Black Diamond Group Limited · TSX:BDI

Black Diamond — Q4 2024 Earnings Presentation

42 slides from Black Diamond's earnings presentation, Mar 7, 2025

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 and travel 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
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 ~$160 mm2 (MSS Stability through diversification by of ~$129mm and WFS of ~$31mm)1 asset type, industry, & geography  MSS lease portfolio average duration of ~51 months2  Thousands of customers across diverse in
Slide 6: EPS & Return on Assets
EPS & Return on Assets Return on Assets (ROA) (1) EPS $0.49 21.0% $0.45 $0.44 $0.41 19.0% $0.35 $0.34 17.0% $0.25 15.0% $/Share $0.15 13.0% $0.05 11.0% $(0.05) 9.0% $(0.06) $(0.15) $(0.14) 7.0% $(0.25) 5.0% EPS (Diluted, continuing ops, LHS)  EPS growth driven by compounding growth in EBITDA and re
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 $417.9 mm NBV 12,259 Units Workforce Solutions (WFS) Fleet $142.4 mm NBV 5,809 Units Consolidated Rentable Square Feet +8 mm 517,382 TTM Total LodgeLink room nights sold $25.7 mm TTM Profit $113.3 mm TTM Adjusted EBITDA 2 $576.4 mm PP&E Book V
Slide 9: Rental Revenue Diversity – Q4/2024
Rental Revenue Diversity – Q4/2024 Australia 8% US Canada TOTAL REVENUE 55% 37% BY GEOGRAPHY Source data: Q4 2024 Management Discussion and Analysis 9 © Black Diamond Group Ltd. All Rights Reserved
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: Consolidated Rental Revenue 30.0 Modular Space Solutions 25.0 • Diversified rental stream through rental of modular buildings in Canada and U.S. 20.0 $mm • Ancillary, Value Adde
Slide 11: MSS Overview
MSS Overview • 12,259 units across 23 branches in North MSS Rental Revenue America 25.0 25.9 Our MSS business rents 24.5 • Added scale and additional product and sells temporary 20.0 20.0 20.4 21.0 22.0 22.0 21.5 22.2 offering driving improved return metrics. permanent modular 17.5 18.5 • Rental rev
Slide 12: MSS Overview: Contracted Revenue & Duration
MSS Overview MSS - Contracted Revenue & Duration 80.0 130  Growth being driven thematically by: 75.0 120 70.0 110 • Infrastructure spending in North 100 65.0 90 America 60.0 80 • Population growth driving Months 70 $ mm 55.0 60 50.0 50 increased demand for 45.0 40 classroom product 30 40.0 35.0 20
Slide 13: WFS Overview
WFS Overview WFS Rental Revenue • Geographic Diversification 20.0 17.5 • U.S. 18.0 • Eastern Canada 16.0 14.0 13.0 13.3 14.0 14.1 14.0 13.6 13.1 13.4 12.6 • Continued growth in 10.9 Australia Our WFS business 12.0 10.9 $mm 10.0 provides remote 8.0 6.0 • Industry Diversification accommodation and 4.0
Slide 14: WFS Overview: Fleet Count and NBV
WFS Overview WFS - Fleet Count (Units) 8,000 WFS - NBV by Geography 7,000 200 1,175 1,222 1,161 1,207 1,254 180 6,000 1,319 1,405 12 450 452 452 458 1,418 1,429 1,463 1,510 160 13 449 15 5,000 529 513 1,537 39 140 16 36 497 42 25 32 31 34 36 497 500 519 34 4,000 522 120 30 127 30 $mm 100 112 33 33 3
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 accommodation bookings for companies employing field crews LodgeLink is a software • Custom-built platform to remove inefficiency at every stage of the crew travel pr
Slide 16: LodgeLink Supply Coverage
LodgeLink Supply Coverage Over 1.7 million rooms Across 18,000 properties Over 1,000 corporate customers ~90% of volumes transacted through the platform are hotels 16 © Black Diamond Group Ltd. All Rights Reserved
Slide 17: LodgeLink – Key Performance Indicators
LodgeLink – Key Performance Indicators Quarterly Room Nights Sold & TTM Room Nights Sold 160,000 550,000 500,000 140,000 • Product market fit proven 120,000 450,000 100,000 400,000 • TTM room nights sold of 517,382 grew 80,000 350,000 ~23% YoY up from 419,328. 300,000 60,000 250,000 • Net Revenue of
Slide 18: Financial Flexibility
Financial Flexibility 2 Leverage Ratio Net Debt/EBITDA 3.5x 3.5x Ontario based modular rental 3.0x acquisition Q4 2022 3.0x 2.5x British Columbia 2.0x 2.5x asset purchase Q2 2024 Vanguard 1.5x acquisition Q4 2020 1.0x 2.0x 0.5x 1.5x 0.0x BDI MSS Comparables WFS Comparables Source: CapIQ & Company Do
Slide 19: Significant Asset Coverage Against Debt
Significant Asset Coverage Against Debt • Q4/2024 Long-Term Debt of $235.7 mm and Net Debt1 of $223.6 mm remains well below tangible asset value • Available liquidity of $103.1 mm as at December 31, 2024, prior to the recent upsizing • Asset Based Lending (“ABL”) facility termed out to February 2030
Slide 20: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation • Asset rental model has continued to provide a strong base of Free Free Cash Flow Cashflow1, generating ~$32.7 mm 35 in Q4/2024. 60% above Q4/2023 30 25 • Supported a 17% increase to the 20 $mm Q4/2024 quarterly dividend of 15 $0.035 per share, or $0.14 per 10 share
Slide 21: Dividend Growth
Dividend Growth Dividends & Funds From Operations1 $45.00 100% $40.00 90% Dividends % of Funds from Operations $35.00 80% 70% $30.00 60% $25.00 $mm 50% $20.00 40% $15.00 30% $10.00 20% $5.00 10% $0.00 0% Total Dividends (LHS) FFO (LHS) Dividends as a % of FFO (RHS)  Re-instated dividend in Q4/2021,
Slide 22: Disciplined Capex Funding Future Growth
Disciplined Capex Funding Future Growth Organic Growth Capex • Level of organic growth capex has risen in conjunction with free cashflow and strong customer demand • Capital Commitments of $30.6 mm as at Q4 2024, similar to year-ago levels • Realizing strong returns for new capital investment • Vast
Slide 25: Adjusted EBITDA Detail By Quarter
Adjusted EBITDA1 Detail By Quarter Quarterly Adjusted EBITDA Detail 40.0 36.6 37.2 35.0 30.0 28.8 26.1 27.9 26.0 25.0 22.5 22.0 25.2 21.4 19.7 22.2 19.4 20.0 18.2 17.5 17.9 21.8 21.0 13.4 17.0 17.3 $mm 15.0 13.3 17.1 17.3 16.5 16.1 17.1 11.1 14.6 14.3 14.7 14.5 12.6 13.3 12.8 13.9 9.7 12.0 13.3 10.0
Slide 26: Revenue Detail by Quarter
Revenue Detail by Quarter Consolidated Revenue by Quarter 140.0 120.0 100.0 59.9 56.2 80.0 58.6 38.5 51.7 45.2 44.2 44.0 $mm 41.5 43.5 35.4 60.0 31.8 35.8 32.3 36.6 30.5 24.9 40.0 72.8 61.3 62.7 50.2 51.0 51.7 47.5 47.6 51.7 51.5 20.0 46.1 35.2 37.2 34.5 37.1 37.0 31.4 0.0 MSS - Total Revenue WFS -
Slide 27: Revenue Detail by Division
Revenue Detail by Division MSS Revenue by Quarter 80.0 70.0 18.3 60.0 21.9 17.7 50.0 28.6 20.8 14.9 16.0 15.0 16.1 11.8 11.1 12.3 $mm 40.0 21.6 16.3 10.8 20.0 10.8 10.9 17.2 15.7 14.6 14.3 14.7 9.0 10.2 13.2 30.0 10.3 14.1 6.5 20.0 11.1 11.7 7.6 8.7 24.5 25.9 9.8 20.4 21.0 22.0 22.0 21.5 22.2 17.5 1
Slide 28: Rental Utilization
Rental Utilization • MSS rental fleet maintaining utilization above 80% • WFS utilization supported by diversification of assets by industry and geography MSS and WFS Rental Utilization 90% 80% 70% 60% 50% 40% 30% 20% MSS Utilization Consolidated Utilization WFS Total Utilization Utilization is calc
Slide 29: WFS Room Count by Geography
WFS Room Count by Geography WFS Room Count 12,000 1,173 1,173 1,173 761 761 761 757 10,000 857 628 628 897 869 627 825 781 627 635 685 935 935 8,000 933 933 986 741 9,581 926 9,390 995 6,000 8,978 8,812 8,600 8,625 4,000 8,208 8,181 7,640 2,000 7,561 7,446 7,329 5,880 - Canada US Australia 29 © Blac
Slide 30: MSS – VAPS Penetration
MSS – VAPS Penetration VAPS as a % of Rental Revenue Excluding VAPS 9.0% • VAPS as a % of rental relatively consistent in 2024 despite acquisition of units with little or 8.0% no VAPS contribution • Expect ongoing VAPS growth as acquisitions 7.0% are integrated, with additional products and services
Slide 31: LodgeLink – Solves Complex Problems
LodgeLink – Solves Complex Problems The problem is complex, and we’re addressing it head on: Global Distribution System (GDS) has limited ability to handle the complexity of workforce travel LodgeLink services workforce travel & accommodations that are: Highly Variable, with; Manpower drain; Search
Slide 32: 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 LODGELINK TRAVEL MANAGEMENT EMPLOYEE SELF DIRECT HOTEL GROUP BOOKING COMPANY BOOKING • Booking and managing travel
Slide 33: LodgeLink – Web & Mobile Solution
LodgeLink – Web & Mobile Solution • 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 control for complex workfo
Slide 34: 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 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 • 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 exchan

Black Diamond Group — Q4 2024 Earnings Presentation on 6ix

Black Diamond — Q4 2024 Earnings Presentation

Slide 1: Investor Update March 2025

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 – Q4/2024

Slide 10: Black Diamond Group - Who We Are

Slide 11: MSS Overview

Slide 12: MSS Overview: Contracted Revenue & Duration

Slide 13: WFS Overview

Slide 14: WFS Overview: Fleet Count and NBV

Slide 15: LodgeLink Gaining Market Traction

Slide 16: LodgeLink Supply Coverage

Slide 17: LodgeLink – Key Performance Indicators

Slide 18: Financial Flexibility

Slide 19: Significant Asset Coverage Against Debt

Slide 20: Strong Free Cash Flow Generation

Slide 21: Dividend Growth

Slide 22: Disciplined Capex Funding Future Growth

Slide 23: Appendix

Slide 24: Total Rental Revenue, by Industry

Slide 25: Adjusted EBITDA Detail By Quarter

Slide 26: Revenue Detail by Quarter

Slide 27: Revenue Detail by Division

Slide 28: Rental Utilization

Slide 29: WFS Room Count by Geography

Slide 30: MSS – VAPS Penetration

Slide 31: LodgeLink – Solves Complex Problems

Slide 32: LodgeLink – Offers Advantages

Slide 33: LodgeLink – Web & Mobile Solution

Slide 34: LodgeLink – Business Model

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