Black Diamond Reports Third Quarter 2020 Results - Seite 2

The Company's WFS business unit generated Adjusted EBITDA of $4.5 million, a 26% decrease versus the Comparative Quarter.  WFS revenue of $17.3 million was down 27% from the Comparative Quarter primarily due to lower occupancy and utilization in the Company’s Lodging and Energy Services businesses respectively.  Australian operations remained strong, with revenue up 6% from the Comparative Quarter, providing a modest offset to the decrease in consolidated revenue. 

On January 15, 2020 Black Diamond announced TSX approval of a Normal Course Issuer Bid ("NCIB").  Over a 12-month period, the Company may, in the normal course, purchase up to 4,180,249 Common Shares (10% of the public float of common shares) in the capital of the Company ("Common Shares"). Since the implementation of the NCIB, the Company has purchased 328,600 shares at an average price of $1.26.

At the end of the Quarter, Net Debt of $111.3 million was up modestly from $108.9 million in Q2 2020.  

Outlook

Throughout the first three quarters of 2020, consolidated EBITDA has been essentially flat and has been muted by ongoing macro-economic factors including the COVID-19 pandemic and consistently weak activity levels in certain of the Company's WFS business lines.  However, Black Diamond has continued to grow its recurring rental-revenue stream, particularly in the MSS business, and is encouraged both by the relative health of this business unit throughout the pandemic as well as its future growth prospects.  The WFS segment, despite a challenged market in certain sectors has continued to hold in reasonably well and continues to present meaningful operating leverage through one of the largest mobile workforce accommodation fleets in North America.  The Company is pleased with the MSS fleet and rental revenue growth over the past year. Having invested close to $31 million over the first nine months of the year, the Company expects sequentially lower capital investment in Q4 2020, as the 2020 $35 million capital budget remains unchanged.  The Company remains focused on maximizing free cash flow while executing on its long-term strategic growth plans.