Black Diamond Group Limited · TSX:BDI
Black Diamond — Investor Presentation (June 2020)
37 slides from Black Diamond's investor presentation, June 2020
Slide 1: Investor Update
Investor Update June 2020 OUR WAY IS TO6/1/2020 CREATE A BETTER WAY 1 Investor Relations | investor@blackdiamondgroup.com 1 © Black Diamond Group Ltd. All Rights Reserved
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. The use of the words “anticipate”, “continue”, “estimate”, “expect”, “will”, “project”, “should”, “believe”, “intend” and similar expressions identify forward-looking statements. These statements involve known and unkn
Slide 3: Creating A Better Way
Creating A Better Way • Disruptive digital platform LL • Rapidly scaling • First digital platform focused on LodgeLink workforce travel • Significant operating leverage WFS • • Improving utilization & diversification of projects Long-lived rental assets Workforce Solutions • Low maintenance capital
Slide 4: Black Diamond Group - Who We Are
Black Diamond Group - Who We Are Specialty rentals and industrial services provider organized into two business units Consolidated Rental Revenue & Utilization MSS: 20.0 80% Modular Space Solutions 18.0 16.0 70% 60% Rental Revenue ($mm) • Diversified Rental 14.0 50% Utilization % 12.0 • Custom, Majo
Slide 5: Operating Overview
Operating Overview Modular Space Solutions (MSS) 6,503 Units 1 Camps Rental (WFS) 3,330 Units1 Consolidated Rentable Square Feet ~5.1 mm 77,982 TTM LodgeLink Bookings 2 $41.1 mm TTM Adjusted EBITDA 1,2,3 $349 mm PP&E Book Value 1 1. Source data: Q1 2020 Financial Statements, Management, Discussion a
Slide 6: Current Volatility & COVID-19 Response
Current Volatility & COVID-19 Response Proactive Measures - Proactive Measures - Potential Operations Corporate Opportunities • Increasing the cleaning • Ample liquidity of ~$80 • Have secured projects regimen and number of million through covenant throughout our platform as sanitizing stations at f
Slide 7: COVID-19 Essential Services
COVID-19 Essential Services Currently, roughly 200 units on rent across 87 different customers for: Social distancing/isolation requirements • Work sites • Lunch rooms • Administration areas • Dormitories at correctional facilities • Quarantine facilities • Visitation facilities PARC Retirement Fami
Slide 8: Diversified, High-Quality Cash Flow Streams
Diversified, High-Quality Cash Flow Streams Consolidated Rental Revenue 20 18 16 14 12 • Consolidated rental revenue $ mm 10 8 6 has shown steady growth 4 2 and stability. 0 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q3‐19 Q4‐19 Q1‐20 Rental Revenue ‐ MSS & WFS Mar 31, 20 TTM Geographical Diversification (% of T
Slide 9: Financial Flexibility
Financial Flexibility Leverage Ratio 2019 Net Debt/EBITDA 4 4 3.5 3.5 3 3 2.5 Funds From Operations 2.5 2 2 1.5 1.5 1 0.5 1 0 0.5 BDI MSS Comparables WFS Comparables Source: Factset 0 MSS Comparables: MINI, MGRC, GFN, WSC Q1'19 Q2'19 Q3-19 Q4-19 Q1-20 WFS Comparables: CVEO, HNL, TH Debt to Adjusted
Slide 10: Significant Asset Coverage Against Debt
Significant Asset Coverage Against Debt • Net debt1 remains well below hard asset coverage on a net book value basis • In October 2019 secured a four-year committed $200 million asset-based lending facility • Q1/2020 liquidity of ~$80 million Net Debt as a % of Net Debt Vs Net Book Value NBV of Flee
Slide 11: Growth Through Disciplined Capex
Growth Through Disciplined Capex 2020 Capital Program • Capex budget of ~$35 mm (gross). Net capex of $25 to $30 mm after used asset sales • Targeting Return on Assets for new capital (defined as annualized rental revenue divided into the cost of a new asset) at 18% or higher • MSS: ~$25 mm (gross)
Slide 12: MSS Overview
MSS Overview Modular Space Solutions • 6,503 units across 13 branches in North America with attractive returns on long-lived assets • Targeting net fleet growth of 10% per year. With added scale and additional product offering, return metrics are improving. Rental revenue growth expected to outpace
Slide 13: MSS Overview – Revenue Detail
MSS Overview – Revenue Detail MSS Rental Revenue Modular Space Solutions 9.5 9.0 8.8 8.9 8.5 8.7 • Rental revenue up 17% Y/Y 8.0 8.2 7.5 $mmm 7.6 7.6 7.3 7.4 7.0 • Strengthening rental revenue 6.5 driven by continued capital 6.0 5.5 investment, higher rates, 5.0 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q3‐19 Q
Slide 14: MSS – Drivers Behind Rental Revenue Growth
MSS – Drivers Behind Rental Revenue Growth 14 © Black Diamond Group Ltd. All Rights Reserved
Slide 15: WFS Overview
WFS Overview Workforce Solutions • Includes Camps, Lodging, Energy Services, Australia and LodgeLink • Geographic Diversification • U.S., Eastern Canada • Continued growth in Australia • Industry Diversification • Disaster Relief • Homeless Initiatives • Mining • Green Energy • Camps and Lodging sup
Slide 16: WFS Overview – Revenue Detail
WFS Overview – Revenue Detail WFS Rental Revenue Workforce Solutions 10.0 9.0 8.9 8.0 8.6 8.2 7.0 7.7 7.0 • Secured a number of projects in 6.0 6.0 $mm 5.0 5.5 eastern Canada, providing 4.0 4.9 customer and geographical 3.0 2.0 diversification 1.0 0.0 • Expecting improvement in 2H/2020 Q2‐18 Q3‐18 Q
Slide 17: Digital B2B Platform for Workforce Travel
Digital B2B Platform for Workforce Travel LodgeLink is a multi-sided marketplace for the $320 billion of crew travel and related goods and services consumed by crews each year.
Slide 18: LodgeLink Gaining Market Traction
LodgeLink Gaining Market Traction Customer Accounts 600 500 400 300 200 100 0 As of Mar. 31, 2020 Total Properties Listed 1,364 Total Rooms Listed 144,973 Total Unique Customers 485 Employees (full time) 35 18 © Black Diamond Group Ltd. All Rights Reserved
Slide 19: The Problem
The Problem At LodgeLink, we understand that crew travel is a complex and critical task that is inherently difficult. Crew Travel has been untouched by recent technology transformation, and demands a modern platform to remove frustration and inefficiency from the process. We are on a mission to impr
Slide 20: LodgeLink Market Opportunity
LodgeLink Market Opportunity Global Business Travel Market Annual Spend 2019 Target Market ($billions) Global Workforce Crew Travel U.S. 65 ~$1.6 Trillion Canada 6 Per Year ~$320 Australia 6 Billion Per Year South America 13 Rest of World 230 Countries listed above are areas where LL Management team
Slide 21: Black Diamond Investment Attributes
Black Diamond Investment Attributes MSS targeting 10% annual fleet growth MSS EBITDA growth to outpace fleet growth Growth driven by stronger rental revenue, economies of scale, VAPS and other service offerings LodgeLink platform beginning to scale Growing revenue base from U.S., Eastern Can
Slide 22: Appendix
Appendix 22 © Black Diamond Group Ltd. All Rights Reserved
Slide 23: Sources of Revenue
Sources of Revenue 23 © Black Diamond Group Ltd. All Rights Reserved
Slide 24: MSS – VAPS Penetration
MSS – VAPS Penetration VAPS as a % of Rental Revenue • Value Added Products & Services 15% (VAPS) penetration and revenue 14% 14% growth continues to trend 14% 13% positively 13% 12% 12% 12% 11% 2018 2019 VAPS Revenue Growth 10% 8% 9% 6% 4% 2% 2% 0% Q1‐20 vs Q1‐19 Q1‐20 vs Q4‐19 24 © Black Diamond G
Slide 25: MSS – VAPS Detail
MSS – VAPS Detail 25 © Black Diamond Group Ltd. All Rights Reserved
Slide 26: Rental Utilization
Rental Utilization MSS and WFS Rental Utilization • Utilization continued to improve throughout 2018 and 2019 with 80% moderation in Q1/2020 75% 70% 65% • MSS rental fleet maintaining 60% utilization above 70% 55% 50% 45% • WFS improvement in rental 40% utilization supported by 35% diversification o
Slide 27: MSS & WFS Fleet Overview
MSS & WFS Fleet Overview MSS Fleet Count 6,600 6,400 • Continued growth in MSS rental 6,200 fleet, supported by organic 6,000 investment and recent 5,800 acquisition of Spectrum Modular 5,600 5,400 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 WFS Room Count 16,000 Canada US Australia • WFS
Slide 28: Adjusted EBITDA Detail By Quarter
Adjusted EBITDA1 Detail By Quarter Quarterly EBITDA Detail 15.0 13.0 11.0 10.5 10.6 10.0 9.9 9.5 9.0 8.6 8.2 7.0 6.6 5.0 4.6 3.0 1.0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 (1.0) (3.0) (5.0) Modular Space Solutions Workforce Solutions Total Consolidated Corporate • Most recent four qua
Slide 29: LodgeLink – What is Crew Travel?
LodgeLink – What is Crew Travel? DEMOGRAPHIC CRITERIA CORPORATE TRAVEL CREW TRAVEL Blue‐collar field workers, Nature of job White‐collar tradespeople Primary places traveled to Major urban areas Secondary/tertiary markets They generally don't work on Reason to travel Meetings, Conferences projects w
Slide 30: LodgeLink Supplier Adoption
LodgeLink Supplier Adoption Properties Listed 1600 Lodge 1400 Properties, 80 1200 Lodge 1000 Rooms, 27,877 800 600 400 Hotel Hotel Properties, Rooms, 200 1284 117,096 0 Total Rooms Listed 160,000 140,000 • Strong uptake and adoption from 120,000 100,000 supplier network 80,000 60,000 • Hotels make u
Slide 31: The Value Proposition
The Value Proposition Businesses Reliant on Crew Labour Property Owners • Efficiently book and manage large crews • Gain access to an attractive customer segment • Gain visibility on costs and crew location o Large crews that book rooms for long stays • Reduce admin costs with consolidated invoices
Slide 32: LodgeLink – Unique Customers
LodgeLink – Unique Customers Total Unique Customer Accounts 600 500 400 300 200 100 0 Q1‐18 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q3‐19 Q4‐19 Q1‐20 Unique Customers • Steady growth in unique customer accounts • Customers in diverse industries spanning EPC’s, construction, trucking and logistics, travel mana
Slide 33: LodgeLink Website Visits
LodgeLink Website Visits 33 © Black Diamond Group Ltd. All Rights Reserved
Slide 34: LodgeLink Revenue Streams
LodgeLink Revenue Streams 34 © Black Diamond Group Ltd. All Rights Reserved
Slide 35: LodgeLink – Customer Case Study
LodgeLink – Customer Case Study 35 © Black Diamond Group Ltd. All Rights Reserved
Slide 36: Non-GAAP Measures
Non-GAAP Measures • 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, amortization, accretion, foreign exchange, stock-based compensation,
Slide 37: THANK YOU
THANK YOU 6/1/2020 37 Investor Relations | investor@blackdiamondgroup.com
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