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

Logistec Corporation

March 22, 2011 14:08 ET

Logistec Announces Financial Results for the Fourth Quarter and Year 2010

- Consolidated revenue up by 21.8% and 15.9%, respectively, in year 2010 and the fourth quarter of 2010;

- Net income up by 74.0% and 31.6%, respectively, in year 2010 and the fourth quarter of 2010.

MONTRÉAL, QUÉBEC--(Marketwire - March 22, 2011) - Logistec Corporation [TSX:LGT.A)(TSX:LGT.B], a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2010.

In 2010, consolidated net income rose to $14.1 million or $2.15 per share, up from $8.1 million or $1.22 per share in 2009, an increase of $6.0 million. Consolidated revenue rose 21.8% to $261.9 million, compared with $215.0 million in 2009. Both the marine and environmental services segments contributed to this growth: the marine services segment's revenue increased by $28.2 million or 17.6%, whereas the environmental services segment's revenue grew by $18.6 million or 34.4%. In 2010, the marine services segment posted income from operations of $19.2 million, as opposed to $9.1 million in 2009, while the environmental services segment's income from operations reached $5.7 million in 2010 compared with $5.2 million in 2009.

"We are pleased that our net income and revenue rose to record highs in 2010. Improved results were achieved in marine and environmental services, as both segments successfully capitalized on the new developments and acquisitions completed in recent years," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Fourth-Quarter Results

During the fourth quarter of 2010, consolidated revenue rose to $77.4 million, an increase of $10.6 million or 15.9% over the equivalent period in 2009. Consolidated net income totalled $5.9 million or $0.91 per share, compared with $4.5 million or $0.68 per share in 2009.

Management Changes

Serge Dubreuil, President of Logistec Stevedoring Inc., will retire on April 1, 2011. Mr. Dubreuil has been with the Company for 40 years, including 18 years as the President of this subsidiary. Under his leadership, this subsidiary's revenue has grown by 180% and its North American based network of port facilities has been substantially strengthened. "Although Serge will stay on as strategic advisor and director of Logistec Corporation, we have taken the opportunity to build a new operations team under Mario Blanchet. This team is composed of both internal promotions and external hires, and we are confident that we have the dynamic team we need to take the Company to another level of growth and development. We take this occasion to thank Serge for his significant contribution to the growth of our Company and are grateful that he will remain with us on an advisory basis, so that we may continue to benefit from his wisdom and expertise," said Ms. Paquin.

Outlook

"Logistec's future continues to look bright in our marine and environmental services segments. In order to develop our marine services segment, we remain on the lookout for growth projects in all our cargo types and have identified several that are linked to the demand and development of our customers' businesses and which would fit well with our expertise. We also expect to further develop our coastal shipping business focused on Arctic transportation as demand for our services continues to grow in line with the growth of mining projects and the development of housing in the various Arctic communities. Logistec is also committed to support Sanexen's growth geared primarily to the development and commercialization of Aqua-Pipe®. With the acquisition of Niedner, we are well positioned to continue to develop our Aqua-Pipe® services and technologies in the drinking water infrastructure industry. Furthermore, we have increased our focus and resources to develop new markets, primarily in the USA, and we are confident we can grow our U.S. exports in the coming years. The outlook for our more traditional environmental services is also good, and our interest in an Inuit environmental company positions us well in the Arctic market," said Ms. Paquin.

"Over the longer term, we remain confident we can continue growing our business in an economic context marked by slow and uncertain growth in North America, especially in the United States," 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.com and on Logistec's website at www.logistec.com.

Consolidated Statements of Earnings  
years ended December 31
(in thousands of dollars, except for number of shares and per share amounts)
 
  2010   2009  
  $   $  
         
Revenue 261,865   215,001  
Operating expenses 224,267   190,138  
  37,598   24,863  
         
Amortization of property, plant and equipment 10,019   7,600  
Amortization of intangible assets 1,702   1,972  
Amortization of other assets   132  
Interest on long-term debt 1,832   1,451  
Other interest expense 430   229  
Interest revenue from investments in service contracts (1,691 ) (1,923 )
Foreign exchange loss 541   989  
Loss (gain) on disposal of property, plant and equipment (132 ) 82  
  12,701   10,532  
         
Income from operations 24,897   14,331  
         
Share in the results of companies subject to significant influence 19   (31 )
Income before income taxes and non-controlling interests 24,916   14,300  
         
Income taxes 7,904   4,420  
Income before non-controlling interests 17,012   9,880  
         
Non-controlling interests 2,863   1,747  
Net income 14,149   8,133  
         
Basic and diluted earnings per share 2.15   1.22  
         
Weighted average number of shares outstanding, basic and diluted 6,587,461   6,655,461  

 

Consolidated Statements of Retained Earnings
years ended December 31
(in thousands of dollars)
   
  2010 2009
  $ $
     
Balance, beginning of year 89,364 83,435
Net income 14,149 8,133
  103,513 91,568
     
Excess over stated capital of Class A Common Shares repurchased 270 10
Excess over stated capital of Class B Subordinate Voting Shares repurchased 1,331 42
Dividends 2,237 2,152
Balance, end of year 99,675 89,364

 

Consolidated Statements of Comprehensive Income  
years ended December 31
(in thousands of dollars)
   
  2010   2009  
  $   $  
         
Net income 14,149   8,133  
         
Other comprehensive income        
  Unrealized loss on translation of financial statements of self-sustaining foreign subsidiaries (367 ) (778 )
Comprehensive income 13,782   7,355  
         

 

Consolidated Balance Sheets  
as at December 31
(in thousands of dollars)
 
  2010   2009  
  $   $  
         
Assets        
Current assets        
  Cash and cash equivalents 19,538   17,297  
  Short-term investments 173   3,862  
  Accounts receivable 58,427   50,586  
  Income taxes receivable 1,838   4,091  
  Future income taxes 1,023   264  
  Prepaid expenses 2,576   2,706  
  Inventories 4,321   4,273  
  87,896   83,079  
         
Investments 17,449   20,006  
Property, plant and equipment 75,932   78,557  
Goodwill 11,986   10,349  
Intangible assets 4,315   5,602  
Other assets 14,558   10,442  
Future income taxes 2,864   1,948  
  215,000   209,983  
         
Liabilities        
Current liabilities        
  Short-term bank loans 2,274   3,048  
  Accounts payable and accrued liabilities 36,637   27,967  
  Deferred revenue 981   1,412  
  Income taxes payable 4,113   657  
  Dividends payable 583   538  
  Future income taxes 1,394   1,112  
  Current portion of long-term debt 4,298   9,432  
  Current portion of asset retirement obligations 93   93  
  50,373   44,259  
         
Long-term debt 29,588   41,333  
Asset retirement obligations 466   443  
Future income taxes 7,930   7,554  
Other liabilities 4,162   6,455  
  92,519   100,044  
         
Non-controlling interests 10,600   7,737  
         
Shareholders' equity        
Capital stock 15,130   15,395  
         
Retained earnings 99,675   89,364  
Accumulated other comprehensive loss (2,924 ) (2,557 )
  96,751   86,807  
  111,881   102,202  
  215,000   209,983  
   
Consolidated Statements of Cash Flows  
years ended December 31
(in thousands of dollars)
 
  2010   2009  
  $   $  
         
Operating activities        
  Net income 14,149   8,133  
  Items not affecting cash and cash equivalents 13,729   15,656  
  Cash provided from operations 27,878   23,789  
  Dividends received from companies subject to significant influence 574   30  
  Contributions to defined benefit pension plans (1,413 ) (1,180 )
  Changes in non-cash working capital items 3,259   (9,059 )
  30,298   13,580  
         
Financing activities        
  Net change in short-term bank loans (774 ) 2,997  
  Issuance of long-term debt 995   33,922  
  Repayment of long-term debt (18,820 ) (11,039 )
  Issuance of Class B Subordinate Voting Shares 4   3  
  Repurchase of Class B Subordinate Voting Shares (1,719 ) (67 )
  Repurchase of Class A Common Shares (294 ) (11 )
  Dividends paid to non-controlling interests   (863 )
  Dividends paid (2,192 ) (2,152 )
  (22,800 ) 22,790  
         
Investing activities        
  Customer repayment of investments in service contracts 4,156   3,735  
  Investments in service contracts (38 ) (6 )
  Cash acquired in business acquisitions 71   1,703  
  Business acquisitions (1,477 ) (25,545 )
  Acquisition of short-term investments   (1,574 )
  Disposal of short-term investments 1,623    
  Acquisition of property, plant and equipment (7,494 ) (19,192 )
  Proceeds from disposal of property, plant and equipment 139   380  
  Acquisition of other assets (1,957 ) (3 )
  Decrease in other assets   95  
  Acquisition of intangible assets (360 )  
  (5,337 ) (40,407 )
         
Foreign exchange gain on cash held in foreign currencies of self-sustaining subsidiaries 80   30  
         
Net change in cash and cash equivalents 2,241   (4,007 )
Cash and cash equivalents, beginning of year (1) 17,297   21,304  
Cash and cash equivalents, end of year (2) 19,538   17,297  
   
(1) Comprises of cash on hand  
(2) Comprises of cash on hand and short-term investments with maturity date less than three months from the acquisition date  

On behalf of the Board

(signed) David M. Mann, Director

(signed) Madeleine Paquin, Director

Contact Information

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