CALGARY, AB--(Marketwired - December 16, 2016) - Black Diamond Group
Limited ("Black Diamond" or the "Company") (TSX: BDI), a leading provider of workforce
accommodation and modular workspace solutions, today announced securing a contract for revenue to the Company of $17.5 million.
This contract with an oilsands operator south of Fort McMurray includes the installation and sale of a 328 bed camp in addition
to an amendment to an existing contract with this customer that was announced August 5, 2015 and was due to expire in Q3 2017.
The current contract includes certain proceeds for the early termination of the August 5, 2015 contract to be recognized in Q4
2016, as well as the installation and sale of the new 328 bed camp, which will take place and be recognized in Q1 2017. The
contribution to the current quarter is expected to result in Q4 2016 Adjusted EBITDA at the high end of the previously provided
guidance range of $8-12 million. Approximately 85% of the total cash proceeds from this contract will be collected in December
2016, with the remainder to be collected in Q1 2017 upon completion of the installation.
As a result of this contract and other ongoing business activity, Black Diamond anticipates that it will continue
to be fully compliant with its bank covenants.
This contract demonstrates Black Diamond's ability to create value for our customers and monetize some of our
underutilized assets. Management believes this is an example of how the increased field level activity continues to drive demand
for remote labour accommodation in Western Canada, and also demonstrates the underlying value of our well maintained fleet.
Reader Advisory
Forward-Looking Statements
Certain information in this news release contains forward-looking statements including management's assessment of
Black Diamond's future operations, business prospects and opportunities and management's future expectations regarding the
financial performance of the Company and its business units. With respect to the forward-looking statements contained in this
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 counterparties 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 assurance that such expectations or assumptions will
prove to be correct. These forward- looking statements are subject to numerous risks and uncertainties, certain of which are
beyond Black Diamond's control including, without limitation, the impact of general economic conditions, industry conditions,
fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of
qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from
internal and external sources. As a consequence, actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the forgoing list of factors is not 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 and other reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) and at Black Diamond's website (www.blackdiamondgroup.com). 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 publicly or to revise any of the
forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by
applicable securities laws.
Non-GAAP Measures
In this news release, the term Adjusted EBITDA has been referenced. Readers are cautioned that this measure is
not defined under International Financial Reporting Standards ("IFRS"). Readers are cautioned that 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. Non-GAAP measures should
only be used in conjunction with the consolidated financial statements of the Company.
About Black Diamond
Black Diamond Group provides workforce accommodation, modular buildings, energy services, and full turnkey
lodging and major project solutions including planning and management, logistics, and catering to customers in Canada, the United
States and Australia. We serve diverse sectors including oil and gas, mining, power, construction, engineering, military,
government, and education.
Black Diamond has four core business units: Black Diamond Camps & Lodging, BOXX Modular, Black Diamond Energy
Services, and Black Diamond International. Learn more at: www.blackdiamondgroup.com.
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