Black Diamond Group Limited · TSX:BDI
Black Diamond — Q4 2020 Earnings Presentation
28 slides from Black Diamond's earnings presentation, Mar 8, 2021
Slide 1: Investor Update
Investor Update March 2021 OUR WAY IS TO3/8/2021 CREATE A BETTER WAY 1 Investor Relations | investor@blackdiamondgroup.com 1 © Black Diamond Group Ltd. All Rights Reserved
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: Creating A Better Way
Creating A Better Way • Disruptive digital platform LL • Rapidly scaling • Unique solution focused on essential workforce travel LodgeLink • Significant operating leverage WFS • • Improving utilization & diversification of projects Long-lived rental assets Workforce Solutions • Low maintenance capit
Slide 4: Black Diamond Group - Who We Are
Black Diamond Group - Who We Are Specialty rentals and industrial services provider organized into two business units Rental Revenue 12.0 MSS: 11.0 Modular Space Solutions 10.0 • Diversified Rental 9.0 • Custom, Major Project or Used $mmm Sales 8.0 • Ancillary, Value Added Products & 7.0 Services (V
Slide 5: Operating Overview
Operating Overview Modular Space Solutions (MSS) 8,784 Units 1 Camps Rental (WFS) 3,311 Units1 Consolidated Rentable Square Feet ~6.8 mm 100,267 TTM LodgeLink Bookings 2 $40.6 mm FY2020 Adjusted EBITDA 1,2,3 $410 mm PP&E Book Value 1 1. Source data: Q4 2020 Financial Statements, Management, Discussi
Slide 6: Enhancing Diversification
Enhancing Diversification Revenue by Industry Construction Education Government Mining Oil and Gas Other Power , Refineries, Infrastructure 0% 5% 10% 15% 20% 25% 30% Q4‐20 Pro Forma Vanguard Q4‐19 Revenue by Country Australia US Canada 0% 10% 20% 30% 40% 50% 60% 70% 6 Q4‐20 Pro Forma Vanguard Q4‐19
Slide 7: MSS Overview – Revenue Detail
MSS Overview – Revenue Detail MSS Rental Revenue Modular Space Solutions 12.0 11.0 11.3 10.0 • Rental revenue up 31% Y/Y 9.0 9.9 $mmm 9.1 8.9 • Strengthening rental revenue 8.8 8.6 8.0 8.2 driven by continued capital 7.0 7.6 7.6 investment, higher rates, 6.0 improving utilization, and VAPS 5.0 Q4‐18
Slide 8: WFS Overview – Revenue Detail
WFS Overview – Revenue Detail WFS Rental Revenue Workforce Solutions 10.0 9.0 8.9 8.0 8.6 8.2 7.7 • Added over $36 million of contracted 7.0 7.0 6.0 6.7 revenue (rental, sales and non rental) 6.0 6.0 $mm 5.0 5.3 since the start of 2021. 4.0 • Continuing growth in eastern Canada, 3.0 2.0 providing cu
Slide 9: Financial Flexibility
Financial Flexibility Leverage Ratio Net Debt/EBITDA (TTM as at Last Reported Quarter) 5 4 4.5 4 3.5 3.5 3 3 2.5 2 1.5 2.5 1 0.5 2 0 BDI Pro Forma Vanguard* MSS Comparables WFS Comparables Q3‐19 Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4‐20 Pro Source: Factset MSS Comparables: MGRC, GFN, WSC WFS Comparables: CVEO,
Slide 10: Significant Asset Coverage Against Debt
Significant Asset Coverage Against Debt • Net debt1 remains well below hard asset coverage on a net book value and third-party appraisal basis • In conjunction with Vanguard deal, expanded existing credit facility to $300 million • Value of eligible rental fleet (for borrowing base calculation) is $
Slide 11: Growth Through Disciplined Capex
Growth Through Disciplined Capex 2021 Capital Program • Capex budget of ~$35 mm (gross). Net capex of $25 to $30 mm after used asset sales • Realizing return on assets for new capital (defined as annualized rental revenue divided into the cost of a new asset) of 18% or higher • MSS: ~$25 mm (gross)
Slide 12: Digital B2B Platform for Workforce Travel
Digital B2B Platform for Workforce Travel LodgeLink is a multi-sided marketplace for the $320 billion of crew travel and related goods and services consumed by crews each year.
Slide 13: LodgeLink Gaining Market Traction
LodgeLink Gaining Market Traction Customer Accounts Multi-sided B2B Platform focused on crew travel 700 600 • Efficiently connect the supply/demand of room and accommodation bookings for companies employing field crews 500 • Custom-built platform to remove inefficiency at every stage of the crew tra
Slide 14: LodgeLink - Room Bookings
LodgeLink - Room Bookings Room Nights Booked 120,000 100,000 80,000 12,016 60,000 100,267 40,000 82,747 65,135 20,000 0 2018 2019 2020 Adjusted Room Nights Booked One‐Time Project Related Bookings Room Nights Booked 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Q1‐19 Q2‐19 Q3‐19 Q4‐19 Q1‐
Slide 15: Black Diamond Investment Attributes
Black Diamond Investment Attributes MSS fleet growth ahead of plan as a result of Spectrum and Vanguard acquisitions in 2020 Growth MSS EBITDA growth to outpace fleet growth driven by stronger rental revenue, economies of scale, VAPS and other service offerings LodgeLink platform is scaling qu
Slide 16: Appendix
Appendix 16 © Black Diamond Group Ltd. All Rights Reserved
Slide 17: Sources of Revenue
Sources of Revenue 17 © Black Diamond Group Ltd. All Rights Reserved
Slide 18: MSS Overview
MSS Overview Modular Space Solutions • 8,784 units across 19 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 are improving. Rental revenue growth expected to outpace
Slide 19: MSS – Drivers Behind Rental Revenue Growth
MSS – Drivers Behind Rental Revenue Growth Rental Revenue 12.0 11.0 10.0 $mmm 9.0 8.0 7.0 6.0 5.0 Q4‐18 Q1‐19 Q2‐19 Q3‐19 Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4‐20 Average Rental Rate Unit Count Utilization $700 90% 10,000 85% $650 8,000 80% 6,000 $600 75% 4,000 70% $550 2,000 65% $500 ‐ 60% Q4‐18 Q1‐19 Q2‐19 Q
Slide 20: MSS – VAPS Penetration
MSS – VAPS Penetration VAPS as a % of Rental Revenue • Value Added Products & Services 16% 14% (VAPS) penetration and revenue 12% growth continues to trend 10% positively 8% 6% 4% 2% 0% 2H 18 2H 19 2H 20 VAPS Revenue 3.5 3.0 2.5 2.0 $ mm 1.5 1.0 0.5 0.0 2H 18 2H 19 2H 20 20 © Black Diamond Group Ltd
Slide 21: WFS Overview
WFS Overview Workforce Solutions • Includes Camps, Lodging, Energy Services, Australia and LodgeLink • Geographic Diversification • U.S., Eastern Canada • Continued growth in Australia • Industry Diversification • Disaster Relief • Homeless Initiatives • Mining • Green Energy • Increased contracted
Slide 22: Rental Utilization
Rental Utilization • Utilization showing further MSS and WFS Rental Utilization improvement after pandemic low in Q2 2020 80% 75% 70% • MSS rental fleet maintaining 65% 60% utilization above 70% 55% 50% • WFS improvement in rental 45% 40% utilization supported by 35% diversification of assets outsid
Slide 23: MSS & WFS Fleet Overview
MSS & WFS Fleet Overview MSS Fleet Unit Count 10,000 9,000 8,000 7,000 • Continued growth in MSS rental 6,000 fleet, supported by organic 5,000 4,000 investment and recent 3,000 2,000 acquisition of Vanguard 1,000 ‐ Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 WFS Room Count 16,000 14,000 C
Slide 24: Adjusted EBITDA Detail By Quarter
Adjusted EBITDA1 Detail By Quarter Quarterly EBITDA Detail 20.0 15.0 10.7 11.1 10.0 10.5 9.9 9.9 9.8 10.0 8.2 6.6 5.0 0.0 Q4‐18 Q1‐19 Q2‐19 Q3‐19 Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4‐20 (5.0) Modular Space Solutions Workforce Solutions Total Consolidated Corporate 1. See “Non-GAAP Measures” at the end of this
Slide 25: LodgeLink - The Problem
LodgeLink - The Problem At LodgeLink, we understand that crew travel is a complex and critical task that is inherently difficult. Crew Travel has been untouched by recent technology transformation, and demands a modern platform to remove frustration and inefficiency from the process. We are on a mis
Slide 26: LodgeLink - Market Opportunity
LodgeLink - Market Opportunity Global Business Travel Market Annual Spend 2019 Target Market ($billions) Global Workforce Crew Travel U.S. 65 ~$1.6 Trillion Canada 6 Per Year ~$320 Australia 6 Billion Per Year South America 13 Rest of World 230 Countries listed above are areas where LL Management te
Slide 27: 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 28: THANK YOU
THANK YOU 3/8/2021 28 Investor Relations | investor@blackdiamondgroup.com