Financial News

Black Diamond Reports First Quarter 2021 Results

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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.


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
$ $
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 ( and

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

For investor inquiries please contact Jason Zhang at 403-206-4739 or

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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