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

Logistec Corporation

May 05, 2009 15:40 ET

Logistec Announces Financial Results for the First Quarter of 2009

MONTREAL, QUEBEC--(Marketwire - May 5, 2009) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a diversified cargo handler in eastern North American ports, today announced its financial results for the first quarter ended March 28, 2009.

During the first quarter of 2009, revenue from continuing operations totalled $39.9 million, down by $2.9 million or 6.7% from the equivalent period of 2008. This decline is attributable to the marine services segment, where revenue from continuing operations decreased by $3.5 million or 8.9%. Net loss from continuing operations amounted to $1.1 million or $(0.17) per share, compared with net income from continuing operations of $0.8 million or $0.13 per share in the first quarter of 2008. Marine services and environmental services posted losses from continuing operations of $0.7 million and $0.9 million, respectively. The performance of our marine services was notably affected by the decline in revenue stemming from the economic recession, whereas that of our environmental services is due mainly to a non-recurring gain on disposal of assets in the first quarter of 2008 and a less favourable sales mix compared to last year.

"Although results are disappointing, they were expected. The first quarter is generally the slowest period of the year as some of our operations are of a seasonal nature. During the winter season, there is a slowdown in marine shipping in the St. Lawrence and Great Lakes region, and there is no navigation in the Arctic. As well, our environmental segment is operating at a slower pace due to winter conditions. We have also seen a sharp slowdown in international trade in the wake of the current global recession," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

"International trade has definitely declined this year, which will affect our break-bulk, bulk and container handling business as well as our marine transportation business in the Arctic. Right now, it is not possible to predict either the scale of the recession or how long it will last, but it will affect our profitability in 2009. That said, we will continue to concentrate on maximizing efficiency while minimizing costs. Our strategy of diversifying the categories of cargo handled should continue to pay off as massive infrastructure investments could stimulate the trade of aggregates and building materials, which could offset the decline in other revenue streams. We also foresee sustained growth in our environmental segment, which continues to build on the development of its Aqua-PipeTM business, especially for municipalities that must invest to improve and maintain their water infrastructures. It could furthermore benefit from significant government-funded recovery programs," pointed out Ms. Paquin.

"Over the longer term, our future outlook remains promising. We benefit from a solid financial position. Our employees are motivated and strive to improve their skills in order to provide our customers with the best possible quality of service. Finally, we remain on the lookout for internal growth and expansion-by-acquisition opportunities. Today s economic turmoil and credit crunch should bring about acquisition opportunities that we will study with great care," 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, including a short-line railway linked to a coal-handling operation in Cape Breton (NS); 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 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 2008 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 the Company 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
March 28, March 29,
2009 2008
(Unaudited) (Unaudited)
$ $
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Revenue 39,918 42,805
Operating expenses 39,414 40,249
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504 2,556
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Amortization of property, plant and equipment 2,118 2,012
Amortization of other assets 63 63
Interest on long-term debt 328 267
Other interest expense 68 42
Interest revenue from investments
in service contracts (483) (194)
Foreign exchange gain (126) (245)
Loss (gain) on disposal of property,
plant and equipment 99 (199)
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2,067 1,746
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Income (loss) from continuing operations (1,563) 810

Share in the results of companies
subject to significant influence (499) (112)
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Income (loss) before income taxes,
non-controlling interests and
discontinued operations (2,062) 698

Income taxes (686) 143
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Income (loss) before non-controlling
interests and discontinued operations (1,376) 555

Non-controlling interests (247) (290)
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Net income (loss) from continuing operations (1,129) 845

Net income from discontinued operations - 95
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Net income (loss) (1,129) 940
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Basic and diluted earnings (loss) per share
Continuing operations (0.17) 0.13
Discontinued operations - 0.01
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(0.17) 0.14
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Weighted average number of
shares outstanding, basic and diluted 6,649,628 6,671,228




Consolidated Statements of Retained Earnings

(in thousands of dollars)
-------------------------------------------------------------------------
For the three months ended
March 28, March 29,
2009 2008
(Unaudited) (Unaudited)
$ $
-------------------------------------------------------------------------

Balance, beginning of period 83,435 72,507
Net income (loss) (1,129) 940
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82,306 73,447

Excess over par value of Class A
Common Shares repurchased 10 2
Excess over par value of Class B
Subordinate Voting Shares repurchased 36
Dividends 538 539
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Balance, end of period 81,722 72,906
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Consolidated Statements of Comprehensive Income

(in thousands of dollars)
-------------------------------------------------------------------------
For the three months ended
March 28, March 29,
2009 2008
(Unaudited) (Unaudited)
$ $
-------------------------------------------------------------------------
Net income (loss) (1,129) 940

Other comprehensive income
Unrealized gain on translation
of financial statements of
self-sustaining foreign subsidiaries 93 174
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Comprehensive income (loss) (1,036) 1,114
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Consolidated Balance Sheets

(in thousands of dollars)
-------------------------------------------------------------------------
As at As at
March 28, December 31,
2009 2008
(Unaudited) (Audited)
$ $
-------------------------------------------------------------------------

Assets
Current assets
Cash and cash equivalents 16,131 21,304
Accounts receivable 35,555 39,671
Income taxes receivable 4,110 2,375
Future income taxes 414 407
Prepaid expenses 5,684 4,565
Assets related to discontinued operations 62 61
-------------------------------------------------------------------------
61,956 68,383

Investments 25,067 26,452
Property, plant and equipment 57,004 57,167
Goodwill 5,484 5,484
Other assets 11,608 11,803
Future income taxes 7,753 7,720
-------------------------------------------------------------------------
168,872 177,009
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 819 51
Short-term note payable 3,106 3,106
Accounts payable and accrued liabilities 18,549 21,885
Deferred revenue 1,189 1,528
Income taxes payable 240 1,285
Dividends payable 537 538
Future income taxes 835 835
Current portion of long-term debt 2,115 2,115
Current portion of asset retirement obligations 31
Current liabilities related to
discontinued operations 750 757
-------------------------------------------------------------------------
28,171 32,100

Long-term debt 21,693 23,964
Asset retirement obligations 406 554
Future income taxes 11,871 11,891
Other liabilities 5,016 4,896
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67,157 73,405
-------------------------------------------------------------------------

Non-controlling interests 6,410 6,657
-------------------------------------------------------------------------
Shareholders equity
Capital stock 15,269 15,291

Retained earnings 81,722 83,435
Accumulated other comprehensive loss (1,686) (1,779)
-------------------------------------------------------------------------
80,036 81,656
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95,305 96,947
-------------------------------------------------------------------------
168,872 177,009
-------------------------------------------------------------------------
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Consolidated Statements of Cash Flows

(in thousands of dollars)
-------------------------------------------------------------------------
For the three months ended
March 28, March 29,
2009 2008
(Unaudited) (Unaudited)
$ $
-------------------------------------------------------------------------

Operating activities
Net income (loss) from continuing operations (1,129) 845
Items not affecting cash and cash equivalents 2,891 2,220
-------------------------------------------------------------------------
Cash provided from operations 1,762 3,065
Contributions to defined benefit pension plans (278) (177)
Changes in non-cash working capital items (3,552) (2,265)
-------------------------------------------------------------------------
(2,068) 623
-------------------------------------------------------------------------

Financing activities
Net change in short-term bank loans 768 (772)
Repayment of long-term debt (2,279) (293)
Repurchase of Class B Subordinate Voting Shares (57)
Repurchase of Class A Common Shares (11) (2)
Dividends paid to non-controlling interests (196) (98)
Dividends paid (539) (539)
-------------------------------------------------------------------------
(2,314) (1,704)
-------------------------------------------------------------------------

Investing activities
Customer repayment of investments
in service contracts 886 409
Acquisition of temporary investments - (125)
Acquisition of property, plant and equipment (1,694) (1,271)
Proceeds from disposal of property,
plant and equipment 39 82
Acquisition of other assets - (2)
-------------------------------------------------------------------------
(769) (907)
-------------------------------------------------------------------------

Foreign exchange loss on cash held in foreign
currencies of self-sustaining subsidiaries (8) (23)
-------------------------------------------------------------------------

Net change in cash and cash equivalents from
continuing operations (5,159) (2,011)
Net change in cash and cash equivalents from
discontinued operations (14) 430
Cash and cash equivalents(1),
beginning of period 21,304 13,683
-------------------------------------------------------------------------
Cash and cash equivalents(1),
end of period 16,131 12,102
-------------------------------------------------------------------------
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Additional information
Interest paid 354 297
Income taxes paid 2,080 2,722
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(1) Cash and cash equivalents comprise of cash on hand

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