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

Logistec Corporation

November 08, 2006 16:17 ET

Logistec Corporation Announces Earnings for Q3-2006

- Net Income Reaches $4.5M for the Third Quarter of 2006, 24% Greater Than the Previous Year; - Revenue Up 26% Propelled by Increased Volumes in Break-Bulk and Container Sectors as Well as in Our Arctic Transportation Business.

MONTREAL, QUEBEC--(CCNMatthews - Nov. 8, 2006) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a diversified cargo handler in Eastern Canadian and U.S. ports, today announced its financial results for the third quarter and the nine-month period ended September 30, 2006.

Logistec Corporation achieved consolidated revenue of $65.6 million for the third quarter of fiscal 2006, up 26.2% over $52 million for the equivalent period of 2005. The marine sector's revenue rose 17.6% to $50.7 million, whereas the environmental sector's revenue increased by 67.9% to $14.9 million. Net income for the third quarter of 2006 amounted to $4.5 million or $0.68 per share, up 24.2% over $3.6 million or $0.54 per share for the equivalent period of fiscal 2005.

Consolidated revenue totalled $162.3 million for the first nine months of 2006, compared with $136.5 million last year, an increase of $25.8 million or 18.9% . The marine sector recorded revenue of $137.2 million, whereas the environmental sector's revenue totalled $25.1 million, representing increases of 15.2% and 44.1%, respectively. Net income for the first three quarters of the current fiscal year grew by 49.9% to $8.0 million or $1.20 per share, up from $5.3 million or $0.80 per share in 2005.

"We are very pleased with these results which mark the achievement of new records by our Company, in terms of both revenue and profitability. Furthermore, both our marine and our environmental sectors are contributing to our improved financial performance. Our cargo-handing services continued to benefit from increased break-bulk cargo volumes as a result of the impact of the agreement with the Alouette aluminum smelter on operations in Sept-Iles (QC) and Trois-Rivieres (QC), as well as the contribution of container handling in Montreal (QC). We also benefited from increased cargo volumes transported to and from the Arctic communities by our joint venture Transport Nanuk Inc. For its part, our subsidiary Sanexen Environmental Services Inc. capitalized on sustained demand for its site remediation services while carrying on its efforts to expand its underground water pipe rehabilitation business using its Aqua-Pipe technology," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Outlook

"Short-term indicators bode well for a sustained fourth-quarter performance. Over the longer term, we continue to focus on solidifying and growing our network of facilities, as well as developing our niche services based on customer needs", concluded Ms. Paquin.

About Logistec

Logistec Corporation is based in Montreal (QC) and provides high-quality specialized cargo handling and other services to the marine community and industrial companies in the areas of container, break-bulk and bulk cargo handling at 24 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 toxic waste, 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.A and LGT.B. More information is available on 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 THREE FOR THE NINE
MONTHS ENDED (1) MONTHS ENDED (1)
Sept. 30, Sept. 24, Sept. 30, Sept. 24,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
------------------------------------------------------------------------
------------------------------------------------------------------------
Revenue 65,572 51,970 162,272 136,462
Operating expenses 56,079 44,036 143,397 121,383
------------------------------------------------------------------------
9,493 7,934 18,875 15,079
------------------------------------------------------------------------
Amortization of property,
plant and equipment 2,035 2,325 6,087 6,765
Amortization of other
assets 19 23 57 63
Interest on long-term
debt 126 209 396 597
Other interest expenses 54 79 96 88
Interest revenue from
investment in a
service contract (239) (269) (739) (830)
Exchange loss 88 452 415 364
Gain on disposal of
property, plant and
equipment (205) (237) (236) (150)
------------------------------------------------------------------------
1,878 2,582 6,076 6,897
------------------------------------------------------------------------
Income from operations 7,615 5,352 12,799 8,182
------------------------------------------------------------------------
Share in the results of
companies subject to
significant influence 296 109 762 (18)
------------------------------------------------------------------------
Income before income
taxes and non-controlling
interests 7,911 5,461 13,561 8,164

Income taxes 2,567 1,696 4,462 2,701
------------------------------------------------------------------------
Income before
non-controlling interests 5,344 3,765 9,099 5,463

Non-controlling interests 846 142 1,098 126
------------------------------------------------------------------------
Net income 4,498 3,623 8,001 5,337
------------------------------------------------------------------------
------------------------------------------------------------------------
Basic earnings per share 0.68 0.54 1.20 0.80

Diluted earnings per share 0.67 0.54 1.19 0.80
------------------------------------------------------------------------
------------------------------------------------------------------------
Weighted average number
of shares outstanding 6,655,794 6,699,661 6,685,417 6,686,105

(1) Include one more week of operation in 2006 vs. 2005.



Consolidated Statements of Retained Earnings
(in thousands of dollars) FOR THE NINE MONTHS ENDED
Sept. 30, Sept. 24,
2006 2005
(Unaudited) (Unaudited)
$ $
------------------------------------------------------------------------
Balance, beginning of period 68,251 62,084
Net income 8,001 5,337
------------------------------------------------------------------------
76,252 67,421
Excess on par value of Class A Common
Shares repurchased 26 -
Excess on par value of Class B
Subordinate Voting Shares repurchased 1,764 -
Dividends 1,363 1,203
------------------------------------------------------------------------
Balance, end of period 73,099 66,218
------------------------------------------------------------------------
------------------------------------------------------------------------



Consolidated Balance Sheets
(in thousands of dollars)
As at Sept. 30, As at Dec. 31,
2006 2005
(Unaudited) (Audited)
$ $
------------------------------------------------------------------------
------------------------------------------------------------------------
Assets
Current assets
Cash 16,034 14,143
Accounts receivable 45,902 32,534
Income taxes receivable 1,373 879
Future income taxes 566 590
Prepaid expenses 5,090 3,239
------------------------------------------------------------------------
68,965 51,385

Investments 21,253 21,579
Property, plant and equipment 42,241 41,928
Goodwill 2,441 2,441
Other assets 5,402 4,819
Future income taxes 1,350 1,355
------------------------------------------------------------------------
141,652 123,507
------------------------------------------------------------------------
------------------------------------------------------------------------

Liabilities
Current liabilities
Short-term bank loans 1,882 62
Accounts payable and accrued liabilities 29,203 23,190
Deferred revenue 2,971 1,212
Income taxes payable 1,841 374
Dividends payable 488 436
Future income taxes 251 251
Current portion of long-term debt 1,089 1,765
Current portion of asset
retirement obligations 97 97
------------------------------------------------------------------------
37,822 27,387

Long-term debt 7,482 8,326
Provision for inspection of vessels 285 128
Asset retirement obligations 418 400
Future income taxes 5,167 5,198
Non-controlling interests 3,471 1,360
Other 2,622 1,227
------------------------------------------------------------------------
57,267 44,026
------------------------------------------------------------------------
Commitments and contingencies

Shareholders' equity
Capital stock 14,547 14,219
Retained earnings 73,099 68,251
Foreign currency translation adjustment (3,261) (2,989)
------------------------------------------------------------------------
84,385 79,481
------------------------------------------------------------------------
141,652 123,507
------------------------------------------------------------------------
------------------------------------------------------------------------



Consolidated Statements of Cash Flows
(in thousands of dollars)
FOR THE THREE FOR THE NINE
MONTHS ENDED MONTHS ENDED
Sept. 30, Sept. 24, Sept. 30, Sept. 24,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
------------------------------------------------------------------------
Operating activities
Net Income 4,498 3,623 8,001 5,337
Items not affecting cash 3,725 3,139 8,628 7,893
------------------------------------------------------------------------
Cash provided from
operations 8,223 6,762 16,629 13,230
Dividends received from
companies subject to
significant influence - - 20 16
Contribution to defined
benefit pension plans (452) (610) (1,110) (1,151)
Changes in non-cash
working capital items (1,126) (816) (7,185) (3,502)
------------------------------------------------------------------------
6,645 5,336 8,354 8,593
------------------------------------------------------------------------
Financing activities
Net change in short-term
bank loans 565 (4,795) 1,819 (81)
Issuance of long-term
debt - 6,558 - 6,558
Repayment of long-term debt (474) (469) (1,606) (1,510)
Proceeds from issuance
of shares to non-
controlling interests - - 1,013 -
Issuance of Class B
Subordinate Voting
Shares, net
of related costs 275 5 781 82
Repurchase of Class A
Common Shares - - (29) -
Repurchase of Class B
Subordinate Voting Shares (1,298) - (2,214) -
Dividends paid (436) (384) (1,311) (1,149)
------------------------------------------------------------------------
(1,368) 915 (1,547) 3,900
------------------------------------------------------------------------
Investing activities
Investment in a service
contract - (34) (2) (112)
Customer repayment of
investment in a service
contract 364 334 1,070 979
Acquisition of property,
plant and equipment (net
of government subsidy of
$251,000, nil in 2005) (3,369) (2,456) (6,222) (8,460)
Proceeds from disposal
of property, plant
and equipment 208 478 281 561
Acquisition of other assets (115) (347) (115) (536)
Decrease in other assets - 99 28 242
------------------------------------------------------------------------
(2,912) (1,926) (4,960) (7,326)
------------------------------------------------------------------------
Foreign exchange gain
(loss) on cash held
in foreign currencies
of self-sustaining
subsidiaries (10) (183) 44 (18)
------------------------------------------------------------------------
Net change in cash 2,355 4,142 1,891 5,149

Cash, beginning of
period 13,679 13,963 14,143 12,956
------------------------------------------------------------------------
Cash, end of period 16,034 18,105 16,034 18,105
------------------------------------------------------------------------
------------------------------------------------------------------------


Contact Information

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