Horizon North Logistics Inc Announces Results for the Quarter Ended September 30, 2019.

CALGARY: Horizon North Logistics Inc. ("Horizon North" or the "Corporation") reported its financial and operating results for the three and nine months ended September 30, 2019 and 2018.

Third Quarter Highlights

Horizon North had Q3 2019 revenue of $116.6 million and EBITDAS of $8.9 million, an increase of $16.6 million and decrease of $2.8 million, respectively, when compared to Q3 2018. Total loss increased $3.2 million, to $3.4 million, when compared with the $0.2 million loss in Q3 2018;

Q3 2019 EBITDAS significantly improved by $12.8 million compared to Q2 2019; and is more in line with the Corporation's expectations.

The Industrial Services business had Q3 2019 revenue of $68.9 million, an increase of 4% from Q3 2018. EBITDAS for the same period were $10.5 million, a decrease of $0.4 million when compared to Q3 2018;

The Modular Solutions business had revenue of $47.7 million for Q3 2019, a 37% increase from Q3 2018. EBITDAS for the same period were $0.9 million, a decrease of $3.1 million from Q3 2018. Backlog exiting the quarter was $71.7 million, excluding the Fairfield by Marriott, compared to $88.8 million at December 31, 2018. The funnel of high-quality, high probability sales opportunities increased, exiting the quarter at $295.3 million compared to $290.0 million at December 31, 2018; and

Effective September 26, 2019, Horizon North reached an agreement with its lenders to amend its credit facility. The maturity date was extended to September 30, 2021 to provide certainty with respect to borrowing capacity as the Corporation evaluates its capitalization and debt structure through 2019 and 2020

Quarterly Operational Overview

Revenue for Q3 2019 increased by 17% primarily due to increased throughput in the Modular Solutions segment as well as increased camp rental and catering activity in the Camp & Catering segment, partially offset by decreased Rentals & Logistics segment revenues compared to Q3 2018 due to decreased mat rental revenue and equipment sales.

Industrial Services

Revenues from Industrial Services for Q3 2019 increased by 4% compared to Q3 2018 primarily due to increased catering only activity. Catering only activity increased 47% in Q3 2019 compared to Q3 2018, with revenue per catering only day lower by 9% as a result of different contract mix. Rentals & Logistics revenues decreased by 21% in Q3 2019 compared to Q3 2018 primarily due to a decrease in mat rental revenue and equipment sales.

Modular Solutions

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