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

Logistec Corporation

November 03, 2005 15:36 ET

Logistec Announces Results for the First Nine Months of 2005

MONTREAL, QUEBEC--(CCNMatthews - Nov. 3, 2005) - Logistec Corporation (TSX:LGT.MV.A)(TSX:LGT.SV.B) -



- Third-quarter revenue and net earnings rise to five-year highs for
this period of the year;
- 16.1% increase in third-quarter net earnings;
- Improvement in bulk cargo volumes and contribution of the new Sept-
Iles (QC) / Trois-Rivieres (QC) aluminum ingot distribution centre.


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 third quarter and nine-month period ended September 24, 2005.

Consolidated revenue totalled $52.0 million during the third quarter of 2005, compared with $50.8 million in the equivalent quarter of last year, an improvement of $1.2 million or 2.4%. On a segmented basis, the marine sector's revenue rose 3.4% to $43.1 million, up from $41.7 million in the third quarter of 2004, whereas the environmental sector's revenue fell 2.2% to $8.9 million, down from $9.1 million last year. Third-quarter net earnings grew by 16.1% to $3.6 million or $0.54 per share, up from $3.1 million or $0.47 per share for the third quarter of 2004.

Consolidated revenue amounted to $136.5 million for the first nine months of 2005, up by $3.6 million or 2.7% over $132.9 million last year. Consolidated net earnings rose 32.5% to $5.3 million or $0.80 per share, up from $4.0 million or $0.60 per share for the first three quarters of 2004.

"What makes these results even more satisfactory is that third-quarter revenue and net earnings rose to five-year highs for this period of the year. The sustained improvement in bulk cargo volumes and the contribution of the new aluminum ingot handling business in Sept-Iles (QC) and Trois-Rivieres (QC) more than compensated for the decline in forest products volumes, weak activity at the Termont Terminal Inc. container terminal and the impact of downward fluctuations in the U.S. dollar on our performance," said Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

"Logistec is structured to serve diversified geographical and segmented markets and to benefit from an invaluable balance between the volumes of import and export cargo handled. Our Company also stands apart for the innovative solutions we find to enhance our customers' competitive edge and I am convinced we will continue to grow our business by capitalizing on these strengths," indicated Ms. Paquin before adding: "In upcoming quarters, Logistec will also benefit from a resumption of container handling operations in Montreal (QC) and we are confident it will handle a growing number of containers in the next quarters. That will enable Termont to capitalize on the investments made since early this year."

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 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 mains 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 ticker symbols LGT.MV.A and LGT.SV.B. More information can be obtained at the Company's website at www.logistec.com.

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.



Consolidated Statements of Earnings
(in thousands of dollars,
except for shares For the three For the nine
and per share amounts) months ended months ended
Sept. 24, Sept. 25, Sept. 24, Sept. 25,
2005 2004 2005 2004
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $ $ $

Revenue 51,970 50,831 136,462 132,884
Operating expenses 44,036 44,217 121,383 121,495
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7,934 6,614 15,079 11,389
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Amortization of property,
plant and equipment 2,325 2,386 6,765 7,242
Amortization of other assets 23 5 63 155
Interest on long-term debt 209 235 597 697
Other interest expenses 79 21 88 53
Interest revenue from
investment in a
service contract (269) (288) (830) (1,227)
Loss (gain) on
currency exchange 452 106 364 (11)
Gain on disposal of
property, plant
and equipment (237) (23) (150) (1,068)
---------------------------------------------------------------------
2,582 2,442 6,897 5,841
---------------------------------------------------------------------

Earnings from operations 5,352 4,172 8,182 5,548
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Share in the results
of companies subject
to significant influence 109 249 (18) 699
---------------------------------------------------------------------
Earnings before
income taxes
and non-controlling
interests 5,461 4,421 8,164 6,247

Income taxes 1,696 1,133 2,701 1,958
---------------------------------------------------------------------
Earnings before
non-controlling
interests 3,765 3,288 5,463 4,289

Non-controlling interests 142 163 126 276
---------------------------------------------------------------------
Net earnings 3,623 3,125 5,337 4,013
---------------------------------------------------------------------
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Basic and diluted
earnings per share 0.54 0.47 0.8 0.6
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Weighted average number
of shares outstanding 6,699,661 6,677,161 6,686,105 6,669,028



Consolidated Statements of Retained Earnings
(in thousands of dollars) For the nine months ended
Sept. 24, Sept. 25,
2005 2004
(Unaudited)(Unaudited)
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $
Balance at beginning 62,084 55,826
Net earnings 5,337 4,013
---------------------------------------------------------------------
67,421 59,839
Dividends 1,203 1,146
---------------------------------------------------------------------
Balance at end 66,218 58,693
---------------------------------------------------------------------
---------------------------------------------------------------------



Consolidated Balance Sheets
(in thousands of dollars)
As at As at
Sept. 24, Dec. 31,
2005 2004
(Unaudited) (Audited)
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $

Assets
Current assets
Cash 18,105 12,956
Accounts receivable 37,617 31,982
Income taxes receivable 1,090 825
Future income taxes 212 196
Prepaid expenses 7,118 4,679
---------------------------------------------------------------------
64,142 50,638

Investments 21,458 22,369
Property, plant and equipment 44,299 43,225
Goodwill 2,441 2,441
Other assets 2,730 3,007
Future income taxes 1,420 1,450
---------------------------------------------------------------------
136,490 123,130
---------------------------------------------------------------------
---------------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 2,239 2,320
Accounts payable and accrued liabilities 24,496 21,431
Deferred revenue 2,321 1,632
Income taxes payable 876 505
Dividends payable 436 382
Future income taxes 110 -
Current portion of long-term debt 13,418 3,087
---------------------------------------------------------------------
43,896 29,357

Long-term debt 7,474 12,829
Provision for inspection of vessels 111 324
Asset retirement obligations 739 468
Future income taxes 5,383 5,529
Non-controlling interests 1,340 1,214
---------------------------------------------------------------------
58,943 49,721
---------------------------------------------------------------------
Commitments and contingencies

Shareholders' equity
Capital stock 14,227 14,017
Retained earnings 66,218 62,084
Foreign currency translation adjustment (2,898) (2,692)
---------------------------------------------------------------------
77,547 73,409
---------------------------------------------------------------------
136,490 123,130
---------------------------------------------------------------------
---------------------------------------------------------------------



Consolidated Statements of Cash Flows
(in thousands of dollars) For the three For the nine
months ended months ended
Sept. 24, Sept. 25, Sept. 24, Sept. 25,
2005 2004 2005 2004
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $ $ $

Operating activities
Net earnings 3,623 3,125 5,337 4,013
Items not affecting cash 2,901 2,460 7,179 6,310
---------------------------------------------------------------------
Cash provided
from operations 6,524 5,585 12,516 10,323
Dividends received
from companies
subject to
significant influence - - 16 20
Changes in non-cash
working capital items (1,188) 1,488 (3,939) (255)
---------------------------------------------------------------------
5,336 7,073 8,593 10,088
---------------------------------------------------------------------

Financing activities
Net change in short-term
bank loans (4,795) (2,789) (81) 655
Issuance of long-term debt 6,558 390 6,558 745
Repayment of long-term debt (469) (1,063) (1,510) (3,956)
Proceeds from issuance
of shares to
non-controlling interests - - - 15
Issuance of shares,
net of related costs 5 3 82 3
Dividends paid (384) (382) (1,149) (1,146)
---------------------------------------------------------------------
915 (3,841) 3,900 (3,684)
---------------------------------------------------------------------

Investing activities
Investment in
a service contract (34) (437) (112) (3,165)
Customer repayment
of investment in
a service contract 334 461 979 839
Acquisition of property,
plant and equipment (2,456) (2,495) (8,460) (4,933)
Proceeds from disposal
of property, plant
and equipment 478 292 561 1,202
Acquisition of other assets (347) (218) (536) (468)
Decrease in other assets 99 15 242 287
---------------------------------------------------------------------
(1,926) (2,382) (7,326) (6,238)
---------------------------------------------------------------------

Foreign exchange gain on
cash held in foreign
currencies of
self-sustaining
subsidiaries (183) (247) (18) (104)
---------------------------------------------------------------------

Net change in cash 4,142 603 5,149 62
Cash at beginning 13,963 7,636 12,956 8,177
---------------------------------------------------------------------
Cash at end 18,105 8,239 18,105 8,239
---------------------------------------------------------------------
---------------------------------------------------------------------


Contact Information

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