share amounts)
amount, agreed to between the parties. The amounts recognized for services provided by the Company for
the year ended December 31, 2021 totalled $45,632 (2020 - $47,349).
The Company has accounts receivable from the joint arrangements at December 31, 2021 totalling $706
(December 31, 2020 - $22,314).
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, 2021 totalled
$26,696 (2020 – $16,492), of which $15,077 has been recognized in revenue in 2021 (2020 - $28,257). The
Company’s proportionate share of payments made to the joint arrangements for the year ended December
31, 2021 totalled $17,548 (2020 - $11,849). 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,
2021 totalled $12,423 (December 31, 2020 - $14,341). The Company also has notes receivable from an equity
accounted joint arrangement at December 31, 2021 totalling $nil (December 31, 2020 - $1,806).
37. 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 date of the financial statements, for the following months:
Eligible dividends declared
January dividend
February dividend
March dividend
April dividend
Record date
January 31, 2022
February 28, 2022
March 31, 2022
April 29, 2022
Payment date
February 18, 2022
March 18, 2022
April 20, 2022
May 20, 2022
Dividend per share
$0.0325
$0.0325
$0.0325
$0.0325
127 | Annual 2021 Consolidated Financial Statements
Bird Construction Inc.
Five Year Summary
December 31, 2021
(in thousands of Canadian dollars, except Other Information)
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.
128 | Annual 2021 Consolidated Financial Statements
20212020201920182017 (1)Revenue $2,220,0261,504,4321,376,4081,381,7841,418,557Income before income taxes$57,63049,32011,959 (2,674)13,078Income taxes 14,84713,2172,475 (1,661)4,242Net income$42,783 36,103 9,484 (1,013)8,836Dividends declared to shareholders$20,77017,94916,58216,58216,582Cash flows from operations before changes in non-cash working capital$102,62371,69630,20112,32026,938Notes:(1) 2017 reported figures have been restated applying IFRS 15.20212020(1)20192018(2)2017(3)Current assets $873,070820,477729,358546,553607,979Current liabilities721,260690,222648,855476,338523,901Working capital $151,810130,25580,50370,21584,078Property and equipment $55,00459,43546,01643,15352,397Right-of-use assets$67,49761,51134,46013,073n/aShareholders’ equity $243,488212,610127,720136,229153,816Notes:(1) 2020 The value of the assets and liabilities associated with the Stuart Olson acquisition were finalized on September 25, 2021.(2) 2018 Property and equipment figures have been reclassified following the adoption of IFRS 16 on January 1, 2019.(3) 2017 reported figures have been restated applying IFRS 15.20212020201920182017$3,002,5092,682,4981,547,4271,295,9401,186,000Weighted average number of shares outstanding 53,258,31645,334,23942,516,85342,516,85342,516,853Return on revenue (1)% 1.93 2.40 0.69 (0.07) 0.62 Return on prior year shareholders’ equity (2) 20.12 28.27 6.96 (0.66) 5.47 Net income per share$ 0.80 0.80 0.22 (0.02) 0.21 Book value per share$ 4.57 4.69 3.00 3.20 3.62 (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.OPERATING RESULTSFINANCIAL POSITIONBACKLOGOTHER INFORMATION%
LOCATIONS FROM COAST TO COAST
CORPORATE OFFICES
Mississauga
5700 Explorer Drive,
Suite 400
Mississauga, ON L4W 0C6
T: 905.602.4122
Calgary
4820 Richard Road SW
Suite 600
Calgary, AB T3E 6L1
T: 403.685.7777
BRITISH COLUMBIA
Vancouver
6900 Graybar Road, Unit 2370 -
Building 2000
Richmond, BC V6W 0A5
T: 604.271.4600
F: 604.271.1850
ALBERTA
Edmonton
17007 - 107 Avenue NW
Edmonton, AB T5S 1G3
T: 780.452.8770
F: 780.455.2807
Edmonton
201 2627 Ellwood Drive
SW Edmonton, AB T6X 0P7
Industrial T: 780.481.9600
Buildings T: 780.452.4260
Calgary
Suite 350, 1200 - 59th Avenue SE,
Calgary, AB T2H 2M4
T: 403.319.0470
F: 403.319.0476
SASKATCHEWAN
Regina
#1, 134 Husum Road
Regina, SK, S4K 0A4
PO Box 26088
T: 306.565.3120
MANITOBA
Winnipeg
1055 Erin Street,
Winnipeg, MB R3G 2X1
T: 204.775.7141
F: 204.783.8119
ONTARIO
Toronto
5700 Explorer Drive,
Suite 400
Mississauga, ON L4W 0C6
T: 905.602.4122
F: 905.602.6319
Ottawa
900 Morrison Drive,
Suite 206,
Ottawa, ON, K2H 8K7
T: 613-912-7738
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
QUEBEC
Montreal
1868 Boul. Des Sources,
Suite 200
Pointe-Claire, QC H9R 5R2
T: 514.426.1333
F: 514.426.1339
NEW BRUNSWICK
Saint John
120 Millenium Drive,
Quispamsis, NB E2E 0C6
T: 506.849.2473
F: 506.847.0270
NOVA SCOTIA
Halifax
20 Duke Street, Suite 201
Bedford, NS B4A 2Z5
T: 902.835.8205
F: 902.835.8245
NEWFOUNDLAND AND LABRADOR
St. John’s
90 O’Leary Ave, Suite 101
St. John’s, NL A1B 2C7
T: 709.726.9095
F: 709.726.9106
Wabush
2 Old Airport Road,
Wabush, NL A0R 1B0
T: 709.282.5633
F: 709.282.3500
2021 ANNUAL REPORT
for the year ended December 31, 2021
CORPORATE OFFICES
Mississauga
5700 Explorer Drive,
Suite 400
Mississauga, ON L4W 0C6
Calgary
4820 Richard Road SW
Suite 600
Calgary, AB T3E 6L1
DIRECTORS
SENIOR LEADERSHIP
J. Richard Bird, Ph.D., MBA
Karyn A. Brooks, FCPA, FCA (1)
Paul A. Charette
D. Greg Doyle, FCPA, FCA
Bonnie D. DuPont, AOE., M.Ed., F.ICD.D (2)
Teri L. McKibbon
Luc J. Messier, P.Eng.(3)
Ron D. Munkley, BSc, Hon (Eng)
Paul R. Raboud, P.Eng., MSc, MBA (Chair)
Arni C. Thorsteinson, CFA
(1) Audit Committee Chair
(2) Human Resources & Governance Committee Chair
(3) Health, Safety & Environment Committee Chair
Calgary
Calgary
Oakville
Victoria
Calgary
Canmore
Texas, USA
Oakville
Toronto
Winnipeg
Teri L. McKibbon
Wayne R. Gingrich, CPA, CMA, ICD.D
Gilles G. Royer, P.Eng.
Charles J. Caza, BA. Sc. Eng., LL.B.
Brian C. Henry
Rick Begg
Peter Lineen
J. Paul Bergman, CET
Rob Otway, P.Eng., GSC, ICD.D
Tannis Proulx, P.Eng.
David Keep
Denis Bigioni
Arthur Krehut
Paul Pastirik, CPA, MBA
President & Chief Executive Officer
Chief Financial Officer & Treasurer
Chief Operating Officer
Executive Vice President & Chief Legal Officer
Chief People Officer
Chief Information Officer
Executive Vice President, Health,
Safety & Environment
Executive Vice President, Buildings East
Executive Vice President, Buildings West
Executive Vice President, Industrial Construction
Executive Vice President, MRO and
Commercial Systems
President, Dagmar Construction Inc.
Senior Vice President, Operational Services
Senior Vice President, Strategic Development
AUDITORS
KPMG LLP
LEAD BANK
Bank of Montreal
SURETY
Travelers Guarantee Company of Canada
STOCK EXCHANGE
LISTING
TRANSFER AGENT
AND REGISTRAR
Toronto Stock Exchange (Symbol “BDT”)
Computershare Investor Services
WEBSITE
www.bird.ca
Bird Construction Inc.
5700 Explorer Drive, Suite 400
Mississauga, ON L4W 0C6
Tel: (905) 602-4122
www.bird.ca
2021 Annual Report