Black Diamond Group Limited · TSX:BDI
Black Diamond — Investor Presentation (January 2020)
19 slides from Black Diamond's investor presentation, January 2020
Slide 1: January 2020 Investor Presentation
January 2020 Investor Presentation OUR1/13/2020 WAY IS TO CREATE A BETTER WAY 1 Investor Relations | investor@blackdiamondgroup.com
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: Q3/19 Results Show Increased Diversity
Q3/19 Results Show Increased Diversity Q3 2019 Geographical Diversification • ~65% of Q3 revenue generated (% of Total Revenue) outside of western Canadian Canada ‐ energy sector MSS 26% US 34% • Diversification geographically and by industry segment Canada ‐ Q3‐19 Rental Revenue Growth WFS Australi
Slide 4: Q3/19 Result: Rental Utilization Improving
Q3/19 Result: Rental Utilization Improving • Utilization in MSS is steadily MSS and WFS Rental Utilization improving. Alberta branch 80% 50% showing meaningful utilization 75% 40% recovery while other markets WFS Rental Fleet 70% continue to be strong 30% 65% 20% 60% • WFS rental utilization increas
Slide 5: Shifting the Business to Growth Mode
Shifting the Business to Growth Mode Improve Profitability Drive • Increase economies of scale Shareholder through fleet expansion in growing markets Returns • Expansion of VAPS1 through branch network • Custom sales and ancillary operational services Disciplined CAPEX • Targeting 10% MSS fleet grow
Slide 6: MSS Overview
MSS Overview Modular Space Solutions • ~6,100 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 expected to improve • Longer term vision to double MSS f
Slide 7: MSS Overview – Revenue Detail
MSS Overview – Revenue Detail MSS Rental Revenue • Rental revenue continuing to 9.0 8.5 8.8 grow. Up 37% Y/Y and 11% 8.0 8.0 7.9 7.9 8.2 Q/Q 7.5 7.6 7.6 $mmm 7.4 7.3 7.0 7.0 • Strengthening rental revenue 6.5 6.3 6.0 driven by continued capital 5.5 5.0 investment, higher rates, Q1‐17 Q2‐17 Q3‐17 Q4‐
Slide 8: MSS Overview
MSS Overview Modular Space Solutions • Strong economic tailwinds in BC, Ontario, and the US • Recovery in Alberta utilization with Y/Y improvement • As of Sept 30, on track for MSS FY 2019 gross investment of ~$25 mm into fleet additions 1/13/2020 8 8
Slide 9: MSS Overview – VAPS Penetration
MSS Overview – VAPS Penetration Growth in VAPS as a % of • Value Added Products & Rental Revenue 30% Services (VAPS) penetration 25% 28% and revenue growth continues 20% to trend positively 15% 10% 5% 7% 0% Q3‐19 Y/Y Q3‐19 Q/Q VAPS Revenue Growth 60% 50% 52% 40% 30% 20% 10% 14% 0% Q3‐19 Y/Y Q3‐19 Q/
Slide 10: WFS Overview
WFS Overview Workforce Solutions • Continuing to diversify and capitalize on operating leverage • US and Australia markets remain robust • LNG Canada is a significant catalyst. A handful of other large energy infrastructure projects in Canada would quickly change supply/demand fundamentals 10
Slide 11: WFS Overview – Revenue Detail
WFS Overview – Revenue Detail • Rental revenue recovering off of WFS Rental Revenue bottom as utilization improves 9.0 8.5 8.6 8.0 8.1 8.1 • Variety of projects provided 7.8 7.8 7.5 7.7 7.0 7.1 7.0 customer and geographical $mm 6.5 6.0 diversification, expected to 5.5 5.5 6.0 continue into Q4/19 5.0
Slide 12: WFS – Recently Awarded Major Projects
WFS – Recently Awarded Major Projects California Workforce Accommodation Sukunka River Lodge • Contract awarded for $20 mm, including • Contract awarded for ~$45 mm with a transportation costs term of 27 months, through partnership with the Moberly First Nations • Initial nine month contract for 1,5
Slide 13: LodgeLink Gaining Market Traction
LodgeLink Gaining Market Traction • Online digital marketplace with over 800 properties listed and ~100,000 rooms available in workforce lodges and hotels • Offered throughout Canada and US • In 2018, 250 unique corporate customers who booked over 83,000 room nights Total Customers and Unique Compan
Slide 14: Creating Financial Flexibility
Creating Financial Flexibility Net Debt1 FFO and Leverage Ratio 190 14 4.0 13 170 176 12 3.5 12 150 10 153 Debt to Adjusted EBITDA 10 10 Funds From Operations 3.0 8 9 130 2.5 6 110 113 2.0 105 4 90 94 87 1.5 2 70 0 1.0 50 Q3'18 Q4'18 Q1'19 Q2'19 Q3‐19 2014 2015 2016 2017 2018 Q3‐19 Funds From Operat
Slide 15: Significant Asset Coverage Against Debt
Significant Asset Coverage Against Debt • Net debt1 remains well below hard asset coverage on a net book value basis Net Book Value of Fleet Assets Net Debt as a % of NBV of Fleet and Working Capital 600 100% 90% 500 80% 70% 400 60% $mm 300 50% 40% 200 30% 20% 100 10% 0 0% 2014 2015 2016 2017 2018 2
Slide 16: 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. • MSS: ~$25 mm (gross) growth capital to be allocated across North American footprint Primary markets for • WFS: $8 mm growth capital Growth CAPEX • Continued A
Slide 17: Black Diamond Investment Attributes
Black Diamond Investment Attributes Improve Diversify Returns Grow MSS targeting 10% annual fleet Growing revenue base from US Addition of capital light products growth and Australian markets in both and services to improve rates of MSS and WFS product offerings return on new and existing MS
Slide 18: 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 19: Thank You
1/13/2020 THANK YOU 19 Investor Relations | investor@blackdiamondgroup.com
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