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

Logistec Corporation

August 10, 2012 13:17 ET

Logistec Announces Financial Results for the Second Quarter of 2012

MONTRÉAL, QUÉBEC--(Marketwire - Aug. 10, 2012) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider, today announced its financial results for the second quarter and first six months ended June 30, 2012.

During the second quarter of 2012, consolidated revenue and profit rose to a record high for a second quarter. Revenue totalled $60.3 million, up by $10.1 million or 20.2% over the equivalent period of last year. The marine services segment's revenue remained stable at $32.4 million, whereas the environmental services segment's revenue grew to $27.9 million, an increase of 57.2% attributable to the growth of Sanexen's overall operations, especially activities related to Aqua-Pipe®. The second quarter of 2012 closed with a consolidated profit attributable to owners of the Company of $3.4 million, compared with $1.3 million for the second quarter of 2011. The profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.52, of which $0.51 is attributable to Class A Common Shares and $0.55 is attributable to Class B Subordinate Voting Shares.

For the first six months of 2012, consolidated revenue totalled $104.7 million, compared with $91.2 million for the first half of 2011. The profit attributable to owners of the Company amounted to $2.3 million for total basic and diluted earnings per share of $0.35, of which $0.34 is attributable to Class A Common Shares and $0.37 is attributable to Class B Subordinate Voting Shares. This compares favourably to total basic and diluted earnings per share of $0.21, of which $0.20 was attributable to Class A Common Shares and $0.21 was attributable to Class B Subordinate Voting Shares in 2011.

Outlook

"Overall, prospects for the second half of 2012 look similar to the first half. Our environmental services segment should maintain its momentum on the strength of a well-filled order backlog, whereas our marine services segment remains faced with an environment of weak economic growth, affecting the volumes of cargo handled at our facilities. In response to these difficult and uncertain global trends, we continue to focus on reinforcing our biomass handling operations at our Brunswick (GA) terminal and the solid positioning of our cargo handling and transportation activities in connection with Québec's Plan Nord. In terms of projects, we were pleased to announce our recent acquisition, CrossGlobe Transport, Ltd., a port logistics company operating in three terminals in Virginia. Its services include transloading in and out of containers in addition to warehousing and distribution, and this is mostly for the forest products industry. This acquisition fits well within our strategy and allows us to increase the scope of services offered to our customers as well as our geographic footprint," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

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 24 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 marine 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.

Condensed Consolidated Interim Statements of Earnings

For the three months ended For the six months ended
June 30,
2012
June 25,
2011
June 30,
2012
June 25,
2011
$ $ $ $
Revenue 60,055 49,832 104,215 90,511
Interest revenue from investments in service contracts 236 339 498 702
Total revenue 60,291 50,171 104,713 91,213
Employee benefits expense (28,733 ) (25,726 ) (52,125 ) (46,987 )
Equipment and supplies expense (16,836 ) (12,490 ) (30,096 ) (23,044 )
Rental expense (5,050 ) (4,645 ) (10,019 ) (9,779 )
Other expenses (2,487 ) (3,683 ) (5,038 ) (5,928 )
Depreciation and amortization expense (1,983 ) (2,243 ) (3,950 ) (4,119 )
Share of profit of equity accounted investments 592 864 692 996
Other gains and losses 260 (424 ) 12 (528 )
Operating profit 6,054 1,824 4,189 1,824
Finance expense (173 ) (192 ) (322 ) (427 )
Finance income 1 230 174 338
Profit before income taxes 5,882 1,862 4,041 1,735
Income taxes (1,654 ) (278 ) (1,177 ) (216 )
Profit for the period 4,228 1,584 2,864 1,519
Profit attributable to:
Owners of the Company 3,424 1,329 2,311 1,406
Non-controlling interests 804 255 553 113
Profit for the period 4,228 1,584 2,864 1,519
Basic and diluted earnings per Class A Common Share (1) 0.51 0.20 0.34 0.21
Basic and diluted earnings per Class B Subordinate Voting Share (2) 0.55 0.21 0.37 0.22
Weighted average number of Class A shares outstanding, basic and diluted 3,756,311 3,762,211 3,756,778 3,765,278
Weighted average number of Class B shares outstanding, basic and diluted 2,752,750 2,770,050 2,755,733 2,771,100
(1) Class A Common Share ("Class A share")
(2) Class B Subordinate Voting Share ("Class B share")

Condensed Consolidated Interim Statements of Comprehensive Income

For the three months ended For the six months ended
June 30,
2012
June 25,
2011
June 30,
2012
June 25,
2011
$ $ $ $
Profit for the period 4,228 1,584 2,864 1,519
Other comprehensive income
Currency translation differences arising on translation of foreign operations 137 35 9 (44 )
Actuarial losses on retirement benefits (400 ) - (400 ) -
Income taxes on actuarial losses on retirement benefits 100 - 100 -
Gains (losses) on derivatives designated as cash flow hedges (38 ) - 25 -
Transfer of losses on derivatives designated as cash flow hedges to profit or loss 5 - 10 -
Income taxes relating to derivatives designated as cash flow hedges 9 - (9 ) -
Share of other comprehensive income of equity accounted investments
Gains on derivatives designated as cash flow hedges - 21 - 139
Transfer of gains on derivatives designated as cash flow hedges to non-financial assets - (19 ) - (19 )
Income taxes relating to derivatives designated as cash flow hedges - - - (17 )
Other comprehensive income for the period, net of income taxes (187 ) 37 (265 ) 59
Total comprehensive income for the period 4,041 1,621 2,599 1,578
Total comprehensive income attributable to:
Owners of the Company 3,237 1,366 2,046 1,465
Non-controlling interests 804 255 553 113
Total comprehensive income for the period 4,041 1,621 2,599 1,578

Condensed Consolidated Interim Statements of Financial Position

As at
June 30,
2012
As at
December 31,
2011
$ $
Assets
Current assets
Cash and cash equivalents 3,993 8,888
Investments in service contracts 10,641 13,065
Trade and other receivables 50,798 45,007
Current income tax assets 5,384 2,559
Prepaid expenses 3,061 2,854
Inventories 4,859 3,922
78,736 76,295
Equity accounted investments 27,150 32,726
Property, plant and equipment 49,627 47,730
Goodwill 10,686 10,686
Other intangible assets 1,589 1,934
Other non-current assets 1,916 1,927
Post-employment benefit assets 729 779
Non-current financial assets 5,445 5,265
Deferred income tax assets 7,782 7,773
Total assets 183,660 185,115
Liabilities
Current liabilities
Short-term bank loans 7,608 -
Trade and other payables 23,735 27,020
Deferred revenue 710 819
Current income tax liabilities 69 1,907
Dividends payable 594 594
Current portion of long-term debt 2,344 2,499
Provisions 546 488
35,606 33,327
Long-term debt 6,955 11,873
Provisions 151 148
Deferred income tax liabilities 3,440 3,440
Post-employment benefit obligations 11,576 11,475
Non-current financial liabilities 2,506 2,624
Total liabilities 60,234 62,887
Equity
Share capital 15,246 15,149
Retained earnings 101,509 100,996
Accumulated other comprehensive loss (270 ) (305 )
Equity attributable to owners of the Company 116,485 115,840
Non-controlling interests 6,941 6,388
Total equity 123,426 122,228
Total liabilities and equity 183,660 185,115

Condensed Consolidated Interim Statements of Changes in Equity

Attributable to owners of the Company
Accumulated other comprehensive loss
Share capital Cash flow hedges Foreign currency translation Retained earnings Total Non-controlling interests Total equity
$ $ $ $ $ $ $
Balance as at January 1, 2012 15,149 (52 ) (253 ) 100,996 115,840 6,388 122,228
Profit for the period - - - 2,311 2,311 553 2,864
Other comprehensive income
Currency translation differences arising on translation of foreign operations - - 9 - 9 - 9
Actuarial losses on retirement benefits, net of income taxes - - - (300 ) (300 ) - (300 )
Cash flow hedges, net of income taxes - 26 - - 26 - 26
Total comprehensive income for the period - 26 9 2,011 2,046 553 2,599
Repurchase of Class A shares (2 ) - - (34 ) (36 ) - (36 )
Issuance and repurchase of Class B shares 99 - - (276 ) (177 ) - (177 )
Dividends on Class A shares - - - (657 ) (657 ) - (657 )
Dividends on Class B shares - - - (531 ) (531 ) - (531 )
Balance as at June 30, 2012 15,246 (26 ) (244 ) 101,509 116,485 6,941 123,426
Attributable to owners of the Company
Accumulated other comprehensive loss
Share capital Cash flow hedges Foreign currency translation Retained earnings Total Non-controlling 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 - - - 1,406 1,406 113 1,519
Other comprehensive income
Currency translation differences arising on translation of foreign operations - - (44 ) - (44 ) - (44 )
Share of cash flow hedges of equity accounted investments, net of income taxes - 103 - - 103 - 103
Total comprehensive income (loss) for the period - 103 (44 ) 1,406 1,465 113 1,578
Repurchase and conversion of Class A shares (11 ) - - (39 ) (50 ) - (50 )
Issuance, repurchase and conversion of Class B shares 77 - - (338 ) (261 ) - (261 )
Dividends on Class A shares - - - (642 ) (642 ) - (642 )
Dividends on Class B shares - - - (520 ) (520 ) - (520 )
Balance as at June 25, 2011 15,196 103 (411 ) 90,569 105,457 4,505 109,962

Condensed Consolidated Interim Statements of Cash Flows

For the six months ended
June 30,
2012
June 25,
2011
$ $
Operating activities
Profit for the period 2,864 1,519
Items not affecting cash and cash equivalents 5,130 4,579
Cash generated from operations 7,994 6,098
Dividends received from equity accounted investments 6,450 388
Contributions to defined benefit retirement plans (664 ) (654 )
Settlement of provisions (229 ) (206 )
Changes in non-cash working capital items (11,078 ) (6,930 )
Income taxes paid (5,431 ) (4,202 )
(2,958 ) (5,506 )
Financing activities
Net change in short-term bank loans 7,608 5,831
Repayment of long-term debt (5,070 ) (1,206 )
Interest paid (382 ) (475 )
Repurchase of Class A shares (36 ) (50 )
Issuance of Class B shares 6 4
Repurchase of Class B shares (339 ) (396 )
Dividends paid on Class A shares (657 ) (642 )
Dividends paid on Class B shares (531 ) (520 )
599 2,546
Investing activities
Customer repayment of investments in service contracts 2,424 2,220
Interest received 679 1,019
Acquisition of property, plant and equipment (5,526 ) (2,435 )
Proceeds from disposal of property, plant and equipment 87 69
Acquisition of intangible assets (62 ) (45 )
Acquisition of other non-current assets (125 ) (4 )
Proceeds from disposal of other non-current assets 33 -
(2,490 ) 824
Net change in cash and cash equivalents (4,849 ) (2,136 )
Cash and cash equivalents (1), beginning of period 8,888 8,382
Effect of exchange rate on balances held in foreign currencies of foreign operations (46 ) 2
Cash and cash equivalents (1), end of period 3,993 6,248
Additional information
Acquisition of property, plant and equipment included in trade and other payables 223 467
(1)Comprised of cash on hand and in banks

Contact Information

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