Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on HORIZON NORTH LOGISTICS INC. We currently have 20 research reports from 1 professional analysts.
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HORIZON NORTH LOGISTICS INC
HORIZON NORTH LOGISTICS INC
15 Aug 16
Horizon North reported 2Q16 revenue of $53 mm, above our estimate of $49 mm. The Company reported EBITDAS of $4 mm for the quarter exceeding our estimate of $2 mm. Horizon North does not appear to be undergoing the same pricing pressure as Black Diamond Group Limited. We would attribute this difference to the fact that HNL experienced significant pricing pressure in 2014 and 2015, whereas Black Diamond’s pricing had a greater level of protection due to certain contracts in place. Our estimates are largely unchanged. We have modestly reduced 2016e revenue by $5 mm to $253 mm and in 2017e by $6 mm to $313 mm to reflect continuing pricing pressure in the Camps division. EBITDAS in 2016e is largely unchanged while 2017e EBITDAS is now $51 mm (prior: $54 mm).
Announces Accretive $44.5 mm Acquisition
22 Jul 16
HNL has announced it has entered into a binding letter of intent with Empire Camp Equipment Ltd. (“Empire”) for a purchase price of $44.5 mm (undisclosed mix of cash and shares). We believe Empire will contribute $10 mm of EBITDAS in 2017e, which puts the transaction multiple at ~4.3x EV/EBITDAS. We estimate the EV/replacement value metric at 66%. Our 2016e EBITDAS has moved higher by 6.8% and 2017e is up 23.5% to $54 mm.
06 May 16
HNL’s 1Q16 EBITDAS of $13 mm surpassed our estimate of $11 mm, primarily lifted by a strong beat in the Camps and Catering division. We have left our 2016e and 2017e estimates relatively unchanged despite the estimate beat as we believe utilization will pull back in upcoming quarters. Horizon North has positioned itself to wait out the current environment. Net debt exiting the quarter was $70 mm which we have falling to $37 mm at year-end 2016e, and the Company has a manageable net debt/EBITDAS of 0.9x. The Company has opened its camps for residents and workers in the Fort McMurray area. HNL is doing so to be a good corporate citizen and proactively help a region where it has been present over the course of its corporate history. We applaud these efforts.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.