CALGARY, AB--(Marketwired - December 16, 2016) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX: BDI), a leading provider of workforce accommodation and modular workspace solutions, today announced securing a contract for revenue to the Company of $17.5 million. This contract with an oilsands operator south of Fort McMurray includes the installation and sale of a 328 bed camp in addition to an amendment to an existing contract with this customer that was announced August 5, 2015 and was due to expire in Q3 2017. The current contract includes certain proceeds for the early termination of the August 5, 2015 contract to be recognized in Q4 2016, as well as the installation and sale of the new 328 bed camp, which will take place and be recognized in Q1 2017. The contribution to the current quarter is expected to result in Q4 2016 Adjusted EBITDA at the high end of the previously provided guidance range of $8-12 million. Approximately 85% of the total cash proceeds from this contract will be collected in December 2016, with the remainder to be collected in Q1 2017 upon completion of the installation.
As a result of this contract and other ongoing business activity, Black Diamond anticipates that it will continue to be fully compliant with its bank covenants.
This contract demonstrates Black Diamond's ability to create value for our customers and monetize some of our underutilized assets. Management believes this is an example of how the increased field level activity continues to drive demand for remote labour accommodation in Western Canada, and also demonstrates the underlying value of our well maintained fleet.
Certain information in this news release contains forward-looking statements including management's assessment of Black Diamond's future operations, business prospects and opportunities and management's future expectations regarding the financial performance of the Company and its business units. With respect to the forward-looking statements contained in this news release, Black Diamond has made assumptions, regarding among other things: future commodity prices, that Black Diamond will continue to conduct its operations 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 news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward- looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, 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 and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not 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 and other reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondgroup.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
In this news release, the term Adjusted EBITDA has been referenced. Readers are cautioned that this measure is not defined under International Financial Reporting Standards ("IFRS"). Readers are cautioned that 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. Non-GAAP measures should only be used in conjunction with the consolidated financial statements of the Company.
About Black Diamond
Black Diamond Group provides workforce accommodation, modular buildings, energy services, and full turnkey lodging and major project solutions including planning and management, logistics, and catering to customers in Canada, the United States and Australia. We serve diverse sectors including oil and gas, mining, power, construction, engineering, military, government, and education.
Black Diamond has four core business units: Black Diamond Camps & Lodging, BOXX Modular, Black Diamond Energy Services, and Black Diamond International. Learn more at: www.blackdiamondgroup.com.
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