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

Logistec Corporation

August 03, 2005 12:23 ET

Logistec Announces Results for the Second Quarter and the First Half of 2005

MONTREAL, QUEBEC--(CCNMatthews - Aug. 3, 2005) - All amounts are expressed in Canadian dollars unless otherwise indicated.

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 second quarter and six-month period ended June 25, 2005.

Consolidated revenue amounted to $45.9 million during the second quarter of 2005, an increase of $0.3 million from the second quarter of 2004. On a segmented basis, the marine sector's revenue declined to $39.9 million, down 2.5% from $41.0 million for the equivalent period in 2004, while the environmental sector recorded revenue of $6.0 million, up by $1.3 million or 27% over the same period last year. Second-quarter net income totalled $1.1 million or $0.16 per share, down from $2.2 million or $0.33 per share for the second quarter of 2004.

Consolidated revenue rose to $84.5 million for the first six months of 2005, up by $2.4 million or 3% over $82.1 million last year. Net income totalled $1.7 million or $0.26 per share, up from $0.9 million or $0.13 per share for the first half of 2004. This increase is related to the solid first-quarter performance in 2005.

"Despite a number of external factors such as last fall's closure of the St. Anne-Nackawic (NB) pulp mill - a major customer on the Canadian East Coast, the labour conflict at another customer on the Canadian East Coast and the impact of the decline in the U.S. dollar on the conversion of our revenue from the United States into Canadian dollars, we succeeded in maintaining our revenue thanks to an increase in coal volumes in Sydney (NS), our new aluminum handling operation following the start of a barge service from Sept-Iles (QC) to Trois-Rivieres (QC), the growth of our subsidiary, Sanexen Environmental Services Inc. ("Sanexen") and a few months of operation at our Port of Montreal (QC) container terminal. However, our profitability in this second quarter, compared with last year, was impacted by the previously mentioned external factors as well as the recognition of a $0.7 million gain on disposal of assets in the second quarter of 2004," said Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

Although down from 2004, results for the second quarter of 2005 must be analyzed in light of the fact that last year's results included a $0.7 million gain on disposal of assets and that this year's results were affected by the $0.6 million reduction in Logistec's share in the earnings of a company subject to significant influence. These two items accounted for a $1.3 million reduction in pre-tax earnings.

"Bulk cargo handling and the demand for our break-bulk cargo handling services are growing. That should continue to offset the impact of the closure of the St. Anne-Nackawic mill (NB) and the suspension of our Montreal (QC) container handling operations since May In that regard, we remain on the active lookout for new customers for our Termont Terminal Inc. joint venture, which will benefit from more modern facilities due to our investments. Finally, we are confident about Sanexen's ability to pursue its growth and further contribute to our overall operating profitability," 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 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 and per share amounts)
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
June 25, June 26, June 25, June 26,
2005 2004 2005 2004
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
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$ $ $ $

Revenue 45,918 45,668 84,493 82,053
Operating expenses 41,584 41,009 77,347 77,278
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4,334 4,659 7,146 4,775
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Amortization of property,
plant and equipment 2,300 2,426 4,440 4,856
Amortization of other assets 21 23 41 149
Interest on long-term debt 196 211 387 462
Other interest expenses (revenue) (5) 13 9 32
Interest revenue from
investment in a
service contract (275) (466) (561) (939)
Gain on currency exchange (32) (67) (88) (117)
Loss (gain) on disposal of
property, plant and equipment 87 (700) 88 (1,044)
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2,292 1,440 4,316 3,399
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Earnings from operations 2,042 3,219 2,830 1,376
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Share in the results of
companies subject to
significant influence (104) 449 (127) 450
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Earnings before income taxes
and non-controlling interests 1,938 3,668 2,703 1,826

Income taxes 808 1,296 1,005 825
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Earnings before
non-controlling interests 1,130 2,372 1,698 1,001

Non-controlling interests 41 143 (16) 113
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Net earnings 1,089 2,229 1,714 888
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Basic and diluted earnings
per share 0.16 0.33 0.26 0.13
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Weighted average number of
shares outstanding 6,681,494 6,664,961 6,679,328 6,664,961



Consolidated Statements of Retained Earnings
(in thousands of dollars) FOR THE SIX MONTHS ENDED
June 25, June 26,
2005 2004
(Unaudited) (Unaudited)
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$ $
Balance at beginning 62,084 55,826
Net earnings 1,714 888
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63,798 56,714

Dividends 766 764
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Balance at end 63,032 55,950
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Consolidated Balance Sheets
(in thousands of dollars) As at As at
June 25, December 31,
2005 2004
(Unaudited) (Audited)
---------------------------------------------------------------------
---------------------------------------------------------------------
$ $

Assets
Current assets
Cash 13,963 12,956
Accounts receivable 31,750 31,982
Income taxes receivable 1,306 825
Future income taxes 535 196
Prepaid expenses 6,141 4,679
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53,695 50,638

Investments 21,650 22,369
Property, plant and
equipment 45,576 43,225
Goodwill 2,441 2,441
Other assets 2,771 3,007
Future income taxes 1,480 1,450
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127,613 123,130
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Liabilities
Current liabilities
Short-term bank loans 7,034 2,320
Accounts payable and
accrued liabilities 20,769 21,431
Deferred revenue 1,561 1,632
Income taxes payable 837 505
Dividends payable 383 382
Future income taxes 110 -
Current portion of long-term debt 2,836 3,087
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33,530 29,357

Long-term debt 12,128 12,829
Provision for inspection
of vessels 66 324
Asset retirement
obligations 482 468
Future income taxes 5,431 5,529
Non-controlling interests 1,198 1,214
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52,835 49,721
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Commitments

Shareholders' equity
Capital stock 14,093 14,017
Retained earnings 63,032 62,084
Foreign currency translation adjustment (2,347) (2,692)
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74,778 73,409
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127,613 123,130
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Consolidated Statements of Cash Flows
(in thousands of dollars)
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
June 25, June 26, June 25, June 26,
2005 2004 2005 2004
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
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---------------------------------------------------------------------
$ $ $ $


Operating activities
Net earnings 1,089 2,229 1,714 888
Items not affecting cash 2,106 1,503 4,279 4,122
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Cash provided from
operations 3,195 3,732 5,993 5,010
Dividends received from
companies subject to
significant influence 16 - 16 20
Changes in non-cash
working capital items (1,845) (1,822) (2,751) (1,743)
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1,366 1,910 3,258 3,287
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Financing activities
Net change in short-term
bank loans 4,837 2,392 4,714 3,445
Issuance of long-term debt - - - 354
Repayment of long-term
debt (430) (1,534) (1,041) (2,893)
Proceeds from issuance of
shares to non-controlling
interests - - - 15
Issuance of shares, net of
related costs 76 - 76 -
Dividends paid (383) (382) (765) (763)
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4,100 476 2,984 158
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Investing activities
Investment in a service
contract (62) (1,490) (78) (2,729)
Customer repayment of
investment in a service
contracts 327 192 645 378
Acquisition of property,
plant and equipment (4,437) (1,538) (6,004) (2,438)
Proceeds from disposal of
property, plant and equipment 82 461 83 909
Acquisition of other assets - (27) (188) (250)
Decrease in other assets 67 178 143 -
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(4,023) (2,224) (5,399) (4,130)
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Foreign exchange gain on
cash held in foreign
currencies of
self-sustaining subsidiaries 117 76 164 144
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Net change in cash 1,560 238 1,007 (541)
Cash at beginning 12,403 7,398 12,956 8,177
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Cash at end 13,963 7,636 13,963 7,636
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Contact Information

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