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.
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.
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.
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 modular construction projects to be delivered in 2018, the line of sight for modular construction projects in 2018 and beyond, the negotiation and timing of a contract with VAHA and the costs thereof, timing of scheduled deliveries and the timing and completion of the transfer of certain operations from Horizon North Camp & Catering Partnership to a newly incorporated entity.
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 and the successful negotiation of future contracts, including with VAHA. 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.
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.