May 4, 2011 (Canada NewsWire Group) --
TSX Symbol: HNL
CALGARY, May 4 /CNW/ - Horizon North Logistics Inc. ("Horizon" or the "Corporation") reported its financial and operating results for the quarters ended March 31, 2011 and 2010.
First Quarter Highlights
- Revenues and EBITDAS(1) increased 136% and 154% respectively, as compared to Q1 2010;
- Camps & Catering revenues increased 145% compared to Q1 2010, driven by both camp rental and catering activity and strong camp manufacturing; and
- Matting revenues increased 88% compared to Q1 2010, driven by strong mat sales.
Capital Program
The Corporation's 2011 capital program has been expanded from $61.3 million to $67.0 million, with. The majority of this increase is related to the purchase of previously leased Camps & Catering service facilities, which include land and existing buildings in Nisku, Alberta.
Financial Summary
| (000's except per share amounts) |
Three Months Ended March 31, 2011 |
Three Months Ended March 31, 2010(4) |
| Revenue | $ 103,159 | $ 43,703 |
| EBITDAS(1) | 22,805 | 8,970 |
| Operating earnings (1) | 15,541 | 2,607 |
| Total profit and comprehensive income | 10,912 | 1,041 |
| Earnings per share - basic and diluted | $ 0.10 | $ 0.01 |
| Total assets | 308,741 | 249,803 |
| Long-term loans and borrowings | 33,831 | 37,458 |
| Funds from operations(2) | 17,167 | 6,538 |
| Capital spending | 25,824 | 8,841 |
| Debt to total capitalization ratio(3) | 0.21:1 | 0.22:1 |
Outlook
Horizon's first quarter 2011 results reflect the continued growth of the Corporation's business with quarterly revenue and EBITDAS numbers again setting new records. Increased investment and production levels in the Alberta oil sands will provide additional growth opportunities for our Camps & Catering segment and our Matting services segment for the foreseeable future, augmented by infrastructure and mineral mining projects. The long-term nature of these projects should enhance the sustainability and growth of Horizon's cash flow streams.
Definitions
| (1) | EBITDAS (Earnings before interest, taxes, depreciation, amortization, accretion of notes payable, gain/loss on disposal of property, plant and equipment and share based payments) and operating earnings are not recognized measures under International Financial Reporting Standards (IFRS). Management believes that in addition to net earnings, EBITDAS is a useful supplemental measure as it provides an indication of the Corporation's ability to generate cash flow in order to fund working capital, service debt, pay current income taxes, and fund capital programs. Management believes that in addition to total profit and comprehensive income, operating earnings is a useful supplemental measure as it provides an indication of the results generated by the Corporation's principal business activities prior to consideration of how those activities are financed or taxed. Investors should be cautioned, however, that EBITDAS and operating earnings should not be construed as alternatives to total profit and comprehensive income determined in accordance with IFRS as an indicator of the Corporation's performance. Horizon's method of calculating EBITDAS and operating earnings may differ from other entities and accordingly, EBITDAS and operating earnings may not be comparable to measures used by other entities. For a reconciliation of EBITDAS and operating earnings to total profit and comprehensive income, please refer to page 3 of the Management's Discussion and Analysis. |
| (2) | Funds from operations is not a recognized measure under IFRS. Management believes that in addition to cash flow from operations, funds from operations is a useful supplemental measure as it provides an indication of the cash flow generated by the Corporation's principal business activities prior to consideration of changes in working capital. Investors should be cautioned, however, that funds from operations should not be construed as an alternative to cash flow from operations determined in accordance with IFRS as an indicator of the Corporation's performance. Horizon's method of calculating funds from operations may differ from other entities and accordingly, funds from operations may not be comparable to measures used by other entities. Funds from operations is equal to cash flow from operations before changes in non-cash working capital items related to operations, interest and income taxes paid, financing costs, and income tax expense. |
| (3) | Debt to total capitalization is calculated as the ratio of debt to total capitalization. Debt is defined as the sum of operating lines of credit and current and long-term portions of loans and borrowings. Total capitalization is calculated as the sum of debt and shareholder's equity |
| (4) | All 2010 figures have been restated in accordance with International Financial Reporting Standards. |
Quarterly Financial Results
| Three months ended March 31, 2011 | |||||||
| (000's) |
Camps & Catering |
Matting |
Marine Services |
Corporate |
Inter-segment Eliminations |
Total | |
| Revenue | $ 86,123 | $ 17,841 | $ 832 | $ - | $ (1,637) | $ 103,159 | |
| Expenses | |||||||
| Direct costs | 64,718 | 13,468 | 459 | - | (1,585) | 77,061 | |
| Selling & administrative | 874 | 99 | - | 2,320 | - | 3,293 | |
| EBITDAS | $ 20,531 | $ 4,274 | $ 373 | $ (2,320) | $ (53) | $ 22,805 | |
| Share based payments | 84 | 10 | 1 | 61 | - | 156 | |
| Depreciation & amortization | 5,411 | 1,310 | 107 | 84 | (16) | 6,896 | |
| Loss on disposal of property, plant and equipment | 84 | 128 | - | - | - | 212 | |
| Operating earnings (loss) | $ 14,952 | $ 2,826 | $ 265 | $ (2,465) | $ (37) | $ 15,541 | |
| Finance costs | 613 | ||||||
| Loss on equity investments | 21 | ||||||
| Income tax expense | 3,995 | ||||||
| Total profit and comprehensive income | $ 10,912 | ||||||
| Earnings per share - diluted | $ 0.10 | ||||||
| Three months ended March 31, 2010 (1) | |||||||
| (000's) |
Camps & Catering |
Matting |
Marine Services |
Corporate |
Inter-segment Eliminations |
Total | |
| Revenue | $ 35,167 | $ 9,490 | $ 233 | $ - | $ (1,188) | $ 43,702 | |
| Expenses | |||||||
| Direct costs | 24,946 | 7,373 | 373 | 9 | (1,114) | 31,587 | |
| Selling & administrative | 917 | 112 | - | 2,116 | - | 3,145 | |
| EBITDAS | $ 9,304 | $ 2,005 | $ (140) | $ (2,125) | $ (74) | $ 8,970 | |
| Share based payments | 152 | 24 | 3 | 98 | - | 277 | |
| Depreciation & amortization | 4,268 | 1,335 | 308 | 73 | (15) | 5,969 | |
| Loss on disposal of property, plant and equipment | 20 | 97 | - | - | - | 117 | |
| Operating earnings (loss) | $ 4,864 | $ 549 | $ (451) | $ (2,296) | $ (59) | $ 2,607 | |
| Finance costs | 462 | ||||||
| Loss on equity investments | 47 | ||||||
| Income tax expense | 1,057 | ||||||
| Total profit and comprehensive income | $ 1,041 | ||||||
| Earnings per share - diluted | $ 0.01 | ||||||
1) All 2010 figures have been restated in accordance with International Financial Reporting Standards.
Camps & Catering
Camps & Catering revenue is comprised of camp rental and catering revenue, camp and space unit sales, equipment and space rental revenue, and service revenue from transportation and installation.
|
Three months ended March 31 |
|||
| (000's except bed rental days and catering only days) | 2011 | 2010 (3) | |
| Camp rental and catering revenue | $ 42,263 | $ 22,267 | |
| Camp and space sales revenue | 25,182 | 5,272 | |
| Space rental revenue | 1,115 | 762 | |
| Service revenue | 17,563 | 5,866 | |
| Total revenue | $ 86,123 | $ 35,167 | |
| EBITDAS | $ 20,531 | $ 9,304 | |
| Operating earnings | $ 14,952 | $ 4,864 | |
| Bed rental days (1) | 209,555 | 116,524 | |
| Catering only days (2) | 58,945 | 25,540 | |
| (1) | One bed rental day equals the rental of one bed and the provision of related catering and housekeeping services for one day. |
| (2) | One catering only day equals the provision of catering and housekeeping services with no related bed rental for one day. |
| (3) | 2010 revenue, EBITDAS and operating earnings have been restated in accordance with International Financial Reporting Standards. |
Revenues from operations in the Camps & Catering segment were $86.1 million for the three months ended March 31, 2011, compared to $35.2 million for the three months ended March 31, 2010, an increase of $50.9 million or 145%. EBITDAS from operations for the three months ended March 31, 2011 was $20.5 million or 24% of revenue compared to $9.3 million or 26% of revenue for the three months ended March 31, 2010, an increase of $11.2 million or 120%. The significant increase in both revenue and EBITDAS was related to higher activity in the oil sands and mining sectors for the first quarter of 2011 relative to the same period of 2010.
The increased activity in the oil sands sector has been driven by the price of oil, which has remained consistently above $75 per barrel from mid 2010. This consistency in the price of oil has given oil sands operators the confidence to restart projects on hold and initiate new projects. In the mining sector, increasing mineral prices initiated several significant mine expansion projects in British Columbia and the Northwest Territories. In the first quarter of 2011, these mining projects were near the top of their manpower curve, as compared to the same period of 2010 when they were in the early stages of project initiation.
Camp rental and catering revenue
Revenues from camp rental and catering operations were $42.3 million for the three months ended March 31, 2011 compared to $22.3 million for the three months ended March 31, 2010, an increase of $20.0 million or 90%. Revenues are derived from the following main business areas: large camp operations, drill camp operations, catering only operations, and ancillary equipment rentals.
The table below outlines the key performance metrics used by management to measure performance in the large camp and drill camp operations.
| Three months ended March 31 | |||||||
| (000's for revenue only) | 2011 | 2010 | |||||
|
Large camp |
Drill camp |
Total |
Large camp |
Drill camp |
Total | ||
| Revenue (1) | $31,971 | $3,192 | $35,163 | $17,480 | $2,319 | $19,799 | |
| Bed rental days | 190,295 | 19,260 | 209,555 | 101,429 | 15,095 | 116,524 | |
| Revenue per bed rental day | $168 | $166 | $168 | $172 | $154 | $170 | |
| Available beds (2) | 3,035 | 1,018 | 4,053 | 2,517 | 1,018 | 3,535 | |
| Utilization (3) | 70% | 21% | 57% | 45% | 16% | 37% | |
(1) 2010 revenue has been restated in accordance with International Financial Reporting Standards.
(2) Available beds is equal to total average beds in the fleet less beds
required for staff.
(3) Utilization equals the total number of bed rental days divided by total rentable
beds times days in the quarter.
Revenues from the large camp operations for the three months ended March 31, 2011 increased $14.5 million, or 83% as compared to the three months ended March 31, 2010. The increase in revenue was driven by higher volumes as a result of increased demand from oil sands operators. With oil prices averaging above the $100 per barrel range, oil sands activity has increased significantly focusing on: increasing production levels at existing facilities, resumption of projects previously on hold and new oil sands projects.
The average number of available beds in the large camp rental fleet increased by 518 at March 31, 2011 as compared to March 31, 2010. The number of bed rental days increased significantly for the three months ended March 31, 2011. Higher volumes were driven by improved fleet utilization which increase by 25% as compared to the same period in 2010. Stronger utilization was driven primarily by demand from the oil sands operators.
Revenues from the drill camp operations increased for the three months ended March 31, 2011 as compared to the same period of 2010. Increased volumes and utilization were a result of overall higher drilling activity in Western Canada, with the Canadian Association of Oilwell Drilling Contractors (CAODC) reporting average rig utilization in Western Canada for the three months ended March 31, 2011, at 68% as compared to 54% in the same period of 2010. The increase in the revenue per bed day was from provision of additional services and equipment requested by customers while the camps were operational.
The table below outlines the key performance metrics used by management to measure performance in the catering only and equipment rental operations.
| Three months ended March 31 | |||||
| (000's for revenue only) | 2011 | 2010 (1) | |||
| Catering only |
Equipment rental |
Catering only |
Equipment rental |
||
| Revenue | $5,761 | $1,339 | $2,000 | $468 | |
| Catering only days | 58,945 | - | 25,540 | - | |
| Revenue per catering only day | $98 | - | $78 | - | |
(1) 2010 revenue has been restated in accordance with International Financial Reporting Standards.
Revenues from the provision of catering and housekeeping only services, with no associated bed rentals, for the three months ended March 31, 2011 increased significantly as compared to same period of 2010. The higher volume was primarily due to a significant mine expansion project in the Northwest Territories which was at much higher point in their manpower curve as compared to the same period of 2010 when it was in the early ramp-up phase. The remaining volume increase came from catering and housekeeping services on customer owned drill camps, which was consistent with the increased drilling activity in Western Canada. Higher revenue per catering only day also contributed to the revenue increase. The increased rate was due to stronger pricing and additional services requested by customers while the camps were operational.
Camp and space sales revenue
Camp and space sales revenues for the three months ended March 31, 2011 were $25.2 million as compared to $5.3 million for the same period in 2010, an increase of $19.9 million or 375%. The increase is attributable to two significant manufacturing projects which began production in the third quarter of 2010 and continued through the first quarter of 2011, with one of the two projects continuing into 2012. Camp and space sales revenue may not continue at the present level as some production capacity will be dedicated to internal fleet expansion. For the three months ended March 31, 2010, production capacity had been scaled back to align with the smaller projects and slower economic conditions that were still prevalent exiting 2009. With the higher manufacturing activity, production staff increased to an average of 360 people in the three months ended March 31, 2011 as compared to 200 people in the same period of 2010.
Rental revenue
Space rental revenues for the three months ended March 31, 2011 remained relatively unchanged as compared to the same period of 2010. The British Columbia space rental market remains very competitive keeping pricing relatively unchanged in the three months ended March 31, 2011 as compared to the same quarter of 2010.
Service revenue
Revenues from camp mobilization, demobilization, transportation, and installation work for the three months ended March 31, 2011 were $17.6 million as compared to $5.9 million in the same period of 2010, an increase of $11.7 million or 198%. This revenue is largely driven by activity levels in both the camp rental and catering business and the camp and space sales business. For the three months ended March 31, 2011, activity in camp and space sales business increased significantly compared to the same period of 2010 as a result of the transport and installation work associated with two large manufacturing projects.
Direct costs
Direct costs in the Camps & Catering operations for the three months ended March 31, 2011 were $65.6 million or 76% of revenue as compared to $25.9 million or 74% of revenue for the same period of 2010. Direct costs are closely related to revenues, the increase in overall costs are a result of the higher activity levels seen in the three months ended March 31, 2011, as compared to the same period of 2010. As a percentage of revenue, direct costs were slightly higher than the same period of 2010. The increase was attributable to the revenue mix, with camp and space sales making up a higher proportion of total revenues which typically have a higher cost structure than rental and catering operations.
Matting
Matting revenue is comprised of mat rental revenue, mat sales revenue, installation, transportation, service, and other revenue as follows:
|
Three months ended March 31 |
|||
| (000's except rental days and mats) | 2011 | 2010 (1) | |
| Mat rental revenue | $ 631 | $ 819 | |
| Mat sales revenue | 10,588 | 3,659 | |
| Installation, transportation, service and other revenue | 6,622 | 5,012 | |
| Total revenue | $ 17,841 | $ 9,490 | |
| EBITDAS | $ 4,274 | $ 2,005 | |
| Operating earnings | $ 2,826 | $ 549 | |
| Mat rental days | 250,587 | 496,281 | |
| Average mats in rental fleet | 7,232 | 13,156 | |
| Mats sold | |||
| New mats | 12,385 | 2,055 | |
| Used mats | 2,382 | 4,351 | |
| Total mats sold | 14,767 | 6,406 | |
(1) 2010 revenue, EBITDAS and operating earnings have been restated in accordance with International Financial Reporting Standards.
Revenues from the Matting segment for the three months ended March 31, 2011 were $17.8 million as compared to $9.5 million for the same period of 2010, an increase of $8.3 million or 87%. EBITDAS for the three months ended March 31, 2011 were $4.3 million or 24% of revenue as compared to $2.0 million for the same period of 2010 or 21% of revenue, an increase of $2.3 million or 115%.
Mat rental revenue
Mat rental revenues for the three months ended March 31, 2011 declined by $0.2 million as compared to same period of 2010. Rental volumes for the three months ended March 31, 2011 decreased by 245,694 rental days as compared to the same period of 2010. As a result of lower volumes, utilization of the oak mat rental fleet was 39% for the three months ended March 31, 2011 as compared 42% in the same period of 2010. A combination of two factors caused the lower rental volumes, colder weather and the changing preferences of customers to purchase rather than rent matting. The colder weather in the three months ended March 31, 2011 caused a later spring break-up allowing customers to operate longer in the frozen conditions. As highlighted in the previous quarter, customer drilling programs focused on steam assisted gravity drainage (SAGD) wells which are long-term projects. The long-term nature of these wells changes customer economics and favours purchasing rather than renting. Offsetting the lower rental volume was strengthening pricing. The average revenue per rental day for the traditional oak access mats, for the three months ended March 31, 2011 was $2.52 per day as compared to $1.65 per day in the same period of 2010.
Mat sales revenue
Revenues from mat sales, for the three months ended March 31, 2011, were significantly higher by $6.9 million, or 186% as compared the same period of 2010. The total number of mats sold increased compared to the same period of 2010, as overall customer demand and activity levels increased in 2011. The higher demand is from increased activity in long-term SAGD type of drilling pads, driving the preference to purchase rather than rent mats. Revenue per mat sold during the first quarter of 2011 was $717, up from $571 in the same period of 2010. The higher revenue per mat is reflective of the mix of new and used mats sold, as new mats have a higher selling price than used mats.
Installation, transportation, service, and other revenue
Installation, transportation, service, and other revenues are driven primarily from the level of activity in the mat rental and mat sale businesses. Revenues for the three months ended March 31, 2011 were higher by $1.6 million as compared to the same period in 2010, the increase coming from stronger mat sales, partially offset by lower mat rentals.
Direct costs
Direct costs for the three months ended March 31, 2011 were $13.6 million or 76% of revenue as compared to $7.5 million or 79% of revenue for the same period of 2010. Direct costs are driven by the level of business activity. With the significant increase in revenue, as compared to the same period of 2010, direct costs have increased proportionately. Direct costs, as a percentage of revenue, decreased 3% for the three months ended March 31, 2011 as compared the same period of 2010. This decrease in direct cost, as a percentage of revenue, is attributable to the strengthening of pricing for the three months ended March 31, 2011 as compared to the same period of 2010 as the actual costs were relatively consistent.
Marine Services
Marine Services revenue is comprised of tug and barge revenue, barge camp revenue, and rental and other revenue as follows:
|
Three months ended March 31 |
|||
| (000's) | 2011 | 2010 (1) | |
| Tug revenue | $ - | $ - | |
| Barge revenue | - | - | |
| Barge camp revenue | 680 | - | |
| Rental and other revenue | 152 | 233 | |
| Total revenue | $ 832 | $ 233 | |
| EBITDAS | $ 373 | $ (140) | |
| Operating earnings (loss) | $ 265 | $ (451) | |
(1) 2010 revenue, EBITDAS and operating earnings (loss) have been restated in accordance with International Financial Reporting Standards.
Revenues from the Marine Services segment for the three months ended March 31, 2011 were $0.8 million as compared to $0.2 million in the same period of 2010, an increase of $0.6 million or 257%. The increase was primarily due to the ongoing provision of two barge camps and associated service and support personnel at a customer's mining project in Nunavut.
EBITDAS for the three months ended March 31, 2011 was $0.4 million or 50% of revenue as compared to a loss of $0.1 million for the same period of 2010. The increase in EBITDAS was due to the ongoing barge camp rental in 2011, whereas these barge camps were not working in the same period of 2010.
Corporate
Corporate costs are the costs of the head office which include the Executive Chairman, President and Chief Executive Officer, Chief Financial Officer, Vice President of Safety, Vice President of Aboriginal Relations, Corporate Secretary, Corporate Accounting staff, and associated costs of supporting a public company. Cash costs for the three months ended March 31, 2011 were $2.3 million as compared to $2.1 million in the same period in 2010. This increase of $0.2 million reflects the increased cost to support the higher level of business activity.
Consolidated Statement of Financial Position (Unaudited)
March 31, 2011, December 31, 2010 and January 1, 2010
| (000's) | March 31 | December 31 | January 1 | |
| 2011 | 2010 | 2010 | ||
| Assets | ||||
| Current assets: | ||||
| Cash & cash equivalents | $ - | $ - | $ 3,724 | |
| Trade and other receivables | 67,250 | 52,003 | 26,614 | |
| Inventories | 12,849 | 13,726 | 9,298 | |
| Prepayments | 7,998 | 8,953 | 1,830 | |
| Income taxes receivable | - | - | 990 | |
| 88,097 | 74,682 | 42,456 | ||
| Non-current assets: | ||||
| Property, plant and equipment | 182,180 | 162,484 | 146,048 | |
| Intangible assets | 24,832 | 26,892 | 35,320 | |
| Goodwill | 2,136 | 2,136 | 2,136 | |
| Investments in equity accounted investees | 2,230 | 2,251 | 2,463 | |
| Deferred tax assets | 6,360 | 6,458 | 8,434 | |
| Other assets | 2,906 | 2,934 | 3,061 | |
| 220,644 | 203,155 | 197,462 | ||
| $ 308,741 | $ 277,837 | $ 239,918 | ||
| Liabilities and Shareholders' Equity | ||||
| Current liabilities: | ||||
| Bank indebtedness | $ 605 | $ 834 | $ - | |
| Trade and other payables | 32,831 | 25,377 | 12,391 | |
| Deferred revenue | 13,981 | 7,206 | 2,068 | |
| Income taxes payable | 3,572 | 1,344 | - | |
| Current portion of loans and borrowings | 15,603 | 11,773 | 8,839 | |
| 66,592 | 46,534 | 23,298 | ||
| Non-current liabilities: | ||||
| Provisions | 1,237 | 1,223 | 1,169 | |
| Loans and borrowings | 33,831 | 30,363 | 35,863 | |
| Deferred tax liabilities | 20,127 | 20,918 | 18,326 | |
| 121,787 | 99,038 | 78,656 | ||
| Shareholders' equity: | ||||
| Share capital | 247,153 | 245,353 | 245,353 | |
| Contributed surplus | 11,104 | 11,446 | 10,339 | |
| Deficit | (71,303) | (78,000) | (94,430) | |
| 186,954 | 178,799 | 161,262 | ||
| $ 308,741 | $ 277,837 | $ 239,918 | ||
Consolidated Statement of Comprehensive Income (Unaudited)
For the three months ended March 31, 2011 and 2010
| March 31 | March 31 | ||
| (000's) | 2011 | 2010 | |
| Revenue | $ 103,159 | $ 43,702 | |
| Operating expenses: | |||
| Direct costs | 77,061 | 31,587 | |
| Depreciation | 4,836 | 3,831 | |
| Amortization of intangible assets | 41 | 125 | |
| Share based compensation | 95 | 180 | |
| Loss on disposal of property, plant and equipment | 212 | 117 | |
| Direct operating expenses | 82,245 | 35,840 | |
| Gross profit | 20,914 | 7,862 | |
| Selling & administrative expenses: | |||
| Selling & administrative expenses | 3,293 | 3,145 | |
| Amortization of intangible assets | 2,019 | 2,013 | |
| Share based compensation | 61 | 97 | |
| Selling & administrative expenses | 5,373 | 5,255 | |
| Operating earnings | 15,541 | 2,607 | |
| Finance costs | 613 | 462 | |
| Share of loss of equity accounted investees | 21 | 47 | |
| Profit before tax | 14,907 | 2,098 | |
| Current tax expense | 4,688 | 358 | |
| Deferred tax (recovery) expense | (693) | 699 | |
| Income tax expense | 3,995 | 1,057 | |
| Total profit and comprehensive income | $ 10,912 | $ 1,041 | |
| Earnings per share | |||
| Basic | $ 0.10 | $ 0.01 | |
| Diluted | $ 0.10 | $ 0.01 | |
| Consolidated Statement of Changes in Equity (Unaudited) | ||||
| March 31, 2011, December 31, 2010, March 31, 2010 and January 1, 2010 | ||||
|
(000's) |
Share Capital |
Contributed Surplus |
Deficit |
Total |
| Balance at January 1, 2010 | $ 245,353 | $ 10,339 | $ (94,430) | $ 161,262 |
| Total profit and comprehensive income | - | - | 1,041 | 1,041 |
| Share based compensation | - | 277 | - | 277 |
| Balance at March 31, 2010 | 245,353 | 10,616 | (93,389) | 162,580 |
| Total profit and comprehensive income | - | - | 15,389 | 15,389 |
| Share based compensation | - | 830 | - | 830 |
| Balance at December 31, 2010 | 245,353 | 11,446 | (78,000) | 178,799 |
| Total profit and comprehensive income | - | - | 10,912 | 10,912 |
| Fair value of stock options exercised | 498 | (498) | - | - |
| Cash from stock options exercised | 1,302 | - | - | 1,302 |
| Dividends declared | - | - | (4,215) | (4,215) |
| Share based compensation | - | 156 | - | 156 |
| Balance at March 31, 2011 | $ 247,153 | $ 11,104 | $ (71,303) | $ 186,954 |
| Consolidated Statements of Cash Flows (Unaudited) | ||||
| For the three months ended March 31, 2011 and 2010 | ||||
| March 31 | March 31 | |||
| (000's) | 2011 | 2010 | ||
| Cash provided by (used in): | ||||
| Operating activities: | ||||
| Profit for the period | $ 10,912 | $ 1,041 | ||
| Adjustments for: | ||||
| Depreciation | 4,836 | 3,831 | ||
| Amortization of intangible assets | 2,060 | 2,138 | ||
| Share based compensation | 156 | 277 | ||
| Amortization of other assets | 28 | 27 | ||
| Earnings on equity investments | 21 | 47 | ||
| Gain on sale of property, plant and equipment | (846) | (823) | ||
| Finance costs | 613 | 462 | ||
| Income tax expense | 3,995 | 1,057 | ||
| 21,775 | 8,057 | |||
| Income taxes paid | (2,460) | (300) | ||
| Interest paid | (414) | (524) | ||
| Changes in non-cash working capital items | (1,997) | (12,697) | ||
| 16,904 | (5,464) | |||
| Investing activities: | ||||
| Purchase of property, plant and equipment | (25,824) | (8,841) | ||
| Purchase of intangibles | - | (16) | ||
| Proceeds on sale of property, plant and equipment | 2,138 | 4,100 | ||
| (23,686) | (4,757) | |||
| Changes in non-cash working capital items | (1,550) | 2,522 | ||
| (25,236) | (2,235) | |||
| Financing activities: | ||||
| (Repayment of) proceeds from bank indebtedness | (229) | 2,633 | ||
| Shares issued | 1,302 | - | ||
| Proceeds of loans and borrowings | 7,135 | 1,391 | ||
| 8,208 | 4,024 | |||
| Changes in non-cash working capital items | 124 | (49) | ||
| 8,332 | 3,975 | |||
| Decrease in cash position | - | (3,724) | ||
| Cash, beginning of period | - | 3,724 | ||
| Cash, end of period | $ - | $ - | ||
Caution Regarding Forward-Looking Information and Statements
Certain statements contained in this Press Release constitute forward-looking statements or information. These statements relate to future events or future performance of Horizon. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan" "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions are intended to identify forward-looking statements.
In particular, such forward- looking statements include: under the heading "Overview and Outlook" the statements that: "Increased investment and production levels in the Alberta oil sands will provide additional growth opportunities for our camp and catering segment and our matting services segment for the foreseeable future, augmented by infrastructure and mineral mining projects. The long-term nature of these projects should enhance the sustainability and growth of Horizon's cash flow streams." and "Strong demand from oil sands operators for camp rental and catering services, as well as camp sales, has strengthened the Corporation's backlog, and as a result the current level of activity is expected to continue well into 2011."
The foregoing statements are based on the assumption that prices for oil and minerals will stay high enough to support ongoing high levels of exploration and development activities in Western Canada which in turn support high levels of activities for the Corporation's businesses.
There are a number of risks which could impact these generally high levels of activity which could negatively impact the Corporation's business. As such, many factors could cause the performance or achievements of the Corporation to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.
Corporate Information
Additional information related to the Corporation, including the Corporation's annual information form, financial statements, and MD&A is available on SEDAR at www.sedar.com. Unless otherwise indicated, the consolidated financial statements have been prepared in accordance with IFRS and the reporting currency is in Canadian dollars.
Bob German, President and Chief Executive Officer, or Scott Matson, Vice President Finance and Chief Financial Officer, 1600, 505 - 3rd Street S.W., Calgary, Alberta T2P 3E6, Telephone: (403) 517-4654, Fax: (403) 517- 4678; website: www.horizonnorth.ca