Black Diamond Reports Third Quarter 2020 Results

Calgary, Alberta, CANADA

CALGARY, Alberta, Nov. 03, 2020 (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 and nine months ended September 30, 2020 (the "Quarter") compared with the three and nine months ended September 30, 2019 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars.

In the third quarter of 2020, Black Diamond reported consolidated revenue of $41.2 million, Adjusted EBITDA of $9.8 million, and core rental revenue of $15.9 million.

Key Highlights from the Third Quarter of 2020

  • Subsequent to the end of the Quarter, Workforce Solutions ("WFS") received a $720 million conditional Letter of Award to support construction of the Goldboro LNG project in Nova Scotia.
  • Subsequent to the end of the Quarter, won a new rental-only contract in WFS associated with a pipeline project for $6.4 million over a 30 month term, with rent beginning in mid-November. 
  • Generated consolidated Adjusted EBITDA of $9.8 million in the Quarter.
  • Modular Space Solutions ("MSS") rental revenue of $9.9 million was another quarterly record and grew 13% from the Comparative Quarter.
  • MSS rental fleet grew to 6,660 units, or 9% from the Comparative Quarter while utilization held steady and average rental rates increased 8%.
  • LodgeLink room bookings set a quarterly record and grew 129% to ~32,000 room nights.

The MSS segment has continued to grow its recurring, rental-revenue due to ongoing fleet growth, strengthening rental rates, stable utilization and increased ancillary rentals through Value Added Products and Services ("VAPS").  Rental revenue in the Quarter grew to a quarterly record of $9.9 million, up 13% versus the Comparative Quarter.  MSS revenue of $23.9 million was up 8% versus the Comparative Quarter as a Sales revenue decline of 29% from the Comparative Quarter was offset by Non-rental revenue growth of 30% from the Comparative Quarter.  Adjusted EBITDA of $7.8 million was a quarterly record and increased 7% from the Comparative Quarter, while Adjusted EBITDA margin of 33% from the Comparative Quarter was unchanged.

The Company's WFS business unit generated Adjusted EBITDA of $4.5 million, a 26% decrease versus the Comparative Quarter.  WFS revenue of $17.3 million was down 27% from the Comparative Quarter primarily due to lower occupancy and utilization in the Company’s Lodging and Energy Services businesses respectively.  Australian operations remained strong, with revenue up 6% from the Comparative Quarter, providing a modest offset to the decrease in consolidated revenue. 

On January 15, 2020 Black Diamond announced TSX approval of a Normal Course Issuer Bid ("NCIB").  Over a 12-month period, the Company may, in the normal course, purchase up to 4,180,249 Common Shares (10% of the public float of common shares) in the capital of the Company ("Common Shares"). Since the implementation of the NCIB, the Company has purchased 328,600 shares at an average price of $1.26.

At the end of the Quarter, Net Debt of $111.3 million was up modestly from $108.9 million in Q2 2020.  


Throughout the first three quarters of 2020, consolidated EBITDA has been essentially flat and has been muted by ongoing macro-economic factors including the COVID-19 pandemic and consistently weak activity levels in certain of the Company's WFS business lines.  However, Black Diamond has continued to grow its recurring rental-revenue stream, particularly in the MSS business, and is encouraged both by the relative health of this business unit throughout the pandemic as well as its future growth prospects.  The WFS segment, despite a challenged market in certain sectors has continued to hold in reasonably well and continues to present meaningful operating leverage through one of the largest mobile workforce accommodation fleets in North America.  The Company is pleased with the MSS fleet and rental revenue growth over the past year. Having invested close to $31 million over the first nine months of the year, the Company expects sequentially lower capital investment in Q4 2020, as the 2020 $35 million capital budget remains unchanged.  The Company remains focused on maximizing free cash flow while executing on its long-term strategic growth plans. 

The Company continues to execute on its diversification strategy, a result of which is the setting of a third, consecutive, quarterly rental revenue record within the MSS segment.  Management expects ongoing rental revenue growth within this segment to be driven by fleet growth across the Company's North American footprint. Utilization within the MSS business has remained steady, despite broader macro-economic headwinds caused by COVID-19.   The current expectation is for utilization levels to remain relatively consistent, notwithstanding a slight seasonal slow-down through the holiday period at the end of the Q4 2020.   Management anticipates that Sales revenue for customer major projects within MSS will continue to be lower than normal given project delays and uncertainty caused by the COVID-19 pandemic.   

The WFS Segment performance has on balance been flat, with continued strength in Australia and modest improvement in camps rental utilization offset by weakness in the lodging and energy services business lines as drilling and completion activity remain at multi-year lows.  The Company continues to execute on diversifying its existing WFS business and expects approximately 1,000 beds to be on rent in Eastern Canada by year-end on several mining projects. The Company expects slightly lower Q4 2020 performance from the lodging business as seasonal holidays impact occupancy.  Camp rental revenue should improve modestly into 2021 on the back of newly awarded contracts, while Australia remains robust with a constructive outlook.  

On October 1, 2020, the Company announced that, in partnership with the Nova Scotia Mi’kmaq Communities, it had received a conditional Letter of Award from the proponents of the Goldboro LNG Facility for approximately $720 million to provide a workforce lodge in support of the Goldboro LNG Project.   Currently, the contract is expected to begin on or before June 30, 2021, which is the anticipated date for a final investment decision by the project proponent.   Black Diamond expects a significant increase to existing camp rental utilization levels over the term of the contract, which is currently anticipated to be in the range of four years. 

LodgeLink, Black Diamond’s digital marketplace platform for workforce travel and accommodation has seen a healthy recovery in booking volumes as certain regions have begun to open back up following COVID-19 travel restrictions that were put in place throughout the second quarter. During the Quarter, LodgeLink set a record high for room nights booked in a single month, while continuing to grow unique customers and suppliers on the platform.  At the end of the Quarter, LodgeLink had 545 unique customers signed onto the platform with 1,900 properties listed representing approximately 191,000 rooms.

Third Quarter 2020 Financial Highlights

 Three months ended
September 30,
(in millions, except where noted)20202019Change
Modular Space Solutions23.922.28%
Workforce Solutions17.323.7(27)%
Total Revenue41.245.9(10)%
Total Adjusted EBITDA9.810.5(7)%
Funds from Operations8.613.3(35)%
Per share ($)0.160.24(35)%
Loss per share  - Basic and diluted(0.01)—%
Capital expenditures 8.77.516%
Property & equipment (NBV)347.4331.25%
Total assets425.9419.71%
Long-term debt 113.896.818%
Cash and cash equivalents2.53.0(17)%

Additional Information

A copy of the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2020 and 2019 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, 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 turn-key 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 2020 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, 2019 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 and Net Debt. 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 and nine month periods ended September 30, 2020 filed on SEDAR.