Logistec Corporation

Logistec Corporation

March 10, 2005 16:11 ET

Logistec Announces Fiscal 2004 Fourth Quarter and Year-End Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LOGISTEC CORPORATION

TSX SYMBOL: LGT.MV.A
TSX SYMBOL: LGT.SV.B

MARCH 10, 2005 - 16:11 ET

Logistec Announces Fiscal 2004 Fourth Quarter and
Year-End Results

MONTREAL, QUEBEC--(CCNMatthews - March 10, 2005) -



- Record financial performance in 2004 as consolidated revenue
totalled $185.5 million while net income rose to $7.8 million, up
59% over 2003;

- Outstanding performance for Sanexen in 2004 as revenue and net
income reached $25.0 million and $1.5 million respectively.


Logistec Corporation (TSX:LGT.MV.A)(TSX:LGT.SV.B), a diversified cargo
handler in Eastern Canadian and U.S. ports, today announced its
financial results for the three months and fiscal year ended December
31, 2004.

In fiscal year 2004, the Company improved its operational efficiency and
recorded a net income of $7.8 million or $1.17 per share, up 59% over
$4.9 million, or $0.74 per share in 2003. Consolidated revenue amounted
to $185.5 million, up by $4.2 million or 2.3% over $181.3 million for
fiscal 2003.

"We are satisfied with these results. Although the first quarter was
very weak, the balance of the year was strong as we saw a distinct
improvement in our U.S. and Montreal (QC) cargo-handling operations as
well as in business at Sanexen and Transport Nanuk. Our stevedoring
services benefited from both an increase in the volumes of cargo handled
and gains in operational efficiency, while all of Sanexen services
achieved strong growth, including PCB management, site remediation, risk
assessment and the rehabilitation of underground water infrastructures,"
said Madeleine Paquin, President and Chief Executive Officer of Logistec
Corporation.

2004 Fourth-Quarter Results

During the fourth quarter of 2004, consolidated revenue reached $52.6
million, up 9% over $48.3 million in the corresponding period of 2003.
This $4.3 million increase is attributable to large bulk cargo volumes
throughout our network as well as Sanexen's solid performance. Growth
was tempered by the decline in volumes in the Maritimes following the
closure of the St. Anne-Nackawic paper mill in New Brunswick and a lower
U.S. dollar conversion rate than in the fourth quarter of 2003.

Net income stood at $3.8 million or $0.57 per share, compared with $2.4
million or $0.35 per share in the fourth quarter of 2003. This
performance attests to the Corporation's efforts to improve the previous
two year's disappointing results and the turnaround in cargo volumes.

Outlook

"Considering actual market trends, namely the recovery in steel handling
operations, high bulk cargo volumes and operational efficiency gains
achieved in the last two years, we estimate we are well positioned to
continue to perform, both operationally and financially in 2005,"
indicated Ms. Paquin.

Logistec will also benefit from a recent multi-year contract with
Aluminerie Alouette inc. to establish a distribution centre in
Trois-Rivieres (QC) for the aluminum ingots coming from Sept-Iles (QC).
Some 250,000 tonnes will be loaded on barges in Sept-Iles and shipped to
Trois-Rivieres as of the spring of 2005.

Sanexen remains well positioned in its environmental services and its
exclusive Aqua-Pipe™ underground water pipe rehabilitation technology
will probably be the primary driver of its future growth.

However, the Company will also face adverse factors in 2005, namely:



- the impact of the mid-September 2004 closure of the St. Anne-
Nackawic paper mill on our results;

- the recent termination of the vessel-sharing agreement between
Termont's three major customers puts Termont at risk of losing its
existing customers.


"Too few details are presently known to accurately assess what will be
the impact on Termont and our short-term outlook, but we remain
convinced of Termont's long-term potential considering the high volume
of containers handled at the Port of Montreal (QC) and our commitment to
Termont's facilities," concluded Ms. Paquin.

About Logistec

Logistec Corporation, which marked its 50th anniversary in 2002, 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 23 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 management of PCBs,
site remediation, risk assessment and rehabilitation of underground
water pipes and aqueducts. 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 a
dividend regularly since 1969 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 symbols LGT.MV.A and LGT.SV.B. More information
can be obtained at the Company's website at www.logistec.com.



Consolidated Statements of Earnings
(in thousands of dollars,
except for shares FOR THE THREE FOR THE YEARS
and per share amounts) MONTHS ENDED ENDED
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2004 2003 2004 2003
--------------------------------------------------------------------
--------------------------------------------------------------------
$ $ $ $

Revenue 52,615 48,271 185,499 181,343
Operating expenses 45,363 43,231 166,856 164,874
--------------------------------------------------------------------
Margin from operations 7,252 5,040 18,643 16,469
--------------------------------------------------------------------

Amortization of property,
plant and equipment 2,251 2,384 9,493 9,598
Amortization of other assets 64 62 219 242
Interest on long-term debt 215 113 911 522
Other interest expense 14 121 69 547
Interest revenues from
investment in a
service contract (292) (450) (1,519) (1,063)
Exchange loss (gain) 194 (105) 184 333
Gain on disposal of property,
plant and equipment (86) (70) (1,153) (92)
--------------------------------------------------------------------
2,360 2,055 8,204 10,087
--------------------------------------------------------------------

Income from operations 4,892 2,985 10,439 6,382
--------------------------------------------------------------------

Share in the results of
companies subject to
significant influence 336 223 1,035 816
--------------------------------------------------------------------
5,228 3,208 11,474 7,198

Income taxes 1,304 782 3,262 2,120
--------------------------------------------------------------------
3,924 2,426 8,212 5,078

Non-controlling interests 149 71 425 174
--------------------------------------------------------------------
Net income 3,775 2,355 7,787 4,904
--------------------------------------------------------------------
--------------------------------------------------------------------

Basic and diluted
earnings per share 0.57 0.35 1.17 0.74
--------------------------------------------------------------------
--------------------------------------------------------------------

Weighted average number
of shares outstanding 6,664,961 6,677,161 6,671,061 6,637,344


Consolidated Balance Sheets
(IN THOUSANDS OF DOLLARS)
As at Dec. 31, As at Dec. 31,
2004 2003
--------------------------------------------------------------------
--------------------------------------------------------------------
$ $

Assets
Current assets
Cash 12,956 8,177
Accounts receivable 31,982 32,841
Income taxes receivable 825 914
Future income taxes 196 120
Prepaid expenses 4,679 4,496
--------------------------------------------------------------------
50,638 46,548

Investments 22,639 19,901
Property, plant and equipment 43,225 45,677
Goodwill 2,441 2,441
Other assets 3,007 3,701
Future income taxes 1,450 1,876
--------------------------------------------------------------------
123,130 120,144
--------------------------------------------------------------------
--------------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 2,320 1,495
Accounts payable and accrued liabilities 21,431 20,409
Deferred revenue 1,632 1,343
Income taxes payable 505 934
Dividends 382 382
Current portion of long-term debt 3,087 5,023
--------------------------------------------------------------------
29,357 29,586

Long-term debt 12,829 15,419
Provision for inspection of vessels 324 207
Asset retirement obligations 468 440
Future income taxes 5,529 5,491
Non-controlling interests 1,214 898
--------------------------------------------------------------------
49,721 52,041
--------------------------------------------------------------------

Shareholders' equity
Capital stock 14,017 13,918
Retained earnings 62,084 55,826
Foreign currency translation adjustment (2,692) (1,641)
--------------------------------------------------------------------
73,409 68,103
--------------------------------------------------------------------
123,130 120,144
--------------------------------------------------------------------
--------------------------------------------------------------------


Forward-Looking Statements

This news release may contain certain forward-looking information and
statements concerning the Company's operations, performance, and
financial condition, including, in particular, the likelihood of its
success in developing and expanding its business. These statements are
based upon a number of assumptions and estimates that are inherently
subject to significant uncertainties and contingencies, many of which
are beyond the control of the Company. Examples include the performance
of domestic and international economies and the effects of these on
shipping, weather conditions, labour relations, and pricing and other
marketing activities by competitors. Actual results may differ
materially from those expressed or implied by such forward-looking
statements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Logistec Corporation
    Jean-Claude Dugas, CA
    Vice-President, Finance
    (514) 985-2345
    jdugas@logistec.com