CALGARY, AB–(Marketwired – February 27, 2017) – Black Diamond Group Limited (“Black Diamond” or the “Company”) (TSX: BDI), a leading provider of modular workspace solutions and workforce accommodations, today announced the timing of its 2016 fourth quarter webcast and provides an operational update to its shareholders.
Fourth Quarter 2016 Results
Black Diamond will release its 2016 fourth quarter results after markets close on Monday March 13, 2017, and hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Tuesday, March 14, 2017. President and CEO Trevor Haynes and Executive Vice President 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 1-855-435-1153. International callers should use (210) 229-8824 (Conference ID: 79805769). Please connect approximately 10 minutes prior to the beginning of the call.
Please log into the webcast 10 minutes before the start time at: http://edge.media-server.com/m/p/6d62vffc.
Slides to accompany the conference call can be accessed through https://join.me/BDI-Investors.
Following the conference call, an audio archive will be available in the Investor Events section of the Company’s website at www.blackdiamondgroup.com.
Operational Update
Although the Company’s financial statements for the quarter ended December 31, 2016 are not yet finalized, certain preliminary estimates are available. These preliminary estimates suggest the Adjusted EBITDA for the quarter ended December 31, 2016 will be near the top end of the original range of $8 to $12 million, consistent with the Company’s earnings guidance update provided on December 16, 2016. The preliminary estimate of Adjusted EBITDA for Q4 includes approximately $7 million from the non-recurring revenue stream and excludes a non-cash impairment charge of approximately $50 million on assets in the Energy Services and International business units. This impairment does not affect the ongoing operations or cash flow generating capabilities of the business.
During the fourth quarter of 2016 the recurring rental revenue levels have increased, although only marginally above the previous two quarters. Management believes this level of recurring revenue will continue into the first half of 2017. Non-recurring revenue streams such as new and used asset sales and construction related operations for Q1 2017 are expected to be minimal, resulting in lower revenue and EBITDA run rates than experienced in Q4. However, recent positive macroeconomic events are expected to be highly constructive to Black Diamond’s earnings growth in late 2017 and into 2018. Key macroeconomic events such as increases in oil price, increased drilling and completion activity, major pipeline approvals, significant capital spending announcements by major customers and the continued focus of both the USA and Canadian Governments on key infrastructure projects are expected to support Black Diamond’s growth in the second half of 2017 and in 2018. Management currently anticipates full year 2017 EBITDA to be between $30-40 million.
As the macroeconomic fundamentals strengthen, Management continues to monitor activity levels closely, and adjust operating strategies accordingly. Management has, and is continuing to, rationalize and restructure operations to improve efficiencies and profitability. In combination with its continued operational focus and goal to diversify and expand the BOXX Modular division, Management initiated and expects to, within the current quarter, satisfactorily complete amendments to credit terms with its current lenders which are expected to provide the necessary liquidity and flexibility for the ongoing operations, distributions, and strategic growth initiatives.
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, adjusted EBITDA estimates, 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 and 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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For investor inquiries please contact:
Randel Madell
587-233-7462
rmadell@blackdiamondgroup.com
For media inquiries please contact:
Elaine Mazurick
587-233-7461
emazurick@blackdiamondgroup.com