Black Diamond Group Limited (BDIMF) 5 Mar 212020 Q4 Earnings call transcript

Welcome to the Black Diamond's Fourth Quarter 2020 Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions] I would now like to turn the conference over to Jason Zhang, Director, Investor Relations, for opening remarks. Please go ahead.

morning. good and you Thank Thank you conference quarter results Diamond’s attending Black call. fourth XXXX for on is With Haynes; call the us today Toby and our Labrie. CFO, Trevor CEO,

Ted COO We Ridley. Mike formal be Modular today also will our COO by there question-and-answer are Space Workforce joined After Solutions, a Redmond; remarks, Solutions, and of of session.

actual today We a forward-looking cause these subject such to to caution number net that or may risks results statements make forward-looking uncertainties debt. non-GAAP EBITDA measures regarding statements from may include comments in materially that Our Black today's results. and of expectations. call Diamond's differ also adjusted to are as may Management reference

analysis non-GAAP review sections terms, For more Diamond's these measures. information risks, of the on and uncertainties, forward-looking entitled statements, MD&A and fourth please and Black quarter XXXX

unless financial call review This website company's discussed well on MD&A, release the quarter's expressed turn Haynes generally news the are quarter. can over in noted in be found to Dollar to call the statements dollars Trevor rounded. I'll on otherwise amounts today’s and now SEDAR. are as and Canadian

pandemic. I'd of Thank challenging to that Diamond you, brought and thank results. discuss our and backdrop achieved against by you start morning COVID-XX for our proud on this fourth team quarter accomplishments Jason. at I'm unique XXXX the year-end joining extremely us saying and by year a for Good to like Black the past

on our that another the shows to to dataset execute believe yet working. fourth our plan have We are and is our and results continued plan grow diversify quarter business that

by volumes support million of booking our in a record revenue in quarter Vanguard supportive to LodgeLink Opportunity tailwinds into the momentum generation our include this the rental and division, Calgary across segments. Modular, on of record large seeing and of Investment of carry room are Fund to expect We within acquisition essentially all million. quarterly funding MSS the grant grew another increase of new growth rental $X revenue the In secured the acquisition from project a record. from Highlights XXXX MSS XXXX year, quarter we've our one $XX start or contribution Included of Vanguard awards Since from that fourth million, revenue contracted month segment, Modular. XX% results WFS over our XXXX, $XX.X consecutive of fourth LodgeLink. is the which also to by in quarterly QX our is

position of quarter, the of the southeastern rate. run during targeted of X,XXX added our education high and synergies Vanguard US$XX.X closed for approximately transaction States. U.S. MSS The assets mentioned, is in acquisition our Space Systems progressing Modular Vanguard annual As million Modular approximately the to in strengthened the markets deferred company Coast million, with the for fleet exit including Building To US$XXX,XXX return receivables. integration attractive and date US$X Gulf of rental QX

to work increased are ongoing America. XXXX Diamond, seeing as us we our presence. growth through leverage our at throughout platform the to positive segments resilient put opportunities The importantly, across capital in allowing organic rates we market to return segment More remained combined all MSS remains opportunities North are experiencing within outlook of and attractive Black larger

in services, We increasing contracted year through unit rates, the and includes rental throughout expect in related rental previously steady and of revenue, wellsite rental revenues recovery, challenges XXXX, gasoline fleet utilization of business with additions It the customers have the seeing that which camp Since I organic result and products experience to as and increased continued of is year. mining to a in utilization should seeing which new $XX more ease support Australia depending in added also of terms our the project business mentioned, work. strong to we throughout ongoing value-added rates a start the services restrictions growth the U.S. capital growth troughed fourth and quarter, with assets large Eastern appears continues our and and than positive Canada. continue COVID-XX unit strong million and as into gradual put lodging contracts will Australian additional the our announced continue COVID-XX which momentum. contract, format utilization, of expect are VAPS. pace coastal WFS further returns Despite businesses on and this or has business

very with well respect positioned project. also the remain LNG to Goldboro We

solution our X,XXX with accommodation of with indigenous letter project October turnkey a remain in and and customer partners up a As the Scotia award Goldboro XXXX, Black we We of to to had workers. received LNG Nova Mi'kmaq announced key engaged for the in Diamond provide highly stakeholders.

hurdles that understand before funding be final must a made. project we can decision the clear still investment However,

representing growth remain to related approximately positioned strong quarterly night pandemic XX,XXX growth of very room bookings, U.S. continue and travel this and customer regarding platform, of the we supplier had travel bookings, believe of and marketplace restrictions including bringing the corporate pandemic that approximately nights services digital growth quarter platform At nights crew continue in indicators, industry. LodgeLink quarter positive of in had year, despite XXXX. assuming another record offering for roughly a headwinds our innovation has We the capacity the fourth the in booked travel the platform distinct XXX,XXX in first is Canada. scale related Finally, room the with LodgeLink X,XXX listed for end industry. to properties the to XXX rooms ease XXXX, is room customers. higher Key

Fund. over the technology our ground Opportunity funding the will the allow hiring During we million received efficiently that metrics Calgary five tech next being recruit up to from also hub. LodgeLink on platform had the is achieved to quarter, various announced of conditional Investment funding years. This talent The $X to Calgary

progress of optimistic show effect Canada. WFS segment, As sector industry included, full Vanguard Eastern mining grow we expect we the that ecosystem. WFS we unlocking our our to in accommodation the travel XXXX increased continue business, are diversification segment and is diversifying LodgeLink region will and as to objectives growing of by remote MSS look scaling as forward, we of Overall, and fleet existing our our leverage continues our tech and from show strategic improving operating assets to results of in

We I start. a on some further the fourth financial good over for will off Toby details turn results. now the to quarter call to are Toby?

trailing Australia, down for Thanks, Total from recently $X.X drive during same facility Canada, at of the these for million debt million, million, Trevor. quarter is awarded Vanguard's the the results Vanguard assets. Subsidy XX% of up of asset-based Total quarter. EBITDA we X% expect with adjusted increase This of adjusted costs improvement brought was for Canada customers quarter, growing quarter up approximately quarter. an EBITDA was QX be same XX% X we WFS due of XX% was revenue, X% growth combined At the comparative Emergency utilization quarter revenue million quarter. to Total XX% of the end a occupancy of back increase the Vanguard exited and U.S. value $XX.X comparative the to $XXX was which percentage was used Vanguard. eligible million quarter. administrative from up range due Adjusted month also quarter expected up to and the as of in for total capacity was We Spectrum the quarter. attributable in XX% and on and continued in administrative million primarily a $XXX This There net contribution X.X quarter. early to base ratio Excess an Western increase There's during from within from adjusted XX in one primarily infrastructure sales Canadian of company's with in Adjusted was of contribution inventory for acquisition the EBITDA increase quarter year, of company's borrowing revenue XX% rental in XXXX. an $XX from acquisition up from energy of down to and revenue with the month was XXXX. addition Net by the was to comparative bottomed point $X.X $XX.X percentage been and and assets has last down million due in within net Eastern from the year. target wellsites debt Xx The Wage of in was soft $XX of XXXX, comparative Vanguard. levels under from lodging end LodgeLink ratio in the calculate last by EBITDA XXXX. is debt was see expanded company The borrowing leverage COVID-XX of to costs, conditions believe and X.X, million as to of quarter and million were contracts WFS quarter. for is the from QX the $XX.X EBITDA in costs Solutions this personnel to Xx personnel. to to the our the compared staffing $XXX MSS focused revenue the the included on a no credit continued Workforce platform. the the including this million, rental to remain the approximately generally steady in the

Diamond to diversification operator With is to several improving efforts. to to strategy the flexibility. to markets, aim company. call its continue selling key realizing the assets, redeploying the financial or current of in we We're enhance committed managing would remains that position turn the experiencing growth that growing Black benefits prospects and in We of costs investing over long-term back the employ the business its of and strategies questions. strong and for underutilized markets like

Thank you.

The Please from question-and-answer begin now Raymond will the go ahead. comes We Instructions] Frederic question Bastien with first [Operator James. session.

hosting again. you see conference to call Nice guys. morning Good a

Thank you, Frederic.

that any you another to and it year Maybe about respect that out now it's end. you're act if with below to X planning way But by there, your right with limited down acquisition? that sheet opportunity, on balance are now talk per do X.Xx appreciate I you're position and presented if in to we forma Vanguard can another bring

after answer Thanks do back the to range facility. mentioned, is Xx Toby of of our debt to plenty as to liquidities no on for Xx, get of have, I target leverage fairly acquisition we here. the our which and It's We Vanguard. can think question, – ABL The available EBITDA that we Frederic. we do quickly under to have

today. with think giving added continue flow rental we So as all well enhanced back and to as us comfortable quite with target relatively added continue ability platform to leverage sheet quickly that's operating the is our our pre-Vanguard revenue cash comfortable that in of us results confidence And confidence maintain can down MSS point give and to our we to ratio. We're we're this the to the our of and our why bring flows Vanguard our strength growing cash at on our balance that. also absorb

Okay.

You MSS of did in you several business. arise of workforce capacity business that that the to the the take might west think are the additions has I the talk with in what demand in awards had obviously weeks. and last can several is out resides Workforce that come obviously – the great, increased the really that about scope contract up last solution, significantly to But Solutions you're potentially some within But the which grow to focus seeing you wondering the to recent and WTI going some east, Australia. prices? even explain had better increased just of on you capacity then some And expanding your been respect or years

stability in worked our It's hard to notably the thanks. been assets fleet worked markets skill to been with that us years oil over service gas big increasing MSS base, regions we've really and give the size, last And and while note slow, but broader other growing set. you really of that in will. hard if several greater has customers part sector a by of Sure, that also a has other strategy important and key

However, we have not and customers. gas our turned oil away from

be would and well certainly also Prairie, and and the in successful as assets et carrying in have service We lighting, various containment, as format liquid spare John down Texas, drill assets, our the our capacity those other West service small to Dakota have of them heating, up we're been in positioned well demands and our their Colorado, increase. cetera. other wellsites, are accommodation well St. shales terminals our Grande location North like, tankage types of been the and Saskatchewan as Estevan customers, Canadian assets solid camps with in Southern but which We in terminal. into we power, to We've using capacity key certainly positioned industrial even Fort

mining, industrial our So in gas of continue we the business, expand also a oil see and onstream. those is general some relief, commercial of our capacity then disaster get assets perfect back And in situation of we education continue and and and markets, been with operating servicing haven't maximum to a that gas. recovery infrastructure, the leverage producing for that's outside to us where oil camp growth and coming

our work So we're well excited again. we're to oil positioned for customers gas get and to and

question the What milestones be Last on this the LodgeLink. year of from me Trevor. look business Thanks, that would you'd or in sort for next two?

focused volume on certainly We're growth.

accommodation, to have crew work on and well we've much the forms or ground, compelling tools reporting experience. et We product very improving as more We and managing ways customer billing all a features have and features, travel done itself think a to lot to enhanced air for of adding a travel, of cetera. offering long related come and as the logistics improve

suite full now in a customers to for on commercial offer corporate into for parts their and of to side. various U.S. business travel. managing push our the an the adding it's Canada based Eastern So example. crew expansion to development resources looking We've in been And

record of And off volumes, setting is a about on why start. quarterly that's excited strong QX really we're booking the so, QX very growth to and another focused in

benchmarks business we've expansion, looking the a the we're ingredients. then per fairly for as been to the We've like got that it's seeing GBTA, global simple target According by little a thousand year X,XXX down moving in scale, all think upwards XXXX. and bit being over near-term, held restrictions, rough back growth. a to comes day So, and We margin sold XX% travel. seeing which consistently compounded rooms about the COVID with through

So, been and we is record have in restrictions. think those numbers achievement a would without QX meaningful COVID travel setting a higher volume

help additional or partners in do strategic bring So, you continue need expertise grow? to to to you

We're certainly looking at both.

a added board. we announced You couple of being would new directors have noticed, to our

I do.

largest those of is experience and senior years one scale-up And which knowledge businesses lot a XX around Sabre, directors tech of good on of tech of companies understanding with tech. travel has related the experience of had That with of planet. a leadership the a one travel

within an finance is and then sets there. within business, adding skill side, there as marketing the product, So, operation. on well and we're And the commercial certainly even example as the

team help continue scale. think us bring as So, we to we that next level support volumes volume, rise, the get to but the expertise to also onto to of

Great, thank you.

Securities. comes ahead. question next go The Please from Brent Watson with Cormark

line sort on just Hi, guys. that headcount Maybe sales of just and on touch see a further to questioning, the LodgeLink development. year to maybe emphasis then you'd kind within like just yourself of follow and maybe where up the on versus within of

Yes.

volumes and all as marketing service, many employees trying the real and anticipate would the rise, employees currently LodgeLink, with those finance part as commercial customer volumes customers, increase accordingly. don't of and we The growth we're through segments a over support, support LodgeLink year operations. So correlate we're driver to for in By and segment headcount we're customer balancing acquisition how is staffing the XX seeing in as in platform on that from of just disclose customer to business, LodgeLink. booking well act what the each product, the the sales, our then but dedicated we

on at Or infrastructure forthcoming this kind bottlenecks any side? see you it do quite is scalable And of the point?

that platform the terms features that. robust adjacent will we iterate has can be But of the fantastic we're in foresee every to of gives can includes we far capacity job that I and deliver revenue some as to think next are which that product XXXX continue building of done base. explore we've launched We us to the to product. the will, for core you as years, team in a opportunities the and plenty adding time in give we've as terms but really have the to firepower, great think itself, us growth. to on at the team few in top, a in a that product core today, who day what offerings got anything software the platform through we'll significant over focused got at handle There if and of products core other type volume transaction over we that

as near-term see don't we So that a constraint.

Okay, great. back I'll turn it over.

Brent. Thanks,

[Operator The with Instructions] next Please BMO go question from Gibson John Capital comes Markets. ahead.

morning all. Good Thanks.

due which the Is seen. or – Just as this Vanguard is looking other mostly well? to utilization at XX%, to driving are other that I've your there increased things MSS it highest

comment. lot contributing to ask Well, Redmond there of factors there. a I'll Ted are

You could, Ted.

our board. business. business. it the in in Yes, our and business Canadian pretty across U.S. sure. seen We've MSS seen increases MSS Pacific our We've Eastern It's utilization MSS in

was utilization right Vanguard that So range. in same

contribution I – much a So board. they across the contributed, definitely say it's would but pretty

think I of had in regions increases our all utilization significant XXXX.

for Okay, room great. the particularly, in the specifically? further improvement, side Do maybe you see on U.S. energy

MSS not don't We're getting utilization, utilization hit where but are we XX% opportunities to lot expect the – related rental close start point growth, much rate rentals. Well, a increases. we there really to to does have energy the of for as

So organic the to would rate looking count continued increases be and do fleet grow growth. XXXX, for through unit rental we

So revenue. increased both will to those contribute rental of

great. Okay,

FID terms know the project provided just turning release comments this I wondering XXXX. the some in I'm to morning Goldboro, update the been in just here any positive towards you've forward if it moving in as Just there's of well. in on the

path with engaged et where Pieridae that we're We'd we and defer proponent the putting anything with and details this can there's detail cetera, but et working Ridley, Pieridae they're financing, through that terms of and tell project indicates working that to of when of the would us resources substance with have and ready the part other design, to you Bechtel this on you very in stakeholders, add folks, to Mike terms We're project there? question not at cetera. which for be FID to project to in engineering comes. to

No, that with and saying project a We're their the team project through that Mi'kmaq of working it to first to have these I a partnership what know in mostly to it projects And is of keep project. sometimes nation team. The on on daily add what to them. just aspects day Trevor all working with on as our working the details well and you basis think their license have it. working FID, covered though, beyond itself with of day they're own a technical big with the basis of we're designs daily means to a as you their terms getting but very closely a positive we on – through a

Okay, for it all great. back. I'll me. That's turn

Thanks, John.

The a Greg from next comes Private Investor. question ahead. go Bennett, Please

Good I appreciate morning. Thank for you call. the it.

for track you've rate that as revenue? earning capital WFS, the as now, a much far tied-up that there utilization how trending is any With right or a not to that's

utilization Yes. see, In has utilization been year the and the the MD&A improving two. do over last you'll or provide we

year collapse of our customers. the past following our setbacks very business our fairly onset the U.S. pandemic in One for sharp prior. the the which Colorado in Texas was been in oil with But activity saw a WFS prices for with had we three the of decline primarily years this wellsite operates West and business, stable

this see point. in so starting We're And recover, fairly slow utilization to drop activity there. XX% about it's but caused to been that

mining fleet, cash camp whole had in to well us, for and is get as is good the generate format had has for business opportunity for to continue excess industry quality to Canada again. which Large not speaking that positioned, due well the flow We're activity So capacity we've reabsorbed in seeing has broadly gas slowdown in oil positioned really pretty ours, accommodation, well. for projects in large been and that remote absorbing Canada. capacity cetera. just more level ourselves et the good but a And Western

the So quite non-producing WFS platform that asset at not utilized in that XX% on capital XX around positive we're is and think negative; and our there base, we're range. I still

as to work still cash so is of speaking, expend our to And we flow business around that's the we to get continue seeing workforce we opportunity see to flow against to certainly get business those those as downside assets ideal and can add we The We course, so to but additional but the needing don't capital us we're performance. bring generally and the things cash constructive assets, have trend on there's consolidated have that currently. capacity. work. gives assets

you If a need final that or for is capital, invest there idle a assets have can Goldboro, investment need decision utilized? that be reached you do is for capital to

owner to value one concept to and concept to them, the substantial use be able in propositions of workthrough and the that's to Well if – to the were was existing relocate project we the assets the but able project. bring

existing it exercise would so And taking be assets. an of

for et reconfiguration them cetera, bringing of them assemble amount to on. and Some codes and then

to So not Mike, should a the our system, with? referred that? bit anything renovation for a of capital buildings in you to have I efficient capital do from begin you to may that and a want few have little we to fairly a perspective. but add

the No, this that's to and Trevor, project our full assets will utilize available. scale project. minimal magnitude the And covered, ready part think is, you it about and them to in our intention best and relation assets for what require of this, the the the that's have make and existing we capital it's I fine.

a expect decide would for generator that to be XXXX they ahead? flow this If to June, year? Would go in you cash

Mike, do color? you want give to some

at were of would June end the they see July a in half early we in, revenue expect see the of to see If for some – back to to or some sure the positive we FID would year. Yes. expect

that or competitive first threat seems a me into Okay. any is – have other to like companies That's there? market, it you a mover advantage, In are great. LodgeLink but seeing competitive threat any you coming there

could crews, camp logistics. we point business of could business the there association time? some solve global billion global some this about mean, add $XXX business quick But some to existed travel movement basis and a our from the crew for we that out approach travel pre-pandemic inefficiencies has quite the felt rule-based to the that travel Well, of rule-based association, market of were was we I understanding travel complexities identified based if on the value market. our

there services in and or customers be travel various the business in working and traditional digital space, continued and a that regard. booking were platform so travel services We're that focused to providing companies on And were the approach. agencies, using for bringing element

crew perspective So other a will, being you on travel, are problems market think platform unique the a where that travel, of opportunity there to from on we that the are software individual traveler. around dedicated companies there entirely to crew but view. we providers holistic is are travel if that in out traditional focused and the business some elements approach more and is working traditional to some the solving of our leisure the service We bringing see that have travel some

people a U.S. can't there's your your Okay. of on laws U.S. group final may investors that States not markets your registration, the over because blue United that state business, but be that half or it's sky purchase stock whole for police are of, may aware of guide? MSS businesses I are with in in investors U.S. the now have that question, you not there's one or which you aware

where give of We we're if are you aware of color bit that. at. a on to want Toby,

certainly point this restricted in to this summarized at revenue And investors; at the larger Simply retail time. And situation U.S. under in a our not consideration issuer but and that and point, the foresee the we put, asset file is something near-term U.S. aware point our we in but to we're time it's as that, continue to the of an don't SEC your in in in for very become to change as or rules the U.S. we we're scale. base. you or the accurately in we as don't terms to continue

reason Is pursue any to wanting that? for there not

Yes.

us I view. today is have think complexity point and the cost held back things just a from that of

hasn't but look Trevor yet. so we to it just continue it, For us, top as – and surfaced mentioned we a as at priority

Okay. Thanks. the Thanks job. Appreciate it. for great

Thank you. questions. Thanks the for

from Capital. Please Trevor The ahead. next question Acumen comes with Reynolds go

color Just us little concentration guys, a large you'd wondering customer Hey the link? on if bit give of in

but is We the the on increase customers larger booking certainly to actively are good some couple great or news have continued wind industries, of has farms, we're –therefore do companies seeing platform the power E&P customers multiple transportation of Trevor. increasingly Thanks, in our decreases ours. tourists companies number the project-based different customer of Well line that A service concentration. which companies, customers fracking of U.S. companies. a few in maintenance, are

points that So we spend, sure of base we're we're towards and Toby, the wide are a concentration? certainly – on regards Data XXX% increasing of got working really we've winning share customer hard and all getting making by their not additional day bookings their to you working Well, customers slowly goal. if and And of if have any

different I been diversification of seeing would have it's other Trevor – a is – lot markets. added thing we've has add Well, our of been customer added increasing the into I increasing that only there, steadily in geographies and guess base supply

all of that have certain and although a gives or with good with lot platform And so as customers concentration some value in their but on some nearly us all news the Trevor put of the story cases. seen mentioned, us key volume

However we customers do of see and growing that. the base see we corporate

off that So think continues over we time. to level

Canada U.S. rough versus have Okay. bookings? Great. of Do breakdown you a

U.S. growing has sort split. a representing, XX% there but of side of would still below been think The rough be total Toby bookings. I it's

U.S. Canada. put would bookings larger growing day-by-day, certainly market but quickly, XX% the significantly changes terms is it's of it generally course say Of total size U.S. in I than for travel group-based

and and marketing more putting resources we're towards market. so sales more And U.S.

even as will as well. that to grow continue So grow that we anticipate Canadian the volumes

Perfect.

that at? Goldberg – would where your that Assuming where put goes does ahead, utilization

camp in a in Keep we great large camps question. would as fleet would a we mind deployed, The these utilization. large are ramps substantial manpower. That's up that in go jump Canada, way in its the project format phases see the

we it day fleet on up certainly could XX% absorption the one, once currently XX% assets deployed. going conservative of are utilization at, fully existing our happen but certainly higher or XX% those So to be all to that from we're see wouldn't

way Ridley? I directionally well. you the as be Mike think that'd see it would

Yes.

double For say, we're at. sure, we'll to let's where be certainly [indiscernible]

Australia are guys plan basically happy Are just cash equip there. grow you fleet? there? side, after you recent there? the looking On Are you the that fully that utilized What's to contract guys the

essentially we're the cash fully substantially gradually We yes, but utilized be Australia once Australia. been in generally workforce give been the more or very of there? fleet have some we've to total marketplace. that And can color terms work fully the we fleet on generating constructive growing deploy if putting And it's win. speaking in recent utilized the we're than would But Mike utilization, contract you

Yes.

In workforce, sure. Australia, Sydney in in and under the MSS extremely business Australia, that's strong falls For and an a big Brisbane in we in that been focus are education have area. on also

– So as we win when well market, going space rentals workforce as for see projects at we continued growth fleet. as in forward. strategically itself add a will And will that then opportunities capital present the

me. for Thanks. all That's Perfect.

Trevor. Thanks,

with Please comes question Jeff next Fetterly Peters go ahead. & Co. from The

fit component follow-ons; broadly, Good some referenced the utilization, in terms of WFS morning, today? but guys. where A couple private of XX% washroom of you would the that fleet, quick I know

you to take It's do out? a want one good that question. Mike,

pre – the very Yes. in part not diversifying with Trevor with as off good far the in the in a of It's terms of is to Jeff. we thing of I'm here. pleased job the, enough done talk Surprisingly presentation probably we've really one

those Jill same seeing at government in mining those wash and the that the & lot format dorms. of relief at bundles Jill and cars sectors. construction, disaster in seeing of we're format We're activity Jack in taken the or time So Jack & a

private seeing doors format and on we're seeing coastal results as we're, being gas where out clearly are link the project. pleasantly our format, trans Jill are norms. we're we're it's taken the active Jack that, the XX% with the you we is and know, balanced, format our So surprised mountain & we that of with And

that washroom forward, Goldboro be. going is be would of private sort And a configuration to moves exclusively

a it’s there them private – be Yes, and XX% some format, some yes, that format. would Jeff, be private would to get it it format, existing – refurb into it’s would be but assets on primarily

million, Okay. you The on of do capital today? that program sight at have of line how the much $XX

into is Purposefully flows been the the understanding Diamond for that Black MD&A. very on system, from world focused capital QX, fairly and in demand in late which we strong. is as cash platform show CapEx bringing our Vanguard the and We’ve

platform. capital seeing We’re the Vanguard deployment opportunities from good

So we will gradually accelerate us.

We’re comfortable working that to below and X our that X debt-to-EBITDA. progressing of and being we’re is are, cash with to debt our where that levels target

our $XX hurdles. So be be that able we to absorb million have or so year above able through at that the we’ll we’ll do to return confidence and the

been have specific. prioritizing project We

utilization into sector MSS So capital that. utilization the get in project and we through And will and long-term the whether really working, we or $XX demand cash often new for some seeing market to pipelines, additions. really is then footprint. the we’re return specific healthy leases, expand really as versus million on, our in in our bidding general demand or high exactly got Ted fleet like would depending rentals. how earlier, that’s flow Ontario we’ve we at QX very education that see good tight for metrics where good market Columbia looking consider British our what is specifically we’re a industrial And as mentioned And more our

that’s generally it. approaching how we’re So

sell various make then steady seeing of see a we’re acquire activity mining time sense reasons we Canada We’re those to the our we for And of they projects business. of a in also more of as certain to around MSS some longer also on watching dispositions manpower where in of have in and increasing assets. normal types period assets customers the mining course, do assets for

that the where sit And at CapEx up net of that free we we is on well, so our as we some capital gross. estimate look opportunity there’s year for $XX can as the which in of million

So exactly If that’s we question, answers but our got situation at positive this looking in that think how CapEx regard. your at in we’ve point a that time. we’re

the to of waiting second safe It’s the year. a say half million be to heavy going $XX for there’s to the

at middle over last several the you tends because the the BC most whether in even the even Greater certainly Toronto or of in we weaker, everywhere if Mainland and years. our a starts of in ground, that’s QX coming Canada. into construction to Lower in Area out markets To of correspond as get flaws the usually the the trend MSS look QX business, Canadian be year, else the our or similar with trend

assets the year. to of to new of not at ground tend we a So the end lot want put on the

constructive just So business you on this will bit see and the see relates the Ted Jeff And us for it a CapEx. how this profile more as a in to time. our on at maybe to QX capital logs expenditure more bid our color are looking pipeline is touch we year point on MSS what

a year to of grow see acquisition we our we time this year and last than backlog for better course teams of sales grow reach significantly our Yes, and of Vanguard. geographic the Sure. good as continued

have specific We require specific focusing said, for opportunities customer deploying where Again awards CapEx. on, that bids customers we capital. of we’re or as lots have Trevor to

the and term assets we more on the available. of bid. of first contract typically know again they going the The we would and So for the project four to that have to more ready go into as We sign returns get we’re the years rent those get customers the have contract and to fleet get a specific purchases, that to part a the exactly priority. on latter prioritizing do customer year the limited actual are capital two

months. changes input especially inflation seeing last side, over costs the building of terms we’ve How with seen much you cost are the the of now all few MSS right units, on in that

moderate increases. We – year, we’ve price last over the seen

price increases metal in are pricing. getting we’ve or also two our increases and We lumber vendors. seen last from the Especially month

our impacted that pricing. So

is XX-day so we’re so we’re pricing our same period. from with validity, the big what that doing with for [ph] we short-term, that quotes of doing and lot – locked factory a XX/XX get our So in like

So we’re not taking any risk.

We figuring current also asset. use out the on when pricing an we’re return

of the we’re price We rate the we’re is. customer. the know know what from getting what kind we So

risk in kind roughly increases definitely – of we’re lot seeing price we’re units. don’t modular range of that, for a but from we not So seeing the X% XX% to

you’re through you net rate improvement? input the increases saying? it Or rate referenced Are the offsetting you’ve that largely the – inflation pricing seeing And is cost the rental call.

last the we’ve we – would new that would at have I over probably least seen years, think the in Certainly, I and expect higher improvement. assets pricing two only the again stay price. net it’s that steady

So at XX% the are growing majority are the organically of that cost. vast assets our the our historical our fleet of say other during X% year, assets

And we increases. so drives the increases get on margin those price

assets our staying steady least with the hurdles new the we’re and meeting return increases price margin our on at on new definitely So overall driving and increases assets.

year $XX Last CapEx on question, would spend be than the is a this the comfortable scenario see just there to organically? side, more or million where you opportunity

Well, have there platform of one of scenarios the are demand. benefits CapEx type fixed don’t is, this a of we and

Our maintenance run rate. of about X% typically rental is our capital

with we the the And CapEx of opportunity so look across mean driven. bulk $XX specific have driven And that to do And we not opportunity when you’re price at literally hundreds or I the of really that at works. how determine looking funded opportunities individual million different our specific requirements. is customers way contracting and look because whether the our and we that of platform, can by and

have et for also a use flexibility cetera. we financing where our customers, third-party can We

not take choose still you customer, the book we can the our will. on we our if specifically, to with volume put even if asset So

our at opportunity our we on capital on then financial and the in capacity. returns focus So focus looking at marketplace, the look our capacity, addressing market share,

contract is or And of length comfortable for CapEx a be accelerating strong in program would cash would debt return an really with good take driven level flow a counterparty our it and decision we basis where on the with the the rates be is then so sure really we’re at a strong, where if could and attractive be of business working term. platform. debt opportunity for our to objectives where the on we of And levels context that how with we want the

here. the the that decision into there good onto we’re robust got think we’ve and still do deal immediately a maybe I take optionality Jeff, platform. we’ve business, assets So of very answer but methodology using got there not a the even database necessarily is flexibility, our And

the for it. Thanks Appreciate color.

you, Jeff. Thank

over back to the This like Haynes, for concludes conference the turn the question-and-answer Trevor I closing session. to any would CEO remarks.

for time to you your and and operator. QX after out today you, in in our course, format early We Thank we’re Black Diamond. a reach forward always want May. Thank of look Thank directly. in this release And day. again available to should you, have updating everybody great you, interest you

call. conference today’s concludes This

for your you lines. participating have pleasant and Thank may a You disconnect day.