Black Diamond Group Limited Provides Operational Update

CALGARY, ALBERTA--(Marketwired - Dec. 18, 2014) - With continued weakness in some subsectors of the Canadian energy and resource accommodations market, Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI) is updating its earnings outlook for both Q4 2014 and full year 2015 while concurrently re-affirming its current dividend, given the strength of its balance sheet and strong cashflow.

The Company anticipates that EBITDA in Q4 2014 will be approximately 20 to 25 per cent lower than the $38 million in Q4 2013. This decrease is due to the Company's Canadian Structures and Energy Services business units and its Australian operations. The workforce accommodation segment of the Company's Structures business unit currently anticipates lower than projected utilization in the quarter, however going forward this will be partially mitigated by the recently announced $27 million in new camp contracts utilizing existing fleet, and the completion of phase one of the previously announced 1,244 bed Dawson Creek project which will have first revenue early in Q1 2015. With these new contracts, the Company anticipates that EBITDA in Q1 2015 will be moderately ahead of that in Q4 2014.

In terms of the Company's 2015 outlook for earnings, based upon current baseline run-rate, contracts in place, anticipated contract renewals and without considering additional capital expenditures beyond firm committed or meaningful new contracts, expectations are for EBITDA to be slightly below 2014 as a whole. However, with the strength of the Company's balance sheet and capital discipline, cost-awareness, ongoing cashflow from operations, and healthy sales pipeline, and given a history of maintaining and increasing its dividend, the Company has confidence that a monthly dividend of $0.08 per share per month is sustainable.

At this time the Company is maintaining its 2015 capital expenditure guidance of $85 million, of which $35 million is firm committed. The balance will be expended in a generally non-speculative manner should opportunities arise that meet the Company's investment criteria.

"Despite broad concerns around potential project delays, and activity related to risks surrounding commodity prices, Management believes the Company is well-positioned to effectively capitalize on, and manage through, periods of softer market demand, given the Company's strong balance sheet, stable and diversified assets and operating base, and recurring cash flow," said Trevor Haynes, President and Chief Executive Officer.