Horizon North Logistics Inc (TSE:HNL) shares were up 0.59% to $1.71 and unchanged in after-hours trading. The company has a market cap of $244.43 million at 144.62 million shares outstanding. Share prices have been trading in a 52-week range of $1.06 to $2.35.
In its quarterly earnings report, Horizon North Logistics Inc said that Fort McMurray wildfires destroyed Horizon North’s Blacksand Executive Lodge. Since the loss, the company has worked closely with its insurers and advisors to achieve a final settlement of $34.1 million on February 28, 2017. It also noted that results for Q4 2016 were below Q4 2015 primarily due to lower volumes in the camp rental and catering operations as a result of delayed construction projects due to wet ground conditions in the Fort McMurray and Grande Prairie areas.
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 mostly focused on replenishing access mat fleet as a result of high volume of mat sales during Q4 2016.
Horizon North Logistics Inc also said that it continues to gain traction on the development of its modular construction offering, utilizing core design and manufacturing capabilities to provide permanent, modular structures to serve a variety of end markets. As of March 1, 2017, the company has approximately $80 million of future modular construction revenue through a combination of existing projects under contract and strong line of sight for projects currently in the memorandum of understanding or letter of intent phase.
“The strength of the Statement of Financial Position was a priority for Horizon North throughout 2016, and will continue to be a focus for 2017. Cost reduction measures which began in 2016, such as Lean initiatives across our industrial operations and the centralization of certain general and administrative functions will continue to drive improved cash flow through efficiencies. In addition to a limited and tightly managed capital program, 2017 will assess Horizon North’s portfolio of assets to ensure a focus on core business lines. This combination of actions will help ensure the continued strength with respect to the financial position of Horizon North,” the statement indicated.
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. The company operates in Canada and the United States. 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.