Black Diamond Reports Strong Fourth Quarter and Year-End Results and Declares Dividend
CALGARY, Alberta, Feb. 29, 2024 (GLOBE NEWSWIRE) -- Black Diamond Group Limited ("Black Diamond", the "Company" or "we"), (TSX:BDI), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months (the "Quarter") and twelve months ("2023" or the "Year") ended December 31, 2023 compared with the three months (the "Comparative Quarter") and twelve months ("2022" or the "Prior Year") ended December 31, 2022. All financial figures are expressed in Canadian dollars.
Key Highlights from 2023
Generated consolidated revenue of $393.5 million and Adjusted EBITDA¹ of $106.6 million for the Year, up 21% and up 27% from Prior Year, respectively.
Consolidated rental revenue of $145.0 million was up 21% from the Prior Year.
The Company’s consolidated contracted future rental revenue at the end of the Year was $136.4 million, up $20.1 million or 17% from the Prior Year. Modular Space Solutions ("MSS") contracted future rental revenue for units on rent was $101.8 million at the end of the Year, up 8% from the Prior Year. Workforce Solutions ("WFS") contracted future rental revenue for contracts in place was $34.6 million at the end of the Year, up 56% from the Prior Year.
MSS generated record rental revenue and Adjusted EBITDA of $85.4 million and $72.7 million, respectively, up 18% and 34% from the Prior Year.
WFS rental revenue and Adjusted EBITDA were $59.6 million and $59.1 million, respectively, up 24% and 17% from the Prior Year.
LodgeLink continued to scale and generated record net revenue of $9.8 million, up 48% from the Prior Year. Gross Bookings¹ of $78.4 million grew 33% from the Prior Year while total room nights sold for the Year were up 18% from the Prior Year.
Gross capital expenditures for the Year were $69.1 million compared to $54.2 million in the Prior Year. This included $56.9 million of capital investment into organic growth, $3.9 million for LodgeLink software development, and $8.3 million for sustaining capital expenditures. Proceeds from fleet sales were $22.5 million.
Long-term debt and Net Debt¹ were $190.4 million and $184.2 million, respectively, at the end of the Year. Continued positive Free Cashflow¹ decreased long-term debt and Net Debt by $36.5 million and $34.7 million, respectively, from December 31, 2022. Net Debt to trailing twelve month ("TTM") Adjusted Leverage EBITDA¹ of 1.7x is now just below the Company's target range of 2.0x to 3.0x while available liquidity was $142.6 million at the end of the Year.
Profit for the Year was $30.4 million, up 15% from the Prior Year and consolidated Return on Assets¹ for the Year was 19.6%, up 60 basis points from Prior Year.
Diluted earnings per share for the Year was $0.49, up 11% compared to $0.44 for the Prior Year. The Prior Year included a one-time non-cash impairment reversal related to Australian assets of $6.3 million, or $4.4 million and $0.07 per share after tax. Excluding the impact of that reversal, 2023 diluted earnings per share of $0.49 is up nearly 32%.
Since re-instating the dividend in 2021, the Company has announced three dividend increases, with the most recent occurring in the fourth quarter of 2023. In the Year, Black Diamond returned over $4.8 million dollars to shareholders in the form of dividends, which accounted for approximately 4% of Funds from Operations, leaving ample financial flexibility for continued growth.
Key Highlights from the Quarter
Consolidated rental revenue of $36.0 million and Adjusted EBITDA¹ of $26.1 million were up 8% and 19% from the Comparative Quarter, respectively.
MSS rental revenue for the Quarter of $22.0 million was up 10% from the Comparative Quarter. MSS Adjusted EBITDA¹ of $17.3 million, increased 21% from the Comparative Quarter.
MSS average monthly rental rate per unit (excluding the impact from acquisitions made in 2022) increased 9% from the Comparative Quarter.
WFS rental revenue and WFS Adjusted EBITDA¹ for the Quarter were $14.0 million and $14.7 million, up 5% and 6% respectively from the Comparative Quarter despite the conclusion of two large-scale pipeline contracts, with those assets being off rent for most of the Quarter.
LodgeLink net revenue grew 8% from the Comparative Quarter, to $2.6 million, generating Net Revenue Margins¹ of 13.3%. LodgeLink also reported 101,726 room nights sold in the Quarter, a 13% decrease from the Comparative Quarter.
Capital investment into organic growth was $11.7 million, while maintenance capital for the Quarter was $2.2 million. Rental asset additions have been primarily deployed on projects with long-term contracts at rental rates that meet or exceed the Company’s hurdle rates.
Funds from Operations¹ of $30.1 million and Free Cashflow¹ of $20.5 million for the Quarter were up 43% and 68%, respectively from the Comparative Quarter.
Profit for the Quarter of $7.8 million decreased 17% from the Comparative Quarter.
Subsequent to the end of the Quarter, the Company declared a first quarter dividend of $0.03 payable on or about April 15, 2024 to shareholders of record on March 31, 2024.
Outlook
Black Diamond’s diversified, specialty rental platform continues to benefit from strong contract coverage, supportive macro tailwinds, and a pipeline of attractive growth opportunities in North America and Australia. Management remains focused on growing the Company’s high margin, recurring rental revenue while reinvesting strong organically generated cashflows to further compound shareholder value.
MSS rental revenue of $22.0 million was up 10% from the Comparative Quarter. Strong results were driven by robust utilization, targeted fleet growth and a supportive rate environment. The Company continues to see healthy demand and additional opportunities in its core education and infrastructure customer segments which have driven MSS contracted future rental revenue to reach $101.8 million with an average duration of 51.9 months at the end of the Quarter. Management continues to expect healthy demand for rental assets across the platform to drive continued rental and ancillary revenue growth in 2024 and beyond.
WFS continues to generate strong returns, with Return on Assets¹ of 39% for the Quarter, as the Company benefits from successful efforts to right-size the fleet and diversify its customer base by both geography and end-market. Despite the conclusion of two large-scale pipeline projects during the Quarter, which drove utilization down to 60% from 70% in the Comparative Quarter, Adjusted EBITDA of $14.7 million for the Quarter was 6% higher from the Comparative Quarter, driven by a 5% increase in rental revenue as average realized rates improve. The WFS segment also ended the Quarter with $34.6 million of contracted future rental revenue, a 56% increase from the Comparative Quarter. The sales pipeline and opportunity set remain healthy and management expects a resumption of year-over-year growth in WFS in late 2024 as assets are redeployed in today’s generally more constructive rate environment when compared to rental rates several years ago.
The Company continues to see positive momentum in LodgeLink, with Gross Bookings¹ and net revenue for the Year growing 33% and 48% from the Prior Year levels, respectively. Net Revenue Margins¹ have also continued to improve and are up 120 basis points year over year, reaching 12.4% in the Year and 13.3% in the Quarter as additional revenue streams have been introduced. Management continues to believe that LodgeLink is well-positioned for ongoing growth to service a significant North American addressable market for workforce travel. Today, LodgeLink services an expanding base of corporate customers with the support of our supply partners that represent over 1.4 million rooms of capacity across North America.
Given the strong growth rates experienced over the last several years across the platform, management began and largely completed work around a corporate structure reorganization during the Quarter, in preparation for an Enterprise Resource Planning ("ERP") system implementation. The Company expects to transition LodgeLink onto a new ERP system during the second quarter of 2024 and is working towards a planned transition for its asset rental businesses into 2025. Management remains focused on growing and compounding the Company’s high-margin, recurring rental revenue streams. We believe the outlook for 2024 remains constructive and is supported by a strong sales and opportunity pipeline in both MSS and WFS, with LodgeLink expected to continue on its path of rapid scaling.
¹ Adjusted EBITDA, Net Debt, Funds from Operations, Gross Bookings and Free Cashflow are non-GAAP financial measures. Return on Assets, Net Debt to TTM Adjusted Leverage EBITDA and Net Revenue Margin are non-GAAP ratios. Refer to the Non-GAAP Financial Measures section of this press release for more information on each non-GAAP financial measure and ratios.
Fourth Quarter 2023 Financial Highlights | ||||||
| ||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||
($ millions, except as noted) | 2023 | 2022 | Change | 2023 | 2022 | Change |
Financial Highlights | $ | $ | % | $ | $ | % |
Total revenue | 103.4 | 89.0 | 16% | 393.5 | 324.5 | 21% |
Gross profit | 43.6 | 38.2 | 14% | 174.4 | 140.1 | 24% |
Administrative expenses | 19.1 | 16.3 | 17% | 69.3 | 56.1 | 24% |
Adjusted EBITDA (1) | 26.1 | 22.0 | 19% | 106.6 | 84.0 | 27% |
Adjusted EBIT (1) | 14.9 | 13.4 | 11% | 62.4 | 48.8 | 28% |
Funds from Operations (1) | 30.1 | 21.0 | 43% | 116.8 | 91.0 | 28% |
Per share ($) | 0.50 | 0.35 | 43% | 1.94 | 1.54 | 26% |
Profit before income taxes | 8.6 | 13.6 | (37)% | 40.6 | 40.2 | 1% |
Profit | 7.8 | 9.4 | (17)% | 30.4 | 26.4 | 15% |
Earnings per share - Basic ($) | 0.13 | 0.16 | (19)% | 0.50 | 0.45 | 11% |
Earnings per share - Diluted ($) | 0.13 | 0.15 | (13)% | 0.49 | 0.44 | 11% |
Capital expenditures | 13.9 | 16.7 | (17)% | 69.1 | 54.2 | 27% |
Business acquisition | — | 54.4 | (100)% | — | 54.4 | (100)% |
Property & equipment | 506.5 | 491.4 | 3% | 506.5 | 491.4 | 3% |
Total assets | 647.6 | 649.4 | —% | 647.6 | 649.4 | —% |
Long-term debt | 190.4 | 226.9 | (16)% | 190.4 | 226.9 | (16)% |
Cash and cash equivalents | 6.5 | 8.3 | (22)% | 6.5 | 8.3 | (22)% |
Return on Assets (%) (1) | 18.1% | 18.5% | (40) bps | 19.6% | 19.0% | 60 bps |
Free Cashflow (1) | 20.5 | 12.2 | 68% | 81.3 | 63.8 | 27% |
(1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the Non-GAAP Financial Measures section of this press release for more information on each non-GAAP financial measure and ratio. | ||||||
Additional Information
A copy of the Company's audited consolidated financial statements for the years ended December 31, 2023 and 2022 and related management's discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.com) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is a specialty rentals and industrial services company with two operating business units - MSS and WFS. We operate in Canada, the United States, and Australia.
MSS through its principal brands, BOXX Modular, Britco, CLM, MPA Systems, and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS owns a large rental fleet of modular accommodation assets of various types. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turnkey operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors.
In addition, WFS includes LodgeLink which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics services across North America. The LodgeLink proprietary digital platform enables customers to efficiently find, book, and manage their crew travel and accommodation needs through a rapidly growing network of hotel, remote lodge, and travel partners. LodgeLink exists to solve the unique challenges associated with crew travel and applies technology to eliminate inefficiencies at every step of the crew travel process from booking, to management, to payments, to cost reporting.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Jason Zhang at 403-206-4739 or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, March 1, 2024. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s financial results for the Quarter and then take questions from investors and analysts.
To access the conference call by telephone dial toll free 1-800-319-4610. International callers should use 1-604-638-5340. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/13162
Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events.
Reader Advisory
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking statements including, but not limited to, opportunities in different geographic areas, opportunities for organic investment and debt repayment, the sales and opportunity pipeline, payment of the Company's quarterly dividends, management's assessment of Black Diamond's future operations and what may have an impact on them, financial performance, business prospects and opportunities, changing operating environment including changing activity levels, effects on demand and performance based on the changing operating environment, expectations for demand and growth in the Company’s operating and customer segments, the expected rate environment, amount of revenue anticipated to be derived from current contracts, liquidity, sources and use of funds, expected implementation of a new ERP system, expected length of existing contracts and future growth and profitability of the Company. With respect to the forward-looking statements in this news release, Black Diamond has made assumptions regarding, among other things: future commodity prices, the future rate environment, that Black Diamond will continue to raise sufficient capital to fund its business plans in a manner consistent with past operations, timing and cost estimates of ERP, that counter-parties to contracts will perform the contracts as written and that there will be no unforeseen material delays in contracted projects. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurances that such expectations or assumptions will prove to be correct. Readers are cautioned that assumptions used in the preparation of such statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of Black Diamond. These risks include, but are not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, the Company's ability to attract new customers, failure of counterparties to perform on contracts, industry competition, availability of qualified personnel and management, timely and cost effective access to sufficient capital from internal and external sources, political conditions, dependence on suppliers and stock market volatility. The risks outlined above should not be construed as exhaustive. Additional information on these and other factors that could affect Black Diamond's operations and financial results are included in Black Diamond’s annual information form for the year ended December 31, 2023 and other reports on file with the Canadian Securities Regulatory Authorities which can be accessed on Black Diamond's profile on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.
Non-GAAP Measures
In this news release, the following specified financial measures and ratios have been disclosed: Adjusted EBITDA, Adjusted EBIT, Funds from Operations, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Return on Assets, Net Revenue Margin, Adjusted EBITDA as % of Revenue, Gross Bookings and Free Cashflow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures presented by other entities. Readers are cautioned that these non-GAAP measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of the Company's performance or cash flows, a measure of liquidity or as a measure of actual return on the common shares of the Company. These non-GAAP measures should only be used in conjunction with the consolidated financial statements of the Company.
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, share-based compensation, acquisition costs, non-controlling interests, share of gains or losses of an associate, write-down of property and equipment, impairment, non-recurring costs, and gains or losses on the sale of non-fleet assets in the normal course of business.
Black Diamond uses Adjusted EBITDA primarily as a measure of operating performance. Management believes that operating performance, as determined by Adjusted EBITDA, is meaningful because it presents the performance of the Company's operations on a basis which excludes the impact of certain non-cash items as well as how the operations have been financed. In addition, management presents Adjusted EBITDA because it considers it to be an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Adjusted EBITDA has limitations as an analytical tool, and readers should not consider this item in isolation, or as a substitute for an analysis of the Company's results as reported under IFRS. Some of the limitations of Adjusted EBITDA are:
Adjusted EBITDA excludes certain income tax payments and recoveries that may represent a reduction or increase in cash available to the Company;
Adjusted EBITDA does not reflect the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments;
Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs;
Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest payments on the Company's debt;
depreciation and amortization are non-cash charges, thus the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the Company's business. The Company compensates for these limitations by relying primarily on the Company's IFRS results and using Adjusted EBITDA only on a supplementary basis. A reconciliation to profit, the most comparable GAAP measure, is provided below.
Adjusted EBIT is Adjusted EBITDA less depreciation and amortization. Black Diamond uses Adjusted EBIT primarily as a measure of operating performance. Management believes that Adjusted EBIT is a useful measure for investors when analyzing ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that the Company's definition of Adjusted EBIT is consistent with that of other companies. As such, management believes that it is appropriate to consider both profit determined on a GAAP basis as well as Adjusted EBIT. A reconciliation to profit, the most comparable GAAP measure, is provided below.
Adjusted EBITDA as a % of Revenue is calculated by dividing Adjusted EBITDA by total revenue for the period. Black Diamond uses Adjusted EBITDA as a % of Revenue primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Return on Assets is calculated as annualized Adjusted EBITDA divided by average net book value of property and equipment. Annualized Adjusted EBITDA is calculated by multiplying Adjusted EBITDA for the Quarter and Comparative Quarter by an annualized multiplier. Management believes that Return on Assets is a useful financial measure for investors in evaluating operating performance for the periods presented. When read in conjunction with our profit and property and equipment, two GAAP measures, this non-GAAP ratio provides investors with a useful tool to evaluate Black Diamond's ongoing operations and management of assets from period-to-period.
Reconciliation of Consolidated Profit to Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue and Return on Assets: | ||||||
| ||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||
($ millions, except as noted) | 2023 | 2022 | Change | 2023 | 2022 | Change |
Profit | 7.8 | 9.4 | (17)% | 30.4 | 26.4 | 15% |
Add: |
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|
|
|
|
|
Depreciation and amortization (1) | 11.2 | 8.6 | 30% | 44.2 | 35.2 | 26% |
Finance costs (1) | 3.7 | 3.6 | 3% | 14.1 | 8.9 | 58% |
Share-based compensation (1) | 1.1 | 1.3 | (15)% | 6.2 | 4.8 | 29% |
Non-controlling interests (1) | 0.3 | 0.4 | (25)% | 1.1 | 1.9 | (42)% |
Current income taxes (1) | 0.1 | 0.1 | —% | 0.2 | 0.4 | (50)% |
Deferred income taxes (1) | 0.4 | 3.7 | (89)% | 8.9 | 11.5 | (23)% |
Impairment reversal (1) | — | (6.3) | 100% | — | (6.3) | 100% |
Non-recurring items |
|
|
|
|
|
|
Acquisition costs (1) | — | 1.2 | (100)% | — | 1.2 | (100)% |
ERP implementation and related costs (2) | 1.5 | — | 100% | 1.5 | — | 100% |
Adjusted EBITDA | 26.1 | 22.0 | 19% | 106.6 | 84.0 | 27% |
Less: |
|
|
|
|
|
|
Depreciation and amortization (1) | 11.2 | 8.6 | 30% | 44.2 | 35.2 | 26% |
Adjusted EBIT | 14.9 | 13.4 | 11% | 62.4 | 48.8 | 28% |
|
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|
|
Total revenue (1) | 103.4 | 89.0 | 16% | 393.5 | 324.5 | 21% |
Adjusted EBITDA as a % of Revenue | 25.2% | 24.7% | 50 bps | 27.1% | 25.9% | 120 bps |
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Annualized multiplier | 4 | 4 |
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|
Annualized adjusted EBITDA | 104.4 | 88.0 | 19% | 106.6 | 84.0 | 27% |
Average net book value of property and equipment | 542.7 | 482.5 | 12% | 535.0 | 443.6 | 21% |
Return on Assets | 18.1% | 18.5% | (40) bps | 19.6% | 19.0% | 60 bps |
(1) Sourced from the Company's audited consolidated financial statements for the years ended December 31, 2023 and December 31, 2022. | ||||||
Net Debt to TTM Adjusted Leverage EBITDA is a non-GAAP financial ratio which is calculated as Net Debt divided by trailing twelve months Adjusted Leverage EBITDA. Net Debt, a non-GAAP financial measure, is calculated as long-term debt minus cash and cash equivalents. A reconciliation to long-term debt, the most comparable GAAP measure, is provided below. Net Debt and Net Debt to TTM Adjusted Leverage EBITDA removes cash and cash equivalents from the Company's debt balance. Black Diamond uses this ratio primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. In the quarter ended June 30, 2022, Net Debt to TTM Adjusted EBITDA was renamed Net Debt to TTM Adjusted Leverage EBITDA, to provide further clarity on the composition of the denominator to include pre-acquisition estimates of EBITDA from business combinations. Management believes including the additional information in this calculation helps provide information on the impact of trailing operations from business combinations on the Company's leverage position.
Reconciliation of Consolidated Profit to Adjusted EBITDA, Net Debt and Net Debt to TTM Adjusted Leverage EBITDA: | |||||||||
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($ millions, except as noted) | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | Change |
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
|
Profit | 7.8 | 13.6 | 4.6 | 4.4 | 9.4 | 9.0 | 4.0 | 4.0 |
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Add: |
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Depreciation and amortization | 11.2 | 12.6 | 10.6 | 9.8 | 8.6 | 9.2 | 8.8 | 8.6 |
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Finance costs | 3.7 | 3.7 | 3.7 | 2.9 | 3.6 | 2.1 | 1.7 | 1.5 |
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Share-based compensation | 1.1 | 1.6 | 1.3 | 2.2 | 1.3 | 1.3 | 1.1 | 1.2 |
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Non-controlling interests | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | 0.5 | 0.5 | 0.5 |
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Current income taxes | 0.1 | — | 0.1 | — | 0.1 | — | 0.4 | — |
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Deferred income taxes | 0.4 | 4.8 | 1.9 | 1.8 | 3.7 | 3.9 | 1.7 | 2.1 |
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Impairment reversal | — | — | — | — | (6.3) | — | — | — |
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Non-recurring items |
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Acquisition costs | — | — | — | — | 1.2 | — | — | — |
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ERP implementation and related costs (1) | 1.5 | — | — | — | — | — | — | — |
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Adjusted EBITDA | 26.1 | 36.6 | 22.5 | 21.4 | 22.0 | 26.0 | 18.2 | 17.9 |
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Acquisition pro-forma adjustments (2) | — | — | — | — | 0.5 | 2.3 | 2.2 | 1.5 |
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Adjusted Leverage EBITDA | 26.1 | 36.6 | 22.5 | 21.4 | 22.5 | 28.3 | 20.4 | 19.4 |
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TTM Adjusted Leverage EBITDA | 106.6 |
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| 90.6 |
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| 18% |
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Long-term debt | 190.4 |
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| 226.9 |
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| (16)% |
Cash and cash equivalents | 6.5 |
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| 8.3 |
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| (22)% |
Current portion of long-term debt (3) | 0.3 |
|
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| 0.3 |
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| —% |
Net Debt | 184.2 |
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| 218.9 |
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| (16)% |
Net Debt to TTM Adjusted Leverage EBITDA | 1.7 |
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| 2.4 |
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| (29)% |
(1) This relates to the corporate structure reorganization costs that have been incurred in preparation of a new ERP system. | |||||||||
Funds from Operations is calculated as the cash flow from operating activities, the most comparable GAAP measure, excluding the changes in non-cash working capital. Management believes that Funds from Operations is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments. Changes in long-term accounts receivables and non-cash working capital items have been excluded as such changes are financed using the revolving line of Black Diamond's ABL Facility. A reconciliation to cash flow from operating activities, the most comparable GAAP measure, is provided below.
Free Cashflow is calculated as Funds from Operations minus maintenance capital, net interest paid (including lease interest), payment of lease liabilities, net current income tax expense (recovery), distributions declared to non-controlling interest, dividends paid on common shares and dividends paid on Preferred Shares plus net current income taxes received (paid). Management believes that Free Cashflow is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments and other items noted above. Management believes this metric is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. A reconciliation to cash flow from operating activities, the most comparable GAAP measure, is provided below.
Reconciliation of Cash Flow from Operating Activities to Funds from Operations and Free Cashflow: | ||||||
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| Three months ended December 31, | Twelve months ended December 31, | ||||
($ millions, except as noted) | 2023 | 2022 | Change | 2023 | 2022 | Change |
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Cash Flow from Operating Activities (1) | 35.1 | 6.4 | 448% | 133.0 | 70.8 | 88% |
Add/(Deduct): |
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Change in other long term assets (1) | 0.5 | 0.1 | 400% | 0.6 | (0.6) | 200% |
Changes in non-cash operating working capital (1) | (5.5) | 14.5 | (138)% | (16.8) | 20.8 | (181)% |
Funds from Operations | 30.1 | 21.0 | 43% | 116.8 | 91.0 | 28% |
Add/(deduct): |
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Maintenance capital | (2.2) | (2.6) | 15% | (8.3) | (7.7) | (8)% |
Payment for lease liabilities | (2.1) | (1.8) | (17)% | (7.8) | (6.7) | (16)% |
Interest paid (including lease interest) | (3.5) | (3.2) | (9)% | (13.5) | (8.4) | (61)% |
Net current income tax expense | 0.1 | 0.1 | —% | 0.2 | 0.4 | (50)% |
Dividends paid on common shares | (1.2) | (0.9) | (33)% | (4.8) | (3.4) | (41)% |
Distributions paid to non-controlling interests | (0.7) | (0.3) | (133)% | (1.3) | (0.9) | (44)% |
Dividends paid on Preferred Shares | — | (0.1) | 100% | — | (0.5) | 100% |
Free Cashflow | 20.5 | 12.2 | 68% | 81.3 | 63.8 | 27% |
(1) Sourced from the Company's audited consolidated financial statements for the years ended December 31, 2023 and December 31, 2022. | ||||||
Gross Bookings, a non-GAAP measure, is total revenue billed to the customer which includes all fees and charges. Net revenue, a GAAP measure, is Gross Bookings less costs paid to suppliers. Revenue from bookings at third party lodges and hotels through LodgeLink are recognized on a net revenue basis. LodgeLink is an agent in the transaction as it is not responsible for providing the service to the customer and does not control the service provided by a supplier. Management believes this ratio is an important supplemental measure of LodgeLink's performance and cash generation and believes this ratio is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation.
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 interested parties in the evaluation of companies in industries with similar forms revenue generation where companies act as agents in transactions.
Reconciliation of Net Revenue to Gross Bookings and Net Revenue Margin: | ||||||
| ||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||
($ millions, except as noted) | 2023 | 2022 | Change | 2023 | 2022 | Change |
Net revenue (1) | 2.6 | 2.4 | 8% | 9.8 | 6.6 | 48% |
Costs paid to suppliers (1) | 17.0 | 17.3 | (2)% | 68.6 | 52.3 | 31% |
Gross Bookings (1) | 19.6 | 19.7 | (1)% | 78.4 | 58.9 | 33% |
Net Revenue Margin | 13.3% | 12.2% | 110 bps | 12.4% | 11.2% | 120 bps |
(1) Includes intercompany transactions. | ||||||
Readers are cautioned that the non-GAAP measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of Black Diamond's performance or cash flows, a measure of liquidity or as a measure of actual return on the shares of Black Diamond. These non-GAAP measures should only be used in conjunction with the consolidated financial statements of Black Diamond.
