Black Diamond Group Expands 2012 Capex Program and Provides Operational Update
CALGARY, ALBERTA--(Marketwire - June 13, 2012) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of remote lodging, modular building and energy services in North America announces today its Board of Directors approved an expansion of its 2012 capital expenditure budget to $120 million. The $25 million increase in capex from the previously announced $95 million will support upcoming projects and additional contracts which management anticipates will occur throughout the remainder of the year and fund fleet additions within the Company's three asset-based divisions. Substantially all of the previously announced $95 million capex has been committed to fund projects across the Company's multi-service platform.
Black Diamond's camps division has recently entered into several long-term remote accommodation rental contracts which will add approximatley1,650 incremental beds plus associated support facilities and amenities to its fleet, serving major resource development projects in northern Alberta and northeastern British Columbia. The minimum expected contracted revenue of these projects will be $30 million over 24 months, with variable ancillary revenue and lease extension options open.
These remote workforce lodges will support several resource development projects throughout western Canada including projects for two major producers in the oilsands region of northern Alberta, an oil and gas project in the Deep Basin in northwestern Alberta and mining projects in British Columbia.
Black Diamond intends to finance its increased 2012 capital expenditure budget from available debt facilities and operating cash flow.
About Black Diamond
Founded in 2003, Black Diamond Group Limited is one of North America's fastest growing remote lodging, modular building and energy services companies. With its corporate head office located in Calgary, Black Diamond provides world-class services to a full spectrum of industries including oil and gas, mining, power, construction, engineering, military, government and education.
Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, BOXX Modular Inc. and through its 50% equity participation in the Black Diamond Dene Limited Partnership and Black Diamond West Moberly Limited Partnership, Black Diamond operates four complementary divisions in thirteen strategic locations across Canada and the USA.
Black Diamond Camps rents and sells remote workforce housing and provides associated services; Black Diamond Logistics provides turnkey lodging services, remote facility management and supply chain solutions; BOXX Modular specializes in renting and selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a complement of oilfield equipment and services.
Certain information in this news release contains forward-looking statements including the anticipated allocation of the $25 million increase in capex, the minimum expected revenue and term thereof from several recent long-term remote accommodation rental contracts, the intended means of financing the increased 2012 capital expenditure budget and management's assessment of future plans and operations of Black Diamond. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, failure of counter-parties to perform on contracts, 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, 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 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.blackdiamondlimited.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.
President and Chief Executive Officer
(403) 264-9281 (FAX)
Black Diamond Group Inc.
Executive Vice President and Chief Financial Officer
(403) 264-9281 (FAX)