Logistec announces record results for the second quarter of 2014

MONTREAL, Aug. 1, 2014 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the second quarter and first six months ended June 28, 2014.

Logistec closed the second quarter with satisfactory results. Revenue totalled $78.7 million, an increase of $6.0 million or 8.2% over the same period of 2013. The marine services segment's revenue grew by $3.8 million or 8.3% to $49.1 million for the second quarter of 2014, whereas the environmental services segment's revenue amounted to $29.6 million, up by $2.2 million over the second quarter of 2013. The growth in the marine services segment reflected an overall increase in volumes of cargo handled, especially with respect to bulk cargo and our activities along the U.S. East Coast. The second quarter of 2014 closed with a consolidated profit attributable to owners of the Company of $7.4 million, slightly up from the same period of 2013. Although operating profit was superior, results were affected by a loss on foreign currency translation of $0.5 million. For the second quarter of 2014, the profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.59, of which $0.57 was attributable to Class A Common Shares and $0.62 was attributable to Class B Subordinate Voting Shares.

During the first six months of 2014, consolidated revenue and profit rose to a record high. Consolidated revenue totalled $141.4 million, compared with $130.1 million for the first half of 2013. The profit attributable to owners of the Company amounted to $11.8 million for total basic and diluted earnings per share of $0.93, of which $0.90 was attributable to Class A Common Shares and $0.98 was attributable to Class B Subordinate Voting Shares. This compares favourably to total basic and diluted earnings per share of $0.72 for the same period of 2013, of which $0.69 was attributable to Class A Common Shares and $0.76 was attributable to Class B Subordinate Voting Shares.

Outlook
"We are very pleased to have achieved Logistec's best-ever performance for a first half of the year. The second half of 2014 also looks promising, as demand for our marine services is growing both in Canada and the USA while our environmental services segment should continue to perform well. The combination of new contracts with the acquisition of businesses and an ambitious capital expenditure program for 2014 makes us confident for the balance of the year, as well as for the years ahead," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

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 29 ports in eastern North America. 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, woven-hose manufacturing, and asbestos removal work.

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.

Condensed Consolidated Interim Statements of Earnings
(in thousands of Canadian dollars, except for per share amounts and number of shares)
(unaudited)
  For the three months ended For the six months ended
  June 28, 2014 June 29, 2013 June 28, 2014 June 29, 2013
  $ $ $ $
         
Revenue 78,697 72,733 141,432 130,098
         
Employee benefits expense (37,069) (31,836) (65,663) (59,148)
Equipment and supplies expense (19,053) (19,475) (37,477) (34,459)
Rental expense (6,647) (6,765) (12,937) (13,816)
Other expenses (3,109) (2,946) (6,326) (6,021)
Depreciation and amortization expense (2,439) (2,341) (4,921) (4,597)
Share of profit of equity accounted investments 955 661 1,143 347
Other gains and losses (606) 732 1,453 1,125
Operating profit 10,729 10,763 16,704 13,529
         
Finance expense (131) (138) (222) (368)
Finance income 95 111 209 208
Profit before income taxes 10,693 10,736 16,691 13,369
         
Income taxes (2,548) (2,649) (4,154) (3,539)
Profit for the period 8,145 8,087 12,537 9,830
         
Profit attributable to:        
         
Owners of the Company 7,444 7,385 11,791 9,321
         
Non-controlling interests 701 702 746 509
Profit for the period 8,145 8,087 12,537 9,830
         
         
Basic and diluted earnings per Class A Common Share (1) (2) 0.57 0.55 0.90 0.69
Basic and diluted earnings per Class B Subordinate Voting Share (2) (3) 0.62 0.60 0.98 0.76
         
Weighted average number of Class A shares outstanding, basic and diluted (2) 7,464,889 7,503,355 7,467,455 7,503,689
Weighted average number of Class B shares outstanding, basic and diluted (2) 5,164,233 5,418,300 5,208,433 5,424,133
(1)  Class A Common Share ("Class A share")
(2)  All share-based information has been adjusted to reflect the impact of the two-for-one stock split as if it occurred January 1, 2013.
(3)  Class B Subordinate Voting Share ("Class B share")

Condensed Consolidated Interim Statements of Comprehensive Income
(in thousands of Canadian dollars)
(unaudited)
  For the three months ended For the six months ended
  June 28, 2014 June 29, 2013 June 28, 2014 June 29, 2013
  $ $ $ $
         
Profit for the period 8,145 8,087 12,537 9,830
         
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 (1,059) 937 35 1,498
  Gains (losses) on derivatives designated as cash flow hedges 1 22 (1) 10
  Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings 4 2 8
  Income taxes relating to derivatives designated as cash flow hedges (7) (5)
Total items that are or may be reclassified to the consolidated statements of earnings (1,058) 956 36 1,511
         
Items that will not be reclassified to the consolidated statements of earnings        
  Remeasurement gains (losses) on benefit obligation (797) 2,196 (1,588) 2,196
  Return on retirement plan assets excluding amounts included in profit for the period 83 352 789 1,423
  Income taxes on remeasurement gains (losses) on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period 192 (686) 215 (974)
  Share of other comprehensive income of equity accounted investments, net of income taxes 7 41
Total items that will not be reclassified to the consolidated statements of earnings (515) 1,862 (543) 2,645
         
Other comprehensive income (loss) for the period, net of income taxes (1,573) 2,818 (507) 4,156
         
Total comprehensive income for the period 6,572 10,905 12,030 13,986
         
Total comprehensive income attributable to:        
         
Owners of the Company 5,871 10,203 11,284 13,477
Non-controlling interests 701 702 746 509
Total comprehensive income for the period 6,572 10,905 12,030 13,986

Condensed Consolidated Interim Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
  As at
June 28,
2014
As at
December 31,
2013
  $ $
     
Assets    
Current assets    
  Cash and cash equivalents 21,980 19,638
  Investments in service contracts 1,484 1,597
  Trade and other receivables 58,344 69,035
  Work in progress 7,289 254
  Current income tax assets 3,245 1,569
  Prepaid expenses 3,470 2,614
  Inventories 5,930 5,241
  101,742 99,948
     
Equity accounted investments 25,503 26,517
Property, plant and equipment 75,838 63,027
Goodwill 21,142 15,139
Other intangible assets 17,497 18,295
Other non-current assets 1,677 1,433
Post-employment benefit assets 846 870
Non-current financial assets 5,027 6,251
Deferred income tax assets 7,460 7,826
Total assets 256,732 239,306
     
Liabilities    
Current liabilities    
  Short-term bank loans 2,087
  Trade and other payables 32,037 31,999
  Deferred revenue 1,933 1,597
  Current income tax liabilities 1,903 4,838
  Dividends payable 10,545 699
  Current portion of long-term debt 2,105 2,034
  Provisions 673 1,320
  49,196 44,574
     
Long-term debt 15,868 3,598
Provisions 608 604
Deferred income tax liabilities 9,033 10,201
Post-employment benefit obligations 12,018 11,275
Deferred revenue 3,600
Non-current financial liabilities 6,647 5,372
Total liabilities 96,970 75,624
     
Equity    
Share capital 15,053 15,030
Retained earnings 130,175 135,552
Accumulated other comprehensive income 1,345 1,309
Equity attributable to owners of the Company 146,573 151,891
     
Non-controlling interests 13,189 11,791
Total equity 159,762 163,682
     
Total liabilities and equity 256,732 239,306

Condensed Consolidated Interim Statements of Changes in Equity
(in thousands of Canadian dollars)
(unaudited)
    Attributable to owners of the Company      
    Accumulated other comprehensive income        
  Share capital Cash flow hedges Foreign currency translation Retained earnings Total Non-controlling interests Total equity
  $ $ $ $ $ $ $
               
Balance as at January 1, 2014 15,030 (33) 1,342 135,552 151,891 11,791 163,682
               
Profit for the period 11,791 11,791 746 12,537
               
Other comprehensive income (loss)              
  Currency translation differences arising on translation of foreign operations 35 35 35
  Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes (584) (584) (584)
  Share of other comprehensive income of equity accounted investments, net of income taxes 1 41 42 42
Total comprehensive income for the period 1 35 11,248 11,284 746 12,030
               
Repurchase of Class A shares (6) (273) (279) (279)
Issuance and repurchase of Class B shares 29 (4,946) (4,917) (4,917)
Non-controlling interest arising on business acquisition 1,475 1,475
Issuance and repurchase of share capital by a subsidiary (167) (167) (823) (990)
Dividends on Class A shares (6,382) (6,382) (6,382)
Dividends on Class B shares (4,857) (4,857) (4,857)
Balance as at June 28, 2014 15,053 (32) 1,377 130,175 146,573 13,189 159,762

Condensed Consolidated Interim Statements of Changes in Equity (Continued)
(in thousands of Canadian dollars)
(unaudited)
    Attributable to owners of the Company      
    Accumulated other comprehensive income        
  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 period - - - 9,321 9,321 509 9,830
               
Other comprehensive income              
  Currency translation differences arising on translation of foreign operations - 1,498 - 1,498 - 1,498
  Remeasurement gains on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes - - 2,645 2,645 - 2,645
  Cash flow hedges, net of income taxes 13 - - 13 - 13
Total comprehensive income for the period - 13 1,498 11,966 13,477 509 13,986
               
Repurchase of Class A shares (1) - - (13) (14) (14)
Issuance and repurchase of Class B shares 125 - - (431) (306) - (306)
Repurchase of share capital by a subsidiary - - - - - (126) (126)
Dividends on Class A shares - - - (675) (675) - (675)
Dividends on Class B shares - - - (537) (537) - (537)
Balance as at June 29, 2013 15,263 4 1,045 121,638 137,950 8,995 146,945

Condensed Consolidated Interim Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
  For the six months ended
  June 28, 2014 June 29, 2013
  $ $
     
Operating activities    
  Profit for the period 12,537 9,830
  Items not affecting cash and cash equivalents 12,147 9,177
  Cash generated from operations 24,684 19,007
       
  Dividends received from equity accounted investments 1,871 5,500
  Contributions to defined benefit retirement plans (741) (691)
  Settlement of provisions (43) (87)
  Changes in non-cash working capital items 2,162 (3,119)
  Income taxes paid (8,536) (3,562)
  19,397 17,048
     
Financing activities    
  Net change in short-term bank loans (2,087) 378
  Issuance of long-term debt, net of transaction cost 12,000 -
  Repayment of long-term debt (925) (6,017)
  Interest paid (209) (351)
  Repurchase of Class A shares (279) (14)
  Issuance of Class B shares 146 20
  Repurchase of Class B shares (5,299) (504)
  Repurchase of share capital by a subsidiary (989) (126)
  Dividends paid on Class A shares (785) (675)
  Dividends paid on Class B shares (608) (537)
  965 (7,826)
     
Investing activities    
  Customer repayment of investments in service contracts 113 6,403
  Interest received 305 710
  Cash acquired in business acquisitions 1,622
  Business acquisitions (5,752)
  Acquisition of property, plant and equipment (14,570) (8,006)
  Proceeds from disposal of property, plant and equipment 589 391
  Acquisition of intangible assets (123) (18)
  Acquisition of other non-current assets (182) -
  Proceeds from disposal of other non-current assets 8
  (17,998) (512)
     
Net change in cash and cash equivalents 2,364 8,710
Cash and cash equivalents, beginning of period 19,638 7,519
Effect of exchange rate on balances held in foreign currencies of foreign operations (22) (365)
Cash and cash equivalents, end of period 21,980 15,864
     
Additional information    
Acquisition of property, plant and equipment included in trade and other payables 1,171 966

 

SOURCE Logistec Corporation

For further information:

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