Q1 results... Black Diamond Reports First Quarter 2022 Results and Declares Second Quarter Dividend
CALGARY, Alberta, May 04, 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 ended March 31, 2022 (the "Quarter") compared with the three months ended March 31, 2021 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars.
Key Highlights from the First Quarter of 2022
- Generated consolidated revenue of $70.2 million and Adjusted EBITDA1 of $17.9 million, up 7% and 35% from the Comparative Quarter, respectively.
- Consolidated rental revenue of $26.9 million, up 26% from the Comparative Quarter.
- Modular Space Solutions ("MSS") rental revenue of $16.1 million increased 16% from the Comparative Quarter, while total revenue of $34.4 million declined by 3%. Adjusted EBITDA of $10.4 million increased 1% year-over-year.
- Workforce Solutions ("WFS") rental revenue of $10.8 million and total revenue of $35.8 million increased 44% and 17%, respectively from the Comparative Quarter. Adjusted EBITDA of $12.0 million increased 97% year-over-year.
- LodgeLink set another quarterly, all-time, record with 76,253 room nights booked in the Quarter, which increased 56% from the Comparative Quarter.
- Return on Assets1 for the Quarter was 17%, up five percentage points from the Comparative Quarter.
- Long term debt was $160.5 million resulting in Net Debt to trailing twelve month ("TTM") Adjusted EBITDA1 of 2.3x remaining within the Company's target range of 2 to 3 times, and available liquidity was $109.6 million at the end of the Quarter.
- Subsequent to the Quarter, The Company announced that it had acquired all of the operating assets of Cambrian Trailer Rentals Ltd ("Cambrian") consisting of a fleet of 150 rental units and associated rental agreements. Fleet utilization at the time of closing was greater than 90%. Cambrian has serviced the southern Alberta market for over 40 years and has a long-standing history of exceptional service.
- Subsequent to the end of the Quarter, the Company declared a second quarter dividend of $0.015 payable on or about July 15, 2022 to shareholders of record on June 30, 2022.
1 Adjusted EBITDA, Gross Bookings and Free Cashflow are non-GAAP financial measures. Return on Assets and Net Debt to TTM Adjusted EBITDA 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 ratio.
OUTLOOK
First quarter 2022 results displayed the continuation of the Company's strategy to grow and diversify its cash flow streams across its specialty rental platform, while scaling its B2B digital workforce travel management platform; LodgeLink.
MSS rental revenue of $16.1 million was up 16% from $13.9 million in the Comparative Quarter. The increase in rental revenue was driven by increased rental rates (up 9% year-over-year), ongoing strength in utilization, and modest fleet growth. MSS sales revenue of $7.5 million was down 32% from the Comparative Quarter. While the sales pipeline remains robust, custom sales can vary quarter to quarter depending on sequencing and permitting of specific projects in the backlog. MSS Adjusted EBITDA of $10.4 million was up 1% from the Comparative Quarter driven by a shift in revenue mix to more rental revenue, which yields higher margins, partially offset by one-time final costs associated with the Vanguard acquisition of $0.6 million. The outlook into the second quarter and for the remainder of 2022 remains positive and the Company expects steady growth in its core, high-margin, rental revenues driven by strong end-market demand across North America.
WFS rental revenue of $10.8 million was up 44% from $7.5 million in the Comparative Quarter driven by improving utilization in all regions. Non-rental and lodge services revenues were also up 35% and 68% from the Comparative Quarter, respectively, as higher field-level activity drove increased ancillary services and occupancy levels. While the WFS segment has continued to benefit from the Company's efforts to diversify by industry and geography, WFS is also seeing improving activity levels from customers in the energy sector and expects these tailwinds to provide a supportive environment for the remainder of 2022.
LodgeLink, Black Diamond's digital marketplace platform for workforce travel and accommodation, yet again, delivered its highest ever quarter for Gross Bookings1 and volume of room nights booked. Net revenue grew 86% to $1.3 million and Gross Bookings for LodgeLink grew 55% to $11.6 million from the Comparative Quarter. Total room nights booked for the Quarter grew 56% to 76,253 from the Comparative Quarter. At the end of the Quarter, LodgeLink had 642 unique active corporate customers on the platform with approximately 7,337 properties listed representing approximately 697,000 rooms. The Company remains highly 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, as well as continuing to enhance the user experience through platform development.
For 2022, the Company expects gross capital investment in the range of $45 to $55 million and net capital investment of $35 to $45 million after expected normal course used fleet sales. The vast majority of the Company's capital investment is underpinned by long term contracts and is expected to be weighted heavily towards growth in MSS and ongoing rental fleet additions in Australia. While cost for new-build rental fleet has continued to climb due to inflationary pressures, the Company is maintaining investment hurdle rates and is offsetting increases to input costs through ongoing rate increases for new-build products. This is also resulting in continued rental rate increases on existing rental fleet throughout the Company's operating regions which is driving ongoing improvement in return metrics with Return on Assets1 increasing five percentage points year over year, up to 17%. As such, the Company’s outlook for 2022 remains highly positive as growing recurring rental revenue streams in both business units is expected to generate continued growth of Free Cashflow1 and the ability to re-invest in attractive opportunities across our specialty rental platform.
2 Adjusted EBITDA, Gross Bookings 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.
First Quarter 2022 Financial Highlights
| | | Three months ended
March 31, |
| (in millions, except as noted) | | 2022 | 2021 | Change |
| | | $ | $ | % |
| Revenue | | | | |
| Modular Space Solutions | | 34.4 | 35.3 | (3)% |
| Workforce Solutions | | 35.8 | 30.5 | 17% |
| Total revenue | | 70.2 | 65.8 | 7% |
| | | | | |
| Adjusted EBITDA (1) | | 17.9 | 13.3 | 35% |
| | | | | |
| Funds from Operations (1) | | 19.2 | 17.3 | 11% |
| Per share ($) | | 0.33 | 0.30 | 10% |
| | | | | | |
| Profit | | 4.0 | 2.7 | 48% |
| Profit per share | ($) - Basic and diluted | | 0.07 | 0.05 | 40% |
| | | | | | |
| Capital expenditures | | 6.7 | 4.0 | 68% |
| Property & equipment | | 399.2 | 399.9 | —% |
| Total assets | | 528.1 | 508.0 | 4% |
| Long-term debt | | 160.5 | 172.2 | (7)% |
| Cash and cash equivalents | | 3.9 | 3.0 | 30% |
| Return on Assets (%) (1) | | 17% | 12% | 5 |
| Free Cashflow (1) | | 13.5 | 13.6 | (1)% |
| (1) Adjusted EBITDA, 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. |