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

Logistec Corporation

March 07, 2008 13:29 ET

Logistec Announces Financial Results for the Fourth Quarter and Fiscal 2007

- Fiscal 2007 net income up 3.3% over the record net income of 2006 - Operating margin reaches 13.2%, up from 11.4% in 2006

MONTREAL, QUEBEC--(Marketwire - March 7, 2008) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a diversified cargo handler in eastern North American ports, today announced its financial results for the fourth quarter and the fiscal year ended December 31, 2007.

For a second year in a row, Logistec posted record net income of $11.1 million or $1.66 per share, up from $10.7 million or $1.61 per share in 2006. The operating margin as a percentage of revenue rose from 11.4% in 2006 to 13.2% in 2007. This performance was achieved despite a 3.4% decline in revenue, which fell to $209.6 million from $217.1 million in 2006. This decrease is due primarily to reduced revenue in Sanexen's traditional environmental services, which in 2006 had benefited from a major non-recurring site remediation contract. In 2007, the marine segment therefore recorded net income of $10.4 million on revenue of $180.4 million ($9.8 million and $180.3 million in 2006), whereas the environmental segment recorded net income of $0.7 million and revenue of $29.2 million in 2007 ($0.9 million and $36.8 million in 2006).

"The year's results were satisfactory since, despite a slow start and the fact that we lagged behind the previous year in the first three quarters, our net income rose to an all-time high. Thanks to a strong fourth quarter, we closed out the year with a financial performance that exceeded our record year of 2006," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Fourth Quarter Results

The fourth quarter of 2007 yielded Logistec's best performance ever for this period of the year, in terms of revenue and net income alike.

Revenue for the fourth quarter of 2007 totalled $56.7 million, up 3.6% over the equivalent period of 2006. This performance is due primarily to particularly high container and bulk cargo volumes and an enhanced contribution by our marine transportation business, as its vessels sailed late in the season and it also benefited from the addition of a third ship, the "M/V Avataq".

Net income for the fourth quarter of 2007 rose to $3.8 million or $0.58 per share, compared with $2.7 million or $0.41 per share in 2006, which represents a 41.2% increase.

Outlook

"Despite the economic slowdown in North America and the growing possibility of a recession in the U.S., Logistec's future outlook remains bright, both in our marine and environmental segments. Rooted in the diversification of the cargoes we handle, the wide geographic area covered by our facilities and a well-balanced mix of import and export operations, our business strategy has proven effective over the years in helping safeguard our revenue and earnings against fluctuations in steel, forest products, containers and other cargo volumes," said Ms. Paquin.

"We are particularly pleased with the strength and flexibility of our financial structure, even though we paid a special dividend of $10.5 million for a total of $12.4 million in dividends during the year, while also injecting $17.5 million into our capital expenditure program. This financial flexibility provides us the leverage to actively seek further opportunities that will drive the external growth of our business. In regard to organic growth, we will build upon the development of several projects arising from the demand and the growth in business of our marine services' customers. Sanexen is actively addressing its procurement issues for one of the key inputs for its Aqua-Pipe™ technology and we are confident in our ability to grow this segment of our business, particularly in the U.S. market. Finally, Nanuk is likely to benefit from the growing demand for its services in the Arctic communities, especially for the mining industry and housing development," added Ms. Paquin before concluding: "Going forward, I believe that considering all the internal and external variables, we are justified in being optimistic about 2008."

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 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 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.

Additional information relating to the Company, including the Company's Annual Information Form, is on SEDAR at www.sedar.com.



Consolidated Statements of Earnings

years ended December 31
(in thousands of dollars, except for number of shares and per share mounts)

FOR THE THREE
MONTHS ENDED FOR THE YEARS ENDED
--------------------------------------------------------------------------
Dec. 31 Dec. 31 Dec. 31 Dec. 31
2007 2006 2007 2006
$ $ $ $
Restated Restated
--------------------------------------------------------------------------

Revenue 56,746 54,781 209,596 217,053
Operating expenses 47,418 48,818 182,021 192,215
--------------------------------------------------------------------------
9,328 5,963 27,575 24,838
--------------------------------------------------------------------------

Amortization of property,
plant and equipment 2,219 2,161 8,531 8,249
Amortization of other assets 62 112 205 169
Interest on long-term debt 245 115 618 511
Other interest expenses 103 76 329 172
Interest revenue from
investment in a
service contract (201) (232) (852) (971)
Foreign exchange loss (gain) 46 (378) 998 38
Gain on disposal of property,
plant and equipment (45) (117) (908) (353)
--------------------------------------------------------------------------
2,429 1,737 8,921 7,815
--------------------------------------------------------------------------

Income from operations 6,899 4,226 18,654 17,023

Share in the results of
companies subject to
significant influence (555) 182 (314) 944
--------------------------------------------------------------------------
Income before income taxes and
non-controlling interests 6,344 4,408 18,340 17,967

Income taxes 1,910 1,403 5,597 5,864
--------------------------------------------------------------------------
Income before non-controlling
interests 4,434 3,005 12,743 12,103

Non-controlling interests 593 284 1,672 1,382
--------------------------------------------------------------------------
Net income 3,841 2,721 11,071 10,721
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Earnings per share - Basic 0.58 0.41 1.66 1.61
- Diluted 0.58 0.41 1.66 1.60
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Weighted average number
of shares outstanding 6,673,161 6,615,494 6,665,753 6,667,936



Consolidated Balance Sheets

as at December 31
(in thousands of dollars)
------------------------------------------------------------
2007 2006
$ $
Restated
------------------------------------------------------------

Assets
Current assets
Cash and cash equivalents 13,683 18,784
Temporary investments - 1,000
Accounts receivable 36,732 37,802
Asset held for sale 2,016 -
Income taxes receivable 1,220 1,172
Future income taxes 461 521
Prepaid expenses 3,844 4,204
------------------------------------------------------------
57,956 63,483

Investments 19,172 21,064
Property, plant and equipment 53,659 46,754
Goodwill 2,441 2,441
Asset held for sale 1,875 -
Other assets 7,155 5,474
Future income taxes 4,019 4,536
------------------------------------------------------------
146,277 143,752
------------------------------------------------------------
------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 4,053 73
Accounts payable and
accrued liabilities 20,730 27,957
Deferred revenue 1,186 1,969
Income taxes payable 1,250 2,278
Dividends payable 539 482
Future income taxes 136 266
Current portion of long-term debt 2,083 1,057
------------------------------------------------------------
29,977 34,082

Long-term debt 16,235 7,873
Asset retirement obligations 523 493
Future income taxes 7,266 7,655
Other liabilities 2,596 3,292
Non-controlling interests 4,971 3,397
------------------------------------------------------------
61,568 56,792
------------------------------------------------------------

Shareholders' equity
Capital stock 15,210 14,558
Retained earnings 72,507 74,224
Accumulated other comprehensive income (3,008) (1,822)
------------------------------------------------------------
84,709 86,960
------------------------------------------------------------
146,277 143,752
------------------------------------------------------------
------------------------------------------------------------

Contact Information

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