Horizon North Logistics Inc (TSE:HNL) shares were up 0.59% on Wednesday to $1.71 and were flat in after-hours trading. Share prices have been trading in a 52-week range of $1.06 to $2.35. The company has a market cap of $224.43 million at 144.62 million shares outstanding.
Horizon North Logistics Inc is a Canada-based is a remote resource development service company that provides workforce accommodation solutions, camp management and catering services, and road and access matting solutions. Its segments include Camps & Catering, Matting and Corporate.
The Camps & Catering segment includes camp rental and catering services, as well as the manufacture, sale and repair of camps. The Matting segment includes mat rental, installation and fleet management services, as well as the manufacture and sale of mats. Horizon North Logistics Inc provides its services in support of oil sands development, oil and gas exploration and development, mining and infrastructure projects throughout Canada’s western provinces and northern territories. It also provides remote power and energy generation systems, and portable and permanent modular structures. The company operates in Canada and the United States.
In its financial earnings report for the three and twelve months ended December 31, 2016 and 2015, Horizon North Logistics Inc reported lower volumes for the quarter due to very wet ground conditions in the Fort McMurray and Grande Prairie areas causing several pipeline construction projects to be delayed until 2017. Apart from that, the period saw fewer contracts than the same period in 2015 due to several significant contracts either expiring or ramping down throughout 2016 as the associated projects completed.
For the three months ended December 31, 2016, gross capital spending was $12.4 million compared to $13.2 million in the same period of 2015. This was mainly focused on replenishing access mat fleet as a result of high volume of mat sales during Q4 2016. Along with this, Horizon North Logistics Inc shared that as of March 1, 2017, Horizon North has approximately $80 million of future modular construction revenue through a combination of existing projects under contract.
We are very pleased to see these projects moving from our quote log into real backlog and expect between $40 and $60 million of these projects to occur in 2017,” commented Rod Graham, President and Chief Executive Officer of Horizon North Logistics Inc. “Many of these projects represent the initial phase of multi-phased projects and developments which we expect to turn into additional future opportunities and expanded backlog as we successfully execute and further demonstrate our capabilities.”
Aside from that, the company has ecently completed several modular construction projects including a BC Housing SkillsPlus facility and a 40-room transitional housing project for the Vancouver Affordable Housing Association. Horizon North Logistics Inc recently hired Mr. Joseph Kiss as Vice President Business Development, Commercial and Mr. Chris Bradley in the role of Commercial Building Solutions Manager, as these two individuals are expected to bring extensive experience and relationships within the modular building industry and will help generate momentum and drive this business forward.
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