Black Diamond Group Limited Announces 2011 Capital Expenditure Budget and Monthly Dividend Increase
CALGARY, ALBERTA--(Marketwire - Nov. 10, 2010) - Black Diamond Group Limited ("Black Diamond" or "the Company) (TSX:BDI) is pleased to announce the Board of Directors has approved a 2011 capital expenditure budget of $40 million. The Company plans to expend the approved capital on organic growth opportunities with investment in its three operating divisions consistent with historical weighting. Approximately $18 million is expected to be disbursed in the first half of 2011 with approximately $11 million already under firm commitment. The balance is forecast to be expended in the second half of 2011. The Company anticipates it will generate sufficient cash from operations net of taxes, debt service and dividends to fund the entire capex program.
In conjunction with the approval of the 2011 capital expenditure budget the Board also approved an increase in the Company's monthly dividend from $.09 to $.095 or $1.14 per share per year from $1.08. The increase will be effective January 2011 for payment to shareholders in February 2011. "This 5.6% dividend increase further demonstrates the strength and stability of Black Diamond's business and overall confidence in the Company's ability to fund growth and pay its shareholders," said Trevor Haynes, President and Chief Executive Officer of Black Diamond Group Limited.
About Black Diamond
Founded in 2003, Alberta-based Black Diamond Group Limited is a leading provider of temporary and permanent modular building and energy services products. Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, Nortex Modular Leasing and Construction Company and through its 50% equity participation in the Black Diamond Dene Limited Partnership and Black Diamond West Moberly Limited Partnership, Black Diamond operates three complementary divisions in thirteen strategic locations across Canada and USA.
Black Diamond Camps and Logistics rents and sells remote workforce housing and provides associated services; BOXX Modular specializes in renting or selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a full complement of oilfield equipment and services. Black Diamond provides world-class services to a full spectrum of industries including oil, gas, mining, power, construction, engineering, military, government and education.
Certain information in this news release contains forward-looking statements including management's assessment of future plans and operations of Black Diamond including, without limitation, statements relating to cash flows, capital expenditures, further deployment of equipment, and dividend levels. 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, 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.