ALBERTA

Black Diamond Group signs four big housing contracts in Western Canada

07/22/2013 04:55 EDT | Updated 09/21/2013 05:12 EDT
CALGARY - Black Diamond Group Ltd. (TSX:BDI) said Monday it has signed four large scale contracts to provide housing for workers on a variety of resource projects in Western Canada.

The contracts range from one to three years and are projected to generate $100 million in total revenue, the company said.

Black Diamond said it will spend about $20 million on new gear for the contracts that will also utilize equipment.

In an update to its guidance, the company said its results for the second quarter are expected to be moderately stronger than a year ago, but due to the annual seasonality and project sequencing gaps, they will be "significantly weaker" than the first quarter of the year.

"Management of the company anticipates strong financial results in the second half of 2013 and first half of 2014 based on new contracts and visibility of business development," the company said in a statement.

Black Diamond provides remote housing and modular buildings as well as other services to the resource industry.

MORE:Albertacp