Core Points - Black Diamond Group Limited has successfully completed the acquisition of Royal Camp Services Ltd for approximately $165.8 million, consisting of $150 million in cash and 1,377,911 common shares valued at $12.08 each [2][3] - The acquisition aligns with Black Diamond's long-term growth strategies and is expected to be highly accretive, with an anticipated Adjusted EBITDA for Royal between $31 million and $41 million over three years, excluding synergies [3] - Following the acquisition, Black Diamond will have nearly 12,000 rooms of capacity across Canada, enhancing its position as a premier integrated workforce accommodations and catering business [3] Company Overview - Black Diamond is a specialty rentals and industrial services company with two operating business units: Modular Space Solutions (MSS) and Workforce Solutions (WFS), operating in Canada, the United States, and Australia [4] - MSS operates through brands like BOXX Modular and CLM, providing a large rental fleet of modular buildings to various sectors including construction and government [5] - WFS offers a rental fleet of modular accommodation assets and includes LodgeLink, a digital marketplace for crew accommodation and logistics [6][7] Royal Camp Overview - Royal Camp has been a leading provider of remote accommodation and catering solutions in Western Canada since 1991, known for its modern structures and world-class catering [8] - The company operates Summit Camps, which provides integrated camp services in remote regions, primarily in British Columbia and the Yukon Territory [8] - Royal Camp has a long-standing partnership with Primco Dene, operating numerous camps in the Cold Lake and Christina Lake areas [9][10]

Core Insights - Black Diamond Group Limited reported strong financial results for the second quarter of 2025, with total revenue of CAD 105.4 million, a 10% increase from CAD 95.5 million in the same quarter of 2024 [12][13] - The company achieved a profit of CAD 9.2 million, representing a 23% increase from CAD 7.5 million in the comparative quarter [5][14] - Adjusted EBITDA for the quarter was CAD 29.2 million, up 5% from CAD 27.9 million in the previous year [5][12] Financial Performance - Consolidated rental revenue reached CAD 38.6 million, a 9% increase from the comparative quarter [5] - Basic earnings per share rose to CAD 0.15, a 25% increase from CAD 0.12 in the same quarter of 2024 [14] - Capital expenditures for the quarter were CAD 32.5 million, down from CAD 53.5 million in the comparative quarter [5][12] Business Segments - Modular Space Solutions (MSS) generated record rental revenue of CAD 26.4 million, up 19% from CAD 22.2 million in the comparative quarter, driven by higher average monthly rental rates [4][5] - Workforce Solutions (WFS) revenue increased by 6% to CAD 46.7 million, with a notable 32% rise in lodge services revenue [6][5] - LodgeLink reported total room nights sold of 135,815, a 5% increase, contributing to gross bookings of CAD 25.7 million, also up 5% from the previous year [7][5] Future Outlook - The company anticipates stable performance for the remainder of 2025, with expected growth opportunities in 2026 and beyond [3] - Future contracted rental revenue stood at CAD 152.6 million, a 9% increase from the comparative quarter [3][5] - Management remains optimistic about growth opportunities linked to infrastructure projects in Canada, which are expected to enhance utilization and rental rates [6][10] Capital Structure - Net debt as of June 30, 2025, was CAD 232.0 million, a 4% increase from December 31, 2024, with a net debt to trailing twelve months (TTM) adjusted leverage EBITDA ratio of 1.9x, below the target range of 2.0x to 3.0x [5][8] - The company completed a public offering of common shares, raising gross proceeds of CAD 42.4 million, enhancing liquidity to CAD 192.9 million [5][8] Strategic Initiatives - The company is focused on organic and inorganic growth opportunities, supported by its diversified rental platform [8][9] - A tuck-in acquisition of Spencer Group of Companies was completed, aimed at accelerating growth in the corporate travel management market [7]