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) | |
| $ | | $ | |
| | | | |
| Revenue | 40,679 | | 38,090 | |
| Interest revenue from investments in service contracts | 363 | | 455 | |
| Total revenue | 41,042 | | 38,545 | |
| | | | |
| 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 investments | 132 | | 476 | |
| Other gains and losses | (104 | ) | (232 | ) |
| Operating profit | – | | 936 | |
| | | | |
| Finance expense | (235 | ) | (274 | ) |
| Finance income | 108 | | 73 | |
| Profit (loss) before income taxes | (127 | ) | 735 | |
| | | | |
| Income taxes | 62 | | (104 | ) |
| Profit (loss) for the period | (65 | ) | 631 | |
| | | | |
| Profit (loss) attributable to: | | | | |
| | | | |
| Owners of the Company | 77 | | 771 | |
| | | | |
| 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) | 0.01 | | 0.06 | |
| | | | |
| Weighted average number of Class A shares outstanding, basic and diluted | 3,768,344 | | 3,786,078 | |
| Weighted average number of Class B shares outstanding, basic and diluted | 2,772,150 | | 2,847,717 | |
|
| (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 hedges | 118 | | – | |
| | Income taxes relating to derivatives designated as cash flow hedges | (17 | ) | – | |
| Other comprehensive income (loss) for the period, net of income taxes | 22 | | (157 | ) |
| | | | |
| Total comprehensive income (loss) for the period | (43 | ) | 474 | |
| | | | |
| Total comprehensive income (loss) attributable to: | | | | |
| | | | |
| Owners of the Company | 99 | | 614 | |
| 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 equivalents | 6,535 | | 8,382 | | 9,649 |
| Short-term investments | – | | – | | 1,573 |
| Short-term portion of investments in service contracts | 177 | | 173 | | 2,289 |
| Trade and other receivables | 37,976 | | 45,137 | | 39,843 |
| Current income tax assets | 2,510 | | 1,734 | | 3,279 |
| Prepaid expenses | 3,058 | | 2,037 | | 2,062 |
| Inventories | 3,376 | | 3,264 | | 3,819 |
| 53,632 | | 60,727 | | 62,514 |
| | | | | |
| Equity accounted investments | 25,283 | | 25,050 | | 20,987 |
| Investments in service contracts | 16,330 | | 17,432 | | 19,435 |
| Property, plant and equipment | 45,992 | | 46,365 | | 49,159 |
| Goodwill | 11,986 | | 11,986 | | 10,349 |
| Other intangible assets | 2,778 | | 3,085 | | 4,207 |
| Other non-current assets | 3,908 | | 4,125 | | 4,697 |
| Post-employment benefit assets | 1,400 | | 1,419 | | – |
| Long-term financial assets | 3,418 | | 3,505 | | 1,835 |
| Deferred income tax assets | 5,637 | | 5,677 | | 3,667 |
| Total assets | 170,364 | | 179,371 | | 176,850 |
| | | | | |
| Liabilities | | | | | |
| Current liabilities | | | | | |
| Short-term bank loans | 2,370 | | 2,278 | | 3,048 |
| Trade and other payables | 25,699 | | 31,118 | | 22,147 |
| Deferred revenue | 810 | | 980 | | 1,412 |
| Current income tax liabilities | 967 | | 2,901 | | 616 |
| Dividends payable | 581 | | 582 | | 538 |
| Current portion of long-term debt | 2,555 | | 2,570 | | 2,785 |
| Provisions | 691 | | 742 | | 714 |
| 33,673 | | 41,171 | | 31,260 |
| | | | | |
| Long-term debt | 15,186 | | 15,625 | | 30,359 |
| Provisions | 160 | | 154 | | 146 |
| Deferred income tax liabilities | 4,743 | | 4,914 | | 4,997 |
| Post-employment benefit obligations | 6,349 | | 6,466 | | 5,669 |
| Other non-current liabilities | 1,178 | | 1,184 | | 3,845 |
| Total liabilities | 61,289 | | 69,514 | | 76,276 |
| | | | | |
| Equity | | | | | |
| Share capital | 15,106 | | 15,130 | | 15,395 |
| | | | | |
| Retained earnings | 90,064 | | 90,702 | | 81,991 |
| Accumulated other comprehensive loss | (345 | ) | (367 | ) | – |
| Equity attributable to owners of the Company | 104,825 | | 105,465 | | 97,386 |
| | | | | |
| Non-controlling interests | 4,250 | | 4,392 | | 3,188 |
| Total equity | 109,075 | | 109,857 | | 100,574 |
| | | | | |
| Total liabilities and equity | 170,364 | | 179,371 | | 176,850 |
| |
| |
| |
| 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 | | Hedging | Foreign
currency
transla-
tion | | Retained
earnings | | Total | | Non-
control-
ling
interests | | Total
equity | |
| $ | | $ | $ | | $ | | $ | | $ | | $ | |
| | | | | | | | | | | | | |
| Balance as at January 1, 2011 | 15,130 | | – | (367 | ) | 90,702 | | 105,465 | | 4,392 | | 109,857 | |
| | | | | | | | | | | | | |
| Profit (loss) for the period | – | | – | – | | 77 | | 77 | | (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 taxes | – | | 101 | – | | – | | 101 | | – | | 101 | |
| Total comprehensive income (loss) for the period | – | | 101 | (79 | ) | 77 | | 99 | | (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, 2011 | 15,106 | | 101 | (446 | ) | 90,064 | | 104,825 | | 4,250 | | 109,075 | |
| |
| |
| |
| (in thousands of Canadian dollars) | |
| Attributable to owners of the Company | | | | | |
| | | Accumulated other comprehensive income (loss) | | | | | | | | | |
| Share
capital | | Hedging | Foreign
currency
trans-
lation | | Retained
earnings | | Total | | Non-
control-
ling
interests | | Total
equity | |
| $ | | $ | $ | | $ | | $ | | $ | | $ | |
| | | | | | | | | | | | | |
| Balance as at January 1, 2010 | 15,395 | | – | – | | 81,991 | | 97,386 | | 3,188 | | 100,574 | |
| | | | | | | | | | | | | |
| Profit (loss) for the period | – | | – | – | | 771 | | 771 | | (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 | ) | 771 | | 614 | | (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, 2010 | 15,276 | | – | (157 | ) | 81,852 | | 96,971 | | 3,048 | | 100,019 | |
| |
| |
| |
| 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 equivalents | 1,981 | | 1,970 | |
| Cash generated from operations | 1,916 | | 2,601 | |
| Dividends received from equity accounted investments | – | | 1,394 | |
| Contributions to defined benefit retirement plans | (271 | ) | (258 | ) |
| Settlement of provisions | (53 | ) | (82 | ) |
| Changes in non-cash working capital items | 441 | | 1,787 | |
| Income taxes paid | (2,708 | ) | (1,303 | ) |
| (675 | ) | 4,139 | |
| | | | |
| Financing activities | | | | |
| Net change in short-term bank loans | 92 | | (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 contracts | 1,098 | | 1,004 | |
| Interest received | 458 | | 532 | |
| Investments in service contracts | – | | (18 | ) |
| Business acquisitions | – | | (570 | ) |
| Acquisition of short-term investments | – | | (20 | ) |
| Disposal of short-term investments | – | | 1,302 | |
| Acquisition of property, plant and equipment | (1,477 | ) | (1,149 | ) |
| Proceeds from disposal of property, plant and equipment | 50 | | 40 | |
| Acquisition of intangible assets | – | | (3 | ) |
| 129 | | 1,118 | |
| | | | |
| Net change in cash and cash equivalents | (1,845 | ) | (3,428 | ) |
| Cash and cash equivalents (1), beginning of period | 8,382 | | 9,649 | |
| Effect of exchange rate on balances held in foreign currencies of foreign operations | (2 | ) | (28 | ) |
| Cash and cash equivalents (1), end of period | 6,535 | | 6,193 | |
| | | | |
| Cash and cash equivalents comprised of: | | | | |
| | | | |
| Cash on hand | 6,535 | | 5,862 | |
| Short-term investments | – | | 331 | |
| Cash and cash equivalents, end of period | 6,535 | | 6,193 | |
| | | | |
| Additional information | | | | |
| | | | |
| Acquisition of property, plant and equipment included in trade and other payables | 103 | | 63 | |
| (1)Comprised of cash on hand and short-term investments with maturity date less than three months from the acquisition date | |