April 2019 Scotiabank CAPP Energy Symposium Trevor Haynes, CEO - Investor Relations
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April 2019 Scotiabank CAPP Energy Symposium
4/15/2019
Trevor Haynes,
1
CEO
Investor Relations | investor@blackdiamondgroup.com
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 unknown risks, uncertainties and
other factors that may cause actual results or events to differ materially from those anticipated in such
forward-looking statements. Management believes the expectations reflected in those forward-
looking statements are reasonable but cannot give any assurance these expectations will prove to be
correct. Additional information on risk 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, 2018 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
presentation are made as at the date of this presentation 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.
2
Progress in 2018
• Increased Adjusted EBITDA by Q4 2018 Geographical Diversification
(% of Total Revenue)
3% year-over-year
US
33%
• Approx. 70% of Q4 revenue Canada - MSS
24%
generated outside of western
Canadian energy sector
• Continued diversification Australia
12%
geographically and by
industry segment
Canada - WFS
31%
4/15/2019 3 3
MSS Overview
Modular Space Solutions
• Investing in and growing MSS
segment. Majority of $35 mm 2019
capital budget directed towards
organic growth in this segment.
• Nearly 6,000 units across 13 branches
in North America with attractive
returns on long-lived assets.
• Targeting minimum fleet growth of
10% per year while maintaining
existing return metrics. With added
scale and additional product offering,
increase in cashflow is expected to
outpace fleet growth.
• Longer term vision to double MSS
fleet in 5 years.
4
WFS Overview
Workforce Solutions
• Meaningful operating leverage
through idle Canadian assets with
minimal capex required upon re-
deployment.
• LNG Canada is the most near-term
catalyst. A handful of other large
energy infrastructure projects in
Canada would quickly change
supply/demand fundamentals.
• Outside of Canada, US and Australia
markets are robust.
• LodgeLink - online digital marketplace
with over 430 properties listed and
~53,000 rooms available in workforce
lodges and hotels. Offered
throughout Canada, with US
expansion underway. 5
Creating Financial Flexibility
FFO 1 and Leverage Ratio Net Debt 1 Reduction
16 4 190
14 170 176
14 3.5
Funds From Operating Activities ($millions)
12
12 150 153
Debt to Adjusted EBITDA1
3
11
Net Debt ($millions)
10
10 10 130
8 2.5
110
113
6
105
2
90
4
87
1.5
70
2
0 1 50
Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2014 2015 2016 2017 2018
Funds From Operations Debt to Adjusted EBITDA
1. See “Non-GAAP Measures” at the end of this document.
6 6
Growth Through Disciplined Capex
• 2019 capex budget of ~$35 MM (gross) funded
through operating cash flow. Net capex of $20
to $25 MM after used asset sales
• MSS: $25 to $30 MM growth capital
• Targeting 10% net fleet growth
• New capital with ~20% ROI
• Growth areas include BC, Ontario, and
Southern US
• WFS: $5 to $10 MM growth capital Primary markets for
• Fully utilized in some asset categories Growth CAPEX
• US small format accommodations
• Australian accommodations
• Australian space rentals
• Introducing new products to compliment US
accommodations
• New capital can be deployed at ~25% ROI
and some with > 1 year term contracts
• Modest capital for incremental LodgeLink
software development
7 7
Steps to Creating Value and a Better Way
• Maintain existing hurdle rates for investment while
Improve adding capital light products and services
• Sell or repurpose underutilized WFS assets
Returns • Tap into operating leverage throughout Canadian
WFS asset base
• MSS expected to see 10% annual fleet growth from
Grow organic capital investment
• Continue to grow and develop LodgeLink platform
• Expand MSS platform throughout our North American
footprint
Diversify • Investment in US and AUS business
• LodgeLink digital market expanded into US
4/15/2019 8Non-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, 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.
• Funds from Operations is calculated as the cash flow from operating activities 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 non-cash working capital
items have been excluded as such changes are financed using the operating line of Black
Diamond’s credit facilities.
• Net Debt is calculated as long-term debt excluding deferred financing costs minus cash.
4/15/2019 9 94/15/2019
THANK YOU 10
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