Black Diamond Reports Second Quarter 2021 Results

Calgary, Alberta, CANADA

CALGARY, Alberta, Aug. 04, 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 and six months ended June 30, 2021 (the "Quarter") compared with the three and six months ended June 30, 2020 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars.

In the second quarter of 2021, Black Diamond reported consolidated revenue of $68.9 million, Adjusted EBITDA of $13.5 million, and core rental revenue of $23.2 million.

Key Highlights from the Second Quarter of 2021

  • Generated consolidated revenue of $68.9 million and Adjusted EBITDA of $13.5 million, up 85% and 36% from the Comparative Quarter respectively.

  • Generated net income of $1.3 million (or diluted earnings per share of $0.02) compared to a $0.4 million net loss in the Comparative Quarter.

  • Consolidated rental revenue of $23.2 million was up 61% from the Comparative Quarter with increases of 60% in Modular Space Solutions ("MSS") and 62% in Workforce Solutions (“WFS”).

  • MSS rental fleet grew to 8,767 units, or 33% from the Comparative Quarter, while utilization improved to 84% and average rental rates increased 8% on a constant currency basis.

  • LodgeLink saw 43,330 room nights booked and gross bookings of $7.8 million in the Quarter, up 400% and 500% from the Comparative Quarter respectively.

  • Net Debt reduced to $161.1 million, resulting in available liquidity of $99.3 million and a 3.01 Net Debt to EBITDA leverage ratio including trailing twelve month EBITDA from acquisitions. This effectively brings leverage down to the top end of the Company’s target range of 2.0 to 3.0 within 6 months of the Vanguard acquisition.

Executive Summary

MSS rental revenue set a sixth consecutive quarterly record and grew $5.5 million to $14.6 million, up 60% from the Comparative Quarter. Recurring rental-revenue growth in the MSS business unit 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 $10.7 million was also a quarterly record for the MSS business unit and increased 53% from the Comparative Quarter.

The WFS business unit generated Adjusted EBITDA of $6.2 million, a 13% increase versus the Comparative Quarter. WFS revenue of $31.8 million was up 108% from the Comparative Quarter primarily due to an increase in lodging and non-rental revenue, and to a lesser extent, increased rental revenue.

At the end of the Quarter, net debt of $161.1 million decreased from $172.0 million in Q4 2020. Excess borrowing capacity under the Company’s asset-based credit facility (the "ABL Facility") was approximately $99.3 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 remainder of 2021 is expected to see continued positive momentum across the business. Management is seeing ongoing opportunities for growth following the improving outlook in our WFS business unit and a steady cadence of organic investment in the MSS business unit over the last several years, supplemented by our acquisition of Vanguard last year.

The MSS business unit is expected to generate continued growth in its recurring rental revenue, which set a sixth consecutive quarterly record high in the Quarter. The business is seeing strong utilization levels across all 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 business unit is expected to benefit from the continued focus to diversify by end-market and geography, as well as continued strength in commodity prices and energy demand as the pandemic abates in North America. Second quarter results were positively impacted by a significant uptick in lodging revenue as well as strong increases in rental and non-rental revenue. The improved outlook in WFS is supported by YTD contract awards in Australia, Eastern Canada, and Western Canada. On October 1, 2020, the Company announced that, in partnership with the Nova Scotia mi’kmaq Communities, it received a 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 Facility. The Company is aware that the Goldboro LNG Project is being reevaluated, but remains well positioned to meet any accommodation needs pertaining to the project.

LodgeLink, Black Diamond’s digital marketplace platform for workforce travel and accommodation, delivered its highest ever quarterly gross revenue and its second highest quarterly volume of total room nights booked. The booking volumes achieved in the Quarter reflect ongoing growth in the U.S., where gross revenue grew 650% over the Comparative Quarter. Total gross revenue for LodgeLink grew 500% from the Comparative Quarter and was offset by somewhat lower bookings from certain Canadian resource sector customers in the Quarter due to expected lower activity in the spring and also due to a tightening of COVID-19 related travel restrictions. Total gross revenue for the Quarter was $7.8 million and total room bookings grew 400% to 43,330 from the Comparative Quarter. At the end of the Quarter, LodgeLink had 580 unique corporate customers signed onto the platform with approximately 5,300 properties listed representing approximately 500,000 rooms. The platform continues to scale, and the Company remains optimistic on the future growth potential of this business.

Second Quarter 2021 Financial Highlights

 Three months ended
June 30,
Six months ended
June 30,
(in millions, except where noted)20212020 Change20212020 Change
 $$ $$ 
    Modular Space Solutions37.122.0 69%72.438.4 89%
    Workforce Solutions31.815.3 108%62.343.9 42%
Total Revenue68.937.3 85%134.782.4 63%
Total Adjusted EBITDA13.59.9 36%26.819.8 35%
Funds from Operations14.311.5 24%31.621.7 46%
Per share ($)0.250.21 19%0.550.39 41%
Profit (loss)1.3(0.4)425%4.0(0.5)900%
Profit (loss) per share - Basic and diluted0.02(0.01)300%0.07(0.01)800%
Capital expenditures 9.89.8 %13.822.3 (38)%
Business acquisition— %6.6 n/a
Property & equipment (NBV)398.5348.4 14%398.5348.4 14%
Total assets511.7423.1 21%511.7423.1 21%
Long-term debt 164.5112.2 47%164.5112.2 47%
Cash and cash equivalents3.43.3 3%3.43.3 3%

Additional Information

A copy of the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 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, Adjusted EBIT, 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 and six months ended June 30, 2021 filed on SEDAR.