Black Diamond Group Limited · TSX:BDI
Black Diamond — Shareholder Meeting (May 2015)
20 slides from Black Diamond's shareholder meeting presentation, May 2015
Slide 1: Annual General Meeting
Annual General Meeting Trevor Haynes (CEO) and Mike Lambert (CFO) Investor Relations | tmcmillan@blackdiamondgroup.com | 403-718-0948
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 unkno
Slide 3: Black Diamond: A Global Provider of Remote Camps
Black Diamond: A Global Provider of Remote Camps Global footprint Premier remote accommodations, workspaces and management services $140 million 2014 EBITDA 33% CAGR 2007 - 2014 400+ employees 20 locations 3 countries
Slide 4: Experienced Management Team
Experienced Management Team Senior executives with more than 20 years of industry experience Long standing Management with 15% Ownership 4
Slide 5: Value Chain – Owning the right assets
Value Chain – Owning the right assets Revenue (TTM) Contracted Services Non-Rental $99.2M Manufacturing Fleet sales Transportation Installation Owned Assets Rental Ancillary $147.3M Workspace Camps Equipment Contracted Services Lodging $105.2M Housekeeping Catering & Safety & Camp & Laundry Maintena
Slide 6: Structures Business Unit
Structures Business Unit Camps and BOXX Modular Camps – Workforce Accommoda1on 3,550 Dorm Units 12,999 Beds $19.1 M Q1 2015 EBITDA Mount Milligan Project –NE BC 73% Q1 2015 U1liza1on BOXX Modular – Workplace Solu1ons 3,636 Rental units $6.4 M Q1 2015 EBITDA 70% Q1 2015 U1liza1on Rental revenue is dr
Slide 7: Camps: How our camps are assembled
Camps: How our camps are assembled 8 Units Dorm Camp Dining mess 12ft 30ft Dorm Bathroom Bedroom size Other 49s Density configura1on (sq. Z.) 22s 9% 12% 3,550 49 Bed Communal 84 7% 30s Dorm 44 Bed Semi-Private 99 Units 22% Fleet 44s 39% 38 Bed Private 88 38s 30 Bed Private 140 11% 22 Bed Private 234
Slide 8: Camps: Assets & Industry Exposure
Camps: Assets & Industry Exposure Industry Exposure by Bed Count 8% 12% 13% 60% 7% SAGD Dry Gas Liquid Rich Transport/Pipeline Mining Less than 40% of total revenue is related to camps for the oil sands 8
Slide 9: Camps: Western Canadian Market Potential
Camps: Western Canadian Market Potential Cumulative Market Potential for New Workforce Accommodation Beds Not Related to Oil Extraction (Compared with 2014 Baseline) 30,000 25,000 Additional Beds Required 20,000 15,000 10,000 5,000 0 2015 2016 2017 2018 2019 Pipeline Expansions Mining* BC Hydro** LN
Slide 10: Logistics Business Unit
Logistics Business Unit Managed workforce accommodaGon services on a cost-plus and day-rate basis 4,294 Q1 2015 Operated Beds $8.2 M Q1 2015 EBITDA • Two full service open camps: Sunday Creek and Horn River Minimum contracted utilization rates protect down-side 10
Slide 11: Energy Services Business Unit
Energy Services Business Unit Oil and gas well site accommodaGons and tank rentals 331 Well site units 968 Beds 60% Q1 2015 U1liza1on 2,362 Surface rentals 29% Q1 2015 U1liza1on $2.1 M Q1 2015 EBITDA Short term susceptibility to commodity price volatility 11
Slide 12: International Business Unit
International Business Unit Long-term plaLorm for growth in Australia which is primarily focused on mining. 1,230 Units 1,776 Beds 28% Q1 2015 U1liza1on $0.3 M Q1 2015 EBITDA • Challenged by mining sector Karara Mining Project, Western Australia Weak demand for coal and iron has lowered utilization
Slide 13: Operating Results: First Quarter 2015
Operating Results FIRST QUARTER 2015 13
Slide 14: First Quarter 2015 Highlights
First Quarter 2015 Highlights $99.7 million - down 20% year-over year on lower utilization Revenue due to oil prices, but up $10 million compared with Q4 2014 EBITDA $30.6 million moderately ahead of consensus of $27.3 million $9.0 million – down 50% year over year due to the decrease in Profit reve
Slide 15: Q1 2015 EBITDA $30.6 Million
Q1 2015 EBITDA $30.6 Million Divisional Highlights EBITDA Waterfall Structures 2015 Q1 vs 2014 Q1 45.0 • Lower oil prices drive 11% decrease in rental revenue Guidance 40.0 $28 -8.2 Logistics 35.0 0.0 - EBITDA ($ millions) • EBITDA up 1% due to increase in occupancy of day-rate camps -1.9 30.0 -1.5
Slide 16: Quarterly Review
Quarterly Review For the three months ended Financial Highlights (in millions of dollars except as noted) Mar. 31, 2015 Mar. 31, 2014 % Change Profit 9.0 17.9 (50%) Earnings per share (basic) $0.22 $0.42 (48%) Funds available for dividends 27.5 37.1 (26%) Payout ratio 36% 26% Net Debt : EBITDA 1.45
Slide 17: Contracts Outstanding
Contracts Outstanding Forward Contracted Revenue As at (in millions of dollars) Mar. 31, 2015 Mar. 31, 2014 % Change Structures $84.9 $105.1 (19%) Logistics $26.3 $54.1 (51%) Energy Services $3.1 $4.2 (26%) International $1.9 $3.6 (47%) Total $116.2 $167.0 (30%) Weighted Average Contract Term As at
Slide 18: Enterprise Strategy
Enterprise Strategy • Own quality rental assets Capital Allocation • Sell associated services • Use working capital efficiently • Contract utilization of assets Risk Management • Contract third party services • Manage counterparty risks • Geographies Diversification • Commodities / Customers • Renta
Slide 19: Company Summary
Company Summary Symbol (TSX): BDI Headquarters: Calgary, Alberta $0.08/share Year End: December 31 Monthly dividend Shares Outstanding: 41,086,422 Share Price : $17.66 (04-May-15) Market Capitalization: $734.2 million Inside Ownership: 15% Debt: (As at 31-Mar-15) Revolving facility: $96.1 million Se
Slide 20: Thank You!
> BLACK DIAMOND GROUP THANK YOU! 20