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

Logistec Corporation

May 06, 2011 12:45 ET

Logistec Announces Financial Results for the First Quarter of 2011

MONTRÉAL, QUÉBEC--(Marketwire - May 6, 2011) - Logistec Corporation [TSX:LGT.A)(TSX:LGT.B], a marine and environmental services provider, today announced its financial results for the first quarter ended March 26, 2011.

Consolidated revenue totalled $41.0 million in the first quarter of 2011, up by $2.5 million or 6.5% over $38.5 million for the same period in 2010. The marine services segment's revenue was stable, with only a slight increase of $0.2 million, based on revenue of $30.4 million, compared with $30.2 million in the first quarter of 2010. Reduced activity in the USA was offset by higher revenue in Canada, especially in the area of bulk operations. The environmental services segment's revenue rose to $10.6 million in the first quarter of 2011, up by $2.3 million over $8.3 million for the first quarter of 2010. The fact that Sanexen was awarded an important site remediation contract late in 2010 accounts for most of this positive variance.

Logistec recorded consolidated profit attributable to owners of the Company of $0.1 million or $0.01 per share, compared with $0.8 million or $0.11 per share in the first quarter of 2010. The marine services segment posted profit before income taxes of $0.5 million in the first quarter of 2011, as opposed to $1.4 million in the first quarter of 2010, while the environmental services segment's reduced its loss before income taxes from $0.7 million in 2010 to $0.6 million in 2011.

These are the first financial results issued under IFRS by the Company. The change in standard that had the most significant impact on the financial statements pertains to our joint ventures. The Company elected to use the equity method to account for its interest in joint ventures whereas previously, under Canadian GAAP, the Company was using the proportionate consolidated method. For example the exclusion of our proportionate share of revenue from joint ventures reduces our previously reported consolidated revenue for Q1 2010 by $9.0 million. The effects of the transition to IFRS on the condensed statement of financial position, statement of earnings, statement of comprehensive income and statement of cash flows are presented in detail in Note 12 of the notes to Q1 2011 condensed consolidated interim financial statements.

Outlook

"We are not overly concerned about the weaker results of the first quarter of 2011, as the seasonality of our business is such that the first quarter has very little impact on our annual results, and as shown in the past, it is not an indicator of the year's outlook. In fact, we are cautiously optimistic that our bulk and break-bulk volumes will remain stable and we are hopeful for a small increase in containers. Furthermore, Sanexen's outlook is also positive, based on a strong order book for 2011," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

"We are actively seeking to expand our cargo-handling business through acquisitions. Each opportunity is analyzed according to strict financial and business criteria, in order to create value for our shareholders," 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 bulk, break-bulk and container 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 to industrial companies and municipalities 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's website at www.sedar.comand on Logistec's website at www.logistec.com.

Condensed Consolidated Interim Statements of Earnings
(in thousands of Canadian dollars, except for number of shares and per share amounts)
For the three months ended
March 26,
2011
(Unaudited)
March 27,
2010
(Unaudited)
$$
Revenue40,67938,090
Interest revenue from investments in service contracts363455
Total revenue41,04238,545
Employee benefits expense(21,261)(19,378)
Equipment and supplies expense(10,554)(8,955)
Rental expense(5,134)(4,977)
Other expenses(2,245)(2,448)
Depreciation and amortization expense(1,876)(2,095)
Share of profit of equity accounted investments132476
Other gains and losses(104)(232)
Operating profit936
Finance expense(235)(274)
Finance income10873
Profit (loss) before income taxes(127)735
Income taxes62(104)
Profit (loss) for the period(65)631
Profit (loss) attributable to:
Owners of the Company77771
Non-controlling interests(142)(140)
Profit (loss) for the period(65)631
Basic and diluted earnings per Class A Common Share (1)0.05
Basic and diluted earnings per Class B Subordinate Voting Share (2)0.010.06
Weighted average number of Class A shares outstanding, basic and diluted3,768,3443,786,078
Weighted average number of Class B shares outstanding, basic and diluted2,772,1502,847,717
(1) Class A Common Share ("Class A share")
(2) Class B Subordinate Voting Share ("Class B share")
Condensed Consolidated Interim Statements of Comprehensive Income
(in thousands of Canadian dollars)
For the three months ended
March 26,
2011
(Unaudited)
March 27,
2010
(Unaudited)
$$
Profit (loss) for the period(65)631
Other comprehensive income
Currency translation differences arising on translation of foreign operations(79)(157)
Share of other comprehensive income of equity accounted investments
Gains on derivatives designated as cash flow hedges118
Income taxes relating to derivatives designated as cash flow hedges(17)
Other comprehensive income (loss) for the period, net of income taxes22(157)
Total comprehensive income (loss) for the period(43)474
Total comprehensive income (loss) attributable to:
Owners of the Company99614
Non-controlling interests(142)(140)
Total comprehensive income (loss) for the period(43)474
Condensed Consolidated Interim Statements of Financial Position
(in thousands of Canadian dollars)
As at
March 26,
2011
As at
December 31,
2010
As at
January 1,
2010
(Unaudited)(Unaudited)(Unaudited)
$$$
Assets
Current assets
Cash and cash equivalents6,5358,3829,649
Short-term investments1,573
Short-term portion of investments in service contracts1771732,289
Trade and other receivables37,97645,13739,843
Current income tax assets2,5101,7343,279
Prepaid expenses3,0582,0372,062
Inventories3,3763,2643,819
53,63260,72762,514
Equity accounted investments25,28325,05020,987
Investments in service contracts16,33017,43219,435
Property, plant and equipment45,99246,36549,159
Goodwill11,98611,98610,349
Other intangible assets2,7783,0854,207
Other non-current assets3,9084,1254,697
Post-employment benefit assets1,4001,419
Long-term financial assets3,4183,5051,835
Deferred income tax assets5,6375,6773,667
Total assets170,364179,371176,850
Liabilities
Current liabilities
Short-term bank loans2,3702,2783,048
Trade and other payables25,69931,11822,147
Deferred revenue8109801,412
Current income tax liabilities9672,901616
Dividends payable581582538
Current portion of long-term debt2,5552,5702,785
Provisions691742714
33,67341,17131,260
Long-term debt15,18615,62530,359
Provisions160154146
Deferred income tax liabilities4,7434,9144,997
Post-employment benefit obligations6,3496,4665,669
Other non-current liabilities1,1781,1843,845
Total liabilities61,28969,51476,276
Equity
Share capital15,10615,13015,395
Retained earnings90,06490,70281,991
Accumulated other comprehensive loss(345)(367)
Equity attributable to owners of the Company104,825105,46597,386
Non-controlling interests4,2504,3923,188
Total equity109,075109,857100,574
Total liabilities and equity170,364179,371176,850
Condensed Consolidated Interim Statements of Changes in Equity
(in thousands of Canadian dollars)
Attributable to owners of the Company
Accumulated other
comprehensive income
(loss)
Share
capital
HedgingForeign
currency
transla-
tion
Retained
earnings
TotalNon-
control-
ling
interests
Total
equity
$$$$$$$
Balance as at January 1, 201115,130(367)90,702105,4654,392109,857
Profit (loss) for the period7777(142)(65)
Other comprehensive income
Currency translation differences arising on translation of foreign operations(79)(79)(79)
Share of cash flow hedges of equity accounted investments, net of income taxes101101101
Total comprehensive income (loss) for the period101(79)7799(142)(43)
Repurchase and conversion of Class A shares(4)(35)(39)(39)
Repurchase and conversion of Class B shares(20)(99)(119)(119)
Dividends on Class A shares(321)(321)(321)
Dividends on Class B shares(260)(260)(260)
Balance as at March 26, 201115,106101(446)90,064104,8254,250109,075
(in thousands of Canadian dollars)
Attributable to owners of the Company
Accumulated other comprehensive income (loss)
Share
capital
HedgingForeign
currency
trans-
lation
Retained
earnings
TotalNon-
control-
ling
interests
Total
equity
$$$$$$$
Balance as at January 1, 201015,39581,99197,3863,188100,574
Profit (loss) for the period771771(140)631
Other comprehensive income
Currency translation differences arising on translation of foreign operations(157)(157)(157)
Total comprehensive income (loss) for the period(157)771614(140)474
Repurchase and conversion of Class A shares(4)(40)(44)(44)
Repurchase and conversion of Class B shares(115)(333)(448)(448)
Dividends on Class A shares(294)(294)(294)
Dividends on Class B shares(243)(243)(243)
Balance as at March 27, 201015,276(157)81,85296,9713,048100,019
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of Canadian dollars)
For the three months ended
March 26,
2011
(Unaudited)
March 27,
2010
(Unaudited)
$$
Operating activities
Profit for the period(65)631
Items not affecting cash and cash equivalents1,9811,970
Cash generated from operations1,9162,601
Dividends received from equity accounted investments1,394
Contributions to defined benefit retirement plans(271)(258)
Settlement of provisions(53)(82)
Changes in non-cash working capital items4411,787
Income taxes paid(2,708)(1,303)
(675)4,139
Financing activities
Net change in short-term bank loans92(862)
Repayment of long-term debt(451)(6,531)
Interest paid(200)(262)
Repurchase of Class B shares(119)(448)
Repurchase of Class A shares(39)(44)
Dividends paid(582)(538)
(1,299)(8,685)
Investing activities
Customer repayment of investments in service contracts1,0981,004
Interest received458532
Investments in service contracts(18)
Business acquisitions(570)
Acquisition of short-term investments(20)
Disposal of short-term investments1,302
Acquisition of property, plant and equipment(1,477)(1,149)
Proceeds from disposal of property, plant and equipment5040
Acquisition of intangible assets(3)
1291,118
Net change in cash and cash equivalents(1,845)(3,428)
Cash and cash equivalents (1), beginning of period8,3829,649
Effect of exchange rate on balances held in foreign currencies of foreign operations(2)(28)
Cash and cash equivalents (1), end of period6,5356,193
Cash and cash equivalents comprised of:
Cash on hand6,5355,862
Short-term investments331
Cash and cash equivalents, end of period6,5356,193
Additional information
Acquisition of property, plant and equipment included in trade and other payables10363
(1)Comprised of cash on hand and short-term investments with maturity date less than three months from the acquisition date

Contact Information