Horizon North Logistics Inc. Provides Modular Solutions Update
PR Newswire - Thu Dec 21, 6:46PM CST
CALGARY , Dec. 21, 2017 /PRNewswire/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX – HNL) is pleased to provide an update on the Corporation's modular solutions operations and commentary on recent business developments.
Modular Solutions
Horizon North is gaining traction on its modular solutions offering and continues to add certainty to its project portfolio for 2018 and beyond. As of December 21, 2017 , backlog in the Modular Solutions division sits at $32.3 million with high probability line of sight to an additional $148.5 million of projects. These amounts represent a series of development projects including government sponsored social infrastructure and affordable housing, multi-phased condominiums, hotels, Aboriginal housing and commercial infrastructure, and Karoleena residential homes.
Earlier this year, the Corporation completed an affordable housing project for the Vancouver Affordable Housing Agency ("VAHA") and the City of Vancouver (the "City"). In October 2017 , the City approved a recommendation authorizing VAHA to negotiate an agreement or agreements with Horizon North for design, manufacturing and installation of up to 600 temporary-modular affordable housing units on locations to be selected by the City, at a total cost of up to $66 million , funded by the BC Housing Management Commission ("BC Housing").
To date, contracts representing $14.4 million across multiple sites have been executed, with units scheduled to be delivered through the end of 2017 and into the first half of 2018. The Corporation continues to work closely with VAHA and the City to move additional sites into contract phase as they become available.
Bifurcation Strategy and Internal Reorganization
Manufacturing operations previously conducted under the legal entity of the Horizon North Camp & Catering Partnership are being transferred to a newly incorporated, wholly owned entity: Horizon North Modular Solutions Inc. The transfer of design, engineering, manufacturing and construction operations to this new entity on January 1, 2018 will complete Horizon North's strategy of bifurcating its business into two distinct operating divisions, Modular Solutions and Industrial Services. This ensures the Corporation's legal structure reflects these operations to best serve its customers.
"With design, engineering, manufacturing and construction under one roof, Horizon North's residential and commercial customers will be working with an even more cohesive Modular Solutions team as we execute on their vision," says Rod Graham , Horizon North's President and Chief Executive Officer.
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Modular Solutions division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada .
Corporate Information
Additional information related to Horizon North, including the Corporation's annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
If the backlog indeed reaches $180M for the Modular Solutions division, imo it will rival and perhaps surpass the 2016 revs for the Industrial Services division inside 2 years
If oil stays stable or better we hit the ground running on both fronts as a growth story with 2016/17 marking the end of contraction in Industrial Services ...
..and coinciding with the acquisitions to build the Modular Services division beginning to bear fruit