Black Diamond Reports Third Quarter 2025 Results and Increases Dividend
CALGARY, Alberta, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Black Diamond Group Limited ("Black Diamond", the "Company" or "we"), (TSX:BDI, OTCQX:BDIMF), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three and nine months ended September 30, 2025 (the "Quarter") compared with the three and nine months ended September 30, 2024 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars.
Key Highlights from the Quarter
- Consolidated rental revenue for the Quarter of $41.3 million increased 9% from the Comparative Quarter.
- Profit for the Quarter of $12.2 million increased 65% from the Comparative Quarter and basic earnings per share of $0.19 increased 58% from the Comparative Quarter, both impacted by the receipt of further insurance proceeds related to assets lost from wildfires earlier in the year.
- Consolidated Adjusted EBITDA1 for the Quarter of $31.8 million was up 10% from the Comparative Quarter.
- The Company's consolidated contracted future rental revenue at the end of the Quarter remains healthy at $159.0 million, though down modestly by 3% from the Comparative Quarter.
- Consolidated utilization for the Quarter was 75.8%, with Modular Space Solutions ("MSS") at 80.3% and Workforce Solutions ("WFS") at 62.2%, compared to 75.8%, 80.3% and 63.5%, respectively, in the Comparative Quarter.
- MSS again generated record quarterly rental revenue of $28.1 million in the Quarter, an increase of 15% from $24.5 million in the Comparative Quarter, due to growth in average monthly rental rates and the number of units on rent. The average monthly rental rate per unit of $896 for the Quarter increased 6% from the Comparative Quarter.
- WFS revenue for the Quarter of $43.2 million increased 12% from the Comparative Quarter. The increase was driven by higher non-rental and lodge services revenue that increased 28% and 2%, respectively.
- LodgeLink Gross Bookings1 for the Quarter of $35.7 million and net revenue of $4.3 million increased by 31% and 26%, respectively, from the Comparative Quarter. Total room nights sold for the Quarter of 148,435 increased by 1% from the Comparative Quarter reaching a new quarterly record.
- Capital expenditures were $19.6 million for the Quarter, including maintenance capital of $2.9 million. Total capital commitments of $39.5 million at the end of the Quarter were up 124% from the end of the Comparative Quarter, with the majority of growth capital being allocated to contracted project specific fleet units.
- Net Debt1 of $197.1 million at the end of the Quarter was down 12% from December 31, 2024. Net Debt to trailing twelve months ("TTM") Adjusted Leverage EBITDA1 of 1.6x is below the target of 2.0x to 3.0x, while available liquidity was $227.3 million at the end of the Quarter, leaving sufficient liquidity to grow and operate the business after the announced acquisition of Royal Camp Services Ltd. closes.
- On July 15, 2025, with an effective date of July 1, 2025, the Company closed a tuck-in acquisition of Spencer Group of Companies Pty Ltd. ("Spencer Group of Companies"), a corporate travel management business headquartered in Australia, accelerating operations in the Asia-Pacific region.
- On July 16, 2025, the Company completed a bought deal public offering of common shares for aggregate gross proceeds of $42.4 million, including the exercise in full of the over-allotment option granted to underwriters of $5.5 million.
- On September 22, 2025, the Company announced a strategic acquisition and entered into a definitive share purchase agreement to acquire all of the issued and outstanding shares of Royal Camp Services Ltd. The Company anticipates completing the acquisition prior to the end of 2025.
- Subsequent to the Quarter, the Company announced a 29% increase to its quarterly dividend from $0.035 to $0.045 per quarter, marking the fifth dividend increase since its reinstatement in 2021. The fourth quarter dividend of $0.045 is payable on or about January 15, 2026 to shareholders of record on December 31, 2025.
Outlook
Following another solid quarter, the Company’s stability is expected to carry through the remainder of the year with further growth opportunities on the horizon. While market tailwinds, particularly in Canada, present significant future upside for Black Diamond’s expanding rental platform, the base business within the current operating environment continues to deliver compounding growth and meaningful shareholder value. With steady contracted future rental revenue and continued investment in growing the fleet, Black Diamond is positioned for sustained results.
The MSS business remains strong with customer demand supporting continued growth. In the near term, rental revenue stability is expected, while variability of the sales and non-rental revenue streams is likely to persist. Education new sales are lower in 2025 due to our customers' uncertainty with the public funding environment in the United States, but indications are that this trend resolves in the future. Overall, utilization of the fleet is healthy, and customer rental demand growth continues across key end-market verticals including construction, major infrastructure, and education, which supports asset deployment and future investment.
WFS results have stabilized in recent quarters and, over the next several quarters, management anticipates results to be range-bound in a continuation of the recent demand environment. Meaningful growth directly associated with elevated bid-activity tied to potential major nation-building infrastructure projects is not anticipated to impact revenue before the second half of 2026. WFS continues to have substantial operating leverage, which can be unlocked as utilization increases. Further, the announced acquisition of Royal Camp Services Ltd. is expected to close by the end of 2025 pending clearance under the Competition Act (Canada), effectively doubling the size of Black Diamond's Canadian workforce accommodations fleet, and improving our capabilities to service our customers and large-scale projects.
LodgeLink’s accelerated investment in product development to support ongoing demand and enhance the value proposition within the workforce travel market progresses ahead of plan, laying a strong foundation for the platform’s exponential growth trajectory. The recently closed tuck-in acquisition in Australia is performing well, underscoring the quality of the business and spurring LodgeLink's growth in the country.
Black Diamond’s track record of delivering results, driving profitable growth and compounding the Company’s high-margin, recurring rental revenue streams in both North America and Australia is strong. With ample liquidity, and Net Debt to TTM Adjusted Leverage EBITDA1 below the target range, the Company is set to fund continued organic and inorganic growth as demand and opportunities arise. With several forward-looking catalysts, the Company is poised to exit the year with momentum leading into 2026 and onward.
1Adjusted EBITDA, Gross Bookings and Net Debt are non-GAAP financial measures. Net Debt to TTM Adjusted Leverage EBITDA 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.
Third Quarter 2025 Financial Highlights
| Three months ended September 30, | Nine months ended September 30, | |||||
| ($ millions, except as noted) | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Financial Highlights | $ | $ | % | $ | $ | % |
| Total revenue | 105.3 | 101.2 | 4% | 312.9 | 270.3 | 16% |
| Gross profit | 50.2 | 46.7 | 7% | 142.3 | 128.5 | 11% |
| Administrative expenses | 20.1 | 18.2 | 10% | 59.9 | 55.0 | 9% |
| Adjusted EBITDA(1) | 31.8 | 28.8 | 10% | 87.5 | 76.2 | 15% |
| Adjusted EBIT(1) | 19.4 | 16.2 | 20% | 50.7 | 41.7 | 22% |
| Funds from Operations(1) | 33.0 | 31.2 | 6% | 89.4 | 80.5 | 11% |
| Per share ($) | 0.51 | 0.51 | —% | 1.43 | 1.32 | 8% |
| Profit before income taxes | 16.6 | 10.3 | 61% | 36.7 | 22.6 | 62% |
| Profit | 12.2 | 7.4 | 65% | 27.2 | 16.3 | 67% |
| Earnings per share - Basic ($) | 0.19 | 0.12 | 58% | 0.44 | 0.27 | 63% |
| Earnings per share - Diluted ($) | 0.18 | 0.12 | 50% | 0.43 | 0.26 | 65% |
| Capital expenditures | 19.6 | 23.8 | (18)% | 69.3 | 94.5 | (27)% |
| Property and equipment | 597.4 | 571.1 | 5% | 597.4 | 571.1 | 5% |
| Total assets | 784.2 | 745.5 | 5% | 784.2 | 745.5 | 5% |
| Long-term debt | 205.8 | 243.2 | (15)% | 205.8 | 243.2 | (15)% |
| Cash and cash equivalents | 9.8 | 15.1 | (35)% | 9.8 | 15.1 | (35)% |
| Return on Assets (%)(1) | 20.4% | 19.3% | 110 bps | 18.5% | 17.5% | 100 bps |
| Free Cashflow(1) | 23.0 | 19.6 | 17% | 59.3 | 47.2 | 26% |
| (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 unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 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 and Australia. 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 Emma Covenden at 403-718-5062
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, October 31, 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 1-833-821-2994. International callers should use 1-647-846-2491. 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/14364
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, expectations for and opportunities in different geographic areas, opportunities for organic investment, the Company's ability to fund organic and inorganic growth, management’s goals and business objectives, the sales and opportunity pipeline, the closing of the acquisition of Royal Camp Services Ltd., timing, payment and increase of the Company's quarterly dividends, macro-economic uncertainty, the effects of tariffs and trade-war related impacts, 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, opportunities and effect of deploying investment capital, financial performance, business prospects and opportunities, changing operating environment including changing activity levels, 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, working capital and other requirements, sources and use of funds, economic life of the Company's assets, 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, the effects of tariffs and trade-war related measures, 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, 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, the effects of tariffs and trade-war related measures 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, Return on Assets, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Profit Margin, Gross Bookings and Net Revenue Margin. These non-GAAP financial measures and ratios 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, non-controlling interests, write-down of property and equipment, impairment, gain on disposal of assets and non-recurring costs.
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 the Company's 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 September 30, | Nine months ended September 30, | |||||
| ($ millions, except as noted) | 2025 | 2024 | Change % | 2025 | 2024 | Change % |
| Profit(1) | 12.2 | 7.4 | 65% | 27.2 | 16.3 | 67% |
| Add: | ||||||
| Depreciation and amortization(1) | 12.4 | 12.6 | (2)% | 36.8 | 34.5 | 7% |
| Finance costs(1) | 3.2 | 4.3 | (26)% | 10.6 | 11.6 | (9)% |
| Share-based compensation(1) | 2.3 | 1.2 | 92% | 5.4 | 4.3 | 26% |
| Non-controlling interests(1) | 0.2 | 0.4 | (50)% | 0.9 | 1.1 | (18)% |
| Current income taxes(1) | 0.4 | — | 100% | 1.3 | 0.2 | 550% |
| Deferred income taxes(1) | 3.9 | 2.6 | 50% | 7.4 | 5.0 | 48% |
| Non-recurring costs | ||||||
| ERP implementation and related costs(2) | 1.7 | 0.3 | 467% | 5.1 | 2.6 | 96% |
| Acquisition costs(1) | 1.5 | — | 100% | 1.6 | 0.6 | 167% |
| Gain on disposal of assets(1) | (6.0) | — | (100)% | (8.8) | — | (100)% |
| Adjusted EBITDA | 31.8 | 28.8 | 10% | 87.5 | 76.2 | 15% |
| Less: | ||||||
| Depreciation and amortization(1) | 12.4 | 12.6 | (2)% | 36.8 | 34.5 | 7% |
| Adjusted EBIT | 19.4 | 16.2 | 20% | 50.7 | 41.7 | 22% |
| Total revenue(1) | 105.3 | 101.2 | 4% | 312.9 | 270.3 | 16% |
| Adjusted EBITDA as a % of Revenue | 30.2% | 28.5% | 170 bps | 28.0% | 28.2% | (20) bps |
| Annualized multiplier | 4 | 4 | 1.3 | 1.3 | ||
| Annualized adjusted EBITDA | 127.2 | 115.2 | 10% | 113.8 | 99.1 | 15% |
| Average net book value of property and equipment | 623.2 | 597.8 | 4% | 615.5 | 566.3 | 9% |
| Return on Assets | 20.4% | 19.3% | 110 bps | 18.5% | 17.5% | 100 bps |
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024. (2) This relates to the costs incurred for implementation 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 October 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 TTM 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) | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | 2023 | Change |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | ||
| Profit(1) | 12.2 | 9.2 | 5.8 | 9.3 | 7.4 | 7.5 | 1.5 | 7.8 | |
| Add: | |||||||||
| Depreciation and amortization(1) | 12.4 | 12.0 | 12.4 | 14.6 | 12.6 | 11.1 | 10.7 | 11.2 | |
| Finance costs(1) | 3.2 | 3.6 | 3.8 | 3.8 | 4.3 | 3.4 | 3.8 | 3.7 | |
| Share-based compensation(1) | 2.3 | 1.9 | 1.2 | 1.3 | 1.2 | 1.6 | 1.5 | 1.1 | |
| Non-controlling interests(1) | 0.2 | 0.3 | 0.4 | 0.5 | 0.4 | 0.4 | 0.3 | 0.3 | |
| Current income taxes(1) | 0.4 | 0.5 | 0.4 | 0.9 | — | — | 0.2 | 0.1 | |
| Deferred income taxes(1) | 3.9 | 2.6 | 0.9 | 5.4 | 2.6 | 2.1 | 0.3 | 0.4 | |
| Non-recurring costs | |||||||||
| ERP implementation and related costs(2) | 1.7 | 1.8 | 1.6 | 1.4 | 0.3 | 1.8 | 0.5 | 1.5 | |
| Acquisition costs(1) | 1.5 | 0.1 | — | — | — | — | 0.6 | — | |
| Gain on disposal of assets(1) | (6.0) | (2.8) | — | — | — | — | — | — | |
| Adjusted EBITDA | 31.8 | 29.2 | 26.5 | 37.2 | 28.8 | 27.9 | 19.4 | 26.1 | |
| TTM Adjusted Leverage EBITDA | 124.7 | 102.2 | 22% | ||||||
| Long-term debt(1) | 205.8 | 243.2 | (15)% | ||||||
| Cash and cash equivalents(1) | 9.8 | 15.1 | (35)% | ||||||
| Current portion of long-term debt(3) | 1.1 | 0.3 | 267% | ||||||
| Net Debt | 197.1 | 228.4 | (14)% | ||||||
| Net Debt to TTM Adjusted Leverage EBITDA | 1.6 | 2.2 | (27)% | ||||||
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024. (2) This relates to the costs incurred for the implementation 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 October 1, 2024. (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 September 30, | Nine months ended September 30, | |||||
| ($ millions, except as noted) | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Cash Flow from Operating Activities(1) | 20.4 | 31.4 | (35)% | 84.8 | 81.2 | 4% |
| Add (deduct): | ||||||
| Change in other long-term assets(1) | 0.3 | 1.1 | (73)% | 2.3 | (0.5) | 560% |
| Changes in non-cash operating working capital(1) | 12.3 | (1.3) | 1,046% | 2.3 | (0.2) | 1,250% |
| Funds from Operations | 33.0 | 31.2 | 6% | 89.4 | 80.5 | 11% |
| Add (deduct): | ||||||
| Maintenance capital | (2.9) | (3.2) | 9% | (6.8) | (9.3) | 27% |
| Payment for lease liabilities(1) | (2.0) | (2.4) | 17% | (6.7) | (6.6) | (2)% |
| Interest paid (including lease interest)(1) | (3.0) | (4.2) | 29% | (10.1) | (11.5) | 12% |
| Net current income tax expense(1) | 0.4 | — | 100% | 1.3 | 0.2 | 550% |
| Dividends paid on common shares(1) | (2.1) | (1.8) | (17)% | (6.4) | (5.5) | (16)% |
| Distributions paid to non-controlling interests(1) | (0.4) | — | (100)% | (1.4) | (0.6) | (133)% |
| Free Cashflow | 23.0 | 19.6 | 17% | 59.3 | 47.2 | 26% |
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024. | ||||||
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 September 30, | Nine months ended September 30, | |||||
| ($ millions, except as noted) | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Total revenue(1) | 105.3 | 101.2 | 4% | 312.9 | 270.3 | 16% |
| Direct costs(1) | 55.1 | 54.5 | 1% | 170.6 | 141.8 | 20% |
| Gross profit(1) | 50.2 | 46.7 | 7% | 142.3 | 128.5 | 11% |
| Gross Profit Margin | 47.7% | 46.1% | 160 bps | 45.5% | 47.5% | (200) bps |
| (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024. | ||||||
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 September 30, | Nine months ended September 30, | |||||
| ($ millions, except as noted) | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Net revenue(1) | 4.3 | 3.4 | 26% | 10.3 | 8.9 | 16% |
| Costs paid to suppliers(1) | 31.4 | 23.8 | 32% | 72.6 | 64.2 | 13% |
| Gross Bookings(1) | 35.7 | 27.2 | 31% | 82.9 | 73.1 | 13% |
| Net Revenue Margin | 12.0% | 12.5% | (50) bps | 12.4% | 12.2% | 20 bps |
| (1) Includes intercompany transactions. | ||||||
