Logistec Corporation

TSX : LGT.A
TSX : LGT.B


Logistec Corporation

November 12, 2012 17:39 ET

Logistec Announces Financial Results for the Third Quarter of 2012

MONTRÉAL, QUÉBEC--(Marketwire - Nov. 12, 2012) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider, today announced its financial results for the third quarter and first nine months ended September 29, 2012.

During the third quarter of 2012, consolidated revenue reached a record high for the Company, totalling $78.5 million, an increase of $11.3 million or 16.8% over the equivalent period of the previous year. The marine services segment's revenue grew by $2.8 million to $35.8 million, whereas the environmental services segment's revenue rose to $42.6 million, an increase of $8.4 million or 24.5% due essentially to the Aqua-Pipe® related business. The consolidated profit attributable to owners of the Company amounted to $7.1 million for the third quarter of 2012, compared with $13.2 million for the equivalent period of 2011, which included a $6.2 million share of gain on partial disposal of a subsidiary of an equity accounted investment. The profit attributable to owners of the Company translated into total basic and diluted earnings per share of $1.10, of which $1.05 is attributable to Class A Common Shares and $1.16 is attributable to Class B Subordinate Voting Shares.

For the first nine months of 2012, consolidated revenue totalled $183.2 million, up by 15.6% over $158.4 million for the first nine months of 2011. The profit attributable to owners of the Company amounted to $9.5 million for total basic and diluted earnings per share of $1.45, of which $1.39 is attributable to Class A Common Shares and $1.53 is attributable to Class B Subordinate Voting Shares. If we exclude the impact of the aforementioned share of gain of $6.2 million, the Company shows an improvement of profit for the period of 18.7%.

Outlook

"Considering that activity in our environmental services segment is still very busy and our marine services segment continues to perform well despite the persisting weakness of the global economy, we are confident we will close 2012 on a positive note. Sanexen's development is largely focused on aqueduct rehabilitation and site remediation, while cargo handling's growth is based on the handling of growing biomass volumes and the development of mining resources in Northern Québec. We are also always on the lookout for business acquisition opportunities complementary to our operations, and it was moreover with this in mind that we acquired CrossGlobe Transport, Ltd. last August," 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 nine months ended
September 29,
2012
September 24,
2011
September 29,
2012
September 24,
2011
$ $ $ $
Revenue 78,255 66,888 182,470 157,399
Interest revenue from investments in service contracts 208 314 706 1,016
Total revenue 78,463 67,202 183,176 158,415
Employee benefits expense (36,452 ) (31,451 ) (88,577 ) (78,438 )
Equipment and supplies expense (21,639 ) (19,106 ) (51,735 ) (42,150 )
Rental expense (6,193 ) (5,075 ) (16,212 ) (14,854 )
Other expenses (2,649 ) (2,483 ) (7,687 ) (8,411 )
Depreciation and amortization expense (2,122 ) (2,141 ) (6,072 ) (6,260 )
Share of profit of equity accounted investments 2,511 3,049 3,203 4,045
Share of gain on disposal of an investment - 6,171 - 6,171
Other gains and losses (520 ) 399 (508 ) (129 )
Operating profit 11,399 16,565 15,588 18,389
Finance expense (270 ) (289 ) (592 ) (716 )
Finance income 91 103 265 441
Profit before income taxes 11,220 16,379 15,261 18,114
Income taxes (2,567 ) (2,027 ) (3,744 ) (2,243 )
Profit for the period 8,653 14,352 11,517 15,871
Profit attributable to:
Owners of the Company 7,147 13,202 9,458 14,608
Non-controlling interests 1,506 1,150 2,059 1,263
Profit for the period 8,653 14,352 11,517 15,871
Basic and diluted earnings per Class A Common Share(1) 1.05 1.94 1.39 2.15
Basic and diluted earnings per Class B Subordinate Voting Share(2) 1.16 2.13 1.53 2.35
Weighted average number of Class A shares outstanding, basic and diluted 3,755,478 3,759,011 3,756,344 3,763,189
Weighted average number of Class B shares outstanding, basic and diluted 2,743,183 2,767,250 2,751,550 2,769,817
(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 nine months ended
September 29,
2012
September 24,
2011
September 29,
2012
September 24,
2011
$ $ $ $
Profit for the period 8,653 14,352 11,517 15,871
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations (477 ) 247 (468 ) 203
Actuarial losses on retirement benefits (478 ) - (878 ) -
Income taxes on actuarial losses on retirement benefits 119 - 219 -
Gains on derivatives designated as cash flow hedges 9 - 34 -
Transfer of losses on derivatives designated as cash flow hedges to profit or loss 4 - 14 -
Income taxes relating to derivatives designated as cash flow hedges (4 ) - (13 ) -
Share of other comprehensive income of equity accounted investments
Gains (losses) on derivatives designated as cash flow hedges - (39 ) - 100
Transfer of gains on derivatives designated as cash flow hedges to non-financial assets - - - (19 )
Income taxes relating to derivatives designated as cash flow hedges - 5 - (12 )
Other comprehensive income (loss) for the period, net of income taxes (827 ) 213 (1,092 ) 272
Total comprehensive income for the period 7,826 14,565 10,425 16,143
Total comprehensive income attributable to:
Owners of the Company 6,320 13,415 8,366 14,880
Non-controlling interests 1,506 1,150 2,059 1,263
Total comprehensive income for the period 7,826 14,565 10,425 16,143

Condensed Consolidated Interim Statements of Financial Position

As at
September 29,
2012
As at
December 31,
2011
$ $
Assets
Current assets
Cash and cash equivalents 7,523 8,888
Investments in service contracts 9,388 13,065
Trade and other receivables 67,207 45,007
Current income tax assets 3,289 2,559
Prepaid expenses 3,537 2,854
Inventories 5,226 3,922
96,170 76,295
Equity accounted investments 29,102 32,726
Property, plant and equipment 50,751 47,730
Goodwill 15,293 10,686
Other intangible assets 18,781 1,934
Other non-current assets 1,813 1,927
Post-employment benefit assets 701 779
Non-current financial assets 5,711 5,265
Deferred income tax assets 7,842 7,773
Total assets 226,164 185,115
Liabilities
Current liabilities
Short-term bank loans 9,892 -
Trade and other payables 35,624 27,020
Deferred revenue 1,054 819
Current income tax liabilities 360 1,907
Dividends payable 610 594
Current portion of long-term debt 2,274 2,499
Provisions 594 488
50,408 33,327
Long-term debt 20,462 11,873
Provisions 244 148
Deferred income tax liabilities 10,557 3,440
Post-employment benefit obligations 12,017 11,475
Non-current financial liabilities 2,140 2,624
Total liabilities 95,828 62,887
Equity
Share capital 15,195 15,149
Retained earnings 107,432 100,996
Accumulated other comprehensive loss (738 ) (305 )
Equity attributable to owners of the Company 121,889 115,840
Non-controlling interests 8,447 6,388
Total equity 130,336 122,228
Total liabilities and equity 226,164 185,115

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 - - - 9,458 9,458 2,059 11,517
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations - - (468 ) - (468 ) - (468 )
Actuarial losses on retirement benefits, net of income taxes - - - (659 ) (659 ) - (659 )
Cash flow hedges, net of income taxes - 35 - - 35 - 35
Total comprehensive income (loss) for the period - 35 (468 ) 8,799 8,366 2,059 10,425
Repurchase of Class A shares (3 ) - - (45 ) (48 ) - (48 )
Issuance and repurchase of Class B shares 49 - - (521 ) (472 ) - (472 )
Dividends on Class A shares - - - (995 ) (995 ) - (995 )
Dividends on Class B shares - - - (802 ) (802 ) - (802 )
Balance as at September 29, 2012 15,195 (17 ) (721 ) 107,432 121,889 8,447 130,336
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 for the period - - - 14,608 14,608 1,263 15,871
Other comprehensive income
Currency translation differences arising on translation of foreign operations - - 203 - 203 - 203
Share of cash flow hedges of equity accounted investments, net of income taxes - 69 - - 69 - 69
Total comprehensive income for the period - 69 203 14,608 14,880 1,263 16,143
Repurchase and conversion of Class A shares (14 ) - - (82 ) (96 ) - (96 )
Issuance, repurchase and conversion of Class B shares 56 - - (426 ) (370 ) - (370 )
Dividends on Class A shares - - - (970 ) (970 ) - (970 )
Dividends on Class B shares - - - (786 ) (786 ) - (786 )
Balance as at September 24, 2011 15,172 69 (164 ) 103,046 118,123 5,655 123,778

Condensed Consolidated Interim Statements of Cash Flows

For the nine months ended
September 29,
2012
September 24,
2011
$ $
Operating activities
Profit for the period 11,517 15,871
Items not affecting cash and cash equivalents 8,340 (2,183 )
Cash generated from operations 19,857 13,688
Dividends received from equity accounted investments 7,168 3,878
Contributions to defined benefit retirement plans (1,023 ) (928 )
Settlement of provisions (454 ) (324 )
Changes in non-cash working capital items (18,275 ) (17,674 )
Income taxes paid (5,386 ) (5,966 )
1,887 (7,326 )
Financing activities
Net change in short-term bank loans 9,892 10,724
Issuance of long-term debt 16,150 -
Repayment of long-term debt (7,790 ) (1,810 )
Interest paid (720 ) (722 )
Repurchase of Class A shares (48 ) (96 )
Issuance of Class B shares 6 4
Repurchase of Class B shares (634 ) (505 )
Dividends paid on Class A shares (986 ) (642 )
Dividends paid on Class B shares (796 ) (1,101 )
15,074 5,852
Investing activities
Customer repayment of investments in service contracts 3,677 3,367
Interest received 975 1,428
Business acquisition (15,810 ) -
Acquisition of property, plant and equipment (7,285 ) (4,650 )
Proceeds from disposal of property, plant and equipment 158 90
Acquisition of intangible assets (62 ) (70 )
Acquisition of other non-current assets (125 ) -
Proceeds from disposal of other non-current assets 49 -
(18,423 ) 165
Net change in cash and cash equivalents (1,462 ) (1,309 )
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 97 (5 )
Cash and cash equivalents(2), end of period 7,523 7,068
Additional information
Acquisition of property, plant and equipment included in trade and other payables 1,090 820
(1) Comprised of cash on hand and in banks
(2) Comprised of cash on hand and in banks, and short-term investments redeemable at all times

Contact Information

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