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 ended March 31, 2023
(the "Quarter") compared with the three months ended March 31,
2022 (the "Comparative Quarter"). All financial figures are
expressed in Canadian dollars.
Key Highlights from the First Quarter of
2023
- Consolidated rental revenue of $34.4 million and Adjusted
EBITDA1 of $21.4 million were up 28% and 20% from the
Comparative Quarter, respectively.
- Modular Space Solutions ("MSS") rental revenue set another
quarterly record of $20.4 million and increased 27% from the
Comparative Quarter. MSS Adjusted EBITDA of $16.1 million was
also a quarterly record and increased 55% from the Comparative
Quarter.
- MSS average monthly rental rate per unit (excluding the impact
from acquisitions made in 2022) increased 15% from the Comparative
Quarter (or 11% on a constant currency basis).
- MSS contracted future rental revenue for units on rent was
$97.9 million at the end of the Quarter, up 73% from the
Comparative Quarter. Workforce Solutions ("WFS") contracted future
rental revenue for contracts in place was $32.8 million at the end
of the Quarter, up 62% from the Comparative Quarter.
- WFS rental revenue of $14.0 million, increased 30% from
the Comparative Quarter. WFS consolidated utilization of 65% is the
highest level observed in over five years.
- LodgeLink net revenue of $2.2 million grew 69% from the
Comparative Quarter, while the business also reported 105,958 room
nights sold in the Quarter, a 39% increase from the prior year.
LodgeLink U.S. volumes more than doubled from the Comparative
Quarter and continues to see an accelerated pace of growth.
- Return on Assets1 for the Quarter of 16.3% represents a
meaningful premium over the Company's cost of capital and is
consistent with the Comparative Quarter.
- Capital investment into organic growth was $13.5 million,
while maintenance capital for the Quarter was $2.3 million.
Rental asset additions have been primarily non-speculative in that
contracts are in place before the asset is built.
- Funds from Operations of $21.4 million increased 11% while
Free Cashflow1 for the Quarter of $13.0 million was down 4%
from the Comparative Quarter due to higher interest costs and
capitalized maintenance.
- Long term debt and Net Debt1 at the end of the Quarter declined
$12.1 million and $10.3 million from the fourth quarter 2022
respectively to $214.8 million and $208.6 million. Net
Debt to trailing twelve month ("TTM") Adjusted Leverage EBITDA1 of
2.3x remains at the lower end of the Company's target range of 2.0x
to 3.0x while available liquidity was $115.9 million at the
end of the Quarter.
- Profit for the Quarter of $4.4 million increased 10% from
the Comparative Quarter. Profit growth for the Quarter was half of
the 20% increase in Adjusted EBITDA due to higher share-based
compensation driven by strong operating performance and increased
share prices, as well as higher interest expenses due to rising
interest rates.
- Administrative costs as a percentage of Gross Profit remained
consistent with the Comparative Quarter despite inflationary
pressures.
- Subsequent to the end of the Quarter, the Company also declared
a second quarter dividend of $0.02 payable on or about July 15,
2023, to shareholders of record on June 30, 2023.
Outlook
The Company’s diverse and sizable rental
platform has continued to grow its core, recurring rental revenue
and management believes the outlook into 2023 remains
positive. Contributing factors to ongoing rental revenue
growth include continued increases in average rental rates across
the MSS portfolio of assets as units are re-contracted in today’s
higher-rate environment, deployment of contract-backed organic
growth capital in MSS, ongoing potential for improving utilization
in WFS, and continued rapid scaling of LodgeLink, particularly in
the U.S. market.
The MSS segment set another quarterly record in
both rental revenue and Adjusted EBITDA1. The Company expects
continued growth in MSS rental revenues throughout 2023 driven by
ongoing increases in average rental rate per unit as contracts
expire and are renewed in a higher rate environment, robust
utilization levels across regions, and continued fleet growth. MSS'
opportunity pipeline and backlog remains strong and continues to be
ahead of levels experienced at the same time last year.
The Company’s outlook for the WFS segment is
also constructive. The WFS segment is more project oriented than
the MSS segment, resulting in more variability to rental revenues.
However, the strategies put in place several years ago to diversify
the WFS customer base continues to support deployment of previously
idled assets into increasingly diversified geographies and customer
industries. Consolidated utilization in the WFS segment was 65% for
the Quarter, the highest level observed in many years. This has
resulted in continued growth in core rental revenues, which were up
30% year-over-year. Management has continued to invest growth
capital into Australia, where its asset base is effectively fully
utilized while also opportunistically right-sizing parts of the
North American WFS asset base. Management expects this to continue
to provide high levels of Free Cashflow1 for reinvestment.
LodgeLink net revenues grew 69% year-over-year
as Net Revenue Margin1 improved to 11.9%. While room nights sold
were down modestly on a sequential basis from the fourth quarter of
2022, which had high levels of booking volumes driven by natural
disaster-related work, the platform continues to see strong uptake
from both new and existing customers. Volumes during this Quarter
also reached a record high in the U.S. which remains as a large and
significant addressable market. Supply has also continued to grow
at a strong pace with over 11,000 properties listed, representing
over 1.1 million rooms.
The Company expects operating performance in
2023 to remain strong given the diverse nature of the existing
asset rental business, further supported by a strong level of
contract coverage. The Company’s liquidity position provides a high
degree of optionality, with $115.9 million of available
liquidity on its debt facility which is not up for renewal until
October 2026. While interest rates are significantly higher than a
year ago, approximately one third of debt is hedged at fixed rates.
Management believes the Company can continue to compound returns
through reinvestment in high-return, long-lived rental assets with
attractive contract terms and economics. That said, the Company’s
growth capital expenditures remain fully discretionary. If the
Company encounters an environment where macro-economic events begin
impacting asset-level returns, the Company’s platform allows for
the flexibility to re-allocate high levels of Free Cashflow towards
accelerated debt repayment or shareholder returns. Management
continues to see a healthy bid volume and backlog of projects with
a diversified customer base focused on longer-term infrastructure,
education and government-related services, which provides the
confidence that there is ample opportunity to deploy investment
capital exceeding internal hurdle rates, while maintaining a
conservative balance sheet.
1 Adjusted EBITDA, Net Debt, and Free Cashflow
are non-GAAP financial measures. Return on Assets, Net Debt to TTM
Adjusted Leverage EBITDA, and Net Revenue Margin are non-GAAP
ratios. Refer to the Non-GAAP Financial Measures section of this
press release for more information on each non-GAAP financial
measure and ratios.
First Quarter 2023
Financial Highlights
|
Three months
ended March 31, |
($ millions,
except as noted) |
2023 |
2022 |
Change |
Financial
Highlights |
$ |
$ |
% |
Total revenue |
81.5 |
70.2 |
16% |
Gross profit |
37.3 |
30.7 |
21% |
Administrative expenses |
16.0 |
12.8 |
25% |
Adjusted EBITDA(1) |
21.4 |
17.9 |
20% |
Adjusted EBIT(1) |
11.6 |
9.3 |
25% |
Funds from Operations(1) |
21.4 |
19.2 |
11% |
Per share ($) |
0.36 |
0.33 |
9% |
Profit before income taxes |
6.5 |
6.6 |
(2)% |
Profit |
4.4 |
4.0 |
10% |
Earnings per share - Basic and Diluted ($) |
0.07 |
0.07 |
—% |
Capital expenditures |
15.8 |
6.7 |
136% |
Property & equipment |
497.5 |
399.2 |
25% |
Total assets |
644.4 |
528.1 |
22% |
Long-term debt |
214.8 |
160.5 |
34% |
Cash and cash
equivalents |
6.5 |
3.9 |
67% |
Return on Assets
(%)(1) |
16.3% |
16.9% |
(60 bps) |
Free Cashflow(1) |
13.0 |
13.5 |
(4)% |
(1) Adjusted EBITDA, 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 unaudited interim
condensed consolidated financial statements for the three months
ended March 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.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 -
Modular Space Solutions (MSS) and Workforce Solutions (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, through its principal brands, Black Diamond
Camps and Black Diamond Energy Services, owns a large rental fleet
of modular accommodation assets of all types and sizes. Its
regional operating terminals rent, sell, service, and provide
ancillary products and services including turn-key operated camps
to a wide array of customers in the resource, infrastructure,
construction, disaster recovery, and education sectors. The WFS
business unit also includes the Company’s wholly owned subsidiary,
LodgeLink, which operates a digital marketplace for
business-to-business crew accommodation, travel, and logistics in
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 CallBlack Diamond
will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m.
ET) on Friday, May 5, 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. 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/12529
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
AdvisoryForward-Looking StatementsCertain
information set forth in this MD&A 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, timing and payment of a
second quarter dividend, management's assessment of Black Diamond's
future operations and what may have an impact on them,
opportunities and effect of deploying investment capital, financial
performance, business prospects and opportunities, changing
operating environment including changing activity levels, effects
on demand and performance based on the changing operating
environment, amount of revenue anticipated to be derived from
current contracts, anticipated debt levels, liquidity sources and
needs, 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 this MD&A, Black Diamond has made
assumptions regarding, among other things: future commodity prices,
that Black Diamond will continue to raise sufficient capital to
fund its business plans in a manner consistent with past
operations, that counterparties 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 MD&A, 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
SEDAR. Readers are cautioned not to place undue reliance on these
forward-looking statements. Furthermore, the forward-looking
statements contained in this MD&A are made as at the date of
this MD&A 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, Return on Assets, Net Revenue Margin 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 ROA 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
and Return on Assets:
|
Three months
ended March 31, |
($ millions, except as noted) |
2023 |
2022 |
Change% |
Profit |
4.4 |
4.0 |
10% |
Add: |
|
|
|
Depreciation and amortization(1) |
9.8 |
8.6 |
14% |
Finance costs(1) |
2.9 |
1.5 |
93% |
Share-based compensation(1) |
2.2 |
1.2 |
83% |
Non-controlling interest(1) |
0.3 |
0.5 |
(40)% |
Deferred income taxes(1) |
1.8 |
2.1 |
(14)% |
Adjusted EBITDA |
21.4 |
17.9 |
20% |
Less: |
|
|
|
Depreciation and amortization(1) |
9.8 |
8.6 |
14% |
Adjusted EBIT |
11.6 |
9.3 |
25% |
|
|
|
|
Total
revenue(1) |
81.5 |
70.2 |
16% |
Adjusted EBITDA as a % of Revenue |
26.3% |
25.0% |
130 bps |
|
|
|
|
Annualized multiplier |
4 |
4 |
|
Annualized adjusted
EBITDA |
85.6 |
71.6 |
20% |
Average
net book value of property and equipment |
524.7 |
422.1 |
24% |
Return
on Assets |
16.3% |
16.9% |
(60) bps |
(1) Sourced from
the Company's unaudited interim condensed consolidated financial
statements for the three months ended March 31, 2023 and
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 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) |
2023 |
2022 |
2022 |
2022 |
2022 |
2021 |
2021 |
2021 |
Change |
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
|
Profit |
4.4 |
9.4 |
9.0 |
4.0 |
4.0 |
10.7 |
5.7 |
1.3 |
|
Add: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
9.8 |
8.6 |
9.2 |
8.8 |
8.6 |
8.9 |
9.4 |
8.8 |
|
Acquisition costs |
— |
1.2 |
— |
— |
— |
— |
— |
— |
|
Finance costs |
2.9 |
3.6 |
2.1 |
1.7 |
1.5 |
1.7 |
1.5 |
1.6 |
|
Share-based compensation |
2.2 |
1.3 |
1.3 |
1.1 |
1.2 |
1.0 |
1.0 |
0.8 |
|
Non-controlling interest |
0.3 |
0.4 |
0.5 |
0.5 |
0.5 |
0.4 |
0.4 |
0.4 |
|
Current income taxes |
— |
0.1 |
— |
0.4 |
— |
0.1 |
— |
— |
|
Gain on sale of real estate assets |
— |
— |
— |
— |
— |
(0.7) |
— |
— |
|
Deferred income taxes |
1.8 |
3.7 |
3.9 |
1.7 |
2.1 |
(4.6) |
1.7 |
0.6 |
|
Impairment reversal |
— |
(6.3) |
— |
— |
— |
— |
— |
— |
|
Adjusted EBITDA |
21.4 |
22.0 |
26.0 |
18.2 |
17.9 |
17.5 |
19.7 |
13.5 |
|
Acquisition pro-forma adjustments(1) |
— |
0.5 |
2.3 |
2.2 |
1.5 |
— |
— |
— |
|
Adjusted Leverage EBITDA |
21.4 |
22.5 |
28.3 |
20.4 |
19.4 |
17.5 |
19.7 |
13.5 |
|
|
|
|
|
|
|
|
|
|
|
TTM Adjusted Leverage
EBITDA |
92.6 |
|
|
|
68.6 |
|
|
|
35% |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
214.8 |
|
|
|
160.5 |
|
|
|
34% |
Cash and cash equivalents |
6.5 |
|
|
|
3.9 |
|
|
|
67% |
Current
portion of long term debt(2) |
0.3 |
|
|
|
— |
|
|
|
100% |
Net
Debt |
208.6 |
|
|
|
156.6 |
|
|
|
33% |
Net
Debt to TTM Adjusted Leverage EBITDA |
2.3 |
|
|
|
2.3 |
|
|
|
—% |
(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
acquisition in the fourth quarter of 2022. |
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 ended March 31, |
($ millions, except as noted) |
2023 |
2022 |
Change |
|
|
|
|
Cash Flow from Operating
Activities(1) |
31.6 |
13.0 |
143% |
Add/(Deduct): |
|
|
|
Change in other long term assets(1) |
(0.2) |
1.3 |
(115)% |
Changes in non-cash operating working capital(1) |
(10.0) |
4.9 |
(304)% |
Funds
from Operations |
21.4 |
19.2 |
11% |
Add/(deduct): |
|
|
|
Maintenance capital |
(2.3) |
(1.6) |
(44)% |
Payment for lease liabilities |
(1.8) |
(1.6) |
(13)% |
Interest paid (including lease interest) |
(2.8) |
(1.4) |
(100)% |
Dividends paid on common shares |
(1.2) |
(0.7) |
(71)% |
Distributions declared to non-controlling interest |
(0.3) |
(0.2) |
(50)% |
Dividends paid on preferred shares |
— |
(0.2) |
100% |
Free
Cashflow |
13.0 |
13.5 |
(4)% |
(1) Sourced from the Company's unaudited interim condensed
consolidated financial statements for the three months ended
March 31, 2023 and 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 March 31, |
($ millions, except as noted) |
2023 |
2022 |
Change |
Net revenue(1) |
2.2 |
1.3 |
69% |
Costs
paid to suppliers(1) |
16.3 |
10.3 |
58% |
Gross
Bookings(1) |
18.5 |
11.6 |
59% |
Net
Revenue Margin |
11.9% |
11.2% |
70 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.
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