Black Diamond Group Limited · TSX:BDI

Black Diamond — Q4 2023 Earnings Presentation

42 slides from Black Diamond's earnings presentation, Mar 1, 2024

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: Introduction
Introduction Black Diamond Group rents and sells modular space and workforce accommodation solutions to customers in Canada, the United States and Australia. We serve a broad range of sectors including construction, education, engineering, resources, financial institutions, military, and government.
Slide 4: Creating a Better Way
Creating a Better Way MODULAR SPACE SOLUTIONS - MSS • Diversified, steady, compounding growth • Predictable and improving returns • Strong free cash flow characteristics • Attractive unit economics • Long-lived rental assets • Low maintenance capital WORKFORCE SOLUTIONS LODGELINK - WFS WFS MSS LL •
Slide 5: Black Diamond Investment Attributes
Black Diamond Investment Attributes  Consolidated contracted future rental revenue of ~$136 mm as at Stability through diversification by Dec 31, 2023 (MSS of +$101mm and WFS of ~$35mm)1 asset, industry, & geography  Avg duration of MSS lease portfolio of ~52 months2  Thousands of customers acros
Slide 6: EPS & Return on Assets
EPS & Return on Assets eturn on ssets 0.4 0. 0 0. 0. 0.0 0 0.0 0. 0. 0 ❑ EPS has continued to grow YoY driven by compounding growth in EBTIDA and rental revenue across the business ❑ ROA CAGR of ~12% over the last five years 1 – ROA is a non-GAAP financial measure. Refer to the Non-GAAP & Supplement
Slide 7: Unit Economics Example
Unit Economics Example1 Utilization Lifetime Return on Annualized Return Lifetime return on Initial Investment on Initial Investment initial investment 525% 85% 525% 17% 75% 475% 15% Practical Asset 65% 425% 13% Life 30+ Years Used assets typically sell at a premium to Payback Period NBV ~ 5 Years I
Slide 8: Operating Overview
Operating Overview 1 Modular Space Solutions (MSS) Fleet $345 mm NBV 11,339 Units Workforce Solutions (WFS) Fleet $146 mm NBV 6,148 Units Consolidated Rentable Square Feet +8 mm 419,328 TTM Total LodgeLink room nights sold ~$30.4 mm TTM Profit, up 15% vs 2022 $106.6 mm FY 2023 Adjusted EBITDA 2 ~$50
Slide 10: Black Diamond Group - Who We Are
Black Diamond Group - Who We Are Specialty rentals and industrial services provider organized into two business units MSS: .0 onsolidated ental evenue Modular Space Solutions .0 .0 • Diversified rental stream through rental of modular .0 buildings in Canada and U.S. .0 mm • Ancillary, Value Added Pr
Slide 11: MSS Overview
MSS Overview • 11,339 units across 23 branches in North ental evenue America with attractive returns on long- .0 lived assets Our MSS business rents .0 .0 and sells temporary .0 • With added scale and additional product offering, return metrics are improving. permanent modular .0 Rental revenue grow
Slide 12: MSS Overview
MSS Overview .0 ontracted evenue ❑ Growth being driven thematically 40 0.0 by: 0 4 .0 • Infrastructure spending in 00 North America 40.0 onths mm 0 .0 • Population growth driving 0 increased demand for 0.0 40 classroom product .0 0 ❑ Continued increases in average 0.0 0 contract duration and revenue
Slide 13: WFS Overview
WFS Overview ental evenue 0.0 . • Geographic Diversification .0 • U.S. .0 4.0 .0 . 4.0 4. 4.0 • Eastern Canada .0 . 0. 0. • Continued growth in Our WFS business 0.0 Australia provides remote .0 .0 accommodation and 4.0 • Industry Diversification related services for .0 • Disaster Relief 0.0 • Social
Slide 14: WFS Overview
WFS Overview leet ount nits by eography ,000 00 ,000 0 , , , ,000 , , 0 , 4 , 0 ,40 4 0 4 0 4 ,4 40 4 44 4 4 ,000 4 4 0 0 0 mm 4,000 00 0 0 ,000 0 , , 4 , 4 ,0 ,0 ,04 0 4, 4, ,000 4, 40 ,000 0 0 anada ustralia anada ❑ Continued improvement in utilization driven by customer, geography and end market
Slide 15: LodgeLink Gaining Market Traction
LodgeLink Gaining Market Traction Multi-sided B2B Platform focused on crew travel • Efficiently connect the supply/demand of room and LodgeLink is a software accommodation bookings for companies employing field crews solution that supports • Custom-built platform to remove inefficiency at businesses
Slide 16: LodgeLink – Key Performance Indicators
LodgeLink – Key Performance Indicators uarterly oom ights old TT oom ights old 40,000 00,000 • Product market fit proven 4 0,000 0,000 400,000 • Strong momentum into 2023 with strong booking volumes 00,000 0,000 experienced throughout the year 0,000 00,000 0,000 • Over 1 mm room nights sold in 2023
Slide 17: Financial Flexibility
Financial Flexibility 1 everage atio et ebt T . ntario based modular rental ac uisition 4 0 . .0 . . anguard ac uisition 4 0 0 .0 0. . 0 omparables omparables Source: CapIQ & Company Documents .0 MSS Comparables: MGRC, WSC (As of Dec 31, 2023) WFS Comparables: CVEO, TH, DXT (As of Sept 30, 2023) Not
Slide 18: Significant Asset Coverage Against Debt
Significant Asset Coverage Against Debt • Q4/2023 Long-Term Debt of $190.4 mm and Net Debt1 of $184.2 mm remains well below tangible asset coverage on a net book value and third-party appraisal basis • sset ased ending “ ” facility termed out to fall of 0 . verage cost of debt for the year ended ece
Slide 19: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation • Asset rental model has continued to provide a strong base of Free ree ash low Cashflow1, generating over $20.5 mm in Q4/2023 0 • Q4/2023 quarterly dividend of 0 $0.03 per share, or $0.12 per share on an annualized basis 0 • Base of diversified rental assets 0 repre
Slide 20: Dividend Growth
Dividend Growth ividends er hare ividends unds rom perations 40.00 0 0.0 0 perations .00 0.0 00 0.00 0.0 0 of unds from .00 0.0 00 mm 0.00 0.0 0 4 .00 0.0 00 0.00 ividends 0.00 0 .00 0.0000 0.00 0 pecial ividend eclared Total ividends ividends as a of ❑ Re-instated dividend in Q4/2021, along with a
Slide 21: Disciplined Capex Funding Future Growth
Disciplined Capex Funding Future Growth Organic Growth Capex • Cadence of organic growth capex in the range of ~$50 mm, net of proceeds from asset sales • Realizing strong returns for new capital investment • Vast majority of capex targeted for organic growth in MSS with opportunities Primary market
Slide 24: Adjusted EBITDA Detail By Quarter
Adjusted EBITDA1 Detail By Quarter uarterly djusted T etail 40.0 .0 0.0 .0 0.0 mm .0 0.0 .0 0.0 .0 0.0 Total onsolidated dj. T dj. T dj. T orporate T 24 1. Adjusted EBITDA is a non-GAAP financial ratio. Refer to the Non-GAAP & Supplementary Measures section for more information © Black Diamond Group
Slide 25: Revenue Detail by Quarter
Revenue Detail by Quarter 40.0 onsolidated evenue by uarter 0.0 00.0 . 0.0 . . 44. mm 4 . 4 . 4 . .4 0.0 0. . . . 40.0 4. . 0. .0 . 4 . 4 . 4 . . 0.0 . . 4. . .4 0.0 Total evenue Total evenue 25 © Black Diamond Group Ltd. All Rights Reserved
Slide 26: Revenue Detail by Division
Revenue Detail by Division evenue by uarter 0.0 0.0 . 0.0 0. 4. .0 .0 . . . 40.0 . mm 0. 0.0 0. 4. 0. 0. . . 4. 4. 0.0 0. 4. . . . 0.0 . . .0 .0 .0 0.0 0.4 . . 4. . . . 0.0 . . 0.0 ental evenue ales evenue on ental evenue 26 © Black Diamond Group Ltd. All Rights Reserved
Slide 27: Rental Utilization
Rental Utilization • MSS rental fleet maintaining utilization above 80% • WFS improvement in utilization supported by diversification of assets outside of western Canada and ental tili ation 0 0 0 0 0 40 0 0 tili ation onsolidated tili ation Total tili ation 27 © Black Diamond Group Ltd. All Rights
Slide 28: WFS Room Count by Geography
WFS Room Count by Geography ,000 oom ount , , , 0,000 ,000 ,000 , 4,000 , 0 , , , 00 , , 0 , ,000 , 4 anada ustralia 28 © Black Diamond Group Ltd. All Rights Reserved
Slide 29: MSS – VAPS Penetration
MSS – VAPS Penetration evenue • VAPS as a % of rental down due to an . acquisition of units with little or no VAPS . .4 contribution . mm • Expect ongoing VAPS growth as 0. acquisitions are integrated, with 0. additional products and services rolled 0.4 0. out 0 as a of ental evenue xcluding .0 0.0
Slide 30: LodgeLink – Solves Complex Problems
LodgeLink – Solves Complex Problems Crew (workforce) travel is a complex task that adds costs to running a business • When groups or crews are required to travel for work, finding, booking and managing travel and accommodations is challenging • Solutions for consumer travel exist, however, they igno
Slide 31: LodgeLink – Offers Advantages
LodgeLink – Offers Advantages LodgeLink addresses many of the problems faced by companies needing to book crew travel accommodations and the crew members themselves Company Perspective TRAVEL DIRECT HOTEL EMPLOYEE SELF • Booking and managing travel and accommodations LODGELINK MANAGEMENT GROUP BOOKI
Slide 32: LodgeLink – Web & Mobile Solution
LodgeLink – Web & Mobile Solution Save time. Control costs. • A web-based solution for workforce travel management o LodgeLink is an end-to-end solution focused on the needs of crews o The platform applies web-based technology that simplifies the crew travel process • Delivering efficiency and cost
Slide 33: LodgeLink – Business Model
LodgeLink – Business Model Current Future Future Margin On Transactions Advertising Data & Other Services • LodgeLink profits on the spread • Advertise travel support services • SAAS Application - Potential for between buy and sell price for (dining and entertainment, remote enhanced features, data
Slide 34: LodgeLink - Value Proposition
LodgeLink - Value Proposition • Assumptions: • Approximately 4,700 room nights @ $108/night • 3 rooms per transaction • results in 1,560 transactions per year (or 30 per week) • Assumes no additional savings on negotiated rates or direct billing 34 © Black Diamond Group Ltd. All Rights Reserved
Slide 35: Non-GAAP & Supplementary Financial Measures
Non-GAAP & Supplementary Financial 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,
Slide 36: Non-GAAP & Supplementary Financial Measures
Non-GAAP & Supplementary Financial Measures • 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 inte
Slide 41: Enterprise Value
Enterprise Value 1 – Enterprise Value is a non-GAAP financial measure. Refer to the Non-GAAP & Supplementary Financial Measures section for more information. 41 © Black Diamond Group Ltd. All Rights Reserved

Black Diamond Group — Q4 2023 Earnings Presentation on 6ix

Black Diamond — Q4 2023 Earnings Presentation

Slide 1: Investor Update March 2024

Slide 2: Forward Looking Statements

Slide 3: Introduction

Slide 4: Creating a Better Way

Slide 5: Black Diamond Investment Attributes

Slide 6: EPS & Return on Assets

Slide 7: Unit Economics Example

Slide 8: Operating Overview

Slide 9: Rental Revenue Diversity – Q4/2023

Slide 10: Black Diamond Group - Who We Are

Slide 11: MSS Overview

Slide 12: MSS Overview

Slide 13: WFS Overview

Slide 14: WFS Overview

Slide 15: LodgeLink Gaining Market Traction

Slide 16: LodgeLink – Key Performance Indicators

Slide 17: Financial Flexibility

Slide 18: Significant Asset Coverage Against Debt

Slide 19: Strong Free Cash Flow Generation

Slide 20: Dividend Growth

Slide 21: Disciplined Capex Funding Future Growth

Slide 22: Appendix

Slide 23: Total Revenue, by Industry

Slide 24: Adjusted EBITDA Detail By Quarter

Slide 25: Revenue Detail by Quarter

Slide 26: Revenue Detail by Division

Slide 27: Rental Utilization

Slide 28: WFS Room Count by Geography

Slide 29: MSS – VAPS Penetration

Slide 30: LodgeLink – Solves Complex Problems

Slide 31: LodgeLink – Offers Advantages

Slide 32: LodgeLink – Web & Mobile Solution

Slide 33: LodgeLink – Business Model

Slide 34: LodgeLink - Value Proposition

Slide 35: Non-GAAP & Supplementary Financial Measures

Slide 36: Non-GAAP & Supplementary Financial Measures

Slide 37: Adjusted EBITDA, Return on Assets

Slide 38: Net Debt, Net Debt to TTM Adjusted Leverage EBITDA

Slide 39: Free Cashflow

Slide 40: Net Revenue, Gross Bookings and Net Revenue Margin

Slide 41: Enterprise Value

Slide 42: Thank You