09:51:40 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Horizon North Logistics Inc
Symbol HNL
Shares Issued 110,440,651
Close 2014-12-19 C$ 2.60
Market Cap C$ 287,145,693
Recent Sedar Documents

Horizon North sets 2015 capital budget of $25-million

2014-12-22 17:40 ET - News Release

Mr. Rod Graham reports

HORIZON NORTH LOGISTICS INC. PROVIDES OPERATIONAL UPDATE AND ANNOUNCES INITIAL 2015 CAPITAL BUDGET

Horizon North Logistics Inc. has provided an operational update including its earnings outlook for fourth quarter 2014 and for the full year of 2015, outlining a conservative capital spending program for 2015 and a commitment to maintain its dividend.

Horizon expects that its results for Q4 2014 will be in line with its previously provided guidance, generating EBITDAS (earnings before interest and finance costs, income tax expense, depreciation, amortization, (gain) loss on disposal of property, plant and equipment, and stock-based compensation) levels similar to third quarter 2014 results. Horizon anticipates a challenging operating environment for 2015, and has updated its earnings and cash flow expectations accordingly. Based on contracts currently in place, anticipated contract renewals and other highly probable activity, Horizon anticipates that EBITDAS levels for 2015 will be similar to 2014 results.

Horizon's board of directors recently approved an initial capital budget for 2015 of $25-million, focused primarily on maintenance capital expenditures. Capital expenditures related to potential growth opportunities will be evaluated on a case-by-case basis to ensure they meet the corporation's investment criteria.

Based on its earnings expectations for 2015 and a conservative capital program, Horizon expects its leverage position and financial flexibility to improve exiting 2014 and throughout 2015. As a result, Horizon is confident that it will be able to maintain its current quarterly dividend, subject to review and evaluation by its board of directors on a quarterly basis.

"Given the challenging environment anticipated for 2015, management will be focused on controlling costs, improving project execution and on capital discipline. This focus will allow us to maintain our core operating capabilities, improve our balance sheet position and manage through the cycle," noted Rod Graham, president and chief executive officer.

Mr. Graham added: "Although not included in our 2015 expectations, Horizon is well positioned to take advantage of development opportunities in British Columbia related to potential LNG [liquefied natural gas] projects by virtue of our strategic land positions in close proximity to proposed project sites. As well, there are opportunities to utilize Horizon's in-house manufacturing capabilities located in Kamloops, B.C., and Grande Prairie, Alta., which we believe to be a competitive advantage."

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.