Earnings release
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Black Diamond Reports Robust First Quarter 2025 Results and Declares Dividend Calgary, Alberta, May 1, 2025 - Black Diamond Group Limited ("Black Diamond", the "Company" or "we"), (TSX:BDI, OTCQX:BDIMF), a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three months ended March 31, 2025 (the "Quarter") compared with the three months ended March 31, 2024 (the "Comparative Quarter"). All financial figures are expressed in Canadian dollars. Key Highlights from the Quarter • Profit for the Quarter of $5.8 million increased 287% from the Comparative Quarter. Basic earnings per share of $0.10 increased 400% from the Comparative Quarter. • Consolidated rental revenue of $37.8 million increased 8% from the Comparative Quarter. The Company's consolidated contracted future rental revenue at the end of the Quarter was $161.6 million, up $24.5 million or 18% from the end of the Comparative Quarter. • Consolidated Adjusted EBITDA1 of $26.5 million was up 37% from the Comparative Quarter. • Return on Assets 1 of 17.4% improved 310 basis points from the Comparative Quarter and represents an attractive return profile given the long-life and low maintenance characteristics of the Company’s rental assets. • Modular Space Solutions ("MSS") rental revenue of $25.5 million was a first quarter record and increased 19% from $21.5 million in the Comparative Quarter, due to increased average monthly rental rates and increased units for rent. Sales revenue of $11.5 million and non-rental revenue of $12.3 million increased 77% and 37%, respectively. Average monthly rental rate per unit increased 11% from the Comparative Quarter. • MSS value-added products and services revenue for the Quarter of $2.0 million was up 18% from the Comparative Quarter. • Workforce Solutions ("WFS") revenu e of $52.9 million increased 45% from the Comparative Quarter. The increase was driven by higher sales, lodge services and non-rental revenue that increased 153%, 73% and 53%, respectively. • LodgeLink total room nights sold increased 7%. Net revenue of $2.7 million increased 4% from the Comparative Quarter. • Funds from Operations 1 of $26.5 million and Free Cashflow 1 of $16.9 million were up 37% and 80%, respectively, from the Comparative Quarter. • Total capital expenditures were $17.2 million for the Quarter, including maintenance capital of $1.7 million. Total capital commitments at the end of the Quarter of $47.9 million were 22% greater than the Comparative Quarter, with the majority of growth capital being allocated to contracted project specific fleet units. • During the Quarter, the secured asset-based revolving credit facility was upsized by $100 million to $425 million , the term has been extended to February 2030, and terms were amended to provide advance rates against certain previously excluded categories of the Company's assets. 1
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• Long-term debt and Net Debt 1 at the end of the Quarter both decreased 3% since December 31, 2024 to $229.3 million and $217.8 million , respectively. Net Debt to trailing twelve months ("TTM") Adjusted Leverage EBITDA 1 of 1.8x remains below the Company's target range of 2.0x to 3.0x while available liquidity was $207.1 million at the end of the Quarter. • The Company repurchased an aggregate of 304,300 common shares for approximately $2.8 million for cancellation as part of the Company’s normal course issuer bid (“NCIB”). • Subsequent to the end of the Quarter, the Company declared a second quarter dividend of $0.035 payable on or about July 15, 2025 to shareholders of record on June 30, 2025. 2
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Outlook In the Quarter, the MSS segment generated a first quarter record, posting rental revenue of $25.5 million, up 19% fro m the Comparative Quarter, propelled by higher average monthly rental rates and ongoing organic and tactical inorganic fleet investment . With strong demand in key operating areas, MSS utilization remains at healthy levels across the platform . MSS contracted future rental revenue continues to rise and ended the Quarter at $122.5 million, up 20% or $20.0 million from the Comparative Quarter. With a solid foundation of contracted backlog, strong momentum and embedded average monthly rental rate growth through normal course contract renewals, management sees a clear runway for ongoing growth and value creation in the MSS segment into 2025 and beyond. WFS revenue and Adjusted EBITDA 1 rose 45% and 17%, respectively, driven by improved sales, lodge services and non-rental revenue which improved 153%, 73% and 53%, respectively, from the Comparative Quarter. WFS Adjusted EBITDA 1 of $12.8 million translated to a 36% Return on Assets 1 in the Quarter. WFS revenue in all geographic regions was higher from the Comparative Quarter and management expects sequential improvement in WFS rental revenue driven by the start-up of rental contracts in connection with WFS fleet assets that were mobilized and installed during the Quarter. LodgeLink room nights sold of 123,570 marked a 7% increase from the Comparative Quarter. Gross Bookings1 was flat at $21.5 million , while a 50 basis points improvement in Net Revenue Margin 1 of 12.6% drove LodgeLink net revenue up 4% to $2.7 million. The Company has accelerated its investment in product development to support LodgeLink’s ongoing growth while further refining and differentiating the platform’s value proposition in the workforce travel ecosystem. The Enterprise Resource Planning (“ERP") upgrade project, designed to enhance operational efficiency and support the long-term growth of Black Diamond, remains on track and on budget at this time, with $3.0 million invested and approximately $8.9 million remaining from the initial budget on the current phase of the implementation for both MSS and Corporate and Other segments. Go-live for this phase is expected in the first half of 2026. Management remains confident that the Company’s diversified rental platform can continue to compound shareholder returns in the face of macro-economic uncertainty. As Black Diamond operates locally within its geographic regions, and does not typically move assets across borders, management does not expect any first-order tariff and trade-war related measures to have a material effect on the Company nor have there been any material effects on the Company to date. The Company continues to monitor the effects of tariffs on the macro-economic environment that may impact the Company's customers. The business continues to generate healthy levels of Free Cashflow 1 supported by $161.6 million of consolidated contracted future rental revenue at the end of the Quarter, up 18% from the end of the Comparative Quarter. Tailwinds in the form of increasing average rental rates, stable demand from larger construction projects and education verticals, and opportunities to enhance WFS utilization are expected to drive continued rental revenue growth. The Company continues to reinvest in organic growth initiatives through an active pipeline, but will maintain its disciplined approach to capital investment decisions whereby most of the growth capital is backed by long-term take or pay contracts. During the Quarter, Black Diamond also returned approximately $2.8 million to shareholders through NCIB purchases and paid over $2.1 million in dividends to shareholders. Funding ongoing organic and inorganic growth, while simultaneously repurchasing shares and paying a dividend is evidence of Black Diamond’s Free Cashflow 1 generating ability. 1Adjusted EBITDA, Funds from Operations, Free Cashflow, Net Debt and Gross Bookings are non-GAAP financial measures. Return on Assets, Net Debt to TTM Adjusted Leverage EBITDA and Net Revenue Margin are non-GAAP ratios. Refer to the "Non- GAAP Financial Measures" section of this news release for more information on each non-GAAP financial measure and ratio. 3
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First Quarter 2025 Financial Highlights Three months ended March 31, ($ millions, except as noted) 2025 2024 Change Financial Highlights $ $ % Total revenue 102.2 73.6 39% Gross profit 44.3 35.8 24% Administrative expenses 19.4 16.9 15% Adjusted EBITDA(1) 26.5 19.4 37% Adjusted EBIT(1) 14.1 8.7 62% Funds from Operations(1) 26.5 19.4 37% Per share ($) 0.43 0.32 34% Profit before income taxes 7.5 2.3 226% Profit 5.8 1.5 287% Earnings per share - Basic ($) 0.10 0.02 400% Earnings per share - Diluted ($) 0.09 0.02 350% Capital expenditures 17.2 17.3 (1)% Property and equipment 581.9 517.8 12% Total assets 753.3 661.9 14% Long-term debt 229.3 199.8 15% Cash and cash equivalents 12.7 12.2 4% Return on Assets (%)(1) 17.4% 14.3% 310 bps Free Cashflow(1) 16.9 9.4 80% (1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures" section of this news release for more information on each non-GAAP financial measure and ratio. Additional Information A copy of the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024 and related management's discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com. About Black Diamond Group Black Diamond is a specialty rentals and industrial services company with two operating business units - MSS and WFS. We operate in Canada, the United States, and Australia. MSS through its principal brands, BOXX Modular, CLM, MPA Systems, and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors. WFS owns a large rental fleet of modular accommodation assets of various types. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turnkey operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors. 4
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In addition, WFS includes LodgeLink, which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics in North America. The LodgeLink proprietary digital platform enables customers to efficiently find, book, and manage their crew travel and accommodation needs through a rapidly growing network of hotel, remote lodge, and travel partners. LodgeLink exists to solve the unique challenges associated with crew travel and applies technology to eliminate inefficiencies at every step of the crew travel process from booking, to management, to payments, to cost reporting. Learn more at www.blackdiamondgroup.com. For investor inquiries please contact Emma Covenden at 403-888-1666. or investor@blackdiamondgroup.com. Conference Call Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, May 2, 2025. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s financial results for the Quarter and then take questions from investors and analysts. To access the conference call by telephone dial toll free 1-833-821-2994. International callers should use 1-647-846-2491. Please connect approximately 10 minutes prior to the beginning of the call. To access the call via webcast, please log into the webcast link 10 minutes before the start time at: https://www.gowebcasting.com/14008 Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events. 5
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Reader Advisory Forward-Looking Statements Certain information set forth in this news release contains forward-looking statements including, but not limited to, expectations for and opportunities in different geographic areas, opportunities for organic investment, reinvesting operating cashflows, the Company's ability to fund organic and inorganic growth, management’s goals and business objectives, the sales and opportunity pipeline, timing and payment of the Company's quarterly dividends, the anticipated timeline and budget for the Company's ERP system upgrade and implementation project, macro-economic uncertainty, the effects of tariffs and trade-war related impacts, utilization levels, contract renewals, management's assessment of Black Diamond's future operations and what may have an impact on them, expectations regarding the rental rate environment, opportunities and effect of deploying investment capital, financial performance, business prospects and opportunities, changing operating environment including changing activity levels, effects on demand and performance based on the changing operating environment, expectations for demand and growth in the Company’s operating and customer segments, future deployment of assets, amount of revenue anticipated to be derived from current contracts, anticipated debt levels, liquidity demands and sources, ongoing contractual terms and debt obligations, liquidity, working capital and other requirements, sources and use of funds, economic life of the Company's assets, expected length of existing contracts and future growth and profitability of the Company. With respect to the forward-looking statements in this news release, Black Diamond has made assumptions regarding, among other things: future commodity prices, the future interest rate environment, that Black Diamond will continue to raise sufficient capital to fund its business plans in a manner consistent with past operations, timing and cost estimates of a new ERP system, the effects of tariffs and trade-war related measures, 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 assurances that such expectations or assumptions will prove to be correct. Readers are cautioned that assumptions used in the preparation of such statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of Black Diamond. These risks include, but are not limited to: the volatility of industry conditions, dependence on agreements and contracts, competition, credit risk, information technology systems and cyber security, vulnerability to market changes, operating risks and insurance, weakness in industrial construction and infrastructure developments, weakness in natural resource industries, access to additional financing, dependence on suppliers and manufacturers, reliance on key personnel, workforce availability, market price of common shares, safety performance, expansion into new activities, government regulation, failure to realize anticipated benefits of acquisitions and dispositions, inflationary price pressure, environmental liability, environmental regulation of the Company’s customers, environmental disasters, Indigenous relationships, dilution, disease outbreaks, variations in foreign exchange rates and interest rates, foreign operations, dependence on operating permits, dependence on operating permits, maturity of credit facility, management of growth, seasonality in certain customer markets, litigation, potential replacement or reduced use of products and services, income taxes, conflicts of interest, restrictive covenants and leverage, the effects of tariffs and trade-war related measures and forward-looking information may prove inaccurate. The risks outlined above should not be construed as 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 for the year ended December 31, 2024 and other reports on file with the Canadian securities regulatory authorities which can be accessed on Black Diamond's profile on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. 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 or revise any of the forward-looking statements, except as may be required by applicable securities laws. 6
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Non-GAAP Financial Measures In this news release, the following specified financial measures and ratios have been disclosed: Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue, Return on Assets, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Profit Margin, Gross Bookings and Net Revenue Margin. These non-GAAP financial measures do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other entities. Readers are cautioned that the non- GAAP financial measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of Black Diamond's performance or cash flows, a measure of liquidity or as a measure of actual return on the shares of Black Diamond. These non-GAAP financial measures should only be used in conjunction with the consolidated financial statements of Black Diamond. Adjusted EBITDA is not a measure recognized under IFRS and does not have standardized meanings prescribed by IFRS. Adjusted EBITDA refers to consolidated earnings before finance costs, tax expense, depreciation and amortization, accretion, foreign exchange, share-based compensation, non-controlling interests, write-down of property and equipment, impairment and non-recurring costs. Black Diamond uses Adjusted EBITDA primarily as a measure of operating performance. Management believes that operating performance, as determined by Adjusted EBITDA, is meaningful because it presents the performance of the Company's operations on a basis which excludes the impact of certain non-cash items as well as how the operations have been financed. In addition, management presents Adjusted EBITDA because it considers it to be an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Adjusted EBITDA has limitations as an analytical tool, and readers should not consider this item in isolation, or as a substitute for an analysis of the Company's results as reported under IFRS. Some of the limitations of Adjusted EBITDA are: • Adjusted EBITDA excludes certain income tax payments and recoveries that may represent a reduction or increase in cash available to the Company; • Adjusted EBITDA does not reflect the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments; • Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs; • Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest payments on the Company's debt; • Depreciation and amortization are non-cash charges, thus the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and • Other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the Company's business. The Company compensates for these limitations by relying primarily on the Company's IFRS results and using Adjusted EBITDA only on a supplementary basis. A reconciliation to profit, the most comparable GAAP financial measure, is provided below. Adjusted EBIT is Adjusted EBITDA less depreciation and amortization. Black Diamond uses Adjusted EBIT primarily as a measure of operating performance. Management believes that Adjusted EBIT is a useful measure for investors when analyzing ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that the Company's definition of Adjusted EBIT is consistent with that of other companies. As such, management believes that it is appropriate to consider both profit determined on a GAAP basis as well as Adjusted EBIT. A reconciliation to profit, the most comparable GAAP financial measure, is provided below. 7
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Adjusted EBITDA as a % of Revenue is calculated by dividing Adjusted EBITDA by total revenue for the period. Black Diamond uses Adjusted EBITDA as a % of Revenue primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Return on Assets is calculated as annualized Adjusted EBITDA divided by average net book value of property and equipment. Annualized Adjusted EBITDA is calculated by multiplying Adjusted EBITDA for the Quarter and Comparative Quarter by an annualized multiplier. Management believes that Return on Assets is a useful financial measure for investors in evaluating operating performance for the periods presented. When read in conjunction with the Company's profit and property and equipment, two GAAP financial measures, this non-GAAP ratio provides investors with a useful tool to evaluate Black Diamond's ongoing operations and management of assets from period-to-period. 8
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Reconciliation of Consolidated Profit to Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue and Return on Assets: Three months ended March 31, ($ millions, except as noted) 2025 2024 Change % Profit(1) 5.8 1.5 287% Add: Depreciation and amortization(1) 12.4 10.7 16% Finance costs(1) 3.8 3.8 —% Share-based compensation(1) 1.2 1.5 (20)% Non-controlling interests(1) 0.4 0.3 33% Current income taxes(1) 0.4 0.2 100% Deferred income taxes(1) 0.9 0.3 200% Non-recurring costs ERP implementation and related costs(2) 1.6 0.5 220% Acquisition costs(1) — 0.6 (100)% Adjusted EBITDA 26.5 19.4 37% Less: Depreciation and amortization(1) 12.4 10.7 16% Adjusted EBIT 14.1 8.7 62% Total revenue(1) 102.2 73.6 39% Adjusted EBITDA as a % of Revenue 25.9% 26.4% (50) bps Annualized multiplier 4 4 Annualized adjusted EBITDA 106.0 77.6 37% Average net book value of property and equipment 609.6 542.2 12% Return on Assets 17.4% 14.3% 310 bps (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024. (2) This relates to the corporate structure reorganization costs that have been incurred in preparation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on October 1, 2024. Reconciliation of Consolidated Profit to Adjusted EBITDA, Net Debt and Net Debt to TTM Adjusted Leverage EBITDA: Net Debt to TTM Adjusted Leverage EBITDA is a non-GAAP ratio which is calculated as Net Debt divided by trailing twelve months Adjusted Leverage EBITDA. Net Debt, a non-GAAP financial measure, is calculated as long-term debt minus cash and cash equivalents. A reconciliation to long-term debt, the most comparable GAAP financial measure, is provided below. Net Debt and Net Debt to TTM Adjusted Leverage EBITDA removes cash and cash equivalents from the Company's debt balance. Black Diamond uses this ratio primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company's performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Management believes including the additional information in this calculation helps provide information on the impact of trailing operations from business combinations on the Company's leverage position. 9
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($ millions, except as noted) 2025 2024 2024 2024 2024 2023 2023 2023 Change Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Profit(1) 5.8 9.3 7.4 7.5 1.5 7.8 13.6 4.6 Add: Depreciation and amortization(1) 12.4 14.6 12.6 11.1 10.7 11.2 12.6 10.6 Finance costs(1) 3.8 3.8 4.3 3.4 3.8 3.7 3.7 3.7 Share-based compensation(1) 1.2 1.3 1.2 1.6 1.5 1.1 1.6 1.3 Non-controlling interests(1) 0.4 0.5 0.4 0.4 0.3 0.3 0.3 0.3 Current income taxes(1) 0.4 0.9 — — 0.2 0.1 — 0.1 Deferred income taxes(1) 0.9 5.4 2.6 2.1 0.3 0.4 4.8 1.9 Non-recurring costs ERP implementation and related costs(2) 1.6 1.4 0.3 1.8 0.5 1.5 — — Acquisition costs(1) — — — — 0.6 — — — Adjusted EBITDA 26.5 37.2 28.8 27.9 19.4 26.1 36.6 22.5 TTM Adjusted Leverage EBITDA 120.4 104.6 15% Long-term debt(1) 229.3 199.8 15% Cash and cash equivalents(1) 12.7 12.2 4% Current portion of long-term debt(3) 1.2 0.3 300% Net Debt 217.8 187.9 16% Net Debt to TTM Adjusted Leverage EBITDA 1.8 1.8 —% (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024. (2) This relates to the corporate structure reorganization costs that have been incurred in preparation of a new ERP system and are included in administrative expenses; the first phase of the implementation went live on May 1, 2024 and the second phase commenced on October 1, 2024. (3) Current portion of long-term debt relating to the payments due within one year on the bank term loans assumed as part of the acquisition in the fourth quarter of 2022. Funds from Operations is calculated as the cash flow from operating activities, the most comparable GAAP financial measure, excluding the changes in non-cash working capital. Management believes that Funds from Operations is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments. Changes in long-term accounts receivable and non-cash working capital items have been excluded as such changes are financed using the operating line of Black Diamond's credit facilities. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below. Free Cashflow is calculated as Funds from Operations minus maintenance capital, net interest paid (including lease interest), payment of lease liabilities, net current income tax expense (recovery), distributions declared to non-controlling interests and dividends paid on common shares plus net current income taxes received (paid). Management believes that Free Cashflow is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments and other items noted above. Management believes this metric is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. A reconciliation to cash flow from operating activities, the most comparable GAAP financial measure, is provided below. 10
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Reconciliation of Cash Flow from Operating Activities to Funds from Operations and Free Cashflow: Three months ended March 31, ($ millions, except as noted) 2025 2024 Change Cash Flow from Operating Activities(1) 35.9 22.5 60% Add (deduct): Change in other long-term assets(1) 0.6 (0.5) 220% Changes in non-cash operating working capital(1) (10.0) (2.6) (285)% Funds from Operations 26.5 19.4 37% Add (deduct): Maintenance capital (1.7) (2.7) 37% Payment for lease liabilities(1) (2.6) (2.1) (24)% Interest paid (including lease interest)(1) (3.6) (3.6) —% Net current income tax expense 0.4 0.2 100% Dividends paid on common shares(1) (2.1) (1.8) (17)% Free Cashflow 16.9 9.4 80% (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024. Gross Profit Margin is a non-GAAP financial measure which is calculated by dividing gross profit, a GAAP financial measure calculated as total revenue less direct costs, by total revenue for the period. Management believes this ratio is an important supplemental measure of the Company's performance and believes this ratio is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Reconciliation of Gross Profit to Gross Profit Margin: Three months ended March 31, ($ millions, except as noted) 2025 2024 Change Total revenue(1) 102.2 73.6 39% Direct costs(1) 57.9 37.8 53% Gross profit(1) 44.3 35.8 24% Gross Profit Margin 43.3% 48.6% (530) bps (1) Sourced from the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024. Gross Bookings is a non-GAAP financial measure and is calculated as the total revenue billed to the customer which includes all fees and charges. Net revenue, a GAAP financial measure, is Gross Bookings less costs paid to suppliers. Revenue from bookings at third-party lodges and hotels through LodgeLink is recognized on a net revenue basis. LodgeLink is an agent in the transaction as it is not responsible for providing the service to the customer and does not control the service provided by a supplier. Management believes this non-GAAP financial measure is an important supplemental measure of LodgeLink's performance and cash generation and believes this non-GAAP financial measure is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation. 11
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Net Revenue Margin is calculated by dividing net revenue by Gross Bookings for the period. Management believes this ratio is an important supplemental measure of LodgeLink's performance and profitability and believes this ratio is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation where companies act as agents in transactions. Reconciliation of Net Revenue to Gross Bookings and Net Revenue Margin: Three months ended March 31, ($ millions, except as noted) 2025 2024 Change Net revenue(1) 2.7 2.6 4% Costs paid to suppliers(1) 18.8 18.9 (1)% Gross Bookings(1) 21.5 21.5 —% Net Revenue Margin 12.6% 12.1% 50 bps (1) Includes intercompany transactions. 12