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

Logistec Corporation

May 06, 2008 15:32 ET

Logistec Announces Financial Results for the First Quarter of Fiscal 2008

MONTREAL, QUEBEC--(Marketwire - May 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 first quarter ended March 29, 2008.

During the first quarter of 2008, consolidated revenue rose 0.9% to $44.7 million, compared with $44.3 million in the equivalent period of 2007. On a segmented basis, marine services generated revenue of $41.3 million, down by $0.4 million or 1%, whereas the environmental segment's revenue grew by $0.8 million or 31% to $3.4 million. Net income increased by $0.4 million to $0.9 million or $0.14 per share during the first quarter of 2008, compared with $0.5 million or $0.08 per share in the first quarter of 2007.

"We are pleased with these results, which were achieved even though particularly harsh winter conditions exerted an upward pressure on our operating expenses and had an adverse impact on our cargo-handling business," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

"Year in, year out, we have been able to count on the diversity of our customer base and our network of terminals, both in Canada and the U.S., to temper the highs and lows of our industry. This year should be no exception. Container activities in 2008 are expected to grow with the addition of a new liner service at our Termont container facility in Montreal (QC). Bulk cargo should hold steady with several new contracts coming on stream. General cargo, on the other hand, continues to have headwinds, particularly with respect to lumber and steel imports, which are both down quite dramatically in the USA. We are attempting to diversify our cargo mix in the facilities affected by these downturns," added Ms. Paquin before concluding: "The outlook for the coastal transportation of cargo is very positive, with the growth of the mining industry and numerous construction projects in the various communities in the Arctic. For its part, Sanexen will carry on its traditional site remediation and PCB management business while also capitalizing on the further commercialization of its Aqua-Pipe™ technology aimed at repairing underground watermains with minimal excavation. These services have been well received by a growing customer base."

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
Q1 2008 Interim Consolidated Financial Statements


Consolidated Statements of Earnings

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


FOR THE THREE MONTHS ENDED
March 29, March 31,
2008 2007
(Unaudited) (Unaudited)
$ $
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Revenue 44,738 44,332

Operating expenses 41,952 41,230
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2,786 3,102
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Amortization of property, plant
and equipment 2,084 2,094
Amortization of other assets 63 32
Interest on long-term debt 267 115
Other interest expenses 42 20
Interest revenue from investment
in a service contract (194) (225)
Foreign exchange loss (gain) (245) 87
Gain on disposal of property,
plant and equipment (199) (177)
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1,818 1,946
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Income from operations 968 1,156

Share in the results of companies subject
to significant influence (112) (365)
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Income before income taxes and
non-controlling interests 856 791

Income taxes 206 144
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Income before non-controlling interests 650 647

Non-controlling interests (290) 106
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Net income 940 541
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Basic and diluted earnings per share 0.14 0.08
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Weighted average number of
shares outstanding 6,671,228 6,634,694



Consolidated Statements of Retained Earnings

(in thousands of dollars)
-------------------------------------------------------------------
FOR THE THREE MONTHS ENDED
March 29, March 31,
2008 2007
(Unaudited) (Unaudited)
$ $
Restated
-------------------------------------------------------------------

Balance, beginning of period, as
originally reported 72,507 73,684
Prior period adjustment related to change
in accounting policy - 540
-------------------------------------------------------------------
Balance, beginning of period, as restated 72,507 74,224

Net income 940 541
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73,447 74,765

Excess on par value of Class A Common
Shares repurchased 2 -
Dividends 539 10,938
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Balance, end of period 72,906 63,827
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Consolidated Statements of Comprehensive Income

(in thousands of dollars)

-------------------------------------------------------------------
FOR THE THREE MONTHS ENDED
March 29, March 31,
2008 2007
(Unaudited) (Unaudited)
$ $
-------------------------------------------------------------------

Net income 940 541

Other comprehensive income
Unrealized gain (loss) on translation
of financial statements of self-sustaining
foreign subsidiaries 174 (70)
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Comprehensive income 1,114 471
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Consolidated Balance Sheets

(in thousands of dollars)

-------------------------------------------------------------------
As at March 29, As at December 31,
2008 2007
(Unaudited) (Audited)
$ $
-------------------------------------------------------------------

Assets
Current assets
Cash and cash equivalents 12,102 13,683
Short-term investments 125 -
Accounts receivable 34,363 36,732
Asset held for sale - 2,016
Income taxes receivable 2,643 1,220
Future income taxes 473 461
Prepaid expenses 6,324 3,844
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56,030 57,956

Investments 18,651 19,172
Property, plant and equipment 52,900 53,659
Goodwill 2,441 2,441
Asset held for sale - 1,875
Other assets 8,944 7,155
Future income taxes 4,046 4,019
-------------------------------------------------------------------
143,012 146,277
-------------------------------------------------------------------
-------------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 3,281 4,053
Accounts payable and
accrued liabilities 18,097 20,730
Deferred revenue 2,162 1,186
Income taxes payable 101 1,250
Dividends payable 539 539
Future income taxes 136 136
Current portion of long-term debt 2,070 2,083
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26,386 29,977

Long-term debt 15,970 16,235
Asset retirement obligations 531 523
Future income taxes 7,209 7,266
Other liabilities 2,953 2,596
Non-controlling interests 4,681 4,971
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57,730 61,568
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Shareholders' equity
Capital stock 15,210 15,210
Retained earnings 72,906 72,507
Accumulated other
comprehensive income (loss) (2,834) (3,008)
-------------------------------------------------------------------
85,282 84,709
-------------------------------------------------------------------
143,012 146,277
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-------------------------------------------------------------------



Consolidated Statements of Cash Flows

(in thousands of dollars)

-------------------------------------------------------------------
FOR THE THREE MONTHS ENDED
March 29, March 31,
2008 2007
(Unaudited) (Unaudited)
$ $
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Operating activities
Net income 940 541
Items not affecting cash and
cash equivalents 2,292 2,908
-------------------------------------------------------------------
Cash provided from operations 3,232 3,449
Contributions to defined benefit
pension plans (177) (369)
Changes in non-cash working capital items (1,991) (6,310)
-------------------------------------------------------------------
1,064 (3,230)
-------------------------------------------------------------------

Financing activities
Net change in short-term bank loans (772) 1,111
Repayment of long-term debt (304) (348)
Issuance of Class B Subordinate
Voting Shares - 565
Repurchase of Class A Common Shares (2) -
Dividends paid to non-controlling interests (98) -
Dividends paid (539) (482)
-------------------------------------------------------------------
(1,715) 846
-------------------------------------------------------------------

Investing activities
Customer repayment of investment in a
service contract 409 379
Acquisition of short-term investments (125) (438)
Disposal of short-term investments - 550
Acquisition of property, plant
and equipment (1,271) (1,738)
Proceeds from disposal of property,
plant and equipment 82 616
Acquisition of other assets (2) (1)
Decrease in other assets - 63
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(907) (569)
-------------------------------------------------------------------

Foreign exchange loss on cash held in
foreign currencies of self-sustaining
subsidiaries (23) (5)
-------------------------------------------------------------------

Net change in cash and cash equivalents (1,581) (2,958)
Cash and cash equivalents,
beginning of period 13,683 18,784
-------------------------------------------------------------------
Cash and cash equivalents, end of period 12,102 15,826
-------------------------------------------------------------------
-------------------------------------------------------------------

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Additional information
Interest paid 297 125
Income taxes paid 2,722 3,414
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Contact Information

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