Nice dividend increase... Black Diamond Reports Fourth Quarter 2021 Results & 20% Dividend Increase
CALGARY, Alberta, March 03, 2022 (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 (the "Quarter") and twelve months ("2021" or the "YTD") ended December 31, 2021 compared with the three months (the "Comparative Quarter") and twelve months ("2020" or the "Prior YTD") ended December 31, 2020. All financial figures are expressed in Canadian dollars.
In the fourth quarter of 2021, Black Diamond reported consolidated revenue of $96.1 million, Adjusted EBITDA(1) of $17.5 million, and core rental revenue of $27.3 million.
Key Highlights from the Fourth Quarter of 2021
- Generated consolidated revenue of $96.1 million and Adjusted EBITDA of $17.5 million, up 71% and 58% from the Comparative Quarter, respectively.
- Consolidated rental revenue of $27.3 million, up 51% from the Comparative Quarter.
- Modular Space Solutions ("MSS") revenue and Adjusted EBITDA of $51.0 million and $13.3 million increased 62% and 33%, respectively, from the Comparative Quarter.
- Workforce Solutions ("WFS") revenue and Adjusted EBITDA of $45.1 million and $9.7 million increased 81% and 126%, respectively, from the Comparative Quarter.
- Cash from Operating Activities was $20.4 million and Free Cashflow(1) for the Quarter was $15.4 million, compared to $7.8 million in the Comparative Quarter.
- Long-term Debt was $155.6 million resulting in Net Debt to Adjusted EBITDA(1) of 2.4x is within the Company's target range of 2 to 3 times, and available liquidity was $112.7 million at the end of the Quarter.
- LodgeLink set a quarterly record with 70,317 room nights booked in the Quarter which increased 96% from the Comparative Quarter.
- The Company redeemed $2.4 million worth of preferred shares, issued by a subsidiary company, as part of the Vanguard acquisition. As of the date hereof, there are $8.9 million of preferred shares outstanding, which may be redeemed by the Company.
- Subsequent to the end of the Quarter, the Company increased its annual dividend per share payout by 20% from $0.05 to $0.06. The Company has declared a first quarter dividend of $0.015 payable on or about April 15, 2022 to shareholders of record on March 31, 2022.
Key Highlights from the YTD
- Generated consolidated revenue of $339.6 million and consolidated Adjusted EBITDA of $64.0 million for the YTD, up 89% and 58% from the Prior YTD, respectively.
- Diluted earnings per share for the YTD was $0.34 compared to $(0.06) in the Prior YTD.
- Profit for YTD was $20.4 million and consolidated Return on Assets ("ROA")(1) for the YTD was 15%, up four percentage points from the Prior YTD.
- MSS rental revenue and Adjusted EBITDA of $60.0 million and $46.8 million, up 53% and 59% from the Prior YTD, respectively.
- WFS rental revenue and Adjusted EBITDA of $38.0 million and $34.6 million, up 44% and 57% from the Prior YTD, respectively.
- LodgeLink Net Revenue was $3.8 million, up 124% from the Prior YTD and Gross Bookings(1) of $35.5 million grew 97% from the Prior YTD.
OUTLOOK
Fourth quarter 2021 results reflect the Company's continued focus to grow MSS through fleet additions and value added products and services ("VAPS"), strengthen WFS through higher utilization and further end-market diversity, and scale LodgeLink Gross Booking volumes while increasing margins.
MSS set an eighth consecutive quarterly record in rental revenue and achieved record sales revenue driven primarily by operations in the U.S. The macroeconomic backdrop remains attractive for the Company's MSS rental fleet, with utilization levels expected to remain strong amidst ongoing increases in average rental rate. Average rental rates in the Quarter across MSS were up 9% year-over-year on a constant currency basis and are expected to see ongoing increases based on strong demand in essentially all geographies as well as continued lift from ongoing inflationary pressures. Utilization is expected to remain steady and Management expects ongoing, steady growth in the Company's high margin, recurring, rental revenue into 2022.
WFS is expected to benefit from the Company's continued focus to diversify by end-market and geography, as well as continued strength in commodity prices. Utilization levels have continued to improve throughout WFS in all regions and as a result the outlook for the first half of 2022 remains constructive.
MSS sales revenue set a quarterly record as a result of strong activity levels, particularly in the eastern U.S. The Company expects a normalization in sales revenue in coming quarters but continues to see a healthy market for custom sales opportunities. In WFS, non-rental and sales revenue were also strong in 2021 due to improving utilization levels across the platform which in turn drove higher revenue from installation and ancillary services. The Company continues to see attractive opportunities within WFS to monetize unutilized assets to further improve utilization.
LodgeLink, Black Diamond's digital marketplace platform for workforce travel and accommodation, delivered its highest ever quarter for Gross Bookings and volume of room nights booked. Total Gross Bookings for LodgeLink grew 55% to $10.2 million from the Comparative Quarter. Total room bookings for the quarter grew 96% to 70,317 from the Comparative Quarter. At the end of the Quarter, LodgeLink had 615 unique active corporate customers signed onto the platform with 6,365 properties listed representing 615,799 rooms. The Company remains optimistic on the future growth potential of LodgeLink as the digital platform continues to scale and build volume by continuing to add customers and suppliers to the system.
The Company's outlook into 2022 remains positive as growth in recurring rental revenue streams in both MSS and WFS is expected to underpin continued growth in Free Cashflow and the ability to re-invest in opportunities with strong returns across our specialty rental platform. Management expects debt levels to remain within the current Net Debt to Adjusted EBITDA range of 2.0x to 3.0x and remains focused on driving total shareholder returns with an announced 20% increase to its dividend. For 2022, the Company expects gross capital investment in the range of $35 to $45 million (or net capital investment of $30 to $40 million based on expected used asset sales). Capital investment is expected to be deployed in a generally non-speculative manner and is expected to be weighted heavily towards MSS and ongoing growth in Australia.
Fourth Quarter 2021 Financial Highlights
| | Three months ended
December 31, | Twelve months ended
December 31, |
| (in millions, except where noted) | 2021 | 2020 | Change | 2021 | 2020 | Change |
| | $ | $ | | $ | $ | |
| Revenue | | | | | | |
| Modular Space Solutions | 51.0 | 31.4 | 62% | 173.6 | 93.8 | 85% |
| Workforce Solutions | 45.1 | 24.9 | 81% | 166.0 | 86.1 | 93% |
| Total Revenue | 96.1 | 56.3 | 71% | 339.6 | 179.9 | 89% |
| | | | | | | |
| Total Adjusted EBITDA (1) | 17.5 | 11.1 | 58% | 64.0 | 40.6 | 58% |
| | | | | | | |
| Funds from Operations (1) | 21.6 | 12.2 | 77% | 76.6 | 42.5 | 80% |
| Per share ($) | 0.37 | 0.22 | 68% | 1.32 | 0.77 | 71% |
| | | | | | | |
| Profit (loss) | 10.7 | (2.2) | 586% | 20.4 | (3.5) | 683% |
| Profit (loss) per share ($) - Basic | 0.18 | (0.04) | 550% | 0.35 | (0.06) | 683% |
| ($) - Diluted | 0.18 | (0.04) | 550% | 0.34 | (0.06) | 667% |
| | | | | | | |
| Capital expenditures | 12.0 | 5.0 | 140% | 37.9 | 36.0 | 5% |
| Business acquisitions | — | 80.2 | (100)% | — | 86.8 | (100)% |
| Property & equipment (NBV) | 404.5 | 410.0 | (1)% | 404.5 | 410.0 | (1)% |
| Total assets | 530.3 | 511.9 | 4% | 530.3 | 511.9 | 4% |
| Long-term debt | 155.6 | 175.7 | (11)% | 155.6 | 175.7 | (11)% |
| Cash and cash equivalents | 4.6 | 3.7 | 24% | 4.6 | 3.7 | 24% |
| Return on Assets (%) (1) | 17% | 11% | 6 | 15% | 11% | 4 |
| Free Cashflow (1) | 15.4 | 7.8 | 97% | 54.3 | 22.8 | 138% |
(1) Adjusted EBITDA, Funds from Operations, Free Cashflow and Gross Bookings are non-GAAP financial measures and Net Debt to Adjusted EBITDA and Return on Assets are non-GAAP ratios. Refer to the "Non-GAAP Financial Measures" section of the Company's Management's Discussion and Analysis for the year ended December 31, 2021 (the "MD&A"), which is available on the Company's profile at www.sedar.com and incorporated by reference herein, for more information on each specified financial measure.