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

Logistec Corporation

November 08, 2007 14:30 ET

Logistec Announces Financial Results for the Third Quarter of Fiscal 2007

MONTREAL, QUEBEC--(Marketwire - Nov. 8, 2007) - 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 third quarter and first nine months ended September 29, 2007.

During the 13-week period ended September 29, 2007, consolidated revenue declined by 11.9% to $57.7 million, down from $65.6 million for the equivalent 14 weeks in 2006. Despite the reduction in revenue, net income totalled $4.5 million or $0.67 per share, holding fairly steady compared with the third quarter of 2006 when net income amounted to $4.5 million or $0.68 per share on an undiluted basis.

"Despite the decline in third quarter revenue, which can be largely explained by the unrepeated nature of one large project on each of our environmental and marine services in 2006, we are quite pleased that we maintained our net income at a similar level to the third quarter of last year and achieved an operating margin as a percentage of revenue of 17.1%, compared with 14.5% in the same period last year," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Financial Results for the First Nine Months

Consolidated revenue decreased by 5.8% to $152.9 million in the first nine months of 2007, down from $162.3 million in the first three quarters of 2006, whereas net income totalled $7.2 million, down 9.6% from $8.0 million in the first nine months of 2006. Year-to-date earnings per share fell from $1.20 last year to $1.08 in 2007.

Outlook

"Despite headwinds in the construction industry slowing down our imports of steel and lumber in the U.S., and the weak state of the forest products industry in Canada, we should close fiscal 2007 with satisfactory results. Bulk and container volumes are expected to remain steady and Nanuk is very active and making full use of its new vessel. Sanexen's activities have been slower than projected in the Aqua-Pipe™ business due to hindered production of key inputs. The need to grow this production level will be a key priority in the coming months in order to ensure continued growth in this sector for the coming years. Furthermore, we continue to actively analyze investment opportunities, as our goal is to grow our business and increase our earnings potential in order to continue creating shareholder value," 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 21 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 1969 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

This report contains forward-looking information and statements concerning the Company's operations, performance and financial condition including, in particular, the likelihood of the Company's success in developing and growing its business. These statements are based on a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company's control. Examples include the performance of domestic and international economies and their impact on shipping volumes, weather conditions, labour relations, pricing, and other marketing activities by competitors. Actual results may differ materially from those expressed or implied by such forward-looking statements. Additional information relating to the Company, including the Company's AIF, is on SEDAR at www.sedar.com.



Consolidated Statements of Earnings

(in thousands of dollars, except for number of shares and per share
amounts)
-------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
-------------------------------------------------------------------------

Revenue 57,750 65,572 152,850 162,272
Operating expenses 47,896 56,079 134,603 143,397
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9,854 9,493 18,247 18,875
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Amortization of
property, plant and
equipment 2,175 2,035 6,312 6,087
Amortization of
other assets 62 19 143 57
Interest on long-
term debt 133 126 373 396
Other interest
expense 185 54 226 96
Interest revenue
from investment
in a service
contract (209) (239) (651) (739)
Foreign exchange loss 406 88 952 415
Gain on disposal of
property, plant and
equipment (38) (205) (863) (236)
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2,714 1,878 6,492 6,076
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Income from operations 7,140 7,615 11,755 12,799

Share in the results
of companies subject
to significant
influence 392 296 241 762
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Income before
income taxes and
non-controlling
interests 7,532 7,911 11,996 13,561

Income taxes 2,446 2,567 3,687 4,462
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Income before
non-controlling
interests 5,086 5,344 8,309 9,099

Non-controlling
interests 586 846 1,079 1,098
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Net income 4,500 4,498 7,230 8,001
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Basic earnings per
share 0.67 0.68 1.08 1.20
Diluted earnings
per share 0.67 0.67 1.08 1.19
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Weighted average
number of shares
outstanding 6,678,061 6,655,794 6,663,283 6,685,417



Consolidated Statements of Retained Earnings

(in thousands of dollars)
-------------------------------------------------------------------------
FOR THE NINE MONTHS ENDED
Sept. 29, 2007 Sept. 30, 2006
(Unaudited) (Unaudited)
$ $
Restated

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Balance, beginning of period as originally
reported 73,684 68,251
Prior period adjustment for foreign currency
translation - (1,080)
-------------------------------------------------------------------------
Balance, beginning of period as restated 73,684 67,171

Net income 7,230 8,001
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80,914 75,172

Excess on par value of Class A Common Shares
repurchased 43 26
Excess on par value of Class B Subordinate
Voting Shares repurchased 158 1,764
Dividends 11,966 1,363
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Balance, end of period 68,747 72,019
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Consolidated Statements of Comprehensive Income

(in thousands of dollars)
-------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
-------------------------------------------------------------------------

Net income 4,500 4,498 7,230 8,001

Other comprehensive
income
Unrealized losses
on translation of
financial
statements of
self-sustaining
foreign
subsidiaries (371) (37) (1,057) (272)

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Comprehensive income 4,129 4,461 6,173 7,729
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Consolidated Balance Sheets

(IN THOUSANDS OF DOLLARS)
-------------------------------------------------------------------------
As at September 29, As at December 31,
2007 2006
(Unaudited) (Audited)
$ $
-------------------------------------------------------------------------

Assets
Current assets
Cash and cash equivalents 10,670 18,784
Temporary investments 1,221 1,000
Accounts receivable 36,922 37,802
Income taxes receivable 2,768 1,172
Future income taxes 455 521
Prepaid expenses 5,347 4,204
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57,383 63,483

Investments 20,128 21,064
Property, plant and equipment 53,236 46,290
Goodwill 2,441 2,441
Other assets 6,804 5,474
Future income taxes 4,549 4,536
-------------------------------------------------------------------------
144,541 143,288
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 10,204 73
Accounts payable and accrued liabilities 22,150 27,957
Deferred revenue 2,015 1,969
Income taxes payable 905 2,278
Dividends payable 540 482
Future income taxes 266 266
Current portion of long-term debt 1,429 1,057
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37,509 34,082

Long-term debt 10,450 7,873
Provision for inspection of vessels 243 345
Asset retirement obligations 515 493
Future income taxes 7,690 7,386
Other liabilities 2,564 3,292
Non-controlling interests 4,476 3,397
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63,447 56,868
-------------------------------------------------------------------------

Shareholders' equity
Capital stock 15,226 14,558
Retained earnings 68,747 73,684
Accumulated other comprehensive income (2,879) (1,822)
-------------------------------------------------------------------------
81,094 86,420
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144,541 143,288
-------------------------------------------------------------------------
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Consolidated Statements of Cash Flows

(in thousands of dollars)
-------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
-------------------------------------------------------------------------

Operating activities
Net income 4,500 4,498 7,230 8,001
Items not
affecting cash
and cash
equivalents 2,562 3,725 7,683 8,628
-------------------------------------------------------------------------
Cash provided
from operations 7,062 8,223 14,913 16,629
Dividends received
from companies
subject to
significant
influence 19 - 19 20
Contributions to
defined benefit
pension plans (89) (452) (809) (1,110)
Changes in non-cash
working capital
items (91) (1,126) (9,704) (7,185)
-------------------------------------------------------------------------
6,901 6,645 4,419 8,354
-------------------------------------------------------------------------

Financing activities
Net change in
short-term bank
loans (1,976) 565 10,129 1,819
Issuance of long-
term debt, net of
transaction costs 3,909 - 3,909 -
Repayment of long-
term debt (250) (474) (799) (1,606)
Proceeds from
increase of non-
controlling
interests - - - 1,013
Issuance of Class
B Subordinate
Voting Shares, net
of related costs 14 275 579 781
Repurchase of
Class A Common
Shares (22) - (45) (29)
Repurchase of Class
B Subordinate Voting
Shares (59) (1,298) (187) (2,214)
Dividends paid (488) (436) (11,908) (1,311)
-------------------------------------------------------------------------
1,128 (1,368) 1,678 (1,547)
-------------------------------------------------------------------------

Investing activities
Investment in a
service contract - - - (2)
Customer repayment
of investment in
a service contract 394 364 1,158 1,070
Acquisition of
temporary
investments (1,221) - (1,721) -
Disposal of
temporary
investments - - 1,500 -
Acquisition of
property, plant
and equipment
(net of government
subsidy of nil,
$251,000 in 2006) (5,320) (3,369) (15,358) (6,222)
Proceeds from
disposal of
property, plant
and equipment 490 208 1,836 281
Acquisition of
other assets 24 (115) (1,509) (115)
Decrease in other
assets - - 63 28
-------------------------------------------------------------------------
(5,633) (2,912) (14,031) (4,960)
-------------------------------------------------------------------------

Foreign exchange
gain (loss) on
cash held in
foreign currencies
of self-sustaining
subsidiaries (80) (10) (180) 44
-------------------------------------------------------------------------

Net change in cash
and cash equivalents 2,316 2,355 (8,114) 1,891
Cash and cash
equivalents,
beginning of period 8,354 13,679 18,784 14,143
-------------------------------------------------------------------------
Cash and cash
equivalents, end
of period 10,670 16,034 10,670 16,034
-------------------------------------------------------------------------
-------------------------------------------------------------------------

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Additional
information
Interest paid 303 176 595 512
Income taxes
paid 1,230 881 6,355 3,519
-------------------------------------------------------------------------
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Contact Information

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