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

Logistec Corporation

March 06, 2009 15:10 ET

Logistec Announces Financial Results for the Fourth Quarter and Fiscal 2008

Fiscal 2008 net income from continuing operations up 26.6% over the record net income of 2007

MONTREAL, QUEBEC--(Marketwire - March 6, 2009) -

Correction to the release sent last March 5, 2009 at 1:20 PM. In the tables titled "Consolidated Statements of Earnings", an error occurred in the dates related to the period ended. The corrected and complete version follows.


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, 2008.

For a third year in a row, Logistec posted a record net income from continuing operations. This amounted to $13.9 million or $2.09 per share, up by $2.9 million over $11.0 million or $1.65 per share in 2007. This performance was mainly due to increased container volumes, sustained control over operating costs, a foreign exchange gain of $1.8 million, and strong activity in our environmental business. Consolidated revenue from continuing operations totalled $228.3 million in 2008, compared with $202.6 million in 2007, up by $25.8 million or 12.7%. In 2008, the marine services segment recorded income from continuing operations of $18.9 million on revenue of $187.8 million ($17.0 million and $173.4 million in 2007). The environmental segment recorded income from operations of $3.0 million on revenue of $40.6 million in 2008 ($1.6 million and $29.2 million in 2007).

"We are very satisfied with our 2008 results. Both marine and environmental services showed notable improvements with each presenting concrete developments in connection with their strategic plans," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Fourth-Quarter Results

Revenue and net income from continuing operations both rose to new fourth-quarter highs as the Company enjoyed strong container volumes and an enhanced contribution by its environmental business.

Revenue from continuing operations reached $63.8 million in the fourth quarter of 2008, up by 16.0% over the same period of 2007.

Net income from continuing operations totalled $5.3 million or $0.80 per share for the fourth quarter of 2008, representing a 40.3% increase over $3.8 million or $0.57 per share in 2007.

Acquisition of Sydney Coal Railway Inc.

On October 30, 2008, Logistec purchased from Quebec Railway Corporation Inc. ("QRC") 100% of the issued and outstanding shares of Sydney Coal Railway Inc. ("SCR") for cash consideration of $11 million and the issuance of a short-term note payable to QRC of $9 million. SCR operates a short-line railway and provides service for the transportation, storage, warehousing and delivery of coal shipments from Sydney (NS) to Cape Breton (NS). This acquisition fits well into our development strategy as it solidifies our relationship with an important customer and opens up other opportunities in the area.

Outlook

"Although we are coming off a great year, we are entering our slow season and we are feeling the slowdown in the economy. The reduction in trade flows is being felt in all our cargo types, be it containers, bulk or break-bulk cargo and this could have a negative impact on our cargo-handling business. Then again, massive infrastructure investments may lead to higher trade in aggregates and building materials, and this may offset somewhat the decline in other revenue. Also on a positive note, we expect sustained growth in our environmental segment, as we continue to commercialize our Aqua-PipeTM business," said 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, including the Company's Annual Information Form, 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 FOR THE YEARS ENDED
--------------------------------------------------------------------------
Dec. 31 Dec. 31 Dec. 31 Dec. 31
2008 2007 2008 2007
$ $ $ $
--------------------------------------------------------------------------

Revenue 63,843 55,020 228,344 202,550
Operating expenses 55,913 45,861 199,423 175,386
--------------------------------------------------------------------------
7,930 9,159 28,921 27,164
--------------------------------------------------------------------------

Amortization of property,
plant and equipment 2,303 2,147 8,342 8,226
Amortization of other assets 63 62 251 205
Interest on long-term debt 307 245 1,155 618
Other interest expense 216 103 362 329
Interest revenue from investments
in service contracts (403) (201) (972) (852)
Foreign exchange (gain) loss (1,551) 46 (1,848) 998
Gain on disposal of property,
plant and equipment (87) (45) (335) (908)
--------------------------------------------------------------------------
848 2,357 6,955 8,616
--------------------------------------------------------------------------

Income from continuing
operations 7,082 6,802 21,966 18,548

Share in the results of
companies subject to
significant influence 140 (555) 11 (314)
--------------------------------------------------------------------------
Income before income taxes,
non-controlling interests and
discontinued operations 7,222 6,247 21,977 18,234

Income taxes 1,413 1,872 5,907 5,555
--------------------------------------------------------------------------
Income before non-controlling
interests and discontinued
operations 5,809 4,375 16,070 12,679

Non-controlling interests 502 593 2,132 1,672
--------------------------------------------------------------------------
Net income from continuing
operations 5,307 3,782 13,938 11,007

Net income (loss) from
discontinued operations (284) 59 (547) 64
--------------------------------------------------------------------------
Net income 5,023 3,841 13,391 11,071
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Basic and diluted earnings
per share
Continuing operations 0.80 0.57 2.09 1.65
Discontinued operations (0.04) 0.01 (0.08) 0.01
--------------------------------------------------------------------------
0.76 0.58 2.01 1.66
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Weighted average number of
shares outstanding, basic
and diluted 6,664,028 6,673,161 6,671,836 6,665,753




Consolidated Balance Sheets

as at December 31
(in thousands of dollars)
--------------------------------------------------------------------------
2008 2007
$ $
--------------------------------------------------------------------------

Assets
Current assets
Cash and cash equivalents 21,304 13,683
Accounts receivable 39,671 35,758
Asset held for sale - 2,016
Income taxes receivable 2,375 1,220
Future income taxes 407 461
Prepaid expenses 4,565 3,712
Assets related to discontinued operations 61 1,106
--------------------------------------------------------------------------
68,383 57,956

Investments 26,452 19,172
Property, plant and equipment 57,167 52,673
Goodwill 5,484 2,441
Asset held for sale - 1,875
Other assets 11,803 7,155
Future income taxes 7,720 4,019
Long-term assets related to discontinued operations - 986
--------------------------------------------------------------------------
177,009 146,277
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 51 4,053
Short-term note payable 3,106 -
Accounts payable and accrued liabilities 21,885 20,251
Deferred revenue 1,528 1,186
Income taxes payable 1,285 1,250
Dividends payable 538 539
Future income taxes 835 136
Current portion of long-term debt 2,115 1,694
Current liabilities related to discontinued operations 757 868
--------------------------------------------------------------------------
32,100 29,977

Long-term debt 23,964 16,235
Asset retirement obligations 554 523
Future income taxes 11,891 7,266
Other liabilities 4,896 2,596
--------------------------------------------------------------------------
73,405 56,597
--------------------------------------------------------------------------

Non-controlling interests 6,657 4,971
--------------------------------------------------------------------------
Commitments, contingencies and guarantees

Shareholders' equity
Capital stock 15,291 15,210

Retained earnings 83,435 72,507
Accumulated other comprehensive loss (1,779) (3,008)
--------------------------------------------------------------------------
81,656 69,499
--------------------------------------------------------------------------
96,947 84,709
--------------------------------------------------------------------------
177,009 146,277
--------------------------------------------------------------------------
--------------------------------------------------------------------------


Contact Information

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