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

Logistec Corporation

August 06, 2008 14:35 ET

Logistec Announces Financial Results for the Second Quarter of Fiscal 2008

MONTREAL, QUEBEC--(Marketwire - Aug. 6, 2008) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a diversified cargo handler in Eastern Canadian and U.S. ports, today announced its financial results for the second quarter and first six months ended June 28, 2008.

During the three-month period ended June 28, 2008, our consolidated revenue from continuing operations grew by 5.0% to $51.3 million, compared to $48.9 million for the same period in 2007. At the same time, net income from continuing operations rose to $2.4 million or $0.35 per share, up from $2.1 million or $0.32 per share for the equivalent period of last year.

In May 2008, the Company discontinued its activity at the port of Bridgeport (CT). Revenue and net income from discontinued operations totalled $0.4 million and $(0.3) million, respectively, in the second quarter of 2008. This compares to $1.9 million and $0.1 million, respectively, for the same period of 2007.

First-Half Financial Results

For the full first half of 2008, revenue from continuing operations grew by $2.6 million to $94.1 million, compared to $91.5 million for the first six months of last year. Net income from continuing operations increased by $0.5 million to total $3.2 million or $0.48 per share, up from $2.7 million or $0.41 per share in the first half of 2007.

Revenue from discontinued operations totalled $2.3 million for the first half of 2008 ($3.6 million in 2007) and net income was $(0.2) million for that period (($0.02) million in 2007).

"The improvement in our financial performance came primarily from increased container volumes handled, and to a lesser extent, from our environmental services. The strength of these activities enabled us to offset the impact of the lower volume of general cargoes, especially our steel, copper and forest product handling operations in the United States," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

"Despite the slowdown in the U.S. economy affecting our break-bulk handling operations, we remain confident we can achieve a satisfactory financial performance in 2008. To do so, we will build upon growing container handling volumes, sustained bulk cargo volumes, an increase in the business volume of Transport Nanuk, which added a fourth vessel serving the Arctic communities, and a better contribution by Sanexen Environmental Services, which is dealing with the challenges encountered last year in procuring a component of its Aqua-Pipe "underground watermain rehabilitation technology," concluded Ms. Paquin.

About Logistec

Logistec Corporation is based in Montreal (QC) and provides specialized services to the marine community and industrial companies in the areas of container, break-bulk and bulk cargo handling at 20 ports in Eastern Canada, the Great Lakes and the U.S. East Coast; agency services to foreign shipowners and operators serving the Canadian market; marine transportation services geared primarily to the Arctic coastal trade; and PCB management, site remediation, trenchless structural rehabilitation of watermains, and risk assessment. The Company has been profitable each year since 1969 and has more than doubled its revenue since 1995 through internal growth and strategic acquisitions. The Company 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 our 2007 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.



LOGISTEC CORPORATION
Q2 2008 Interim Consolidated Financial Statements

Consolidated Statements of Earnings
(in thousands of dollars, except for number of shares and per share
amounts)

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FOR THE THREE FOR THE SIX
MONTHS ENDED MONTHS ENDED
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
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Revenue 51,325 48,870 94,130 91,477
Operating expenses 45,084 43,764 85,333 83,216
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6,241 5,106 8,797 8,261
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Amortization of property,
plant and equipment 1,941 1,967 3,953 3,980
Amortization of other assets 62 49 125 81
Interest on long-term debt 271 125 538 240
Other interest expense 55 21 97 41
Interest revenue from
investment in a service
contract (185) (217) (379) (442)
Foreign exchange loss (gain) 99 459 (146) 546
Gain on disposal of
property, plant
and equipment (11) (648) (210) (825)
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2,232 1,756 3,978 3,621
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Income from continuing
operations 4,009 3,350 4,819 4,640

Share in the results of
companies subject to
significant influence 63 214 (49) (151)
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Income before income
taxes, non-controlling
interests and discontinued
operations 4,072 3,564 4,770 4,489

Income taxes 1,214 1,053 1,357 1,251
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Income before
non-controlling interests
and discontinued operations 2,858 2,511 3,413 3,238

Non-controlling interests 503 387 213 493
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Net income from continuing
operations 2,355 2,124 3,200 2,745
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Net income (loss) from
discontinued operations (306) 65 (211) (15)
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Net income 2,049 2,189 2,989 2,730
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Basic and diluted earnings
per share
Continuing operations 0.35 0.32 0.48 0.41
Discontinued operations (0.04) 0.01 (0.03) 0.00
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0.31 0.33 0.45 0.41
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Weighted average number of
shares outstanding, basic
and diluted 6,674,294 6,677,094 6,672,761 6,655,894




Consolidated Statements of Retained Earnings
(in thousands of dollars)

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FOR THE SIX MONTHS ENDED
June 28, June 30,
2008 2007
(Unaudited) Unaudited)
$ $
Restated
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Balance, beginning of period,
as originally reported 72,507 73,684
Prior period adjustment related to
change in accounting policy - 540
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Balance, beginning of period, as restated 72,507 74,224

Net income 2,989 2,730
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75,496 76,954

Excess on par value of Class A Common
Shares repurchased 2 22
Excess on par value of Class B
Subordinate Voting Shares repurchased - 108
Dividends 1,079 11,426
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Balance, end of period 74,415 65,398
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Consolidated Statements of Comprehensive Income
(in thousands of dollars)

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FOR THE THREE FOR THE SIX
MONTHS ENDED MONTHS ENDED
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
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Net income 2,049 2,189 2,989 2,730

Other comprehensive income
Unrealized gain (loss) on
translation of financial
statements of self-sustaining
foreign subsidiaries (69) (616) 105 (686)
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Comprehensive income 1,980 1,573 3,094 2,044
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Consolidated Balance Sheets
(in thousands of dollars)

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As at June 28, As at December 31,
2008 2007
(Unaudited) (Audited)
$ $
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Assets
Current assets
Cash and cash equivalents 18,011 13,683
Accounts receivable 35,152 35,758
Asset held for sale - 2,016
Income taxes receivable 3,673 1,220
Future income taxes 469 461
Prepaid expenses 6,663 3,712
Assets related to discontinued operations 316 1,106
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64,284 57,956

Investments 18,296 19,172

Property, plant and equipment 52,205 52,673
Goodwill 2,441 2,441
Asset held for sale - 1,875
Other assets 9,146 7,155
Future income taxes 4,036 4,019
Long-term assets related to
discontinued operations 746 986
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151,154 146,277
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Liabilities
Current liabilities
Short-term bank loans 5,137 4,053
Accounts payable and accrued liabilities 21,122 20,251
Deferred revenue 2,225 1,186
Income taxes payable 516 1,250
Dividends payable 540 539
Future income taxes 497 136
Current portion of long-term debt 1,721 1,694
Current liabilities related to
discontinued operations 689 868
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32,447 29,977

Long-term debt 15,571 16,235
Asset retirement obligations 538 523
Future income taxes 7,218 7,266
Other liabilities 3,312 2,596
Non-controlling interests 5,184 4,971
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64,270 61,568
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Shareholders' equity
Capital stock 15,372 15,210
Retained earnings 74,415 72,507
Accumulated other comprehensive loss (2,903) (3,008)
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86,884 84,709
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151,154 146,277
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Consolidated Statements of Cash Flows
(in thousands of dollars)

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FOR THE THREE FOR THE SIX
MONTHS ENDED MONTHS ENDED
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
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Operating activities
Net income from
continuing operations 2,355 2,124 3,200 2,745
Items not affecting cash
and cash equivalents 3,435 2,112 5,655 4,911
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Cash provided from
operations 5,790 4,236 8,855 7,656
Contributions to defined
benefit pension plans (157) (351) (334) (720)
Changes in non-cash
working capital items 376 (3,290) (1,826) (9,392)
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6,009 595 6,695 (2,456)
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Financing activities
Net change in short-term
bank loans 1,856 10,994 1,084 12,105
Issuance of long-term debt 197 - 197 -
Repayment of long-term debt (553) (190) (846) (526)
Issuance of Class B
Subordinate Voting Shares 5 - 5 565
Repurchase of Class B
Subordinate Voting Shares - (128) - (128)
Repurchase of Class A
Common Shares - (23) (2) (23)
Dividends paid to
non-controlling interests - - (98) -
Dividends paid (539) (10,938) (1,078) (11,420)
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966 (285) (738) 573
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Investing activities
Customer repayment of
investment in a service
contract 418 386 827 765
Acquisition of short-term
investments - (62) (125) (500)
Disposal of short-term
investments 125 950 125 1,500
Acquisition of property,
plant and equipment (2,281) (8,300) (3,552) (10,038)
Proceeds from disposal
of property, plant and
equipment 451 730 533 1,346
Acquisition of other assets (62) (1,533) (64) (1,534)
Decrease in other assets - - - 63
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(1,349) (7,829) (2,256) (8,398)
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Foreign exchange loss on
cash held in foreign
currencies of self-sustaining
subsidiaries (1) (95) (24) (100)
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Net change in cash and cash
equivalents from continuing
operations 5,625 (7,614) 3,677 (10,381)
Net change in cash and cash
equivalents from discontinued
operations 284 143 651 (48)
Cash and cash equivalents,
beginning of period 12,102 15,826 13,683 18,784
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Cash and cash equivalents,
end of period 18,011 8,355 18,011 8,355
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Additional information
Interest paid 319 167 616 292
Income taxes paid 1,269 1,711 3,991 5,125
Acquisition of property,
plant and equipment included
in accounts payable and
accrued liabilities 290 93 290 93
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