Black Diamond Group Limited · TSX:BDI

Black Diamond — Investor Presentation (September 2024)

25 slides from Black Diamond's investor presentation, Sep 25, 2024

  1. Slide 1: Investor Update

    INVESTOR UPDATE September 25, 2024 1 © Black Diamond Group Ltd. All Rights Reserved

  2. 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

  3. Slide 3: Track Record Of Growth – Last Five Years

    Track Record Of Growth – Last Five Years Adjusted EBITDA1, Rental Revenue & Share Price $9.00 140.0 $8.00 5-Year CAGR 120.0 $7.00 Adjusted EBITDA1 : 29.5% 100.0 $6.00 Rental Revenue : 22.3% Share Price : 31.3% $mm $5.00 80.0 $4.00 60.0 $3.00 40.0 $2.00 20.0 $1.00 Adjusted EBITDA (LHS) Rental Revenue

  4. Slide 4: Capital Allocation

    Capital Allocation Organic CAPEX & Acquisitions Capital Allocation Framework (2019 - 2023) 120.0 5 Year Total : ~$378 mm 35.2 100.0 80.0 $mm 60.0 122.8 40.0 219.6 20.0 0.0 2 Maintenance capex Organic capex Business Acquisitions Committed capex Return of Capital Acquisitions Organic Gross Capex  Com

  5. Slide 5: Progress Since Last Year

    Progress Since Last Year BDI MSS WFS LodgeLink • Consolidated • Contracted rental • Melbourne, • Records across ROA1 continues to revenue of $108 Australia branch key KPI’s improve and was million opening • Enhanced 19.9% in Q2/2024 • Closed asset • Backfilling EBITDA payment options • Quarterly div

  6. Slide 6: Secular Growth Drivers

    Secular Growth Drivers • Growing immigration in Canada • Net migration within lower 48 Immigration towards U.S. Southeast regions • Elevated immigration in Australia • “Inflation Reduction” Act Government • Education in Canada/U.S • Alberta investing $8B in Education Spending • Canadian Infrastructu

  7. Slide 7: EPS & Return on Assets

    EPS & Return on Assets Return on Assets (ROA) (2) 25.0% EPS $0.49 $0.45 $0.44 20.0% $0.35 $0.34 $0.25 15.0% $/Share $0.15 $0.05 10.0% $(0.05) $(0.06) 5.0% $(0.15) $(0.14) $(0.18) $(0.25) 0.0% EPS (Diluted, continuing ops, LHS)  Continued EPS growth driven by compounding growth in Adjusted EBTIDA1 a

  8. Slide 8: Dividend Growth

    Dividend Growth Dividends Per Share Dividends & Funds From Operations1 $40.00 100% $0.0350 90% Dividends % of Funds from Operations $35.00 $0.0300 80% $30.00 $0.0250 70% $25.00 60% $0.0200 $mm $20.00 50% $0.0150 40% $15.00 $0.0100 30% $10.00 20% $0.0050 $5.00 10% $0.0000 $0.00 0% DPS Special Dividen

  9. Slide 9: Significant Asset Coverage Against Debt

    Significant Asset Coverage Against Debt • Q2/2024 Long-Term Debt of $239.7 mm and Net Debt1 of $225.9 mm remains well below tangible asset value • Asset Based Lending (“ABL”) facility termed out to fall of 2026. Average cost of debt in Q2 2024 was 6.27%, up 80 bps compared to 5.47% in Q2 2023. • ABL

  10. Slide 10: Financial Flexibility

    Financial Flexibility 1 Leverage Ratio Net Debt/EBITDA 3.5x 3.5x Ontario based modular rental 3.0x acquisition Q4 3.0x 2022 2.5x 2.0x British Columbia 2.5x asset purchase Q2 2024 1.5x Vanguard acquisition 1.0x 2.0x 0.5x 1.5x 0.0x BDI MSS Comparables WFS Comparables 1.0x Source: CapIQ & Company Docum

  11. Slide 11: Disciplined Capex Funding Future Growth

    Disciplined Capex Funding Future Growth Organic Growth Capex • Strong cadence of organic growth capex (funded primarily by internally generated cashflow) due to strong customer demand. • Total 1H 2024 capex of $70.8 million (including maintenance capital of $6.1 mm) up 102% over 1H 2023. • Capital C

  12. Slide 12: MSS Overview

    MSS Overview MSS - Key Performance Indicators MSS - Average Monthly Rental Rate 90.0 40% $850 80.0 35% $800 70.0 30% 60.0 $750 25% 50.0 $mm 20% $700 40.0 15% 30.0 $650 20.0 10% $600 10.0 5% 0.0 0% $550 1 MSS Rental Revenue MSS Adj. EBITDA MSS EBITDA Margin 2 MSS - Average Monthly Rental Rate  Compo

  13. Slide 13: MSS Overview

    MSS Overview MSS - Fleet Count & Utilization 1 MSS - Contracted Revenue & Duration 14,000 100% 120 65 90% 110 60 12,000 80% 100 55 10,000 70% 90 50 8,000 60% 80 Months 45 $ mm 50% 70 6,000 40 40% 60 30% 35 4,000 50 20% 40 30 2,000 10% 30 25 0 0% 20 20 MSS Fleet Count (LHS) MSS Utilization1(% - RHS)

  14. Slide 14: MSS – VAPS Opportunity

    MSS – VAPS Opportunity Sequential Comparison YoY Comparison VAPS VAPS 2.0 20.0% 2.0 20.0% 18.0% 18.0% 1.8 16.0% 1.8 16.0% 14.0% 14.0% 1.6 12.0% 1.6 12.0% $ mm $ mm 10.0% 10.0% 1.4 8.0% 1.4 8.0% 6.0% 6.0% 1.2 4.0% 1.2 4.0% 2.0% 2.0% 1.0 0.0% 1.0 0.0% VAPS revenue VAPS as % of Rental Revenue, excl VAP

  15. Slide 15: WFS Overview

    WFS Overview WFS - Key Performance Indicators WFS - NBV by Geography 70.0 50% 200 45% 180 60.0 12 40% 160 13 39 15 35% 140 50.0 42 16 25 32 34 34 31 30% 120 127 30 30 $mm 40.0 25% 100 112 33 33 33 20% 80 106 96 30.0 90 82 80 80 15% 60 10% 40 20.0 5% 20 10.0 0% 0 1 2 WFS Rental Revenue WFS Adj. EBITD

  16. Slide 16: WFS Overview

    WFS Overview WFS - Revenue By Geography WFS Utilization 70.0 100% 60.0 8.9 90% 13.3 12.4 80% 50.0 8.2 9.1 8.4 70% 9.1 7.1 3.8 60% 40.0 20.8 6.7 6.5 6.5 4.8 $mm 7.6 6.3 6.8 3.0 3.4 4.9 50% 13.0 4.8 30.0 5.9 3.0 4.3 40% 1.0 2.2 6.1 20.0 30% 21.9 19.3 28.9 24.0 23.5 23.3 32.1 31.0 25.9 29.6 39.1 34.5 2

  17. Slide 17: WFS – B.C. Housing Case Study

    WFS – B.C. Housing Case Study Project Profile in Vancouver  90 beds between two locations  Residents are individuals who have been impacted by the downtown east-side decampment Our WFS business Why BDI and Modular? provides remote  Rapid deployment – set up and operational within days accommodati

  18. Slide 18: Black Diamond Investment Attributes

    Black Diamond Investment Attributes  Diverse range of modular space rental and • Diversification of assets, industries ancillary assets serve multiple industries across the US, Canada and Australia served and geographical areas of  Thousands of customers Stability operation enhance stability  Con

  19. Slide 19: 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,

  20. Slide 20: 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

  21. Slide 21: Adjusted EBITDA, Return on Assets

    Adjusted EBITDA, Return on Assets 21 © Black Diamond Group Ltd. All Rights Reserved

  22. Slide 22: Net Debt, Net Debt to TTM Adjusted Leverage EBITDA

    Net Debt, Net Debt to TTM Adjusted Leverage EBITDA 22 © Black Diamond Group Ltd. All Rights Reserved

  23. Slide 23: Free Cashflow

    Free Cashflow 23 © Black Diamond Group Ltd. All Rights Reserved

  24. Slide 24: Net Revenue, Gross Bookings and Net Revenue Margin

    Net Revenue, Gross Bookings and Net Revenue Margin 24 © Black Diamond Group Ltd. All Rights Reserved

  25. Slide 25: Thank You

    THANK YOU Investor Relations investor@blackdiamondgroup.com 25 © Black Diamond Group Ltd. All Rights Reserved

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