Horizon North Logistics Inc.

Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) stated recently its fiscal and operating results for the three and nine months finished September 30, 2k19 and 2k18.

3rd-Quarter Highlights

  • Horizon North had Q3 2k19 revenue of $116.60M and EBITDAS of $8.90M, a boost of $16.60M and decline of $2.80M, respectively, when contrast to Q3 2k18. Total loss increased $3.20M, to $3.40M, when contrast with the $0.20M loss in Q3 2k18;
  • Q3 2k19 EBITDAS significantly improved by $12.80M contrast to Q2 2k19; and is more in line with the Corporation’s expectations.
  • The Industrial Services business had Q3 2k19 revenue of $68.90M, a boost of 4.0 percent from Q3 2k18. EBITDAS for the similar duration were $10.50M, a decline of $0.40M when contrast to Q3 2k18;
  • The Modular Solutions business had revenue of $47.70M for Q3 2k19, a 37.00 percent incline from Q3 2k18. EBITDAS for the similar duration were $0.90M, a decline of $3.10M from Q3 2k18. Backlog exiting the quarter was $71.70M, apart from the Fairfield by Marriott, contrast to $88.80M at December 31, 2k18. The funnel of high-quality, high probability sales opportunities increased, exiting the quarter at $295.30M contrast to $290.00M at December 31, 2k18; and
  • Effective September 26, 2k19, Horizon North reached a contract with its lenders to amend its credit facility. The maturity date was extended to September 30, 2k21 to provide certainty with respect to borrowing capacity as the Corporation evaluates its capitalization and debt structure through 2k19 and 2k20


Quarterly Operational Overview

Revenue for Q3 2k19 increased by 17.00 percent mainly because of increased throughput in the Modular Solutions segment in addition to increased camp rental and catering activity in the Camp & Catering segment, partially offset by reduced Rentals & Logistics segment revenues contrast to Q3 2k18 because of reduced mat rental revenue and equipment sales.

Industrial Services

Revenues from Industrial Services for Q3 2k19 increased by 4.0 percent contrast to Q3 2k18 mainly because of increased catering only activity. Catering only activity increased 47.00 percent in Q3 2k19 contrast to Q3 2k18, with revenue for each catering only day lower by 9.0 percent as a result of different contract mix. Rentals & Logistics revenues reduced by 21.00 percent in Q3 2k19 contrast to Q3 2k18 mainly because of a decline in mat rental revenue and equipment sales.

Modular Solutions

Modular Solutions revenues for Q3 2k19 were 37.00 percent higher than Q3 2k18 mainly as a result of the NRB Inc. (“NRB”) acquisition and partially offset by reduced activity in Western Canada. The manufacturing capacity available in Q3 2k19 increased significantly from Q3 2k18 as a result of the acquisition of the Rocky View County, Alberta facility in November 2k18 and the NRB, Ontario facility in April 2k19 allowing for further manufacturing expansion into Q3 2k19.

Other Financial Measures 

Horizon North’s Q3 2k19 EBITDAS reduced by $2.80M, or 24.00 percent, contrast to Q3 2k18. As a percentage of revenue, EBITDAS were 8.0 percent contrast to 12.00 percent in Q3 2k18. The decline in EBITDAS contrast to Q3 2k18 was mainly driven by the decline in backlog because of a delay and deferral of projects in Western Canada. This was partially offset by stronger results in Industrial Services.

Total Loans and Borrowings, which excludes the lease liabilities from the adoption of IFRS 16.0, were $103.40M at September 30, 2k19 contrast to $30.80M at December 31, 2k18. As a result of the increased debt and lower EBITDAS, the total debt to EBITDAS ratio was 3.35:1:00 at September 30, 2k19 contrast to 0.86:1:00 at December 31, 2k18.