Logistec Corporation

TSX : LGT.A
TSX : LGT.B


Logistec Corporation

March 21, 2014 15:05 ET

Logistec Announces Record 2013 Results

MONTRÉAL, QUÉBEC--(Marketwired - March 21, 2014) - 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, 2013.

Consolidated revenue totalled $298.3 million in 2013, an increase of $47.4 million or 18.9% over 2012. The marine services segment posted revenue of $181.6 million in 2013, representing a higher level of activity compared to the $143.2 million reported for 2012. This significant growth was due to an overall increase in cargo volumes handled in all regions for all cargo types, whether bulk, break-bulk or containers. The environmental services segment delivered a strong performance in 2013, as revenue increased by $10.0 million or 9.2% over 2012 to reach $117.6 million. The growth was generated by a high overall level of activity, particularly in the fourth quarter of 2013. Revenue growth came primarily from increased activity in Niedner.

In 2013, Logistec achieved a consolidated profit attributable to owners of the Company of $27.5 million for total basic and diluted earnings per share of $4.27, which corresponds to basic and diluted earnings per share of $4.10 attributable to Class A Common shares and of $4.50 attributable to Class B Subordinate Voting shares. This compares favourably to total basic and diluted earnings per share of $2.45, of which $2.35 was attributable to Class A Common Shares and $2.59 was attributable to Class B Subordinate Voting Shares in 2012.

During the fourth quarter of 2013, consolidated revenue totalled $79.5 million, up by $11.8 million over the same period of 2012. This increase can be explained by strong activity in the environmental services segment in the fourth quarter. The consolidated profit attributable to owners of the Company amounted to $6.6 million, similar to the fourth quarter of 2012 level. Equipment and supplies expense for the fourth quarter of 2013 was slightly higher in proportion to revenue when compared to the fourth quarter of 2012. That is explained by Sanexen's higher level of activity in the fourth quarter of 2013, which has a higher equipment cost component compared to the marine services segment. The profit attributable to owners of the Company computes to total basic and diluted earnings per share of $1.04, which corresponds to basic and diluted earnings per share of $1.00 attributable to Class A Common Shares and of $1.09 attributable to Class B Subordinate Voting Shares.

Outlook

"Our development plan is focused on strengthening and growing our footprint of cargo-handling services across North America. Throughout 2014, we will focus on three particular niches: mining, biomass and port logistics. In mining, we are working closely with mining companies in the Arctic and the Northern Québec/Labrador Trough region to develop and implement efficient cargo-handling solutions for the export of concentrates. We will upgrade our handling equipment in Contrecoeur (QC) to better serve our customers using this bulk terminal. With respect to biomass, demand continues to grow for cargoes such as wood pellets and woodchips, and we are well positioned to handle increased volumes, particularly in Brunswick (GA). In port logistics, we will invest in a new off-dock warehouse in Montréal (QC) to enhance our transhipment capabilities. We also hope to expand our footprint and customer base in the USA for such logistics services. In addition, we have various projects in progress, based on specific customer needs. Finally, we continue to seek acquisitions that fit our strategy of expanding our dry cargo-handling business in North America.

We are optimistic about our environmental services segment. Our plan is largely consistent with prior years, as the development potential remains strong. In 2014, we will continue to build on our Aqua-Pipe technology and grow our services both in Québec, where we install our structural lining, and outside the Province, where we operate through licensees. Furthermore, we have developed new markets and will be providing services in both New Zealand and Singapore. Particular emphasis will be placed on developing new markets in the USA. In 2014, our plant in Coaticook (QC) will undergo an expansion and is expected to provide greater capacity to meet customer needs in the energy and fire-fighting industries, not to mention the water main rehabilitation business developed by Sanexen. Finally, our site remediation services also show promise, in light of the continued focus on cleaning up the environment," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

"All in all, we are committed and confident that we will be able to continue to build our business based on specialized services where we have developed our expertise with a solid customer base. Our industrial environment is showing positive signs, particularly south of the border, and our energy is focused on market opportunities that can benefit from the improved economic outlook. Clearly, our success rests on the strength of a highly dynamic team of customer-oriented experts who consistently bring value to our growing customer base," 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 26 ports in Eastern Canada, the Great Lakes, on the U.S. East Coast, and the U.S. Gulf. 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, municipal and other governmental customers 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 on 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 Canadian dollars, except for per share amounts)
2013 2012
Restated (1)
$ $
Revenue 298,300 250,860
Employee benefits expense (137,057 ) (120,519 )
Equipment and supplies expense (79,603 ) (69,792 )
Rental expense (26,518 ) (22,891 )
Other expenses (11,861 ) (10,467 )
Depreciation and amortization expense (9,413 ) (7,819 )
Share of profit of equity accounted investments 5,493 5,217
Other gains and losses 1,600 (241 )
Operating profit 40,941 24,348
Finance expense (599 ) (808 )
Finance income 433 461
Profit before income taxes 40,775 24,001
Income taxes (9,948 ) (5,870 )
Profit for the year 30,827 18,131
Profit attributable to:
Owners of the Company 27,522 15,907
Non-controlling interests 3,305 2,224
Profit for the year 30,827 18,131
Basic and diluted earnings per Class A Common Share (2) 4.10 2.35
Basic and diluted earnings per Class B Subordinate Voting Share (3) 4.50 2.58
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective
January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to 2013 consolidated financial statements for further details.
(2) Class A Common Share ("Class A share")
(3) Class B Subordinate Voting Share ("Class B share")

Consolidated Statements of Comprehensive Income

years ended December 31
(in thousands of Canadian dollars)
2013 2012
Restated (1)
$ $
Profit for the year 30,827 18,131
Other comprehensive income (loss)
Items that are or may be reclassified to the consolidated statements of earnings
Currency translation differences arising on translation of foreign operations 1,795 (200 )
Gains (losses) on derivatives designated as cash flow hedges (15 ) 40
Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings 15 19
Income taxes relating to derivatives designated as cash flow hedges - (16 )
Share of other comprehensive income of equity accounted investments, net of income taxes (24 ) -
Total items that are or may be reclassified to the consolidated statements of earnings 1,771 (157 )
Items that will not be reclassified to the consolidated statements of earnings
Remeasurement losses on benefit obligation (210 ) (2,154 )
Return on retirement plan assets excluding amounts included in profit for the year 3,394 394
Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year (856 ) 474
Share of other comprehensive income of equity accounted investments, net of income taxes 112 (108 )
Total items that will not be reclassified to the consolidated statements of earnings 2,440 (1,394 )
Other comprehensive income (loss) for the year, net of income taxes 4,211 (1,551 )
Total comprehensive income for the year 35,038 16,580
Total comprehensive income attributable to:
Owners of the Company 31,733 14,356
Non-controlling interests 3,305 2,224
Total comprehensive income for the year 35,038 16,580
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to 2013 consolidated financial statements for further details.

Consolidated Statements of Financial Position

(in thousands of Canadian dollars)
As at
December 31,
2013
As at
December 31,
2012
As at
January 1,
2012
Restated (1) Restated (1)
$ $ $
Assets
Current assets
Cash and cash equivalents 19,638 7,519 8,888
Investments in service contracts 1,597 8,107 13,065
Trade and other receivables 69,035 55,795 45,007
Work in progress 254 - -
Current income tax assets 1,569 1,915 2,559
Prepaid expenses 2,614 3,275 2,854
Inventories 5,241 4,492 3,922
99,948 81,103 76,295
Equity accounted investments 26,517 30,967 32,660
Property, plant and equipment 63,027 55,434 47,730
Goodwill 15,139 14,847 10,686
Other intangible assets 18,295 18,594 1,934
Other non-current assets 1,433 2,097 1,927
Post-employment benefit assets 870 441 779
Non-current financial assets 6,251 5,255 5,265
Deferred income tax assets 7,826 8,118 8,066
Total assets 239,306 216,856 185,342
Liabilities
Current liabilities
Short-term bank loans 2,087 2,200 -
Trade and other payables 31,999 28,391 27,020
Deferred revenue 1,597 1,589 819
Current income tax liabilities 4,838 562 1,907
Dividends payable 699 607 594
Current portion of long-term debt 2,034 2,179 2,499
Provisions 1,320 763 488
44,574 36,291 33,327
Long-term debt 3,598 19,808 11,873
Provisions 604 286 148
Deferred income tax liabilities 10,201 9,435 3,440
Post-employment benefit obligations 11,275 14,038 12,564
Non-current financial liabilities 5,372 2,381 2,624
Total liabilities 75,624 82,239 63,976
Commitments, contingent liabilities and guarantees
Equity
Share capital 15,030 15,139 15,149
Retained earnings 135,552 111,328 100,134
Accumulated other comprehensive income (loss) 1,309 (462 ) (305 )
Equity attributable to owners of the Company 151,891 126,005 114,978
Non-controlling interests 11,791 8,612 6,388
Total equity 163,682 134,617 121,366
Total liabilities and equity 239,306 216,856 185,342
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to 2013 consolidated financial statements for further details.

On behalf of the Board

(signed) David M. Mann (signed) Madeleine Paquin
Director Director

Consolidated Statements of Changes in Equity

(in thousands of Canadian dollars)
Attributable to owners of the Company
Accumulated other comprehensive
income (loss)
Share
capital
Cash
flow
hedges
Foreign
currency
translation
Retained
earnings
Total Non-controlling interests Total equity
$ $ $ $ $ $ $
Balance as at January 1, 2013 15,139 (9 ) (453 ) 111,328 126,005 8,612 134,617
Profit for the year - - - 27,522 27,522 3,305 30,827
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations - - 1,795 - 1,795 - 1,795
Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes - - - 2,328 2,328 - 2,328
Share of other comprehensive income of equity accounted investments, net of income taxes - (24 ) - 112 88 - 88
Total comprehensive income (loss) for the year - (24 ) 1,795 29,962 31,733 3,305 35,038
Repurchase and conversion of Class A shares (21 ) - - (576 ) (597 ) - (597 )
Issuance and repurchase of Class B shares (88 ) - - (2,547 ) (2,635 ) - (2,635 )
Repurchase of share capital by a subsidiary - - - - - (126 ) (126 )
Dividends on Class A shares - - - (1,461 ) (1,461 ) - (1,461 )
Dividends on Class B shares - - - (1,154 ) (1,154 ) - (1,154 )
Balance as at December 31, 2013 15,030 (33 ) 1,342 135,552 151,891 11,791 163,682
(in thousands of Canadian dollars)
Restated (1) Attributable to owners of the Company
Accumulated other comprehensive income
(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 ) 100,134 114,978 6,388 121,366
Profit for the year - - - 15,907 15,907 2,224 18,131
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations - - (200 ) - (200 ) - (200 )
Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes - - - (1,286 ) (1,286 ) - (1,286 )
Cash flow hedges, net of income taxes - 43 - - 43 - 43
Share of other comprehensive income of equity accounted investments, net of income taxes - - - (108 ) (108 ) - (108 )
Total comprehensive income (loss) for the year - 43 (200 ) 14,513 14,356 2,224 16,580
Repurchase of Class A shares (7 ) - - (121 ) (128 ) - (128 )
Issuance and repurchase of Class B shares (3 ) - - (794 ) (797 ) - (797 )
Dividends on Class A shares - - - (1,332 ) (1,332 ) - (1,332 )
Dividends on Class B shares - - - (1,072 ) (1,072 ) - (1,072 )
Balance as at December 31, 2012 15,139 (9 ) (453 ) 111,328 126,005 8,612 134,617
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to 2013 consolidated financial statements for further details.

Consolidated Statements of Cash Flows

years ended December 31
(in thousands of Canadian dollars)
2013 2012
Restated (1)
$ $
Operating activities
Profit for the year 30,827 18,131
Items not affecting cash and cash equivalents 18,936 11,941
Cash generated from operations 49,763 30,072
Dividends received from equity accounted investments 10,820 7,229
Contributions to defined benefit retirement plans (1,304 ) (1,314 )
Settlement of provisions (408 ) (1,403 )
Changes in non-cash working capital items (10,036 ) (12,797 )
Income taxes paid (5,269 ) (6,296 )
43,566 15,491
Financing activities
Net change in short-term bank loans (113 ) 2,200
Issuance of long-term debt, net of transaction costs - 16,150
Repayment of long-term debt (16,379 ) (8,547 )
Interest paid (623 ) (805 )
Issuance of Class B shares 20 6
Repurchase of share capital by a subsidiary (126 ) -
Repurchase of Class A shares (598 ) (128 )
Repurchase of Class B shares (2,832 ) (956 )
Dividends paid on Class A shares (1,406 ) (1,324 )
Dividends paid on Class B shares (1,117 ) (1,067 )
(23,174 ) 5,529
Investing activities
Customer repayment of investments in service contracts 6,510 4,958
Interest received 1,016 1,240
Business acquisition - (15,810 )
Investment in a joint venture (25 ) -
Acquisition of property, plant and equipment (15,736 ) (12,950 )
Proceeds from disposal of property, plant and equipment 548 390
Acquisition of intangible assets (135 ) (89 )
Disposal of other non-current assets 38 76
Acquisition of non-current financial assets - (361 )
(7,784 ) (22,546 )
Net change in cash and cash equivalents 12,608 (1,526 )
Cash and cash equivalents, beginning of year 7,519 8,888
Effect of exchange rate on balances held in foreign currencies of foreign operations (489 ) 157
Cash and cash equivalents, end of year 19,638 7,519
(1)
2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to 2013 consolidated financial statements for further details.

Contact Information

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