Black Diamond Income Fund
TSX : BDI.UN

Black Diamond Income Fund

January 23, 2008 07:00 ET

Black Diamond Income Fund Reports Operational Data for the Year Ended December 31, 2007

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2008) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Black Diamond Income Fund ("Black Diamond" or the "Fund") (TSX:BDI.UN) is pleased to announce the following operational data as at and for the year ended December 31, 2007.

Unit count: Black Diamond ended 2007 with 1,464 rental units in its fleet. This is a 60% increase over the 917 units held at December 31, 2006. Workforce accommodation unit count increased 38% to a total of 681 units in the fleet while the space rentals fleet increased by 85% to a total of 783 units.

Utilization: Fleet utilization for the fourth quarter was a consolidated 80%. The workforce accommodation fleet worked at a 77% utilized rate for the three month period ended December 31, 2007 while the space rental fleet operated at an 81% rate for the period. The yearly utilization rates for the workforce accommodation and space rental fleets were 82% and 85% respectively.

Capital expenditures: Black Diamond completed 2007 having expended $33.6 million on capital assets. 60% or $20 million of the expenditures were spent on adding workforce accommodation units to the fleet. 38% or $13 million was spent on the acquisition of space rental assets. The remainder was spent on non-fleet asset additions.

Black Diamond reiterates the approved capital expenditure program for 2008 of an additional $36 million. Currently, Black Diamond has outstanding commitments for fleet deliveries through the first quarter of 2008 of approximately $8.75 million. The uncommitted portion of the approved capital program for 2008 will be expended with the same diligence as in prior years where fleet assets are purchased as the Fund receives commitments for longer term rental arrangements or is reasonably assured that additional fleet units will enjoy high absorption into the market. If the entire approved capital program is undertaken in 2008, it is anticipated that the consolidated fleet would increase by approximately 34%. The workforce accommodation fleet would increase by 16% while the space rental fleet would increase by 48%. The Fund anticipates the above noted growth capital expenditures can be funded from cash flow remaining after the payout of distributions and credit facilities available to the Fund.

About Black Diamond Income Fund

The Fund is an unincorporated open ended investment trust governed by the laws of the Province of Alberta. The principal undertaking of the Fund, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular, and Black Diamond Site Services.

Forward-Looking Statements

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements. For more information please contact Black Diamond Income Fund, by its Manager, Black Diamond Group Inc.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Black Diamond Income Fund, by its Manager,
    Black Diamond Group Inc.
    Trevor Haynes, President and Chief Executive Officer
    (403) 206-4737
    (403) 264-9281 (FAX)
    or
    Black Diamond Income Fund, by its Manager,
    Black Diamond Group Inc.
    Michael Burnyeat, Vice President and Chief Financial Officer
    (403) 206-4740
    (403) 264-9281 (FAX)