We believe there are structural headwinds facing the Western Canadian remote camps and catering industry (details enclosed within) which are going to result in lower ROCE in upcoming years relative to historical averages. As a result, we believe the valuation being applied to Horizon North relative to its historical average (2016e current EV/EBITDAS – 7.5x, 5-year average 6.9x) is unwarranted.
