Black Diamond Reports Strong Fourth Quarter and Year-End Results and Declares Dividend
CALGARY, Alberta, March 06, 2025 (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 (the "Quarter") and twelve months ("2024" or the "Year") ended December 31, 2024 compared with the three months (the "Comparative Quarter") and twelve months ("2023" or the "Prior Year") ended December 31, 2023. All financial figures are expressed in Canadian dollars.
Key Highlights from the Quarter
- Profit for the Quarter of $9.3 million increased 19% from the Comparative Quarter.
- Consolidated rental revenue of $38.5 million increased 7% as compared to the Comparative Quarter.
- The Company's consolidated contracted future rental revenue at the end of the Quarter was $159.4 million, up $23.0 million or 17% from the Comparative Quarter.
- Adjusted EBITDA1 of $37.2 million was up 43% from the Comparative Quarter.
- Return on Assets1 of 25.2% improved 710 basis points from the Comparative Quarter and continues to represent an attractive return profile given the long-life and low maintenance characteristics of the Company’s rental assets.
- Modular Space Solutions ("MSS") rental revenue of $25.9 million was another record and increased 18% from $22.0 million in the Comparative Quarter. MSS value-added products and services ("VAPS") revenue for the Quarter of $2.0 million was up 18% from the Comparative Quarter, driving VAPS as a % of Rental Revenue1 of 8.2%.
- Workforce Solutions ("WFS") revenue of $59.9 million increased 16% from the Comparative Quarter.
- LodgeLink total room nights sold increased 23% from the Comparative Quarter, resulting in a fourth quarter record of 125,022.
- Funds from Operations1 of $44.1 million and Free Cashflow1 of $32.7 million for the Quarter were up 47% and 60%, respectively, from the Comparative Quarter.
- Subsequent to the end of the Quarter, the Company reached an agreement with its lenders to extend and amend its asset-based revolving credit facility ("ABL Facility"), increasing the maximum revolving line to $425 million while also providing advance rates against categories of rental assets that were previously excluded from the borrowing base. The maturity date was extended to February 20, 2030 and all other material terms remained the same.
- Subsequent to the end of the Quarter, the Company declared a first quarter dividend of $0.035 payable on or about April 15, 2025 to shareholders of record on March 31, 2025.
Key Highlights from 2024
- Consolidated revenue of $403.0 million and Adjusted EBITDA1 of $113.3 million for the Year were up 2% and 6% from the Prior Year, respectively.
- Consolidated rental revenue of $146.8 million was up 1% from the Prior Year despite the conclusion of several large projects that positively impacted Prior Year rental revenue performance.
- Total capital expenditures for the Year of $109.2 million was up 58% compared to the Prior Year. The vast majority of this capital was directed towards growth initiatives that drove ongoing rental revenue growth and contributed to record contracted future rental revenue of $159.4 million, up 17% from the Prior Year.
- MSS generated record rental revenue of $94.1 million, up 10% from the Prior Year.
- WFS total revenue was $179.0 million compared to the Prior Year total revenue of $186.8 million. WFS segment performance remained relatively consistent despite the conclusion of two large pipeline projects in the Prior Year.
- LodgeLink continued to scale and generated record net revenue of $11.4 million, up 16% from the Prior Year. Gross Bookings1 of $94.8 million was up 21% from the Prior Year while total room nights sold for the Year were up 23% from the Prior Year to a record of 517,382.
- Long-term debt and Net Debt1 were $235.7 million and $223.6 million, respectively, at the end of the Year. Net Debt to trailing twelve months ("TTM") Adjusted Leverage EBITDA1 of 2.0x is at the low end of the Company's target range of 2.0x to 3.0x while available liquidity (prior to the recent expansion of the ABL Facility) was $103.1 million at the end of the Year.
- Since re-instating the dividend in 2021, the Company has announced four dividend increases, with the most recent occurring in the Quarter. In the Year, Black Diamond returned $7.3 million to shareholders in the form of dividends and repurchased an aggregate of $6.2 million of shares, inclusive of in-trust share purchases and the Company's normal course issuer bid.
Outlook
Management is pleased with the year-over-year growth and performance in 2024 relative to the strong performance in the Prior Year driven by two large pipeline contracts. The outlook into 2025 is similarly strong and the business remains well positioned, with over $159.4 million of contracted future rental revenue, up 17% year-over-year. Growing contracted future rental revenue was driven by stable rental performance from the Company's existing rental fleet as well as from disciplined growth initiatives throughout the Year, with $109.2 million of gross capital expenditures as well as ongoing contract renewals at higher average rates.
The Company continues to see supportive macro tailwinds in multiple end-markets including education, larger general infrastructure projects and resource development in North America and Australia. Our focus remains on growing high margin, recurring rental revenue while reinvesting organically generated cash flows to further compound shareholder returns. Management expects that for 2025, on an annualized basis, the Company will continue to reinvest a similar proportion of its Free Cashflow1 as compared to 2024.
MSS generated record rental revenue of $25.9 million in the Quarter, up 18% from the Comparative Quarter, driven by higher rental rates and ongoing organic fleet investment. Utilization levels on average remain healthy across the platform. MSS contracted future rental revenue continues to grow and ended the Quarter at $128.7 million, up 26% or $26.9 million from the Comparative Quarter, with an average rental duration of 51 months. MSS sales revenue also increased 95% from the Comparative Quarter, and was up meaningfully from the first half of 2024 as previously delayed projects reached completion. Given the strong contracted backlog in place as a result of prudent capital investments throughout the Year, combined with continued momentum across the MSS platform, management believes the MSS segment is well positioned for continued compounding growth into 2025 and beyond.
For the Year, WFS performance was modestly below the Prior Year with revenue and Adjusted EBITDA1 down 4% and 2%, respectively, as the business continued to absorb the impact of major project completions. For the Quarter, WFS revenue and Adjusted EBITDA1 were up 16% and 12%, respectively, primarily due to an increase in sales revenue driven by the sale of used fleet and custom fleet assets to long term mining projects. WFS continues to deliver strong returns, generating a Return on Assets1 of 38% for the Year. Management remains focused on driving a recovery in rental revenue through increased utilization across our WFS geographies amidst a higher rate environment. The WFS sales pipeline and opportunity set also remain strong, backstopped by $30.7 million of contracted future rental revenue.
LodgeLink continued its positive growth in 2024, with record Gross Bookings1 and net revenue for the Year up 21% and 16% to $94.8 million and $11.4 million, respectively. Gross Bookings1 grew 11% from the Comparative Quarter to $21.7 million, while net revenue was down 4% from the Comparative Quarter to $2.5 million. The Company has accelerated its investment in product development which will support LodgeLink’s ongoing growth trajectory while further differentiating the platform’s value proposition in the workforce travel ecosystem.
The Company’s ongoing Enterprise Resource Planning ("ERP") upgrade project for Black Diamond’s MSS and Corporate and Other segments remains on track and on budget with approximately $10.5 million remaining from the initial implementation budget of $11.9 million. Implementation began in Q4 2024 and is anticipated to be completed with go-live in the first half of 2026. The ERP upgrade is expected to further enhance operational efficiency and support the long-term growth objectives of Black Diamond.
1Adjusted EBITDA, Funds from Operations, Free Cashflow, Gross Bookings and Net Debt are non-GAAP financial measures. Return on Assets, VAPS as a % of Rental Revenue and Net Debt to TTM Adjusted Leverage EBITDA are non-GAAP ratios. Refer to the "Non-GAAP Financial Measures" section of this news release for more information on each non-GAAP financial measure and ratio.
Fourth Quarter 2024 Financial Highlights
| Three months ended December 31, | Twelve months ended December 31, | |||||
| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Financial Highlights | $ | $ | % | $ | $ | % |
| Total revenue | 132.7 | 103.4 | 28% | 403.0 | 393.5 | 2% |
| Gross profit | 55.3 | 43.6 | 27% | 183.8 | 174.4 | 5% |
| Administrative expenses | 19.4 | 19.1 | 2% | 74.4 | 69.3 | 7% |
| Adjusted EBITDA(1) | 37.2 | 26.1 | 43% | 113.3 | 106.6 | 6% |
| Adjusted EBIT(1) | 22.6 | 14.9 | 52% | 64.3 | 62.4 | 3% |
| Funds from Operations(1) | 44.1 | 30.1 | 47% | 124.6 | 116.8 | 7% |
| Per share ($) | 0.72 | 0.50 | 44% | 2.04 | 1.94 | 5% |
| Profit before income taxes | 16.2 | 8.6 | 88% | 38.8 | 40.6 | (4)% |
| Profit | 9.3 | 7.8 | 19% | 25.7 | 30.4 | (15)% |
| Earnings per share - Basic ($) | 0.16 | 0.13 | 23% | 0.42 | 0.50 | (16)% |
| Earnings per share - Diluted ($) | 0.15 | 0.13 | 15% | 0.41 | 0.49 | (16)% |
| Capital expenditures | 14.7 | 13.9 | 6% | 109.2 | 69.1 | 58% |
| Property and equipment | 576.4 | 506.5 | 14% | 576.4 | 506.5 | 14% |
| Total assets | 748.6 | 647.6 | 16% | 748.6 | 647.6 | 16% |
| Long-term debt | 235.7 | 190.4 | 24% | 235.7 | 190.4 | 24% |
| Cash and cash equivalents | 13.3 | 6.5 | 105% | 13.3 | 6.5 | 105% |
| Return on Assets (%)(1) | 25.2% | 18.1% | 710 bps | 20.1% | 19.6% | 50 bps |
| Free Cashflow(1) | 32.7 | 20.5 | 60% | 79.9 | 81.3 | (2)% |
| (1) Adjusted EBITDA, Adjusted EBIT, 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 news release for more information on each non-GAAP financial measure and ratio. | ||||||
Additional Information
A copy of the Company's audited consolidated financial statements for the years ended December 31, 2024 and 2023 and related management's discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is a specialty rentals and industrial services company with two operating business units - MSS and WFS. We operate in Canada, the United States, and Australia.
MSS through its principal brands, BOXX Modular, CLM, MPA Systems, and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS owns a large rental fleet of modular accommodation assets of various types. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turnkey operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors.
In addition, WFS includes LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics in North America. The LodgeLink proprietary digital platform enables customers to efficiently find, book, and manage their crew travel and accommodation needs through a rapidly growing network of hotel, remote lodge, and travel partners. LodgeLink exists to solve the unique challenges associated with crew travel and applies technology to eliminate inefficiencies at every step of the crew travel process from booking, to management, to payments, to cost reporting.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Jason Zhang at 403-206-4739 or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, March 7, 2025. CEO Trevor Haynes 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 1-844-763-8274. International callers should use 1-647-484-8814. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/13938
Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events.
Reader Advisory
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking statements including, but not limited to, the Company's outlook for 2025, expectations for and opportunities in different geographic areas, opportunities for organic investment, reinvesting operating cashflows, the Company's ability to fund organic and inorganic growth, management’s goals and business objectives, the sales and opportunity pipeline, timing and payment of the Company's quarterly dividends, the anticipated timeline and budget for the Company's ERP system upgrade and implementation project, utilization levels, contract renewals, management's assessment of Black Diamond's future operations and what may have an impact on them, expectations regarding the rental rate environment, financial performance, business prospects and opportunities, effects on demand and performance based on the changing operating environment, expectations for demand and growth in the Company’s operating and customer segments, future deployment of assets, amount of revenue anticipated to be derived from current contracts, anticipated debt levels, liquidity demands and sources, ongoing contractual terms and debt obligations, liquidity, economic life of the Company's assets, expected length of existing contracts and future growth and profitability of the Company. With respect to the forward-looking statements in this news release, Black Diamond has made assumptions regarding, among other things: future commodity prices, the future interest rate environment, that Black Diamond will continue to raise sufficient capital to fund its business plans in a manner consistent with past operations, timing and cost estimates of a new ERP system, 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 assurances that such expectations or assumptions will prove to be correct. Readers are cautioned that assumptions used in the preparation of such statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of Black Diamond. These risks include, but are not limited to: the volatility of industry conditions, dependence on agreements and contracts, competition, credit risk, information technology systems and cyber security, vulnerability to market changes, operating risks and insurance, weakness in industrial construction and infrastructure developments, weakness in natural resource industries, access to additional financing, dependence on suppliers and manufacturers, reliance on key personnel, workforce availability, market price of common shares, safety performance, expansion into new activities, government regulation, failure to realize anticipated benefits of acquisitions and dispositions, inflationary price pressure, environmental liability, environmental regulation of the Company’s customers, environmental disasters, Indigenous relationships, dilution, disease outbreaks, variations in foreign exchange rates and interest rates, foreign operations, dependence on operating permits, dependence on operating permits, maturity of credit facility, management of growth, seasonality in certain customer markets, litigation, potential replacement or reduced use of products and services, income taxes, conflicts of interest, restrictive covenants and leverage, and forward-looking information may prove inaccurate. The risks outlined above should not be construed as 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 for the year ended December 31, 2024 and other reports on file with the Canadian securities regulatory authorities which can be accessed on Black Diamond's profile on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. 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 or revise any of the forward-looking statements, except as may be required by applicable securities laws.
Non-GAAP Financial Measures
In this news release, the following specified financial measures and ratios have been disclosed: Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Profit Margin, Return on Assets, VAPS as a % of Rental Revenue, Gross Bookings, Net Revenue Margin and Net Capital Expenditures. These non-GAAP financial measures do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other entities. Readers are cautioned that the non-GAAP financial measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of Black Diamond's performance or cash flows, a measure of liquidity or as a measure of actual return on the shares of Black Diamond. These non-GAAP financial measures should only be used in conjunction with the consolidated financial statements of Black Diamond.
Adjusted EBITDA is not a measure recognized under IFRS and does not have standardized meanings prescribed by IFRS. Adjusted EBITDA refers to consolidated earnings before finance costs, tax expense, depreciation and amortization, accretion, foreign exchange, share-based compensation, acquisition costs, non-controlling interests, share of gains or losses of an associate, write-down of property and equipment, impairment, non-recurring costs, and gains or losses on the sale of non-fleet assets in the normal course of business.
Black Diamond uses Adjusted EBITDA primarily as a measure of operating performance. Management believes that operating performance, as determined by Adjusted EBITDA, is meaningful because it presents the performance of the Company's operations on a basis which excludes the impact of certain non-cash items as well as how the operations have been financed. In addition, management presents Adjusted EBITDA because it considers it to be an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Adjusted EBITDA has limitations as an analytical tool, and readers should not consider this item in isolation, or as a substitute for an analysis of the Company's results as reported under IFRS. Some of the limitations of Adjusted EBITDA are:
- Adjusted EBITDA excludes certain income tax payments and recoveries that may represent a reduction or increase in cash available to the Company;
- Adjusted EBITDA does not reflect the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
- Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest payments on the Company's debt;
- Depreciation and amortization are non-cash charges, thus the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the Company's business. The Company compensates for these limitations by relying primarily on the Company's IFRS results and using Adjusted EBITDA only on a supplementary basis. A reconciliation to profit, the most comparable GAAP financial measure, is provided below.
Adjusted EBIT is Adjusted EBITDA less depreciation and amortization. Black Diamond uses Adjusted EBIT primarily as a measure of operating performance. Management believes that Adjusted EBIT is a useful measure for investors when analyzing ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that the Company's definition of Adjusted EBIT is consistent with that of other companies. As such, management believes that it is appropriate to consider both profit determined on a GAAP basis as well as Adjusted EBIT. A reconciliation to profit, the most comparable GAAP financial measure, is provided below.
Adjusted EBITDA as a % of Revenue is calculated by dividing Adjusted EBITDA by total revenue for the period. Black Diamond uses Adjusted EBITDA as a % of Revenue primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Return on Assets is calculated as annualized Adjusted EBITDA divided by average net book value of property and equipment. Annualized Adjusted EBITDA is calculated by multiplying Adjusted EBITDA for the Quarter and Comparative Quarter by an annualized multiplier. Management believes that Return on Assets is a useful financial measure for investors in evaluating operating performance for the periods presented. When read in conjunction with our profit and property and equipment, two GAAP financial measures, this non-GAAP ratio provides investors with a useful tool to evaluate Black Diamond's ongoing operations and management of assets from period-to-period.
Reconciliation of Consolidated Profit to Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue and Return on Assets:
| Three months ended December 31, | Twelve months ended December 31, | |||||
| ($ millions, except as noted) | 2024 | 2023 | Change % | 2024 | 2023 | Change % |
| Profit(1) | 9.3 | 7.8 | 19% | 25.7 | 30.4 | (15)% |
| Add: | ||||||
| Depreciation and amortization(1) | 14.6 | 11.2 | 30% | 49.0 | 44.2 | 11% |
| Finance costs(1) | 3.8 | 3.7 | 3% | 15.3 | 14.1 | 9% |
| Share-based compensation(1) | 1.3 | 1.1 | 18% | 5.6 | 6.2 | (10)% |
| Non-controlling interests(1) | 0.5 | 0.3 | 67% | 1.6 | 1.1 | 45% |
| Current income taxes(1) | 0.9 | 0.1 | 800% | 1.1 | 0.2 | 450% |
| Deferred income taxes(1) | 5.4 | 0.4 | 1,250% | 10.4 | 8.9 | 17% |
| Non-recurring costs | ||||||
| ERP implementation and related costs(1, 2) | 1.4 | 1.5 | (7)% | 4.0 | 1.5 | 167% |
| Acquisition costs(1) | — | — | —% | 0.6 | — | 100% |
| Adjusted EBITDA | 37.2 | 26.1 | 43% | 113.3 | 106.6 | 6% |
| Less: | ||||||
| Depreciation and amortization(1) | 14.6 | 11.2 | 30% | 49.0 | 44.2 | 11% |
| Adjusted EBIT | 22.6 | 14.9 | 52% | 64.3 | 62.4 | 3% |
| Total revenue(1) | 132.7 | 103.4 | 28% | 403.0 | 393.5 | 2% |
| Adjusted EBITDA as a % of Revenue | 28.0% | 25.2% | 280 bps | 28.1% | 27.1% | 100 bps |
| Annualized multiplier | 4 | 4 | 1 | 1 | ||
| Annualized adjusted EBITDA | 148.8 | 104.4 | 43% | 113.3 | 106.6 | 6% |
| Average net book value of property and equipment | 590.5 | 542.7 | 9% | 562.6 | 535.0 | 5% |
| Return on Assets | 25.2% | 18.1% | 710 bps | 20.1% | 19.6% | 50 bps |
| (1) Sourced from the Company's audited consolidated financial statements for the years ended December 31, 2024 and December 31, 2023. | ||||||
| (2) This relates to the corporate structure reorganization costs that have been incurred in preparation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on November 1, 2024. | ||||||
Reconciliation of Consolidated Profit to Adjusted EBITDA, Net Debt and Net Debt to TTM Adjusted Leverage EBITDA:
Net Debt to TTM Adjusted Leverage EBITDA is a non-GAAP ratio which is calculated as Net Debt divided by trailing twelve months Adjusted Leverage EBITDA. Net Debt, a non-GAAP financial measure, is calculated as long-term debt minus cash and cash equivalents. A reconciliation to long-term debt, the most comparable GAAP financial measure, is provided below. Net Debt and Net Debt to TTM Adjusted Leverage EBITDA removes cash and cash equivalents from the Company's debt balance. Black Diamond uses this ratio primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Management believes including the additional information in this calculation helps provide information on the impact of trailing operations from business combinations on the Company's leverage position.
| ($ millions, except as noted) | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | Change |
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Profit | 9.3 | 7.4 | 7.5 | 1.5 | 7.8 | 13.6 | 4.6 | 4.4 | |
| Add: | |||||||||
| Depreciation and amortization | 14.6 | 12.6 | 11.1 | 10.7 | 11.2 | 12.6 | 10.6 | 9.8 | |
| Finance costs | 3.8 | 4.3 | 3.4 | 3.8 | 3.7 | 3.7 | 3.7 | 2.9 | |
| Share-based compensation | 1.3 | 1.2 | 1.6 | 1.5 | 1.1 | 1.6 | 1.3 | 2.2 | |
| Non-controlling interests | 0.5 | 0.4 | 0.4 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | |
| Current income taxes | 0.9 | — | — | 0.2 | 0.1 | — | 0.1 | — | |
| Deferred income taxes | 5.4 | 2.6 | 2.1 | 0.3 | 0.4 | 4.8 | 1.9 | 1.8 | |
| Non-recurring costs | |||||||||
| ERP implementation and related costs(1) | 1.4 | 0.3 | 1.8 | 0.5 | 1.5 | — | — | — | |
| Acquisition costs | — | — | — | 0.6 | — | — | — | — | |
| Adjusted EBITDA | 37.2 | 28.8 | 27.9 | 19.4 | 26.1 | 36.6 | 22.5 | 21.4 | |
| TTM Adjusted Leverage EBITDA | 113.3 | 106.6 | 6% | ||||||
| Long-term debt(2) | 235.7 | 190.4 | 24% | ||||||
| Cash and cash equivalents(2) | 13.3 | 6.5 | 105% | ||||||
| Current portion of long-term debt(3) | 1.2 | 0.3 | 300% | ||||||
| Net Debt | 223.6 | 184.2 | 21% | ||||||
| Net Debt to TTM Adjusted Leverage EBITDA | 2.0 | 1.7 | 18% | ||||||
| (1) This relates to the corporate structure reorganization costs that have been incurred in preparation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on November 1, 2024. | |||||||||
| (2) Sourced from the Company's audited consolidated financial statements for the years ended December 31, 2024 and December 31, 2023. | |||||||||
| (3) Current portion of long-term debt relating to the payments due within one year on the bank term loans assumed as part of the acquisition in the fourth quarter of 2022. | |||||||||
Funds from Operations is calculated as the cash flow from operating activities, the most comparable GAAP financial measure, excluding the changes in non-cash working capital. Management believes that Funds from Operations is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments. Changes in long-term accounts receivable and non-cash working capital items have been excluded as such changes are financed using the operating line of Black Diamond's credit facilities. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below.
Free Cashflow is calculated as Funds from Operations minus maintenance capital, net interest paid (including lease interest), payment of lease liabilities, net current income tax expense (recovery), distributions declared to non-controlling interests and dividends paid on common shares plus net current income taxes received (paid). Management believes that Free Cashflow is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments and other items noted above. Management believes this metric is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below.
Reconciliation of Cash Flow from Operating Activities to Funds from Operations and Free Cashflow:
| Three months ended December 31, | Twelve months ended December 31, | |||||
| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Cash Flow from Operating Activities(1) | 30.2 | 35.1 | (14)% | 111.4 | 133.0 | (16)% |
| Add (deduct): | ||||||
| Change in other long-term assets(1) | 1.9 | 0.5 | 280% | 1.4 | 0.6 | 133% |
| Changes in non-cash operating working capital(1) | 12.0 | (5.5) | 318% | 11.8 | (16.8) | 170% |
| Funds from Operations | 44.1 | 30.1 | 47% | 124.6 | 116.8 | 7% |
| Add (deduct): | ||||||
| Maintenance capital | (3.3) | (2.2) | (50)% | (12.6) | (8.3) | (52)% |
| Payment for lease liabilities(1) | (2.5) | (2.1) | (19)% | (9.1) | (7.8) | (17)% |
| Interest paid (including lease interest)(1) | (3.7) | (3.5) | (6)% | (15.2) | (13.5) | (13)% |
| Net current income tax expense | 0.9 | 0.1 | 800% | 1.1 | 0.2 | 450% |
| Dividends paid on common shares(1) | (1.8) | (1.2) | (50)% | (7.3) | (4.8) | (52)% |
| Distributions paid to non-controlling interests(1) | (1.0) | (0.7) | (43)% | (1.6) | (1.3) | (23)% |
| Free Cashflow | 32.7 | 20.5 | 60% | 79.9 | 81.3 | (2)% |
| (1) Sourced from the Company's audited consolidated financial statements for the years ended December 31, 2024 and December 31, 2023. | ||||||
Gross Profit Margin is a non-GAAP financial measure which is calculated by dividing gross profit, a GAAP financial measure calculated as total revenue less direct costs, by total revenue for the period. Management believes this ratio is an important supplemental measure of the Company's performance and believes this ratio is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Reconciliation of Gross Profit to Gross Profit Margin:
| Three months ended December 31, | Twelve months ended December 31, | |||||
| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Total revenue | 132.7 | 103.4 | 28% | 403.0 | 393.5 | 2% |
| Direct costs(1) | 77.4 | 59.8 | 29% | 219.2 | 219.1 | —% |
| Gross profit(1) | 55.3 | 43.6 | 27% | 183.8 | 174.4 | 5% |
| Gross Profit Margin | 41.7% | 42.2% | (50) bps | 45.6% | 44.3% | 130 bps |
| (1) Sourced from the Company's audited consolidated financial statements for the years ended December 31, 2024 and December 31, 2023. | ||||||
Gross Bookings is a non-GAAP financial measure, and is calculated as the total revenue billed to the customer which includes all fees and charges. Net revenue, a GAAP financial measure, is Gross Bookings less costs paid to suppliers. Revenue from bookings at third-party lodges and hotels through LodgeLink is recognized on a net revenue basis. LodgeLink is an agent in the transaction as it is not responsible for providing the service to the customer and does not control the service provided by a supplier. Management believes this non-GAAP financial measure is an important supplemental measure of LodgeLink's performance and cash generation and believes this non-GAAP financial measure is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation.
Net Revenue Margin is calculated by dividing net revenue by Gross Bookings for the period. Management believes this ratio is an important supplemental measure of LodgeLink's performance and profitability and believes this ratio is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation where companies act as agents in transactions.
Reconciliation of Net Revenue to Gross Bookings and Net Revenue Margin:
| Three months ended December 31, | Twelve months ended December 31, | |||||
| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Net revenue(1) | 2.5 | 2.6 | (4)% | 11.4 | 9.8 | 16% |
| Costs paid to suppliers(1) | 19.2 | 17.0 | 13% | 83.4 | 68.6 | 22% |
| Gross Bookings(1) | 21.7 | 19.6 | 11% | 94.8 | 78.4 | 21% |
| Net Revenue Margin | 11.5% | 13.3% | (180) bps | 12.0% | 12.4% | (40) bps |
| (1) Includes intercompany transactions. | ||||||
VAPS as a % of Rental Revenue is a non-GAAP ratio which is calculated as VAPS revenue divided by rental revenue excluding VAPS revenue. A reconciliation to rental revenue, the most comparable GAAP financial measure, is provided below. Black Diamond uses this ratio as a measure of operating performance. Management believes this ratio is an important supplemental measure to appraise the growth of ancillary products and services in proportion to the growth of rental revenue.
Reconciliation of Rental Revenue to VAPS as a % of Rental Revenue:
| Three months ended December 31, | Twelve months ended December 31, | |||||
| Value Added Products & Services ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Rental revenue(1) | 25.9 | 22.0 | 18% | 94.1 | 85.4 | 10% |
| Less: | ||||||
| VAPS revenue within rental revenue | 1.4 | 1.2 | 17% | 5.3 | 4.7 | 13% |
| Rental revenue excluding VAPS revenue | 24.5 | 20.8 | 18% | 88.8 | 80.7 | 10% |
| VAPS revenue | 2.0 | 1.7 | 18% | 7.9 | 7.0 | 13% |
| VAPS as a % of Rental Revenue | 8.2% | 8.2% | — bps | 8.9% | 8.7% | 20 bps |
| (1) Sourced from the Company's audited consolidated financial statements for the years ended December 31, 2024 and December 31, 2023. | ||||||
