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

Logistec Corporation

August 06, 2009 14:00 ET

Logistec Announces its Financial Results for the Second Quarter of Fiscal 2009

MONTREAL, QUEBEC--(Marketwire - Aug. 6, 2009) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a diversified cargo handler in several eastern North American ports, today announced its financial results for the second quarter and first six months ended June 27, 2009.

During the second quarter of 2009, revenue from continuing operations totalled $48.4 million, compared with $51.3 million for the same period in 2008. The 5.7% decrease is attributable to the 13.5% decline in the marine services segment's revenue from continuing operations, which was partly offset by the 31.7% growth in revenue from continuing operations generated by environmental services. Net income from continuing operations amounted to $0.6 million or $0.09 per share, compared with $2.4 million or $0.35 per share for the equivalent period last year.

First-Half Financial Results

For the full first half of fiscal 2009, revenue from continuing operations totalled $88.4 million, down 6.1% from $94.1 million for the equivalent period last year. Net loss from continuing operations amounted to $(0.5) million or $(0.08) per share, compared with net income from continuing operations of $3.2 million or $0.48 per share for the first six months of 2008. "Considering the severity and scale of the global recession, we were pleased with our return to profitability in the second quarter. Our inability to escape volume declines in the marine industry led to the implementation of strict cost-control measures which in turn, allowed this segment to be profitable in this quarter. On a positive note, our environmental services segment benefited from the growing success of our Aqua-Pipe™ underground water main rehabilitation technology and posted a stronger financial performance," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

"Although the second half of the year is generally the busiest for our marine services segment, we are cautious regarding our forecast in view of today's economic conditions. Even if we remain confident we will achieve a profit in 2009, we are also aware that activity is down from the 2008 record level. While maintaining tight control over our operating expenses, we are striving to grow our business over the medium and long term by ensuring we provide our customers with the best quality of service in the industry and by making investments enabling us to enhance our overall services offering. A few weeks ago, we thus acquired a parcel of land in the east end of Montreal (QC), which will allow us to offer new value-added services to our customer base. Our environmental services segment should keep up its momentum, notably by building on the commercial success of its Aqua-Pipe™ technology," concluded 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 water mains 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 Company's 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 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 For the six
months ended months ended
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
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Revenue 48,432 51,325 88,350 94,130
Operating expenses 43,846 45,084 83,260 85,333
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4,586 6,241 5,090 8,797
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Amortization of property,
plant and equipment 2,102 1,941 4,220 3,953
Amortization of other
assets 127 62 190 125
Interest on long-term debt 336 271 664 538
Other interest expense 37 55 105 97
Interest revenue from
investments in service
contracts (463) (185) (946) (379)
Foreign exchange loss (gain) 427 99 301 (146)
Loss (gain) on disposal of
property, plant and
equipment 59 (11) 158 (210)
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2,625 2,232 4,692 3,978
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Income from continuing
operations 1,961 4,009 398 4,819

Share in the results of
companies subject to
significant influence 5 63 (494) (49)
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Income (loss) before income
taxes, non controlling
interests and discontinued
operations 1,966 4,072 (96) 4,770

Income taxes 788 1,214 102 1,357
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Income (loss) before
non-controlling
interests and discontinued
operations 1,178 2,858 (198) 3,413

Non-controlling interests 577 503 330 213
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Net income (loss) from
continuing operations 601 2,355 (528) 3,200

Net loss from discontinued
operations - (306) - (211)
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Net income (loss) 601 2,049 (528) 2,989
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Basic and diluted earnings
(loss) per share
Continuing operations 0.09 0.35 (0.08) 0.48
Discontinued operations - (0.04) - (0.03)
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0.09 0.31 (0.08) 0.45
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Weighted average number of
shares outstanding, basic
and diluted 6,651,294 6,674,294 6,650,461 6,672,761




Consolidated Statements of Retained Earnings
(in thousands of dollars)

--------------------------------------------------------------------------
For the six months ended
June 27, June 28,
2009 2008
(Unaudited) (Unaudited)
$ $
--------------------------------------------------------------------------

Balance, beginning of period 83,435 72,507
Net income (loss) (528) 2,989
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82,907 75,496

Excess over par value of Class A Common
Shares repurchased 10 2
Excess over par value of Class B Subordinate
Voting Shares repurchased 42 -
Dividends 1,075 1,079
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Balance, end of period 81,780 74,415
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Consolidated Statements of Comprehensive Income (Loss)
(in thousands of dollars)

--------------------------------------------------------------------------
For the three For the six
months ended months ended
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
--------------------------------------------------------------------------

Net income (loss) 601 2,049 (528) 2,989

Other comprehensive income (loss)
Unrealized gain (loss) on
translation of financial
statements of self-sustaining
foreign subsidiaries (364) (69) (271) 105
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Comprehensive income (loss) 237 1,980 (799) 3,094
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Consolidated Balance Sheets
(in thousands of dollars)

--------------------------------------------------------------------------
As at As at
June 27, December 31,
2009 2008
(Unaudited) (Audited)
$ $
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Assets
Current assets
Cash and cash equivalents 15,922 21,304
Accounts receivable 40,542 39,671
Income taxes receivable 5,324 2,375
Future income taxes 386 407
Prepaid expenses 6,495 4,565
Assets related to discontinued operations 58 61
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68,727 68,383

Investments 21,416 26,452
Property, plant and equipment 70,206 57,167
Goodwill 5,045 5,484
Other assets 11,530 11,803
Future income taxes 7,610 7,720
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184,534 177,009
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Liabilities
Current liabilities
Short-term bank loans 4,057 51
Short-term note payable 386 3,106
Accounts payable and accrued liabilities 20,477 21,885
Deferred revenue 3,217 1,528
Income taxes payable 237 1,285
Dividends payable 537 538
Future income taxes 835 835
Current portion of long-term debt 3,917 2,115
Current portion of asset retirement obligations 31 -
Current liabilities related to discontinued
operations 658 757
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34,352 32,100

Long-term debt 31,111 23,964
Asset retirement obligations 413 554
Future income taxes 12,076 11,891
Other liabilities 5,136 4,896
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83,088 73,405
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Non-controlling interests 6,321 6,657
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Shareholders' equity
Capital stock 15,395 15,291

Retained earnings 81,780 83,435
Accumulated other comprehensive loss (2,050) (1,779)
--------------------------------------------------------------------------
79,730 81,656
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95,125 96,947
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184,534 177,009
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Consolidated Statements of Cash Flows
(in thousands of dollars)

--------------------------------------------------------------------------
For the three For the six
months ended months ended
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
--------------------------------------------------------------------------

Operating activities
Net income (loss) from
continuing operations 601 2,355 (528) 3,200
Items not affecting cash
and cash equivalents 3,575 3,435 6,466 5,655
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Cash provided from
operations 4,176 5,790 5,938 8,855
Dividends received from
companies subject to
significant influence 30 - 30 -
Contributions to defined
benefit pension plans (250) (157) (528) (334)
Changes in non-cash
working capital items (3,329) 376 (6,881) (1,826)
--------------------------------------------------------------------------
627 6,009 (1,441) 6,695
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Financing activities
Net change in short-term
bank loans 3,238 1,856 4,006 1,084
Issuance of long-term debt 12,836 197 12,836 197
Repayment of long-term
debt (1,604) (553) (3,883) (846)
Issuance of Class B
Subordinate Voting Shares 3 5 3 5
Repurchase of Class B
Subordinate Voting Shares (10) - (67) -
Repurchase of Class A
Common Shares - - (11) (2)
Dividends paid to
non-controlling interests (666) - (862) (98)
Dividends paid (537) (539) (1,076) (1,078)
--------------------------------------------------------------------------
13,260 966 10,946 (738)
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Investing activities
Customer repayment of
investments in service
contracts 906 418 1,792 827
Acquisition of temporary
investments - - - (125)
Disposal of temporary
investments - 125 - 125
Acquisition of property,
plant and equipment (15,015) (2,281) (16,709) (3,552)
Proceeds from disposal of
property, plant and
equipment 43 451 82 533
Acquisition of other
assets (100) (62) (100) (64)
Decrease in other assets 94 - 94 -
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(14,072) (1,349) (14,841) (2,256)
--------------------------------------------------------------------------

Foreign exchange gain
(loss) on cash held in
foreign currencies of
self-sustaining
subsidiaries 37 (1) 29 (24)
--------------------------------------------------------------------------

Net change in cash and
cash equivalents from
continuing operations (148) 5,625 (5,307) 3,677
Net change in cash and
cash equivalents from
discontinued operations (61) 284 (75) 651
Cash and cash equivalents(1),
beginning of period 16,131 12,102 21,304 13,683
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Cash and cash equivalents(1),
end of period 15,922 18,011 15,922 18,011
--------------------------------------------------------------------------
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Additional information
Interest paid 364 319 718 616
Income taxes paid 1,599 1,269 3,679 3,991
Acquisition of property,
plant and equipment
included in accounts
payable and accrued
liabilities 305 290 305 290
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(1) Cash and cash equivalents comprise of cash on hand


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