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 ("2022" or the "YTD") ended December 31, 2022 compared
with the three months (the "Comparative Quarter") and twelve months
("2021" or the "Prior YTD") ended December 31, 2021. All
financial figures are expressed in Canadian dollars.
Key Highlights from 2022
- Generated consolidated revenue of
$324.5 million and Adjusted EBITDA1 of $84.0 million for
the YTD, down 4% and up 31% from Prior YTD, respectively.
- Consolidated rental revenue of
$120.1 million was up 23% from the Prior YTD.
- Modular Space Solutions ("MSS")
generated record rental revenue and Adjusted EBITDA of $72.1
million and $54.4 million, respectively, up 20% and 16% from the
Prior YTD.
- Workforce Solutions ("WFS") rental
revenue and Adjusted EBITDA were $48.0 million and $50.5 million,
respectively, up 26% and 46% from the Prior YTD.
- LodgeLink continued to scale
dramatically. Record net revenue of $6.6 million was up 74% from
the Prior YTD and Gross Bookings1 of $58.9 million grew 66% from
the Prior YTD. Total room nights sold for YTD were 356,328, up 60%
from the Prior YTD.
- Diluted earnings per share for the
year was $0.44 compared to $0.34 for the Prior YTD.
- Long term debt and Net Debt1 at the
end of the Year were $226.9 million and $218.9 million,
respectively. Free Cashflow1 for the YTD was $63.8 million, up 17%
from the Prior YTD. Net Debt to trailing twelve month (“TTM”)
Adjusted Leverage EBITDA1 was 2.4x, and available liquidity was
$105.0 million at the end of the Year.
- Profit for the YTD was
$26.4 million, up 29% from the Prior YTD and consolidated
Return on Assets1 for the YTD was 19.0%, up 380 basis points from
Prior YTD.
- Gross capital expenditures for the
year was $108.6 million compared to $37.9 million in the Prior YTD.
This included $54.4 million for acquisitions, $43.4 million for
fleet growth, $3.2 million for LodgeLink software development, and
$7.7 million for sustaining capital expenditures. Proceeds from
fleet sales were $17.2 million.
- In 2022, the Company allocated an
aggregate of $15.0 million to shareholder returns and the
reduction of non-controlling interests, through a combination of
$2.2 million of common shares repurchased under the Company's
normal course issuer bid (“NCIB”), $3.9 million of dividends
declared to holders of common shares, and the redemption of
$8.9 million of preferred shares of a subsidiary company.
Key Highlights from the
Quarter
- Consolidated rental revenue of
$33.3 million and Adjusted EBITDA1 of $22.0 million were
up 22% and 26% from the Comparative Quarter, respectively.
- MSS rental revenue was a quarterly
record of $20.0 million and increased 24% from the Comparative
Quarter. MSS Adjusted EBITDA of $14.3 million increased 8%
from the Comparative Quarter.
- MSS average monthly rental rate per
unit increased 9% from the Comparative Quarter (8% on a constant
currency basis), while MSS contracted future rental revenue was
$94.1 million at the end of the Quarter, up 76% from the
Comparative Quarter.
- WFS rental revenue of
$13.3 million increased 19% from the Comparative Quarter. WFS
Adjusted EBITDA of $13.9 million increased 43% from the
Comparative Quarter.
- LodgeLink recorded a quarterly
record of 117,323 room nights sold in the Quarter, a 67% increase
from the Comparative Quarter. LodgeLink net revenue of
$2.4 million was also a quarterly record and increased 118%
from the Comparative Quarter.
- On October 31, 2022, the Company
closed the acquisition of an Ontario-based modular rental company
with 1,851 units, with a primary focus in the education and
government sectors (the "2022 Acquisition"). The purchase price of
the 2022 Acquisition was $54.4 million, including the assumption of
debt.
- During the Quarter, the Company
recognized a non-cash impairment reversal of $6.3 million on its
workforce accommodations cash generating unit in Australia. The
reversal had an after-tax impact of $4.4 million, or $0.07 per
share on a diluted basis.
- Return on Assets1 for the Quarter
was 18.5%, up 200 basis points from the Comparative Quarter.
Diluted earnings per share of $0.15 was down 17% after
non-recurring adjustments from the Comparative Quarter.
- Capital investment into organic
growth was $16.7 million, which includes maintenance capital of
$2.6 million, while proceeds from fleet sales were $2.6
million.
- During the Quarter, the Company
allocated an aggregate of $3.4 million to shareholder returns
and the reduction of non-controlling interests, through a
combination of $1.2 million of dividends declared to holders
of common shares and the redemption of $2.2 million of
preferred shares of a subsidiary company.
- Subsequent to the end of the
Quarter, on March 2, 2023, the Company declared a first
quarter dividend of $0.02 payable on or about April 15, 2023 to
shareholders of record on March 31, 2023.
OUTLOOK
Black Diamond’s Quarter and YTD results
highlight the benefits of a large and diverse specialty rental
platform with steadily growing, predictable, rental revenues being
generated across many industries and geographies. The robust rental
revenue growth across the business has been driven by healthy
utilization levels in MSS and the ongoing redeployment of
previously idle WFS assets into varied customer segments.
Management believes the current iteration of the rental platform is
the most stable and diverse it has ever been and are optimistic
about future growth opportunities throughout the business.
Alongside the strong performance of the diversified asset rental
business, LodgeLink, the Company’s digital workforce travel
platform, has also continued to grow quickly with booking volumes
scaling dramatically.
MSS continued to set quarterly records with
respect to both rental revenue and Adjusted EBITDA1 through organic
fleet growth and robust utilization and rates, further supplemented
by continued inorganic growth as the Company closed the acquisition
of a relatively large Ontario modular space business in the
Quarter. Based on the continued growth of the segment's pipeline
and backlog of opportunities, management expects continued growth
in MSS rental revenues in coming quarters. Management also expects
increases in average rental rates as longer duration contracts
expire and are renewed at higher rental rates, combined with
ongoing strength in utilization across regions and continued
organic fleet growth.
Within the WFS business, management is similarly
optimistic given the successful efforts to diversify the geography
and industries served resulting in increased utilization in North
America and ongoing strength in Australia. Consolidated utilization
for the Quarter of 62% was the highest level observed in many
years. While WFS has historically experienced higher variability in
utilization levels, management believes a more diversified asset
rental base among different customers, industries and geographies
has led to a healthy and stable current pipeline of new
opportunities. The pipeline includes both opportunities to deploy
existing fleet as well as to grow certain parts of this fleet at
attractive returns, particularly in the Australian market.
LodgeLink set yet another quarterly record in
room nights sold, Gross Bookings1, and net revenues as it continued
its rapid scale up across North America. Net revenue in the Quarter
more than doubled versus the Comparative Quarter. Management
remains confident in the continued growth of the LodgeLink platform
into 2023. The Company expects that LodgeLink will continue to
enhance the customer experience on the platform as well as further
automate back-end workflows to support continued growth and
transaction-level profitability.
The Company expects operating performance in
2023 to remain solid given the diverse nature of the existing asset
rental business further supported by strong contract coverage. The
Company’s liquidity position provides a high degree of optionality,
with approximately $105.0 million of available liquidity with
a debt facility maturing in October 2026, including approximately
one third of debt at fixed rates. Free Cashflow1 of
$63.8 million in the YTD has generally been reinvested into
the growth of long-lived, cashflow producing assets at attractive
rates of return. Management continues to closely monitor asset
level returns and has been deploying organic capital investment
primarily into new rental fleet assets that are signed to long-term
contracts with customers. Management continues to see attractive
organic and inorganic growth opportunities in a number of regions
and expects to generate compounding returns and steady growth of
its core, recurring rental-revenues. These strategies are expected
to allow for significant flexibility in an environment of
increasing interest rates and risk of a potential recession.
1 Adjusted EBITDA, Net Debt, Gross Bookings and
Free Cashflow are non-GAAP financial measures. Return on Assets and
Net Debt to TTM Adjusted Leverage EBITDA 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
ratio.
Fourth Quarter
2022 Financial Highlights
|
Three months endedDecember 31, |
Twelve months endedDecember 31, |
(in millions, except as noted) |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
Financial Highlights |
$ |
$ |
% |
$ |
$ |
% |
Total revenue |
89.0 |
96.1 |
(7)% |
324.5 |
339.6 |
(4)% |
Gross
profit |
37.6 |
30.4 |
24% |
138.1 |
111.6 |
24% |
Administrative expenses |
15.7 |
13.0 |
21% |
54.2 |
47.6 |
14% |
Adjusted EBITDA(1) |
22.0 |
17.5 |
26% |
84.0 |
64.0 |
31% |
Adjusted EBIT(1) |
13.4 |
8.6 |
56% |
48.8 |
28.8 |
69% |
Funds from Operations(1) |
21.0 |
21.6 |
(3)% |
91.0 |
76.6 |
19% |
Per share ($) |
0.35 |
0.37 |
(5)% |
1.54 |
1.32 |
17% |
Profit before income taxes |
13.6 |
6.6 |
106% |
40.2 |
20.0 |
101% |
Profit |
9.4 |
10.7 |
(12)% |
26.4 |
20.4 |
29% |
Earnings per share - Basic ($) |
0.16 |
0.18 |
(11)% |
0.45 |
0.35 |
29% |
Earnings per share - Diluted ($) |
0.15 |
0.18 |
(17)% |
0.44 |
0.34 |
29% |
Capital expenditures |
16.7 |
12.0 |
39% |
54.2 |
37.9 |
43% |
Business acquisition |
54.4 |
— |
100% |
54.4 |
— |
100% |
Property & equipment |
491.4 |
404.5 |
21% |
491.4 |
404.5 |
21% |
Total assets |
649.4 |
530.3 |
22% |
649.4 |
530.3 |
22% |
Long-term debt |
226.9 |
155.6 |
46% |
226.9 |
155.6 |
46% |
Cash and cash equivalents |
8.3 |
4.6 |
80% |
8.3 |
4.6 |
80% |
Return on Assets (%)(1) |
18.5% |
16.5% |
200 bps |
19.0% |
15.2% |
380 bps |
Free Cashflow(1) |
12.2 |
15.4 |
(21)% |
63.8 |
54.3 |
17% |
(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, 2022 and
2021 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.sedar.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, MPA, Schiavi, and CL Martin, 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 and sizes and a fleet of
liquid and solid containment assets. 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 3,
2023. 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 or 1-416-915-3239. International toll
free: 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/12470
Following the conference call, a replay will be
available on the Investor Events section of the Company’s website
at www.blackdiamondgroup.com.
Reader
AdvisoryForward-Looking StatementsCertain
information set forth in this news release contains forward-looking
statements including, but not limited to, the amount of funds that
will be expended on the 2023 capital plan, how such capital will be
expended, expectations for asset sales, 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 the amount of revenue
anticipated to be derived from current contracts, anticipated debt
levels, economic life of the Company's assets, future growth and
profitability of the Company and realization of the anticipated
benefits of acquisitions and sales. With respect to the
forward-looking statements in the news release, Black Diamond has
made assumptions regarding, among other things: future commodity
prices, that Black Diamond will continue to conduct its operations
in a manner consistent with past operations, 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: volatility of industry conditions,
dependence on agreements and contracts, competition, credit risk,
information technology systems and cyber security, vulnerability to
market changes, operating risks and insurance, weakness in
industrial construction and infrastructure developments, weakness
in natural resource industries, access to additional financing,
dependence on suppliers and manufacturers, reliance on key
personnel, and workforce availability. 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, 2022
and other reports on file with the Canadian Securities Regulatory
Authorities which can be accessed on the Company'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 MeasuresIn this news
release, the following specified financial measures and ratios have
been disclosed: Adjusted EBITDA, Net Debt, Net Debt to TTM Adjusted
Leverage EBITDA, Gross Bookings, Return on Assets 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, restructuring 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.
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 (loss) and property and equipment, two
GAAP measures, it provides investors with a useful tool to evaluate
Black Diamonds 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 endedDecember 31, |
Twelve months endedDecember 31, |
($ millions, except as noted) |
2022 |
2021 |
Change % |
2022 |
2021 |
Change % |
Profit(1) |
9.4 |
10.7 |
(12)% |
26.4 |
20.4 |
29% |
Add: |
|
|
|
|
|
|
Depreciation and amortization(1) |
8.6 |
8.9 |
(3)% |
35.2 |
35.2 |
—% |
Acquisition costs(1) |
1.2 |
— |
100% |
1.2 |
— |
100% |
Finance costs(1) |
3.6 |
1.7 |
112% |
8.9 |
6.0 |
48% |
Share-based compensation(1) |
1.3 |
1.0 |
30% |
4.8 |
3.3 |
45% |
Non-controlling interest(1) |
0.4 |
0.4 |
—% |
1.9 |
1.4 |
40% |
Current income taxes(1) |
0.1 |
0.1 |
—% |
0.4 |
0.1 |
300% |
Gain on sale of real estate assets(1) |
— |
(0.7) |
100% |
— |
(0.6) |
100% |
Deferred income taxes(1) |
3.7 |
(4.6) |
180% |
11.5 |
(1.8) |
739% |
Impairment reversal(1) |
(6.3) |
— |
100% |
(6.3) |
— |
100% |
Adjusted EBITDA |
22.0 |
17.5 |
26% |
84.0 |
64.0 |
31% |
Less: |
|
|
|
|
|
|
Depreciation and amortization(1) |
8.6 |
8.9 |
(3)% |
35.2 |
35.2 |
—% |
Adjusted EBIT |
13.4 |
8.6 |
56% |
48.8 |
28.8 |
69% |
|
|
|
|
|
|
|
Total
revenue(1) |
89.0 |
96.1 |
(7)% |
324.5 |
339.6 |
(4)% |
Adjusted EBITDA as a % of Revenue |
24.7% |
18.2% |
650 bps |
25.9% |
18.8% |
710 bps |
|
|
|
|
|
|
|
Annualized multiplier |
4 |
4 |
|
|
|
|
Annualized adjusted EBITDA |
88.0 |
70.0 |
26% |
84.0 |
64.0 |
31% |
Average
net book value of property and equipment |
482.5 |
423.0 |
14% |
443.6 |
422.4 |
5% |
Return on Assets |
18.5% |
16.5% |
200 bps |
19.0% |
15.2% |
380 bps |
(1) Sourced from Company's audited consolidated financial
statements for the years ended December 31, 2022 and
December 31, 2021. |
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 Leveraged 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 June 30, 2022 Quarter, 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 of 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:
($ millions, except as noted) |
2022 |
2022 |
2022 |
2022 |
2021 |
2021 |
2021 |
2021 |
Change |
|
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|
Profit |
9.4 |
9.0 |
4.0 |
4.0 |
10.7 |
5.7 |
1.3 |
2.7 |
|
Add: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
8.6 |
9.2 |
8.8 |
8.6 |
8.9 |
9.4 |
8.8 |
8.1 |
|
Acquisition costs |
1.2 |
— |
— |
— |
— |
— |
— |
— |
|
Finance costs |
3.6 |
2.1 |
1.7 |
1.5 |
1.7 |
1.5 |
1.6 |
1.3 |
|
Share-based compensation |
1.3 |
1.3 |
1.1 |
1.2 |
1.0 |
1.0 |
0.8 |
0.6 |
|
Non-controlling interest |
0.4 |
0.5 |
0.5 |
0.5 |
0.4 |
0.4 |
0.4 |
0.2 |
|
Current income taxes |
0.1 |
— |
0.4 |
— |
0.1 |
— |
— |
— |
|
Gain on sale of real estate assets |
— |
— |
— |
— |
(0.7) |
— |
— |
— |
|
Deferred income taxes |
3.7 |
3.9 |
1.7 |
2.1 |
(4.6) |
1.7 |
0.6 |
0.4 |
|
Impairment reversal |
(6.3) |
— |
— |
— |
— |
— |
— |
— |
|
Adjusted EBITDA |
22.0 |
26.0 |
18.2 |
17.9 |
17.5 |
19.7 |
13.5 |
13.3 |
|
Acquisition pro-forma adjustments(1) |
0.5 |
2.3 |
2.2 |
1.5 |
— |
— |
— |
— |
|
Adjusted Leveraged EBITDA |
22.5 |
28.3 |
20.4 |
19.4 |
17.5 |
19.7 |
13.5 |
13.3 |
|
|
|
|
|
|
|
|
|
|
|
TTM Adjusted Leverage EBITDA |
90.6 |
|
|
|
64.0 |
|
|
|
42% |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
226.9 |
|
|
|
155.6 |
|
|
|
46% |
Current portion of long-term
debt(2) |
0.3 |
|
|
|
— |
|
|
|
100% |
Cash
and cash equivalents |
8.3 |
|
|
|
4.6 |
|
|
|
80% |
Net Debt |
218.9 |
|
|
|
151.0 |
|
|
|
45% |
Net Debt to TTM Adjusted Leverage EBITDA |
2.4 |
|
|
|
2.4 |
|
|
|
—% |
(1) Includes pro-forma pre-acquisition EBITDA estimates as if
the acquisition occurred on January 1, 2022.(2) Current
portion of long-term debt relating to the payments due within one
year on the bank term loans assumed as part of the 2022
Acquisition. |
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 operating line of
Black Diamond's credit facilities. 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:
|
Three months endedDecember 31, |
Twelve months endedDecember 31, |
($ millions, except as noted) |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
|
|
|
|
|
|
|
Cash Flow from Operating
Activities (1) |
6.4 |
20.4 |
(69)% |
70.8 |
71.1 |
—% |
Add/(Deduct): |
|
|
|
|
|
|
Change in long-term accounts
receivable (1) |
0.1 |
(0.2) |
150% |
(0.6) |
(0.7) |
14% |
Changes
in non-cash operating working capital (1) |
14.5 |
1.4 |
936% |
20.8 |
6.2 |
235% |
Funds from Operations |
21.0 |
21.6 |
(3)% |
91.0 |
76.6 |
19% |
Add/(deduct): |
|
|
|
|
|
|
Maintenance capital |
(2.6) |
(2.4) |
(8)% |
(7.7) |
(9.3) |
17% |
Payment for lease liabilities |
(1.8) |
(1.6) |
(13)% |
(6.7) |
(6.2) |
(8)% |
Interest paid (including lease interest) |
(3.2) |
(1.4) |
(129)% |
(8.4) |
(5.7) |
(47)% |
Net current income tax expense (recovery) |
0.1 |
0.1 |
—% |
0.4 |
0.1 |
300% |
Net current income taxes received (paid) |
— |
0.1 |
(100)% |
— |
0.1 |
(100)% |
Dividends paid on common shares |
(0.9) |
(0.7) |
(29)% |
(3.4) |
(0.7) |
(386)% |
Distributions declared to non-controlling interest |
(0.3) |
(0.1) |
(200)% |
(0.9) |
— |
(100)% |
Dividends paid on preferred shares |
(0.1) |
(0.2) |
50% |
(0.5) |
(0.6) |
17% |
Free Cashflow |
12.2 |
15.4 |
(21)% |
63.8 |
54.3 |
17% |
(1) Sourced from the Company's audited consolidated financial
statements for the years ended December 31, 2022 and
2021. |
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