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Black Diamond Group Limited Reports Results for the Third Quarter Ended September 30, 2010

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2010) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI)is pleased to announce its financial and operational results for the three months ended September 30, 2010.

Revenue generated in the third quarter of 2010 was $34.2 million with EBITDA of $12.4 million for the period, compared to revenue of $14.9 million and EBITDA of $7.7 million for the same period in 2009. Revenue was higher than the prior year's comparable period mainly due to the newly acquired US operations that contributed approximately $5.4 million and $10.2 million of lodging revenue generated from the Sunday Creek Lodges and Horn River operated camps. Gross profit for the quarter was $17.7 million, up 65% from the third quarter of 2009. Gross Profit margin at 52% was lower than the prior year, as a higher percentage of overall revenue was generated from lodging and ancillary sources which generates lower margins than rental streams. Rental revenues were $10.9 million as compared to $9.0 million for the third quarter of 2009 a 21% increase. Lodging revenue was $10.2 million in the quarter compared to $nil in 2009 as Sunday Creek Lodges only began operations in September 2009, along with the introduction of the Black Diamond Dene Limited Partnership in the Horn River area. Non-rental revenues were $13.1 million as compared to $5.9 million in the third quarter of 2009 - a 123% increase.

EBITDA margins in the third quarter were 36% down from 52% in 2009, due to the increase in the level of non-rental revenues generated. Earnings for the quarter were $4.2 million or $0.25 per share, compared with $2.3 million or $0.19 per share for the third quarter of 2009.

The Workforce Accommodations division of Black Diamond generated $4.4 million of revenue from rental activity. Utilization of the workforce accommodation fleet averaged 89% for the period up from 83% for the third quarter of 2009. Non-rental revenue at $6.4 million was 85% higher than in the same period in the prior year due to install activity and used fleet sales in the quarter. The operating open camps, Sunday Creek Lodges, had 234 units at the end of September 2010. This lodging revenue was augmented by revenue from the operated camps in the Horn River area. Revenue associated with room and board in the operated camps was $10.2 million.

The Canadian Space Rentals division has grown its fleet size by 11% from June 2009. Utilization of the space rental fleet averaged 81% for the period compared to 59% for the same period in 2009. Downward pressure on rental pricing in the industry was experienced through the economic downturn and has been slow to recover, which led to a smaller increase in rental revenues than anticipated given the recovery experienced in utilization. In many of the markets the Company operates in, modest increases in rental rates have begun.

The US Space Rentals division had 1,145 units at September 30, 2010. Approximately 900 of the units were acquired in the Nortex acquisition which was completed on January 1, 2010, 90 units were purchased from Nortex in December 2009 and the remaining 155 units were acquired in small US equipment acquisitions completed in April and August 2009. Utilization rates were slightly lower than in the Canadian operations, averaging 65% for the quarter.

The Energy Services division generated $3.7 million in revenue, consistent with the third quarter of 2009. This is a result of lower utilization of the drilling accommodations fleet offset by stronger utilization rates experienced in the surface rental fleet which had grown from Q3 2009 due to the acquisition of Paragon Energy Saskatchewan in January 2010. The drilling accommodations unit count is down 5% to 224 units while the surface rental equipment has increased by 243 to 1,258 pieces of rental equipment.

The Company declared dividends of $0.09 per common share per month in the quarter resulting in a payout ratio for the quarter of 37%. Management of Black Diamond plans to continue this monthly dividend and is confident that the cash generated from operations will be sufficient to allow it to meet ongoing requirements for the foreseeable future for working capital, maintenance costs, SG&A costs, interest costs as well as dividends to shareholders.

The Company's results for the third quarter reflect the increased scale of operations following the acquisition of Nortex Modular and Paragon Saskatchewan and the expanded facilities at Sunday Creek Lodges. They also reflect improving activity levels in the markets which Black Diamond serves.

Management has a positive outlook for the next two quarters. A series of major project contract awards to the Company's U.S. division are anticipated to result in increased contributions in Q4 2010 and Q1 2011 from the Space Rentals segment. Some of these projects are for long-term rental of new modular structures, adding fleet growth and incremental rental revenue growth for this division. Additions to the Canadian Space Rentals fleet along with strengthening utilization and rental rates across most operating locations are also anticipated to contribute to overall stronger performance.

Final commissioning of the previously announced Kiwigana base camp and the Cabin Gas Plant construction camp in Horn River are expected to result in higher operations revenue followed by increased rentals as these facilities come on rent. The ramp up of occupancy at the Spectra Gas Plant construction camp along with the commencement of rent at several smaller facilities in the Horn River basin are expected to augment revenue growth in this key area. Continued guaranteed occupancy at Sunday Creek Lodge and the commissioning and rental commencement of a previously announced 500 person VIP facility are expected to provide earnest revenue from the oil sands resource area. Further expansion and commissioning of key mining camps in BC and Saskatchewan are expected to round out the very robust Workforce Accommodations segment.

Activity in the Bakken, Saskatchewan potash drilling, Horn River and Montney resource areas are driving higher utilization for the surface rentals fleet of the Company's Energy Services division. The new strategic partnership in the Fort St. John region is expected to deliver strengthened revenues from this large and flourishing activity area. It is anticipated that the drilling accommodation assets operated by this business unit will see strengthened utilization in the next two quarters due to higher industry demand.

With strength in all three business units, additional capital assets being deployed and major operational revenues under contract, management anticipates consequential strengthening of revenue and EBITDA results for the next two quarters as the Company reaches the increased run rate of revenue and EBITDA generation expected as a result of the major capital deployment initiatives of the past twelve months.

Summary Financial Statements

The following is a summary of the Company's consolidated balance sheets as at September 30, 2010 and December 31, 2009, the Company's consolidated statements of net income, comprehensive income and retained earnings and consolidated statements of cash flows for the three and nine month periods ended September 30, 2010 and 2009. These summary statements should be read in conjunction with the Company's consolidated financial statements including the accompanying notes for the three and nine month periods ended September 30, 2010 as filed on SEDAR.

/T/

Black Diamond Group Limited
(formerly Black Diamond Income Fund)
CONSOLIDATED BALANCE SHEETS
(unaudited)

(Expressed in thousands of dollars)

                                                September 30,   December 31,
As at                                                   2010           2009
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                                                           $              $
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ASSETS
Current
Accounts receivable                                   25,419         12,553
Prepaid expenses and other current assets              1,845            874
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                                                      27,264         13,427

Property and equipment                               220,397        156,188
Intangible assets                                     12,531          9,821
Goodwill                                              35,154         29,316
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                                                     295,346        208,752
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness                                      5,619              9
Accounts payable and accrued liabilities              21,092          9,149
Dividends payable                                      1,481          1,234
Current income taxes payable                             467              -
Current portion of capital lease obligation              667            639
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                                                      29,326         11,031

Capital lease obligation                                  57            561
Long-term debt                                        45,000         31,472
Risk management liability                              1,961              -
Asset retirement obligations                           1,250          1,116
Future income taxes                                   23,727         11,724
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                                                     101,321         55,904
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Shareholders' equity
Share capital                                        189,400        146,366
Contributed surplus                                    1,370            969
Non-controlling interest                                (112)            51
Accumulated other comprehensive income                (1,471)             -
Retained earnings                                      4,838          5,462
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                                                     194,025        152,848
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                                                     295,346        208,752
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Black Diamond Group Limited
(formerly Black Diamond Income Fund)
CONSOLIDATED STATEMENTS OF NET INCOME
(unaudited)

(Expressed in thousands of dollars, except per share amounts)

                                      Three months ended  Nine months ended
                                            September 30,      September 30,
                                           2010     2009      2010     2009
----------------------------------------------------------------------------
                                              $        $         $        $
----------------------------------------------------------------------------

Revenue                                  34,221   14,918    96,352   58,460

Direct costs                             16,536    4,168    46,922   21,029
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                                         17,685   10,750    49,430   37,431
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Expenses
Selling, general and administrative
 costs                                    5,239    2,980    15,014    8,565
Amortization of property and
 equipment                                4,919    3,413    13,833    9,940
Amortization of intangibles                 446      248     1,215      743
Accretion on asset retirement
 obligation                                  25        -        72        -
Acquisition costs                             -        -       289        -
Foreign exchange (gain)- realized             -        -      (820)       -
Foreign exchange (gain)/ loss
 - unrealized                              (111)      65       (71)      65
Interest                                    604      334     1,661    1,028
Stock-based compensation                    286       99       674      290
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                                         11,408    7,139    31,867   20,631
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Income before income taxes and
 non-controlling interest                 6,277    3,611    17,563   16,800

Income tax expense
Current                                     242        -       827        -
Future                                    1,870    1,336     4,346    1,891
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                                          2,112    1,336     5,173    1,891
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Income before income attributable
 to non-controlling interest              4,165    2,275    12,390   14,909

Net (loss)/income attributable to
 non-controlling interest                   (31)       -        43        -
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Net income attributable to
 Black Diamond Group Limited              4,196    2,275    12,347   14,909
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Net income per share
Basic                                      0.25     0.19      0.78     1.26
Diluted                                    0.25     0.19      0.76     1.24
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Black Diamond Group Limited
(formerly Black Diamond Income Fund)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND
RETAINED EARNINGS
(unaudited)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Expressed in thousands of dollars, except per share amounts)

                                  Three months ended     Nine months ended 
                                 September  September  September  September
                                        30,        30,        30,        30,
                                      2010       2009       2010       2009
----------------------------------------------------------------------------
                                         $          $          $          $
----------------------------------------------------------------------------

Net income attributable to
 Black Diamond Group Limited         4,196      2,275     12,347     14,909
Net change in derivative
 financial instruments
 designated as cash flow
 hedges
Unrealized loss (net of tax)          (410)         -     (1,471)         -
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Comprehensive income                 3,786      2,275     10,876     14,909
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Comprehensive income per share

Basic                                 0.23       0.19       0.69       1.26
Diluted                               0.23       0.19       0.67       1.24
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----------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF RETAINED EARNINGS/(DEFICIT)

(Expressed in thousands           Three months ended     Nine months ended 
 of dollars)                     September  September  September  September
                                        30,        30,        30,        30,
                                      2010       2009       2010       2009
----------------------------------------------------------------------------
                                         $          $          $          $
----------------------------------------------------------------------------

Retained earnings/ (deficit),
 beginning of period                 5,084      5,535      5,462       (708)
Net income                           4,196      2,275     12,347     14,909
Dividends declared                  (4,442)    (3,196)   (12,971)    (9,587)
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Retained earnings,
 end of period                       4,838      4,614      4,838      4,614
----------------------------------------------------------------------------
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Black Diamond Group Limited
(formerly Black Diamond Income Fund)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

(Expressed in thousands           Three months ended     Nine months ended 
 of dollars)                     September  September  September  September
                                        30,        30,        30,        30,
                                      2010       2009       2010       2009
----------------------------------------------------------------------------
                                         $          $          $          $
----------------------------------------------------------------------------
Operating activities
Net income for the period            4,196      2,275     12,347     14,909
Add (deduct) non-cash items:
 Amortization of property
  and equipment                      4,919      3,413     13,833      9,940
 Amortization of intangible
  assets                               446        248      1,215        743
 Accretion of asset retirement
  obligation                            25          -         72          -
 Foreign exchange loss
  - unrealized                        (111)         -        (71)         -
 Future income taxes                 1,870      1,336      4,346      1,891
 Stock-based compensation
  expense                              286         99        674        290
 Earnings attributable to
  non-controlling interest             (31)         -         43          -
----------------------------------------------------------------------------
                                    11,600      7,371     32,459     27,773
Change in non-cash working
 capital related to operating
 activities                         16,374     (2,583)     7,478      6,325
----------------------------------------------------------------------------
                                    27,974      4,788     39,937     34,098
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Investing activities
Purchase of property and
 equipment                         (19,799)   (10,688)   (45,746)   (22,053)
Business acquisitions                    -          -    (17,945)         -
Change in non-cash working
 capital related to
 investing activities               (9,787)      (163)    (9,787)    (1,996)
----------------------------------------------------------------------------
                                   (29,586)   (10,851)   (73,478)   (24,049)
----------------------------------------------------------------------------

Financing activities
Proceeds from long-term debt         5,000      5,000     41,969      6,000
Repayment of long-term debt         (2,980)         -    (28,441)    (4,000)
Repayment of capital lease            (160)      (153)      (475)      (449)
Net proceeds from issuance
 of shares                               -          -     24,079          -
Purchase of shares in trust              -          -       (100)         -
Dividend payments                   (4,441)    (3,195)   (12,930)    (9,586)
Bank indebtedness                    4,117      2,829      5,610     (2,060)
Stock options exercised                 76         46      3,829         46
----------------------------------------------------------------------------
                                     1,612      4,527     33,541    (10,049)
----------------------------------------------------------------------------

Increase/ (decrease) in cash             -     (1,536)         -          -
Cash, beginning of period                -      1,536          -          -
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Cash, end of period                      -          -          -          -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Cash paid during the period for:
Interest                               604        327      1,661        694
----------------------------------------------------------------------------

/T/

Additional Information

A copy of the Company's unaudited consolidated financial statements for the three and nine month periods ended September 30, 2010 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.sedar.com).

Conference Call

Black Diamond will host a conference call for analysts, investors and interested parties to discuss its financial and operational results at 4:00 p.m. MST on November 10, 2010. Trevor Haynes, President and Chief Executive Officer, and Michael Burnyeat, Vice President, Finance and Chief Financial Officer, will be in attendance. The call can be accessed by calling 416-340-8527 or toll free 1-877-440-9795 prior to the scheduled start time. Digital playback of the conference call will be available on the Company's website.

About Black Diamond

Founded in 2003, Alberta-based Black Diamond Group Limited is a leading provider of temporary and permanent modular building and energy services products. Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, Nortex Modular Leasing and Construction Company and through its 50% equity participation in the Black Diamond Dene Limited Partnership and Black Diamond West Moberly Limited Partnership, Black Diamond operates three complementary divisions in thirteen strategic locations across Canada and USA.

Black Diamond Camps and Logistics rents and sells remote workforce housing and provides associated services; BOXX Modular specializes in renting or selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a full complement of oilfield equipment and services. Black Diamond provides world-class services to a full spectrum of industries including oil, gas, mining, power, construction, engineering, military, government and education.

Reader Advisory

Certain information in this news release contains forward-looking statements including management's assessment of future plans and operations of Black Diamond including, without limitation, statements relating to utilization rates, fleet size, revenue, EBITDA, margins, cash flows, capital expenditures, further deployment of equipment, demand from existing and new customers and dividend levels. 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, 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 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.blackdiamondlimited.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 following terms have been referenced: EBITDA (earnings before interest, taxation, depreciation and amortization), gross profit and payout ratio. Readers are cautioned that these measures are not defined under Canadian Generally Accepted Accounting Principles ("GAAP"). Readers are cautioned that these non-GAAP measures are not alternatives to measures under GAAP 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. These Non-GAAP measures should only be used in conjunction with the consolidated financial statements of the Company. A reconciliation between these measures and measures defined under GAAP is included in management's discussion and analysis for the three and nine month periods ended September 30, 2010 filed on SEDAR.

FOR FURTHER INFORMATION PLEASE CONTACT: