Logistec Corporation
TSX : LGT.A
TSX : LGT.B

Logistec Corporation

May 04, 2010 17:01 ET

Logistec Announces Financial Results for the First Quarter of 2010

MONTREAL, QUEBEC--(Marketwire - May 4, 2010) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B], a specialized diverse cargo handler in eastern North American ports, today announced its financial results for the first quarter ended March 27, 2010.

During the first quarter of 2010, Logistec recorded consolidated net income of $0.2 million or $0.03 per share, compared with net loss of $1.1 million or $(0.17) per share in the first quarter of 2009. Consolidated revenue rose 18.2% to $47.2 million, up from $39.9 million in the first quarter of 2009. Both business segments contributed to this growth: the marine services segment's revenue increased by $2.9 million or 8.1%, whereas the environmental services segment's revenue more than doubled, thanks notably to the acquisition of Niedner in the fourth quarter of 2009. The marine services segment posted operating income of $1.3 million, as opposed to an operating loss of $0.7 million in 2009, whereas the environmental services segment reduced its operating loss from $0.9 million in 2009 to $0.7 million in 2010.

"Although the first quarter corresponds to the least busy period of the year, we were pleased to see higher revenue and improved results in both our businesses," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

"According to the World Trade Organization ("WTO"), international trade fell 12.2% in volume and 23% in value in 2009, the largest annual decline since World War II. For 2010, the WTO expects international trade to grow by 9.5%, but even if this forecast is accurate, the highs of 2008 will not be reached in 2010. This growth is driven mainly by lesser developed countries that have not leveraged themselves out of the recession. A lower but solid growth is expected for North America. The analysis of our first-quarter results definitely shows encouraging signs, as bulk cargo and container volumes are up. Conversely, break-bulk cargo volumes are down from the first quarter of 2009. As the economic recovery is still fragile worldwide, we remain prudent and continue to tightly manage costs. Acquisitions made last year have already been integrated into our operations and should contribute to improve our performance in 2010. We also expect sustained growth in our environmental services segment, which should benefit from the integration of Niedner's business and the commercialization of Aqua-Pipe® on a wider scale," concluded Ms. Paquin.

About Logistec

Logistec Corporation is based in Montréal (QC) and provides specialized services to the marine community and industrial companies in the areas of container, break-bulk and bulk cargo handling in 23 ports in Eastern Canada, the Great Lakes and the U.S. East Coast. Logistec also offers marine transportation services geared primarily to the Arctic coastal trade, short-line rail transportation services, as well as agency services to foreign shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental sector where it provides services for the trenchless structural rehabilitation of underground water mains, PCB management, site remediation, risk assessment, and woven-hose manufacturing. The Company has been profitable and has paid regular dividends since becoming public and payments have grown steadily over the years.

A public company since 1969, Logistec's shares are listed on the Toronto Stock Exchange under the ticker symbols LGT.A and LGT.B. More information can be obtained at the Company's website at www.logistec.com.

Forward-Looking Statements

For the purpose of informing shareholders and potential investors about the Company's prospects, sections of this document may contain forward-looking statements, within the meaning of securities legislation, about the Company's activities, performance and financial situation and, in particular, hopes for the success of the Company's efforts in the development and growth of its business. These forward-looking statements express, as of the date of this document, the estimates, predictions, projections, expectations or opinions of the Company about future events or results. Although the Company believes that the expectations produced by these forward-looking statements are founded on valid and reasonable bases and assumptions, these forward-looking statements are inherently subject to important uncertainties and contingencies, many of which are beyond the Company's control, such that the Company's performance may differ significantly from the predicted performance expressed or presented in such forward-looking statements. The important risks and uncertainties that may cause the actual results and future events to differ significantly from the expectations currently expressed are examined under "Business Risks" in the Company's annual report and include (but are not limited to) the performances of domestic and international economies and their effect on shipping volumes, weather conditions, labour relations, pricing and competitors' marketing activities. The reader of this document is thus cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to update or revise these forward-looking statements, except as required by law.

Additional information relating to our Company can be found on SEDAR at www.sedar.com and on Logistec's website at www.logistec.com.

Consolidated Statements of Earnings
(in thousands of dollars, except for number of shares and per share amounts)
   
  For the three months ended  
  March 27, 2010
(Unaudited
) March 28, 2009
(Unaudited
)
  $   $  
         
Revenue 47,171   39,918  
Operating expenses 43,530   39,414  
  3,641   504  
         
Amortization of property, plant and equipment 2,323   2,118  
Amortization of intangible and other assets 485   63  
Interest on long-term debt 434   328  
Other interest expense 65   68  
Interest revenue from investments in service contracts (455 ) (483 )
Foreign exchange loss (gain) 266   (126 )
Loss (gain) on disposal of property, plant and equipment (36 ) 99  
  3,082   2,067  
         
Income (loss) from operations 559   (1,563 )
         
Share in the results of companies subject to significant influence 4   (499 )
Income (loss) before income taxes and non-controlling interests 563   (2,062 )
         
Income taxes 177   (686 )
Income (loss) before non-controlling interests 386   (1,376 )
         
Non-controlling interests 175   (247 )
Net income (loss) 211   (1,129 )
         
Basic and diluted earnings (loss) per share 0.03   (0.17 )
         
Weighted average number of shares outstanding, basic and diluted 6,633,794   6,649,628  
         
         
         
Consolidated Statements of Retained Earnings
(in thousands of dollars)
         
  For the three months ended  
  March 27, 2010
(Unaudited
) March 28, 2009
(Unaudited
)
  $   $  
         
Balance, beginning of period 89,364   83,435  
Net income (loss) 211   (1,129 )
  89,575   82,306  
         
Excess over par value of Class A Common Shares repurchased 40   10  
Excess over par value of Class B Subordinate Voting Shares repurchased 333   36  
Dividends 537   538  
Balance, end of period 88,665   81,722  
 
 
 
Consolidated Statements of Comprehensive Income
(in thousands of dollars)
         
  For the three months ended  
  March 27, 2010
(Unaudited
) March 28, 2009
(Unaudited
)
  $   $  
         
Net income (loss) 211   (1,129 )
         
Other comprehensive income        
Unrealized (loss) gain on translation of financial statements of self-sustaining foreign subsidiaries (157 ) 93  
Comprehensive income (loss) 54   (1,036 )
 
 
 
Consolidated Balance Sheets
(in thousands of dollars)
   
  As at
March 27,2010
(Unaudited
) As at
December 31,
2009 (Audited
)
  $   $  
         
Assets        
Current assets        
  Cash and cash equivalents 14,112   17,297  
  Short-term investments 2,562   3,862  
  Accounts receivable 40,764   50,586  
  Income taxes receivable 5,162   4,091  
  Future income taxes 258   264  
  Prepaid expenses 4,677   2,706  
  Inventories 4,201   4,273  
  71,736   83,079  
         
Investments 18,499   20,006  
Property, plant and equipment 77,890   78,938  
Goodwill 10,349   10,349  
Intangible assets 3,384   3,826  
Other assets 11,597   11,837  
Future income taxes 6,674   6,697  
  200,129   214,732  
         
Liabilities        
Current liabilities        
  Short-term bank loans 2,321   3,048  
  Accounts payable and accrued liabilities 25,463   28,830  
  Deferred revenue 1,233   1,412  
  Income taxes payable 139   657  
  Dividends payable 537   538  
  Future income taxes 1,112   1,112  
  Current portion of long-term debt 9,333   9,432  
  Current portion of asset retirement obligations 93   93  
  40,231   45,122  
         
Long-term debt 34,665   41,333  
Asset retirement obligations 450   443  
Future income taxes 12,293   12,303  
Other liabilities 3,351   5,592  
  90,990   104,793  
         
Non-controlling interests 7,912   7,737  
         
Shareholders' equity        
Capital stock 15,276   15,395  
         
Retained earnings 88,665   89,364  
Accumulated other comprehensive loss (2,714 ) (2,557 )
  85,951   86,807  
  101,227   102,202  
  200,129   214,732  
 
 
 
Consolidated Statements of Cash Flows
(in thousands of dollars)
  For the three months ended  
  March 27,
2010
(Unaudited
) March 28,
2009
(Unaudited
)
  $   $  
         
Operating activities        
  Net income (loss) 211   (1,129 )
  Items not affecting cash and cash equivalents 3,535   2,891  
  Cash provided from operations 3,746   1,762  
  Dividends received from companies subject to significant influence 544    
  Contribution to defined benefit pension plans (316 ) (278 )
  Changes in non-cash working capital items 1,065   (3,552 )
  5,039   (2,068 )
         
Financing activities        
  Net change in short-term bank loans (727 ) 768  
  Repayment of long-term debt (6,779 ) (2,293 )
  Repurchase of Class B Subordinate Voting Shares (448 ) (57 )
  Repurchase of Class A Common Shares (44 ) (11 )
  Dividends paid to non-controlling interests   (196 )
  Dividends paid (538 ) (539 )
  (8,536 ) (2,328 )
         
Investing activities        
  Customer repayment of investments in service contracts 1,004   886  
  Business acquisitions (570 )  
  Investments in service contracts (18 )  
  Acquisition of short-term investments (20 )  
  Disposal of short-term investments 1,302    
  Acquisition of property, plant and equipment (1,434 ) (1,694 )
  Proceeds from disposal of property, plant and equipment 55   39  
  319   (769 )
         
Foreign exchange loss on cash held in foreign currencies of self-sustaining subsidiaries (7 ) (8 )
         
Net change in cash and cash equivalents (3,185 ) (5,173 )
Cash and cash equivalents(1), beginning of period 17,297   21,304  
Cash and cash equivalents(1), end of period 14,112   16,131  
Additional information    
  Interest paid 465 354
  Income taxes paid 1,704 2,080
(1) Comprised of cash on hand and short-term investments with maturity date less than three months from the acquisition date

Contact Information

  • Logistec Corporation
    Jean-Claude Dugas CA
    Vice-President, Finance
    514-985-2345
    jdugas@logistec.com