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BDI - Black Diamond News Story

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Sector
Consumer Cyclicals
Size
Small Cap
Market Cap £140.4m
Enterprise Value £262.3m
Revenue £116.5m
Position in Universe 618th / 2701

Black Diamond Reports First Quarter 2021 Results

Thu 6th May, 2021 1:00am
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CALGARY, Alberta, May 05, 2021 (GLOBE NEWSWIRE) -- Black Diamond Group Limited
("Black Diamond", the "Company" or "we"), (TSX:BDI), a leading provider of
space rental and workforce accommodation solutions, today announced its
operating and financial results for the three months ended March 31, 2021
(the "Quarter") compared with the three months ended March 31, 2020 (the
"Comparative Quarter"). All financial figures are expressed in Canadian
dollars.

In the first quarter of 2021, Black Diamond reported consolidated revenue of
$65.8 million, Adjusted EBITDA of $13.3 million, and core rental revenue of
$21.4 million.

Key Highlights from the First Quarter of 2021
* Generated consolidated revenue of $65.8 million and Adjusted EBITDA of $13.3
million, up 46% and 34% from the Comparative Quarter respectively.
* Generated net income of $2.7 million (or diluted earnings per share of
$0.05) compared to a $0.1 million net loss in the Comparative Quarter.
* Since the start of 2021, the Company’s Workforce Solutions ("WFS") segment
has been awarded contracts totaling over $56.1 million of revenue.
* Modular Space Solutions ("MSS") rental revenue of $13.9 million was a fifth
consecutive quarterly record and grew 56% from the Comparative Quarter.
* MSS Adjusted EBITDA of $10.3 million was a quarterly record and increased
124% from the Comparative Quarter.
* MSS rental fleet grew to 8,752 units, or 35% from the Comparative Quarter
primarily due to the acquisition of Vanguard contributing 2,196 units, while
utilization improved to 81% and average rental rates increased 6%.
* LodgeLink room bookings set a third consecutive quarterly record and grew
109% to 48,756 room nights.
* Contribution from the Canadian Emergency Wage Subsidy during the Quarter was
$0.4 million.
Executive Summary

MSS rental revenue set a fifth consecutive quarterly record and grew $5.0
million to $13.9 million, up 56% from the Comparative Quarter. Recurring
rental revenue growth in the MSS segment has been driven by continued fleet
growth (both organic and through the acquisition of Vanguard Modular Building
Systems ("Vanguard")), robust utilization and continued increases in average
rental rates. Adjusted EBITDA of $10.3 million was also a quarterly record for
the MSS segment and increased 124% from the Comparative Quarter.

The Company's WFS business unit generated Adjusted EBITDA of $6.1 million, a
22% decrease versus the Comparative Quarter. WFS revenue of $30.5 million was
up 7% from the Comparative Quarter primarily due to increased used sales
during the quarter, slightly offset by lower rental, lodging and non-rental
revenue streams. Since the start of 2021, the WFS segment has been awarded
contracts totaling over $56.1 million of revenue.

At the end of the Quarter, Net Debt of $169.2 million was down from $172.0
million at the end of Q4 2020. Additional available borrowing capacity under
the Company's asset-based credit facility (the "ABL Facility") was
approximately $87.3 million and the value of eligible rental assets used to
calculate the Company’s borrowing base was approximately $290 million at the
end of the Quarter.

Outlook

The balance of 2021 is expected to see continued positive momentum as recently
signed contracts begin contributing in the latter half of the second quarter.
Management is seeing ongoing stability and attractive growth opportunities
throughout the platform following an improved outlook in our WFS segment and a
steady cadence of organic investment over the last several years, supplemented
by our acquisition of Spectrum and Vanguard last year.

The MSS segment is expected to realize ongoing growth in its recurring rental
revenue, which set a fifth consecutive quarterly record high in the Quarter.
The business is seeing strong utilization levels across most of its operating
regions and has continued to see pricing increases in these markets. Bidding
activity in both the rental and sales verticals are strong and the Company
continues to prioritize capital investment opportunities that provide
contracted cash flows at attractive returns.

The Company’s WFS segment is expected to benefit from the continued focus to
diversify by end-market and by geography. First quarter results were
positively impacted by a sale of used assets. Excluding the sale, sequential
results in WFS for the second quarter are expected to be higher as core rental
revenue and associated non-rental revenue are expected to see improvement in
the second quarter and throughout the remainder of the year. The improved
outlook in WFS is supported by recent contract awards which amount to over
$56.1 million of revenue and include contracts in Australia, Eastern Canada,
U.S. and Western Canada. The Company continues to closely monitor and work
with its partners on the Goldboro LNG Facility. A Final Investment Decision
for the project is pending by the project proponent.

LodgeLink, Black Diamond's digital marketplace platform for workforce travel
and accommodation, set a third consecutive quarterly record in booking volumes
during the Quarter. Room bookings grew 109% to 48,756 from the Comparative
Quarter. At the end of the Quarter, LodgeLink had 662 unique corporate
customers signed onto the platform with approximately 3,600 properties listed
representing approximately 330,000 rooms. The platform continues to scale, and
the Company is increasingly optimistic around the future growth potential of
this business.

First Quarter 2021 Financial Highlights

                                       Three months ended March 31,        
 (in millions, except where noted)     2021        2020        Change      
                                       $           $                       
 Revenue                                                                   
 Modular Space Solutions               35.3        16.5        114%        
 Workforce Solutions                   30.5        28.6        7%          
 Total Revenue                         65.8        45.1        46 %        
                                                                           
 Total Adjusted EBITDA                 13.3        9.9         34%         
                                                                           
 Funds from Operations                 17.3        10.3        68%         
 Per share ($)                         0.30        0.19        58%         
                                                                           
 Profit (loss)                         2.7         (0.1)       2,800%      
 Profit per share - Basic and diluted  0.05        —           —%          
                                                                           
 Capital expenditures                  4.0         12.5        (68)%       
 Business acquisitions                 —           6.6         (100)%      
 Property & equipment (NBV)            399.9       349.5       14%         
 Total assets                          508.0       452.5       12%         
 Long-term debt                        172.2       120.2       43%         
 Cash and cash equivalents             3.0         9.6         (69)%       

Additional Information

A copy of the Company's unaudited interim condensed consolidated financial
statements for the three months ended March 31, 2021 and 2020 and related
management's discussion and analysis have been filed with the Canadian
securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) and www.blackdiamondgroup.com.

About Black Diamond Group

Black Diamond is a specialty rentals and industrial services Company with two
operating business units - Modular Space Solutions (MSS) and Workforce
Solutions (WFS). We operate in Canada, the United States, and Australia.

MSS through its principal brands, BOXX Modular, Britco, Vanguard, Schiavi, and
MPA, owns a large rental fleet of modular buildings of various types and
sizes. Its network of local branches rent, sell, service, and provide
ancillary products and services to a diverse customer base in the
construction, industrial, education, financial, and government sectors.

WFS through its principal brands, Black Diamond Camps and Black Diamond Energy
Services, owns a large rental fleet of modular accommodation assets of all
types and sizes and a fleet of liquid and solid containment assets. Its
regional operating terminals rent, sell, service, and provide ancillary
products and services including turnkey operated camps to a wide array of
customers in the resource, infrastructure, construction, disaster recovery,
and education sectors. The WFS business unit also includes the Company’s
wholly owned subsidiary, LodgeLink, which operates a digital marketplace for
business-to-business crew accommodation, travel, and logistics in North
America.

Learn more at www.blackdiamondgroup.com.

For investor inquiries please contact Jason Zhang at 403-206-4739
or investor@blackdiamondgroup.com.

Reader Advisory
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking
statements including, but not limited to, the amount of funds that will be
expended on the 2021 capital plan, how such capital will be expended,
expectations for asset sales, management's assessment of Black Diamond's
future operations and what may have an impact on them, financial performance,
business prospects and opportunities, changing operating environment including
the impact of COVID-19, amount of revenue anticipated to be derived from
current contracts, anticipated debt levels, economic life of the Company's
assets, future growth and profitability of the Company and realization of the
anticipated benefits of acquisitions and sales. With respect to the
forward-looking statements in the news release, Black Diamond has made
assumptions regarding, among other things: future commodity prices, that Black
Diamond will continue to conduct its operations in a manner consistent with
past operations, that counter-parties to contracts will perform the contracts
as written and that there will be no unforeseen material delays in contracted
projects. Although Black Diamond believes that the expectations reflected in
the forward-looking statements contained in this news release, and the
assumptions on which such forward-looking statements are made are reasonable,
there can be no assurances that such expectations or assumptions will prove to
be correct. Readers are cautioned that assumptions used in the preparation of
such statements may prove to be incorrect. Events or circumstances may cause
actual results to differ materially from those predicted, as a result of
numerous known and unknown risks, uncertainties and other factors, many of
which are beyond the control of Black Diamond. These risks include, but are
not limited to: the impact of general economic conditions, industry
conditions, fluctuation of commodity prices, the impact of the COVID-19
pandemic, the Company's ability to attract new customers, failure of
counterparties to perform on contracts, industry competition, availability of
qualified personnel and management, timely and cost effective access to
sufficient capital from internal and external sources, political conditions,
dependence on suppliers and stock market volatility. The risks outlined above
should not be construed as exhaustive. Additional information on these and
other factors that could affect Black Diamond's operations and financial
results are included in Black Diamond's annual information form for the year
ended December 31, 2020 and other reports on file with the Canadian Securities
Regulatory Authorities which can be accessed on SEDAR. Readers are cautioned
not to place undue reliance on these forward-looking statements. Furthermore,
the forward-looking statements contained in this news release are made as at
the date of this news release and Black Diamond does not undertake any
obligation to update or revise any of the forward-looking statements, except
as may be required by applicable securities laws.

Non-GAAP Measures
In this news release, the following terms have been referenced: Adjusted
EBITDA, Funds from Operations, Net Debt, Contracted Rental Revenue For Assets
On Rent and Contracted Rental Revenue For Contracts In Place. Readers are
cautioned that these measures are not defined under International Financial
Reporting Standards ("IFRS"). Readers are cautioned that these non-GAAP
measures are not alternatives to measures under IFRS and should not, on their
own, be construed as an indicator of the Company's performance or cash flows,
a measure of liquidity or as a measure of actual return on the common shares
of the Company. These Non-GAAP measures should only be used in conjunction
with the consolidated financial statements of the Company. A reconciliation
between these measures and measures defined under IFRS is included in
management's discussion and analysis for the three months ended March 31,
2021 filed on SEDAR.

 

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