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.
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.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
Minor delay but lower cost and better visibility enhance the investment profile
13 Jan 17
First oil at Stella is delayed by about a month, reducing the contribution of Stella to FY17 production by the same period. While this has an impact on FY17e free cash flow, this is negligible to our valuation. More importantly, FY17 opex are estimated at only US$18/boe, below our estimates of US$20/boe. There are opportunities to reduce opex further. Harrier is expected to reach first oil in 2018, one year earlier than we expected and at a cost of US$40 mm lower than we anticipated. The overall development cost is less than US$6.0/boe. Ithaca holds numerous discoveries around Stella that would be developed with a similar cost structure to Harrier.