CALGARY, March 1, 2017 /PRNewswire/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX – HNL) is pleased to provide an operational update and commentary on recent business developments.
Modular Construction Update
Horizon North continues to gain traction on the development of its modular construction offering, utilizing core design and manufacturing capabilities to provide permanent, modular structures to serve a variety of end markets. As of March 1, 2017, Horizon North has approximately $80 million of future modular construction revenue through a combination of existing projects under contract and strong line of sight for projects currently in the memorandum of understanding or letter of intent phase.
Horizon North has recently completed several modular construction projects including a BC Housing SkillsPlus facility and a 40 room transitional housing project for the Vancouver Affordable Housing Association. Projects in process include a multi-family Aboriginal housing project and a 19 room seniors assisted living facility in the northern regions of British Columbia, a custom office complex for an energy sector client in Northeast Alberta along with the ongoing development of an 86 room hotel in Revelstoke, British Columbia.
To further solidify the direction of its modular construction offering, Horizon North recently hired Mr. Joseph Kiss as Vice President Business Development, Commercial and Mr. Chris Bradley in the role of Commercial Building Solutions Manager. These two key individuals bring extensive experience and relationships within the modular building industry and will help generate momentum and drive this business forward. Other key roles are being filled with experienced personnel to round out this team.
Horizon North is utilizing ICE, a 3D design and visualization software in development under an exclusive licensing arrangement with DIRTT Environmental Solutions. This cutting edge software combined with Horizon North's modular construction technology allows the Corporation to deliver hotels, multi-family residential projects, office structures, retail outlets, government infrastructure and social housing more efficiently than traditional design and build methods.
Horizon North has developed a significant opportunity set for its modular construction offering. For 2017, the Corporation expects to deliver a mix of both residential and commercial projects; residential projects will be a combination of Karoleena and the soon to be introduced Kadence line of homes serving the single-family home market, while commercial projects will be a combination of social housing facilities, assisted living centres, multi-family residential complexes, resort accommodation solutions and hotel developments.
"We are very pleased to see these projects moving from our quote log into real backlog and expect between $40 and $60 million of these projects to occur in 2017," commented Rod Graham, President and Chief Executive Officer. "Many of these projects represent the initial phase of multi-phased projects and developments which we expect to turn into additional future opportunities and expanded backlog as we successfully execute and further demonstrate our capabilities."
Insurance Process Update
Horizon North is pleased to announce the resolution of the insurance claims process with respect to losses sustained due to the Fort McMurray, Alberta wildfires in May 2016. An initial advance against the final settlement of $15 million was received by Horizon North in Q3 2016 with a second advance of $10 million received in Q1 2017. The Corporation has recently concluded negotiations with its insurers and agreed to a total settlement in the amount of $34.1 million less advances received to date. Final proceeds are expected to be received by the end of Q1 2017.
Scott Matson, Senior Vice President Finance and Chief Financial Officer commented, "Throughout this process we worked very closely with all parties involved and are pleased to see final resolution on our claims."
Kent Homes Principles Agreement
The Federal Government recently issued a Request for Information - First Nations Housing Initiative ("RFI") through the Department of Indian Affairs and Northern Development. Horizon North has entered into a relationship principles agreement with Kent Homes, part of J.D. Irving Group of Companies, to complete and respond to the RFI. The respective expertise and capabilities of the two organizations will allow for a distinctive Pan-Canadian approach to Aboriginal housing initiatives across Canada, including those outlined in this RFI.
Mr. Graham commented, "We are extremely pleased to be working with such a high quality partner in terms of history, vision and likeminded philosophy. This agreement will create a unified approach and unmatched ability to respond to this, and other, Aboriginal housing initiatives across Canada. The Irving name is synonymous with providing great products and superior services and it is a privilege for Horizon North to enter into this agreement with a group that has maintained strong business relationships across Canada for over 100 years."
Modular Home Distribution in Fort McMurray
Horizon North has recently signed its first promotional services agreement with a key channel partner to market homes in the Fort McMurray, Alberta region. This agreement establishes the channel partner as the exclusive distributor of Horizon North's Kadence line of modular homes in this region. Through this partnership, Horizon North is pleased to provide the residents of Fort McMurray with high quality, cost effective housing options to assist with their rebuild. Horizon North will be installing its first Kadence home in Fort McMurray in the near future which will serve as a show home.
Appointment of new Chairman of the Board
The Corporation is pleased to announce that Mr. Kevin Nabholz has been appointed as Chairman of the Board of Directors (the "Board"). Horizon North is also pleased that Mr. Russell Newmark, who held the Chairman position since January 2014, is continuing on as a member of the Board.
Mr. Nabholz has been a member of the Board since May 2012 and is an independent businessman with over 30 years of experience in the oil sands industry. Mr. Nabholz retired as Executive Vice President, Major Projects at Suncor Energy Inc. ("Suncor") on March 1, 2012, having been at Suncor for 25 years. Mr. Nabholz was involved in all facets of the business at Suncor, including Operations, Maintenance and Projects and in his latest role led the execution of over $30 billion of major projects. Mr. Nabholz has served on a number of private company boards, as well as not-for-profit entities including the Northern Alberta Institute of Technology, Construction Owners Association of Alberta, Keyano College Foundation, the United Way of Fort McMurray and several others.
Mr. Newmark has been a director of Horizon North since June 1, 2006 and has extensive and diverse business knowledge and experience throughout Northern Canada and has been Chief Executive Officer of E. Gruben's Transport Ltd., a successful contracting firm based in the Northwest Territories, since 1990. Since 1976, he has been recognized as a leader within the Mackenzie Delta and Beaufort Sea regions and has served on numerous corporate and government boards including the Inuvialuit Development Corporation, Norterra Inc. and the GNWT Business Loan Fund Board.
Mr. Graham commented, "Russell has been a director of Horizon North since its inception in 2006 and has been integral to the evolution of the Corporation. We are pleased that Russell is continuing on as a member of the Board to provide his experience and leadership as Horizon North continues to move forward." Mr. Graham continued, "We are very fortunate at Horizon North to have the depth of knowledge and talent at the Board level to allow for a seamless transition as we continue transforming our business."
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 Industrial division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Construction 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. 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.
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
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon North. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "expects", "anticipates" and similar expressions. This press release contains forward-looking statements pertaining to, among other things, the following: the mix of residential and commercial projects to be delivered in 2017, the revenues from modular construction projects expected for 2017, additional future opportunities to expand the backlog of projects, the ability to respond to Aboriginal housing initiatives across Canada, the building of the Corporation's first Kadence home in Fort McMurray and the timing of receipt of final insurance proceeds related to the Fort McMurray wildfire.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Horizon North as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Horizon North used for this press release may prove to be incorrect, including the amount of future modular construction projects and the anticipated benefits of the projects and initiatives set out herein. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Horizon North and described in the forward-looking statements contained in this press release, including risks relating to the demand for modular structures. Risk factors that could affect Horizon North's operations and financial results are included in Horizon North's annual information form and other documents which may be accessed through the SEDAR website at www.sedar.com.
Although Horizon North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Horizon North's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, Horizon North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Horizon North's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
SOURCE Horizon North Logistics Inc.