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.
M&A coming to a company near you?
16 Mar 17
Markets have retained their relative strength over the last fortnight. We have seen a mixed reaction to the Budget last week, the passing of the Brexit Bill earlier in the week and the first interest rate hike by the Federal Reserve in the US yesterday. Against this backdrop, we have seen some notable M&A activity across a range of sectors which may move down the market capitalisation scale. We now face an extended period of heightened speculation but “no running commentary” regarding Brexit in the UK after Article 50 is triggered at the end of the month.
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
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 Momentum Continues - 2017 to be a Good Year
16 Mar 17
Welcome to IIR’s second “Blue Book” for Junior Resource Companies. This publication covers over 60 resource companies that were present at the 121 Group’s 2017 Cape Town Conference, held at Welgemeende in the Gardens district on February 6-7, 2016. The summaries in the book have been prepared with the assistance of the 121 Group based in London/ Hong Kong and Gavin Wendt from Minelife in Sydney, with the introduction being prepared by Mark Gordon and Gavin Wendt. The company information is accurate as at the time of the conference – and further information on the companies can be provided upon request.
Bang to rights
21 Mar 17
Tullow unexpectedly announced a US$750m rights issue on Friday at a 45.2% discount to the previous close. While this step confirms our investment thesis, the scale of the discount and the timing look like a slap in the face for investors and/or indicative of a weaker financial position than we are modelling. We publish revised estimates to reflect the impact of the issue and cut our Target Price to 215p per share (from 245p). We maintain our Hold recommendation.