CALGARY, Alberta, May 02, 2024 (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 ended March 31, 2024 (the "Quarter") compared with the three months ended March 31, 2023 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars. Key Highlights from the First Quarter of 2024 Consolidated rental revenue of $35.1 million was up 2% from the Comparative Quarter, while Adjusted EBITDA1 of $19.4 million was down 9% from the Comparative Quarter, driven primarily by lower sales revenue for several custom sales projects were deferred into subsequent periods. The Company's consolidated contracted future rental revenue at the end of the Quarter grew 5% from the Comparative Quarter to $137.1 million. MSS rental revenue was $21.5 million, an increase of 5% from the Comparative Quarter, and was achieved with an 81% utilization rate. MSS average monthly rental rate per unit increased 8% from the Comparative Quarter (or 9% on a constant currency basis). Despite utilization falling to 64% due to the completion of camp rentals related to two larger pipeline projects, WFS rental revenue of $13.6 million, was relatively consistent compared to the Comparative Quarter, driven by meaningfully higher average rates. LodgeLink net revenue of $2.6 million grew 18% from the Comparative Quarter on higher booking volumes than the Comparative Quarter. Total capital expenditures were $17.3 million for the Quarter, including maintenance capital of $2.7 million. Total capital commitments at the end of the Quarter of $39 million is 11% greater than the Comparative Quarter, with the majority of growth capital being allocated to contracted project specific fleet units. Long term debt and Net Debt1 at the end of the Quarter increased 5% and 2% since December 31, 2023, respectively, to $199.8 million and $187.9 million, respectively. Net Debt to trailing twelve month ("TTM") Adjusted Leverage EBITDA1 of 1.8x remains below the Company's target range of 2.0x to 3.0x while available liquidity was $148.3 million at the end of the Quarter. Subsequent to the end of the Quarter, the Company declared a second quarter dividend of $0.03 payable on or about July 15, 2024 to shareholders of record on June 30, 2024. OutlookResults for the Quarter were impacted by lower sales revenues due to project-specific deferrals which has shifted some sales revenue into subsequent quarters which provides reasonable visibility for sales revenue to recover to typical volumes in first half and full year. The Company's outlook for the remainder of 2024 remains optimistic driven by the strong uptake of organic growth capital to start the year, along with $137.1 million of future contracted rental revenue at the end of the Quarter. Capital expenditures in the Quarter are up modestly compared to the Comparative Quarter, and capital commitments of $39 million at the end of the Quarter are more than 11% higher year-over-year. Subsequent to Quarter end, capital deployment opportunities for organic growth have continued to accelerate based on a robust opportunities pipeline in both MSS and WFS. This is expected to drive continued forward growth in the Company's high-margin, recurring rental revenue stream.  MSS generated $21.5 million in rental revenue in the Quarter, up 5% from the Comparative Quarter, driven primarily by increased average rental rates and ongoing organic fleet investment, slightly offset by moderating utilization. Utilization of 81% is down 320 basis points from the Comparative Quarter, but on average, remains at healthy consolidated levels across the MSS business. MSS contracted future rental revenue continues to grow and ended the Quarter at $102.5 million, with an average rental duration of 53 months. Demand for modular rental buildings remains strong and management anticipates healthy activity levels in key infrastructure and education verticals which are continuing to drive ongoing deployment of organic fleet growth in 2024. Sales revenue and non-rental revenue in the Quarter declined 55% and 19%, respectively from the Comparative Quarter, while Adjusted EBITDA1 declined 10% from the Comparative Quarter. While sales revenues and the ancillary non-rental revenues associated with these projects can be variable on a quarterly basis, the Company expects relative growth to prior trends in these revenue line items on an annual basis as sales opportunities remain robust. Specific to the Quarter, several sales projects were deferred into subsequent periods. Despite the conclusion of camp rental contracts for two sizable pipeline projects in the fourth quarter of 2023, WFS rental revenue and Adjusted EBITDA1 were relatively flat for the Quarter as the Company's geographical and industry diversification efforts have continued to drive improved rental revenue stability. Rental revenue of $13.6 million and Adjusted EBITDA1 of $10.9 million compared to $14.0 million and $11.0 million, respectively, in the Comparative Quarter. WFS contracted future rental revenue of $34.6 million for the Quarter was up 5% from the Comparative Quarter and management continues to see a robust opportunity set for redeployment of assets in a generally higher rental rate environment across North America. Also, organic growth opportunities in Australia continue to be attractive. The Company continues to expect improving WFS rental revenue and Adjusted EBITDA1 performance in the back half of 2024 and into 2025 driven by redeployment of rental assets, organic fleet growth and further customer and geographic diversification. LodgeLink continues to scale, with Gross Bookings1 up 16% and net revenue climbing 18% from the Comparative Quarter. Total room nights sold in the Quarter were 115,063. Net Revenue Margins1 for the Quarter were up 20 basis points versus the Comparative Quarter, reaching 12.1%, driven by additional higher margin ancillary revenue. The Company continues to believe that LodgeLink is well-positioned for continued, ongoing growth within a large, addressable North American workforce travel market with an expanding base of corporate customers, and the ongoing support of our supply partners that represent over 1.5 million rooms of capacity in over 15,000 North American properties.   Black Diamond continues to focus on driving growth and compounding the Company's high-margin, recurring rental revenue streams by pursuing numerous opportunities for organic and inorganic investment in both North America and Australia. The Company is well positioned to fund this continued growth with ample liquidity of $148 million, and Net Debt to TTM Adjusted Leverage EBITDA1 of 1.8x, which remains below the Company's target range of 2.0x to 3.0x. The outlook for the balance of 2024 remains positive, and is further supported by growing contracted rental revenues, a robust sales pipeline, and continued scaling and value creation within LodgeLink. 1 Adjusted EBITDA and Gross Bookings are non-GAAP financial measures. Net Revenue Margin and Net Debt to TTM Adjusted Leverage EBITDA are non-GAAP ratios. Refer to the Non-GAAP Financial Measures section of this news release for more information on each non-GAAP financial measure and ratio. First Quarter 2024 Financial Highlights   Three months ended March 31, ($ millions, except as noted) 2024 2023 Change Financial Highlights $ $ % Total revenue 73.6 81.5 (10)% Gross profit 35.8 37.3 (4)% Administrative expenses 16.9 16.0 6% Adjusted EBITDA(1) 19.4 21.4 (9)% Adjusted EBIT(1) 8.7 11.6 (25)% Funds from Operations(1) 19.4 21.4 (9)% Per share ($) 0.32 0.36 (11)% Profit before income taxes 2.3 6.5 (65)% Profit 1.5 4.4 (66)% Earnings per share - Basic and Diluted ($) 0.02 0.07 (71)% Capital expenditures 17.3 15.8 9% Property & equipment 517.8 497.5 4% Total assets 661.9 644.4 3% Long-term debt 199.8 214.8 (7)% Cash and cash equivalents 12.2 6.5 88% Return on Assets (%)(1) 14.3% 16.3% (200) bps Free Cashflow(1) 9.4 13.0 (28)% (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 months ended March 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, Britco, 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 services across 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 Conference CallBlack Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, May 3, 2024. 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/13221 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 AdvisoryForward-Looking StatementsCertain 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 sales and opportunity pipeline, expectations for asset sales, timing and payment of a second quarter dividend, management's assessment of Black Diamond's future operations and what may have an impact on them, 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, timing of deferred projects, the expected rate environment, expectations for revenue run rate for 2024, future deployment of assets, amount of revenue anticipated to be derived from current contracts, sources and use of funds, 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 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 the ERP, 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: volatility of industry conditions, the Company's ability to attract new customers, political 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, and workforce availability. The risks outlined above should not be construed as exhaustive. Additional information on these and other factors that could affect ...