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 (the "Quarter") and twelve
months ("2023" or the "Year") ended December 31, 2023 compared
with the three months (the "Comparative Quarter") and twelve months
("2022" or the "Prior Year") ended December 31, 2022. All
financial figures are expressed in Canadian dollars.
Key Highlights from 2023
- Generated consolidated revenue of
$393.5 million and Adjusted EBITDA¹ of
$106.6 million for the Year, up 21% and up 27% from Prior
Year, respectively.
- Consolidated rental revenue of
$145.0 million was up 21% from the Prior Year.
- The Company’s consolidated
contracted future rental revenue at the end of the Year was
$136.4 million, up $20.1 million or 17% from the Prior
Year. Modular Space Solutions ("MSS") contracted future rental
revenue for units on rent was $101.8 million at the end of the
Year, up 8% from the Prior Year. Workforce Solutions ("WFS")
contracted future rental revenue for contracts in place was $34.6
million at the end of the Year, up 56% from the Prior Year.
- MSS generated record rental revenue
and Adjusted EBITDA of $85.4 million and $72.7 million,
respectively, up 18% and 34% from the Prior Year.
- WFS rental revenue and Adjusted
EBITDA were $59.6 million and $59.1 million,
respectively, up 24% and 17% from the Prior Year.
- LodgeLink continued to scale and
generated record net revenue of $9.8 million, up 48% from the
Prior Year. Gross Bookings¹ of $78.4 million grew 33%
from the Prior Year while total room nights sold for the Year were
up 18% from the Prior Year.
- Gross capital expenditures for the
Year were $69.1 million compared to $54.2 million in the
Prior Year. This included $56.9 million of capital investment
into organic growth, $3.9 million for LodgeLink software
development, and $8.3 million for sustaining capital
expenditures. Proceeds from fleet sales were
$22.5 million.
- Long-term debt and Net
Debt¹ were $190.4 million and $184.2 million,
respectively, at the end of the Year. Continued positive Free
Cashflow¹ decreased long-term debt and Net Debt by
$36.5 million and $34.7 million, respectively, from
December 31, 2022. Net Debt to trailing twelve month ("TTM")
Adjusted Leverage EBITDA¹ of 1.7x is now just below the
Company's target range of 2.0x to 3.0x while available liquidity
was $142.6 million at the end of the Year.
- Profit for the Year was
$30.4 million, up 15% from the Prior Year and consolidated
Return on Assets¹ for the Year was 19.6%, up 60 basis points
from Prior Year.
- Diluted earnings per share for the
Year was $0.49, up 11% compared to $0.44 for the Prior Year. The
Prior Year included a one-time non-cash impairment reversal related
to Australian assets of $6.3 million, or $4.4 million and
$0.07 per share after tax. Excluding the impact of that reversal,
2023 diluted earnings per share of $0.49 is up nearly 32%.
- Since re-instating the dividend in
2021, the Company has announced three dividend increases, with the
most recent occurring in the fourth quarter of 2023. In the Year,
Black Diamond returned over $4.8 million dollars to shareholders in
the form of dividends, which accounted for approximately 4% of
Funds from Operations, leaving ample financial flexibility for
continued growth.
Key Highlights from the
Quarter
- Consolidated rental revenue of
$36.0 million and Adjusted EBITDA¹ of $26.1 million
were up 8% and 19% from the Comparative Quarter, respectively.
- MSS rental revenue for the Quarter
of $22.0 million was up 10% from the Comparative Quarter. MSS
Adjusted EBITDA¹ of $17.3 million, increased 21% from the
Comparative Quarter.
- MSS average monthly rental rate per
unit (excluding the impact from acquisitions made in 2022)
increased 9% from the Comparative Quarter.
- WFS rental revenue and WFS Adjusted
EBITDA¹ for the Quarter were $14.0 million and
$14.7 million, up 5% and 6% respectively from the Comparative
Quarter despite the conclusion of two large-scale pipeline
contracts, with those assets being off rent for most of the
Quarter.
- LodgeLink net revenue grew 8% from
the Comparative Quarter, to $2.6 million, generating Net
Revenue Margins¹ of 13.3%. LodgeLink also reported 101,726
room nights sold in the Quarter, a 13% decrease from the
Comparative Quarter.
- Capital investment into organic
growth was $11.7 million, while maintenance capital for the
Quarter was $2.2 million. Rental asset additions have been
primarily deployed on projects with long-term contracts at rental
rates that meet or exceed the Company’s hurdle rates.
- Funds from Operations¹ of
$30.1 million and Free Cashflow¹ of $20.5 million
for the Quarter were up 43% and 68%, respectively from the
Comparative Quarter.
- Profit for the Quarter of
$7.8 million decreased 17% from the Comparative Quarter.
- Subsequent to the end of the
Quarter, the Company declared a first quarter dividend of $0.03
payable on or about April 15, 2024 to shareholders of record on
March 31, 2024.
Outlook
Black Diamond’s diversified, specialty rental
platform continues to benefit from strong contract coverage,
supportive macro tailwinds, and a pipeline of attractive growth
opportunities in North America and Australia. Management remains
focused on growing the Company’s high margin, recurring rental
revenue while reinvesting strong organically generated cashflows to
further compound shareholder value.
MSS rental revenue of $22.0 million was up
10% from the Comparative Quarter. Strong results were driven by
robust utilization, targeted fleet growth and a supportive rate
environment. The Company continues to see healthy demand and
additional opportunities in its core education and infrastructure
customer segments which have driven MSS contracted future rental
revenue to reach $101.8 million with an average duration of
51.9 months at the end of the Quarter. Management continues to
expect healthy demand for rental assets across the platform to
drive continued rental and ancillary revenue growth in 2024 and
beyond.
WFS continues to generate strong returns, with
Return on Assets¹ of 39% for the Quarter, as the Company
benefits from successful efforts to right-size the fleet and
diversify its customer base by both geography and end-market.
Despite the conclusion of two large-scale pipeline projects during
the Quarter, which drove utilization down to 60% from 70% in the
Comparative Quarter, Adjusted EBITDA of $14.7 million for the
Quarter was 6% higher from the Comparative Quarter, driven by a 5%
increase in rental revenue as average realized rates improve. The
WFS segment also ended the Quarter with $34.6 million of contracted
future rental revenue, a 56% increase from the Comparative Quarter.
The sales pipeline and opportunity set remain healthy and
management expects a resumption of year-over-year growth in WFS in
late 2024 as assets are redeployed in today’s generally more
constructive rate environment when compared to rental rates several
years ago.
The Company continues to see positive momentum
in LodgeLink, with Gross Bookings¹ and net revenue for the
Year growing 33% and 48% from the Prior Year levels, respectively.
Net Revenue Margins¹ have also continued to improve and are up
120 basis points year over year, reaching 12.4% in the Year and
13.3% in the Quarter as additional revenue streams have been
introduced. Management continues to believe that LodgeLink is
well-positioned for ongoing growth to service a significant North
American addressable market for workforce travel. Today, LodgeLink
services an expanding base of corporate customers with the support
of our supply partners that represent over 1.4 million rooms of
capacity across North America.
Given the strong growth rates experienced over
the last several years across the platform, management began and
largely completed work around a corporate structure reorganization
during the Quarter, in preparation for an Enterprise Resource
Planning ("ERP") system implementation. The Company expects to
transition LodgeLink onto a new ERP system during the second
quarter of 2024 and is working towards a planned transition for its
asset rental businesses into 2025. Management remains focused on
growing and compounding the Company’s high-margin, recurring rental
revenue streams. We believe the outlook for 2024 remains
constructive and is supported by a strong sales and opportunity
pipeline in both MSS and WFS, with LodgeLink expected to continue
on its path of rapid scaling.
¹ Adjusted EBITDA, Net Debt, Funds from
Operations, Gross Bookings and Free Cashflow are non-GAAP financial
measures. Return on Assets, Net Debt to TTM Adjusted Leverage
EBITDA and Net Revenue Margin are non-GAAP ratios. Refer to the
Non-GAAP Financial Measures section of this press release for more
information on each non-GAAP financial measure and ratios.
Fourth
Quarter 2023 Financial
Highlights |
|
|
Three months ended December 31, |
Twelve months ended December 31, |
($ millions, except as noted) |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
Financial Highlights |
$ |
$ |
% |
$ |
$ |
% |
Total revenue |
103.4 |
89.0 |
16% |
393.5 |
324.5 |
21% |
Gross profit |
43.6 |
38.2 |
14% |
174.4 |
140.1 |
24% |
Administrative expenses |
19.1 |
16.3 |
17% |
69.3 |
56.1 |
24% |
Adjusted EBITDA (1) |
26.1 |
22.0 |
19% |
106.6 |
84.0 |
27% |
Adjusted EBIT (1) |
14.9 |
13.4 |
11% |
62.4 |
48.8 |
28% |
Funds from Operations (1) |
30.1 |
21.0 |
43% |
116.8 |
91.0 |
28% |
Per
share ($) |
0.50 |
0.35 |
43% |
1.94 |
1.54 |
26% |
Profit before income taxes |
8.6 |
13.6 |
(37)% |
40.6 |
40.2 |
1% |
Profit |
7.8 |
9.4 |
(17)% |
30.4 |
26.4 |
15% |
Earnings per share - Basic ($) |
0.13 |
0.16 |
(19)% |
0.50 |
0.45 |
11% |
Earnings per share - Diluted ($) |
0.13 |
0.15 |
(13)% |
0.49 |
0.44 |
11% |
Capital expenditures |
13.9 |
16.7 |
(17)% |
69.1 |
54.2 |
27% |
Business acquisition |
— |
54.4 |
(100)% |
— |
54.4 |
(100)% |
Property & equipment |
506.5 |
491.4 |
3% |
506.5 |
491.4 |
3% |
Total assets |
647.6 |
649.4 |
—% |
647.6 |
649.4 |
—% |
Long-term debt |
190.4 |
226.9 |
(16)% |
190.4 |
226.9 |
(16)% |
Cash and cash equivalents |
6.5 |
8.3 |
(22)% |
6.5 |
8.3 |
(22)% |
Return on Assets (%) (1) |
18.1% |
18.5% |
(40) bps |
19.6% |
19.0% |
60 bps |
Free Cashflow (1) |
20.5 |
12.2 |
68% |
81.3 |
63.8 |
27% |
(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 press release for more information on each non-GAAP financial
measure and ratio. |
Additional Information
A copy of the Company's audited consolidated
financial statements for the years ended December 31, 2023 and
2022 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.com) 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,
Britco, 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 services across 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 Jason
Zhang at 403-206-4739 or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and
webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, March 1, 2024.
CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s
financial results for the Quarter and then take questions from
investors and analysts.
To access the conference call by telephone dial
toll free 1-800-319-4610. International callers should use
1-604-638-5340. Please connect approximately 10 minutes prior to
the beginning of the call.
To access the call via webcast, please log into
the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/13162
Following the conference call, a replay will be
available on the Investor Centre section of the Company’s website
at www.blackdiamondgroup.com, under Presentations & Events.
Reader
AdvisoryForward-Looking StatementsCertain
information set forth in this news release contains forward-looking
statements including, but not limited to, opportunities in
different geographic areas, opportunities for organic investment
and debt repayment, the sales and opportunity pipeline, payment of
the Company's quarterly dividends, 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 changing activity levels,
effects on demand and performance based on the changing operating
environment, expectations for demand and growth in the Company’s
operating and customer segments, the expected rate environment,
amount of revenue anticipated to be derived from current contracts,
liquidity, sources and use of funds, expected implementation of a
new ERP system, expected length of existing contracts and future
growth and profitability of the Company. With respect to the
forward-looking statements in this news release, Black Diamond has
made assumptions regarding, among other things: future commodity
prices, the future rate environment, that Black Diamond will
continue to raise sufficient capital to fund its business plans in
a manner consistent with past operations, timing and cost estimates
of ERP, 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 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, 2023 and other reports on file with the Canadian
Securities Regulatory Authorities which can be accessed on Black
Diamond's profile 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 MeasuresIn this news
release, the following specified financial measures and ratios have
been disclosed: Adjusted EBITDA, Adjusted EBIT, Funds from
Operations, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA,
Return on Assets, Net Revenue Margin, Adjusted EBITDA as % of
Revenue, Gross Bookings and Free Cashflow. These non-GAAP and other
financial measures do not have any standardized meaning prescribed
under International Financial Reporting Standards ("IFRS") and
therefore may not be comparable to similar measures presented by
other entities. 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.
Adjusted EBITDA is not a
measure recognized under IFRS and does not have standardized
meanings prescribed by IFRS. Adjusted EBITDA refers to consolidated
earnings before finance costs, tax expense, depreciation,
amortization, accretion, foreign exchange, share-based
compensation, acquisition costs, non-controlling interests, share
of gains or losses of an associate, write-down of property and
equipment, impairment, non-recurring costs, and gains or losses on
the sale of non-fleet assets in the normal course of business.
Black Diamond uses Adjusted EBITDA primarily as
a measure of operating performance. Management believes that
operating performance, as determined by Adjusted EBITDA, is
meaningful because it presents the performance of the Company's
operations on a basis which excludes the impact of certain non-cash
items as well as how the operations have been financed. In
addition, management presents Adjusted EBITDA because it considers
it to be an important supplemental measure of the Company's
performance and believes this measure is frequently used by
securities analysts, investors and other interested parties in the
evaluation of companies in industries with similar capital
structures.
Adjusted EBITDA has limitations as an analytical
tool, and readers should not consider this item in isolation, or as
a substitute for an analysis of the Company's results as reported
under IFRS. Some of the limitations of Adjusted EBITDA are:
- Adjusted EBITDA excludes certain
income tax payments and recoveries that may represent a reduction
or increase in cash available to the Company;
- Adjusted EBITDA does not reflect
the Company's cash expenditures, or future requirements, for
capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect
changes in, or cash requirements for, the Company's working capital
needs;
- Adjusted EBITDA does not reflect
the significant interest expense, or the cash requirements
necessary to service interest payments on the Company's debt;
- depreciation and amortization are
non-cash charges, thus the assets being depreciated and amortized
will often have to be replaced in the future and Adjusted EBITDA
does not reflect any cash requirements for such replacements;
and
- other companies in the industry may
calculate Adjusted EBITDA differently than the Company does,
limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA
should not be considered as a measure of discretionary cash
available to invest in the growth of the Company's business. The
Company compensates for these limitations by relying primarily on
the Company's IFRS results and using Adjusted EBITDA only on a
supplementary basis. A reconciliation to profit, the most
comparable GAAP measure, is provided below.
Adjusted EBIT is Adjusted
EBITDA less depreciation and amortization. Black Diamond uses
Adjusted EBIT primarily as a measure of operating performance.
Management believes that Adjusted EBIT is a useful measure for
investors when analyzing ongoing operating trends. There can be no
assurances that additional special items will not occur in future
periods, nor that the Company's definition of Adjusted EBIT is
consistent with that of other companies. As such, management
believes that it is appropriate to consider both profit determined
on a GAAP basis as well as Adjusted EBIT. A reconciliation to
profit, the most comparable GAAP measure, is provided below.
Adjusted EBITDA as a % of
Revenue is calculated by dividing Adjusted EBITDA by total
revenue for the period. Black Diamond uses Adjusted EBITDA as a %
of Revenue primarily as a measure of operating performance.
Management believes this ratio is an important supplemental measure
of the Company's performance and believes this measure is
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in industries
with similar capital structures.
Return on Assets is calculated
as annualized Adjusted EBITDA divided by average net book value of
property and equipment. Annualized Adjusted EBITDA is calculated by
multiplying Adjusted EBITDA for the Quarter and Comparative Quarter
by an annualized multiplier. Management believes that Return on
Assets is a useful financial measure for investors in evaluating
operating performance for the periods presented. When read in
conjunction with our profit and property and equipment, two GAAP
measures, this non-GAAP ratio provides investors with a useful tool
to evaluate Black Diamond's ongoing operations and management of
assets from period-to-period.
Reconciliation of Consolidated Profit to Adjusted EBITDA,
Adjusted EBIT, Adjusted EBITDA as a % of Revenue and Return on
Assets: |
|
|
Three months ended December 31, |
Twelve months ended December 31, |
($ millions, except as noted) |
2023 |
2022 |
Change% |
2023 |
2022 |
Change% |
Profit |
7.8 |
9.4 |
(17)% |
30.4 |
26.4 |
15% |
Add: |
|
|
|
|
|
|
Depreciation and amortization (1) |
11.2 |
8.6 |
30% |
44.2 |
35.2 |
26% |
Finance costs (1) |
3.7 |
3.6 |
3% |
14.1 |
8.9 |
58% |
Share-based compensation (1) |
1.1 |
1.3 |
(15)% |
6.2 |
4.8 |
29% |
Non-controlling interests (1) |
0.3 |
0.4 |
(25)% |
1.1 |
1.9 |
(42)% |
Current income taxes (1) |
0.1 |
0.1 |
—% |
0.2 |
0.4 |
(50)% |
Deferred income taxes (1) |
0.4 |
3.7 |
(89)% |
8.9 |
11.5 |
(23)% |
Impairment reversal (1) |
— |
(6.3) |
100% |
— |
(6.3) |
100% |
Non-recurring items |
|
|
|
|
|
|
Acquisition costs (1) |
— |
1.2 |
(100)% |
— |
1.2 |
(100)% |
ERP implementation and related costs (2) |
1.5 |
— |
100% |
1.5 |
— |
100% |
Adjusted EBITDA |
26.1 |
22.0 |
19% |
106.6 |
84.0 |
27% |
Less: |
|
|
|
|
|
|
Depreciation and amortization (1) |
11.2 |
8.6 |
30% |
44.2 |
35.2 |
26% |
Adjusted EBIT |
14.9 |
13.4 |
11% |
62.4 |
48.8 |
28% |
|
|
|
|
|
|
|
Total
revenue (1) |
103.4 |
89.0 |
16% |
393.5 |
324.5 |
21% |
Adjusted EBITDA as a % of Revenue |
25.2% |
24.7% |
50 bps |
27.1% |
25.9% |
120 bps |
|
|
|
|
|
|
|
Annualized multiplier |
4 |
4 |
|
|
|
|
Annualized adjusted EBITDA |
104.4 |
88.0 |
19% |
106.6 |
84.0 |
27% |
Average
net book value of property and equipment |
542.7 |
482.5 |
12% |
535.0 |
443.6 |
21% |
Return on Assets |
18.1% |
18.5% |
(40) bps |
19.6% |
19.0% |
60 bps |
(1) Sourced from the Company's audited consolidated financial
statements for the years ended December 31, 2023 and December
31, 2022.(2) This relates to the corporate structure reorganization
costs that have been incurred in preparation of a new ERP
system. |
Net Debt to TTM
Adjusted Leverage EBITDA is a non-GAAP financial ratio
which is calculated as Net Debt divided by trailing twelve months
Adjusted Leverage EBITDA. Net Debt, a non-GAAP
financial measure, is calculated as long-term debt minus cash and
cash equivalents. A reconciliation to long-term debt, the most
comparable GAAP measure, is provided below. Net Debt and Net Debt
to TTM Adjusted Leverage EBITDA removes cash and cash equivalents
from the Company's debt balance. Black Diamond uses this ratio
primarily as a measure of operating performance. Management
believes this ratio is an important supplemental measure of the
Company's performance and believes this measure is frequently used
by securities analysts, investors and other interested parties in
the evaluation of companies in industries with similar capital
structures. In the quarter ended June 30, 2022, Net Debt to TTM
Adjusted EBITDA was renamed Net Debt to TTM Adjusted Leverage
EBITDA, to provide further clarity on the composition of the
denominator to include pre-acquisition estimates of EBITDA from
business combinations. Management believes including the additional
information in this calculation helps provide information on the
impact of trailing operations from business combinations on the
Company's leverage position.
Reconciliation of Consolidated Profit to Adjusted EBITDA,
Net Debt and Net Debt to TTM Adjusted Leverage
EBITDA: |
|
($ millions, except as noted) |
2023 |
2023 |
2023 |
2023 |
2022 |
2022 |
2022 |
2022 |
Change |
|
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|
Profit |
7.8 |
13.6 |
4.6 |
4.4 |
9.4 |
9.0 |
4.0 |
4.0 |
|
Add: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
11.2 |
12.6 |
10.6 |
9.8 |
8.6 |
9.2 |
8.8 |
8.6 |
|
Finance costs |
3.7 |
3.7 |
3.7 |
2.9 |
3.6 |
2.1 |
1.7 |
1.5 |
|
Share-based compensation |
1.1 |
1.6 |
1.3 |
2.2 |
1.3 |
1.3 |
1.1 |
1.2 |
|
Non-controlling interests |
0.3 |
0.3 |
0.3 |
0.3 |
0.4 |
0.5 |
0.5 |
0.5 |
|
Current income taxes |
0.1 |
— |
0.1 |
— |
0.1 |
— |
0.4 |
— |
|
Deferred income taxes |
0.4 |
4.8 |
1.9 |
1.8 |
3.7 |
3.9 |
1.7 |
2.1 |
|
Impairment reversal |
— |
— |
— |
— |
(6.3) |
— |
— |
— |
|
Non-recurring items |
|
|
|
|
|
|
|
|
|
Acquisition costs |
— |
— |
— |
— |
1.2 |
— |
— |
— |
|
ERP implementation and related costs (1) |
1.5 |
— |
— |
— |
— |
— |
— |
— |
|
Adjusted EBITDA |
26.1 |
36.6 |
22.5 |
21.4 |
22.0 |
26.0 |
18.2 |
17.9 |
|
Acquisition pro-forma adjustments (2) |
— |
— |
— |
— |
0.5 |
2.3 |
2.2 |
1.5 |
|
Adjusted Leverage EBITDA |
26.1 |
36.6 |
22.5 |
21.4 |
22.5 |
28.3 |
20.4 |
19.4 |
|
|
|
|
|
|
|
|
|
|
|
TTM Adjusted Leverage
EBITDA |
106.6 |
|
|
|
90.6 |
|
|
|
18% |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
190.4 |
|
|
|
226.9 |
|
|
|
(16)% |
Cash and cash equivalents |
6.5 |
|
|
|
8.3 |
|
|
|
(22)% |
Current
portion of long-term debt (3) |
0.3 |
|
|
|
0.3 |
|
|
|
—% |
Net Debt |
184.2 |
|
|
|
218.9 |
|
|
|
(16)% |
Net Debt to TTM Adjusted Leverage EBITDA |
1.7 |
|
|
|
2.4 |
|
|
|
(29)% |
(1) This relates to the corporate structure reorganization costs
that have been incurred in preparation of a new ERP system.(2)
Includes pro-forma pre-acquisition EBITDA estimates as if the
acquisition that occurred in the fourth quarter 2022, occurred on
January 1, 2022.(3) Current portion of long-term debt relating to
the payments due within one year on the bank term loans assumed as
part of the acquisition in the fourth quarter of 2022. |
Funds from Operations is
calculated as the cash flow from operating activities, the most
comparable GAAP measure, excluding the changes in non-cash working
capital. Management believes that Funds from Operations is a useful
measure as it provides an indication of the funds generated by the
operations before working capital adjustments. Changes in long-term
accounts receivables and non-cash working capital items have been
excluded as such changes are financed using the revolving line of
Black Diamond's ABL Facility. A reconciliation to cash flow from
operating activities, the most comparable GAAP measure, is provided
below.
Free Cashflow is calculated as
Funds from Operations minus maintenance capital, net interest paid
(including lease interest), payment of lease liabilities, net
current income tax expense (recovery), distributions declared to
non-controlling interest, dividends paid on common shares and
dividends paid on Preferred Shares plus net current income taxes
received (paid). Management believes that Free Cashflow is a useful
measure as it provides an indication of the funds generated by the
operations before working capital adjustments and other items noted
above. Management believes this metric is frequently used by
securities analysts, investors and other interested parties in the
evaluation of companies in industries with similar capital
structures. A reconciliation to cash flow from operating
activities, the most comparable GAAP measure, is provided
below.
Reconciliation of Cash Flow from Operating Activities to
Funds from Operations and Free Cashflow: |
|
|
Three months ended December 31, |
Twelve months ended December 31, |
($ millions, except as noted) |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
|
|
|
|
|
|
|
Cash Flow from Operating
Activities (1) |
35.1 |
6.4 |
448% |
133.0 |
70.8 |
88% |
Add/(Deduct): |
|
|
|
|
|
|
Change in other long term assets (1) |
0.5 |
0.1 |
400% |
0.6 |
(0.6) |
200% |
Changes in non-cash operating working capital (1) |
(5.5) |
14.5 |
(138)% |
(16.8) |
20.8 |
(181)% |
Funds from Operations |
30.1 |
21.0 |
43% |
116.8 |
91.0 |
28% |
Add/(deduct): |
|
|
|
|
|
|
Maintenance capital |
(2.2) |
(2.6) |
15% |
(8.3) |
(7.7) |
(8)% |
Payment for lease liabilities |
(2.1) |
(1.8) |
(17)% |
(7.8) |
(6.7) |
(16)% |
Interest paid (including lease interest) |
(3.5) |
(3.2) |
(9)% |
(13.5) |
(8.4) |
(61)% |
Net current income tax expense |
0.1 |
0.1 |
—% |
0.2 |
0.4 |
(50)% |
Dividends paid on common shares |
(1.2) |
(0.9) |
(33)% |
(4.8) |
(3.4) |
(41)% |
Distributions paid to non-controlling interests |
(0.7) |
(0.3) |
(133)% |
(1.3) |
(0.9) |
(44)% |
Dividends paid on Preferred Shares |
— |
(0.1) |
100% |
— |
(0.5) |
100% |
Free Cashflow |
20.5 |
12.2 |
68% |
81.3 |
63.8 |
27% |
(1) Sourced from the Company's audited consolidated financial
statements for the years ended December 31, 2023 and December
31, 2022. |
Gross Bookings, a non-GAAP
measure, is total revenue billed to the customer which includes all
fees and charges. Net revenue, a GAAP measure, is Gross Bookings
less costs paid to suppliers. Revenue from bookings at third party
lodges and hotels through LodgeLink are recognized on a net revenue
basis. LodgeLink is an agent in the transaction as it is not
responsible for providing the service to the customer and does not
control the service provided by a supplier. Management believes
this ratio is an important supplemental measure of LodgeLink's
performance and cash generation and believes this ratio is
frequently used by interested parties in the evaluation of
companies in industries with similar forms of revenue
generation.
Net Revenue Margin is
calculated by dividing net revenue by Gross Bookings for the
period. Management believes this ratio is an important supplemental
measure of LodgeLink's performance and profitability and believes
this ratio is frequently used by interested parties in the
evaluation of companies in industries with similar forms revenue
generation where companies act as agents in transactions.
Reconciliation of Net Revenue to Gross Bookings and Net
Revenue Margin: |
|
|
Three months ended December 31, |
Twelve months ended December 31, |
($ millions, except as noted) |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
Net revenue (1) |
2.6 |
2.4 |
8% |
9.8 |
6.6 |
48% |
Costs
paid to suppliers (1) |
17.0 |
17.3 |
(2)% |
68.6 |
52.3 |
31% |
Gross Bookings (1) |
19.6 |
19.7 |
(1)% |
78.4 |
58.9 |
33% |
Net Revenue Margin |
13.3% |
12.2% |
110 bps |
12.4% |
11.2% |
120 bps |
(1) Includes intercompany transactions. |
Readers are cautioned that the non-GAAP measures
are not alternatives to measures under IFRS and should not, on
their own, be construed as an indicator of Black Diamond's
performance or cash flows, a measure of liquidity or as a measure
of actual return on the shares of Black Diamond. These non-GAAP
measures should only be used in conjunction with the consolidated
financial statements of Black Diamond.
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