Black Diamond Reports Robust First Quarter 2025 Results and Declares Dividend
Press Release
May 01 2025
CALGARY, Alberta, May 01, 2025 — Black Diamond Group Limited (“Black Diamond”, the “Company” or “we”), (TSX:BDI, OTCQX:BDIMF), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months ended March 31, 2025 (the “Quarter”) compared with the three months ended March 31, 2024 (the “Comparative Quarter”). All financial figures are expressed in Canadian dollars.
Key Highlights from the Quarter
- Profit for the Quarter of $5.8 million increased 287% from the Comparative Quarter. Basic earnings per share of $0.10 increased 400% from the Comparative Quarter.
- Consolidated rental revenue of $37.8 million increased 8% from the Comparative Quarter. The Company’s consolidated contracted future rental revenue at the end of the Quarter was $161.6 million, up $24.5 million or 18% from the end of the Comparative Quarter.
- Consolidated Adjusted EBITDA1 of $26.5 million was up 37% from the Comparative Quarter.
- Return on Assets1 of 17.4% improved 310 basis points from the Comparative Quarter and represents an attractive return profile given the long-life and low maintenance characteristics of the Company’s rental assets.
- Modular Space Solutions (“MSS”) rental revenue of $25.5 million was a first quarter record and increased 19% from $21.5 million in the Comparative Quarter, due to increased average monthly rental rates and increased units for rent. Sales revenue of $11.5 million and non-rental revenue of $12.3 million increased 77% and 37%, respectively. Average monthly rental rate per unit increased 11% from the Comparative Quarter.
- MSS value-added products and services revenue for the Quarter of $2.0 million was up 18% from the Comparative Quarter.
- Workforce Solutions (“WFS”) revenue of $52.9 million increased 45% from the Comparative Quarter. The increase was driven by higher sales, lodge services and non-rental revenue that increased 153%, 73% and 53%, respectively.
- LodgeLink total room nights sold increased 7%. Net revenue of $2.7 million increased 4% from the Comparative Quarter.
- Funds from Operations1 of $26.5 million and Free Cashflow1 of $16.9 million were up 37% and 80%, respectively, from the Comparative Quarter.
- Total capital expenditures were $17.2 million for the Quarter, including maintenance capital of $1.7 million. Total capital commitments at the end of the Quarter of $47.9 million were 22% greater than the Comparative Quarter, with the majority of growth capital being allocated to contracted project specific fleet units.
- During the Quarter, the secured asset-based revolving credit facility was upsized by $100 million to $425 million, the term has been extended to February 2030, and terms were amended to provide advance rates against certain previously excluded categories of the Company’s assets.
- Long-term debt and Net Debt1 at the end of the Quarter both decreased 3% since December 31, 2024 to $229.3 million and $217.8 million, respectively. Net Debt to trailing twelve months (“TTM”) Adjusted Leverage EBITDA1 of 1.8x remains below the Company’s target range of 2.0x to 3.0x while available liquidity was $207.1 million at the end of the Quarter.
- The Company repurchased an aggregate of 304,300 common shares for approximately $2.8 million for cancellation as part of the Company’s normal course issuer bid (“NCIB”).
- Subsequent to the end of the Quarter, the Company declared a second quarter dividend of $0.035 payable on or about July 15, 2025 to shareholders of record on June 30, 2025.
Outlook
In the Quarter, the MSS segment generated a first quarter record, posting rental revenue of $25.5 million, up 19% from the Comparative Quarter, propelled by higher average monthly rental rates and ongoing organic and tactical inorganic fleet investment. With strong demand in key operating areas, MSS utilization remains at healthy levels across the platform. MSS contracted future rental revenue continues to rise and ended the Quarter at $122.5 million, up 20% or $20.0 million from the Comparative Quarter. With a solid foundation of contracted backlog, strong momentum and embedded average monthly rental rate growth through normal course contract renewals, management sees a clear runway for ongoing growth and value creation in the MSS segment into 2025 and beyond.
WFS revenue and Adjusted EBITDA1 rose 45% and 17%, respectively, driven by improved sales, lodge services and non-rental revenue which improved 153%, 73% and 53%, respectively, from the Comparative Quarter. WFS Adjusted EBITDA1 of $12.8 million translated to a 36% Return on Assets1 in the Quarter. WFS revenue in all geographic regions was higher from the Comparative Quarter and management expects sequential improvement in WFS rental revenue driven by the start-up of rental contracts in connection with WFS fleet assets that were mobilized and installed during the Quarter.
LodgeLink room nights sold of 123,570 marked a 7% increase from the Comparative Quarter. Gross Bookings1 was flat at $21.5 million, while a 50 basis points improvement in Net Revenue Margin1 of 12.6% drove LodgeLink net revenue up 4% to $2.7 million. The Company has accelerated its investment in product development to support LodgeLink’s ongoing growth while further refining and differentiating the platform’s value proposition in the workforce travel ecosystem.
The Enterprise Resource Planning (“ERP”) upgrade project, designed to enhance operational efficiency and support the long-term growth of Black Diamond, remains on track and on budget at this time, with $3.0 million invested and approximately $8.9 million remaining from the initial budget on the current phase of the implementation for both MSS and Corporate and Other segments. Go-live for this phase is expected in the first half of 2026.
Management remains confident that the Company’s diversified rental platform can continue to compound shareholder returns in the face of macro-economic uncertainty. As Black Diamond operates locally within its geographic regions, and does not typically move assets across borders, management does not expect any first-order tariff and trade-war related measures to have a material effect on the Company nor have there been any material effects on the Company to date. The Company continues to monitor the effects of tariffs on the macro-economic environment that may impact the Company’s customers.
The business continues to generate healthy levels of Free Cashflow1 supported by $161.6 million of consolidated contracted future rental revenue at the end of the Quarter, up 18% from the end of the Comparative Quarter. Tailwinds in the form of increasing average rental rates, stable demand from larger construction projects and education verticals, and opportunities to enhance WFS utilization are expected to drive continued rental revenue growth.
The Company continues to reinvest in organic growth initiatives through an active pipeline, but will maintain its disciplined approach to capital investment decisions whereby most of the growth capital is backed by long-term take or pay contracts. During the Quarter, Black Diamond also returned approximately $2.8 million to shareholders through NCIB purchases and paid over $2.1 million in dividends to shareholders. Funding ongoing organic and inorganic growth, while simultaneously repurchasing shares and paying a dividend is evidence of Black Diamond’s Free Cashflow1 generating ability.
First Quarter 2025 Financial Highlights
| Three months ended March 31, | |||
| ($ millions, except as noted) | 2025 | 2024 | Change |
| Financial Highlights | $ | $ | % |
| Total revenue | 102.2 | 73.6 | 39% |
| Gross profit | 44.3 | 35.8 | 24% |
| Administrative expenses | 19.4 | 16.9 | 15% |
| Adjusted EBITDA(1) | 26.5 | 19.4 | 37% |
| Adjusted EBIT(1) | 14.1 | 8.7 | 62% |
| Funds from Operations(1) | 26.5 | 19.4 | 37% |
| Per share ($) | 0.43 | 0.32 | 34% |
| Profit before income taxes | 7.5 | 2.3 | 226% |
| Profit | 5.8 | 1.5 | 287% |
| Earnings per share – Basic ($) | 0.10 | 0.02 | 400% |
| Earnings per share – Diluted ($) | 0.09 | 0.02 | 350% |
| Capital expenditures | 17.2 | 17.3 | (1)% |
| Property and equipment | 581.9 | 517.8 | 12% |
| Total assets | 753.3 | 661.9 | 14% |
| Long-term debt | 229.3 | 199.8 | 15% |
| Cash and cash equivalents | 12.7 | 12.2 | 4% |
| Return on Assets (%)(1) | 17.4% | 14.3% | 310 bps |
| Free Cashflow(1) | 16.9 | 9.4 | 80% |
| (1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the “Non-GAAP Financial Measures” section of this news release for more information on each non-GAAP financial measure and ratio. | |||
Additional Information
A copy of the Company’s unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024 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.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is a specialty rentals and industrial services company with two operating business units – MSS and WFS. We operate in Canada, the United States, and Australia.
MSS through its principal brands, BOXX Modular, CLM, MPA Systems, and Schiavi, 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 owns a large rental fleet of modular accommodation assets of various types. 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.
In addition, WFS includes LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics in North America. The LodgeLink proprietary digital platform enables customers to efficiently find, book, and manage their crew travel and accommodation needs through a rapidly growing network of hotel, remote lodge, and travel partners. LodgeLink exists to solve the unique challenges associated with crew travel and applies technology to eliminate inefficiencies at every step of the crew travel process from booking, to management, to payments, to cost reporting.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Emma Covenden at 403-888-1666.
or investor@blackdiamondgroup.com.
IBF4
