Logistec announces its results for the first quarter of 2016

MONTRÉAL, May 6, 2016 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the first quarter ended March 26, 2016.

During the first quarter of 2016, consolidated revenue totalled $64.9 million, an increase of $4.5 million or 7.4% over the equivalent period of the previous year. The marine services segment's revenue was down by $2.7 million or 5.6% to $45.4 million for the first quarter of 2016, whereas the environmental services segment's revenue amounted to $19.4 million, up by $7.2 million or 58.6% over the first quarter of 2015. The revenue decrease in the marine services segment came from reduced bulk cargo volumes, whereas the revenue increase in the environmental services segment is due to greater woven-hose manufacturing volumes. The first quarter of 2016 closed with a consolidated loss attributable to owners of the Company of $0.1 million, compared with a profit of $2.5 million for the first quarter of 2015. This includes a loss on foreign currency exchange of $1.1 million versus a gain of $1.1 million last year. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $0.01, of which $0.01 was attributable to Class A Common Shares and $0.01 was attributable to Class B Subordinate Voting Shares.

Outlook

"The first quarter is not overly indicative of our outlook for the year due to the seasonality of our activities, and it is not unusual for us to incur a first-quarter loss. However, we are impacted by lower volumes in cargo handling as well as the continued impact of last year's fire at our Georgia facility. The outlook for our environmental services remains favourable and we are pleased to report that we acquired the minority interest in Sanexen at the end of the first quarter of 2016," 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 28 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, regulated materials 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.

 

 

(in thousands of Canadian dollars, except for per share amounts and number of shares)
(unaudited and not reviewed by the independent auditor)


Condensed Consolidated Interim Statements of Earnings




For the three months ended


March 26,
2016

March 28,
2015


$

$




Revenue

64,859

60,372




Employee benefits expense

(32,001)

(31,747)

Equipment and supplies expense

(18,377)

(14,028)

Rental expense

(6,819)

(6,965)

Other expenses

(4,185)

(3,307)

Depreciation and amortization expense

(3,036)

(2,699)

Share of profit of equity accounted investments

190

107

Other gains and losses

(1,058)

1,147

Operating profit

(427)

2,880




Finance expense

(305)

(255)

Finance income

62

89

Profit before income taxes

(670)

2,714




Income taxes

169

(565)

Profit (loss) for the period

(501)

2,149




Profit attributable to:






Owners of the Company

(138)

2,518




Non-controlling interests

(363)

(369)

Profit (loss) for the period

(501)

2,149







Basic and diluted earnings per Class A Common Share (1)

(0.01)

0.19

Basic earnings per Class B Subordinate Voting Share (2)

(0.01)

0.21

Diluted earnings per Class B share

(0.01)

0.21




Weighted average number of Class A shares outstanding, basic and diluted

7,430,322

7,457,322

Weighted average number of Class B shares outstanding, basic

4,834,200

5,049,633

Weighted average number of Class B shares outstanding, diluted

4,859,334

5,049,633




(1) Class A Common Share ("Class A share")

(2) Class B Subordinate Voting Share ("Class B share")

 


(in thousands of Canadian dollars, except for per share amounts and number of shares)
(unaudited and not reviewed by the independent auditor)


Condensed Consolidated Interim Statements of Comprehensive Income




For the three months ended


March 26,
2016

March 28,
2015


$

$




Profit for the period

(501)

2,149




Other comprehensive income




Items that are or may be reclassified to the consolidated statements of earnings





Currency translation differences arising on translation of foreign operations

(1,635)

2,825



Losses on derivatives designated as cash flow hedges

(163)



Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings

14

9



Income taxes relating to derivatives designated as cash flow hedges

(4)

42


Total items that are or may be reclassified to the consolidated statements of earnings

(1,625)

2,713





Items that will not be reclassified to the consolidated statements of earnings





Remeasurement losses on benefit obligation

(951)



Return on retirement plan assets excluding amounts included in profit for the period

(215)

543



Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period

58

110


Total items that will not be reclassified to the consolidated statements of earnings

(157)

(298)





Share of other comprehensive income of equity accounted investments, net of income taxes





Items that are or may be reclassified to the consolidated statements of earnings

(92)

(6)



Items that will not be reclassified to the consolidated statements of earnings

8


Total share of other comprehensive income of equity accounted investments, net of income taxes

(92)

2




Other comprehensive income (loss) for the period, net of income taxes

(1,874)

2,417




Total comprehensive income (loss)for the period

(2,375)

4,566




Total comprehensive income (loss) attributable to:






Owners of the Company

(2,012)

4,935

Non-controlling interests

(363)

(369)

Total comprehensive (loss) income for the period

(2,375)

4,566

 


(in thousands of Canadian dollars, except for per share amounts and number of shares)
(unaudited and not reviewed by the independent auditor)


Condensed Consolidated Interim Statements of Financial Position





As at
March 26,
 2016

As at
December 31,
 2015


$

$




Assets



Current assets




Cash and cash equivalents

11,064

23,811


Investment in a service contract

1,087

1,157


Trade and other receivables

72,785

77,333


Work in progress

6,535

6,438


Current income tax assets

5,599

2,569


Prepaid expenses

8,828

7,952


Inventories

6,707

6,553


112,605

125,813




Equity accounted investments

29,039

28,951

Property, plant and equipment

116,588

111,022

Goodwill

24,570

22,615

Other intangible assets

19,049

20,247

Other non-current assets

4,462

5,194

Post-employment benefit assets

429

522

Non-current financial assets

3,491

5,019

Deferred income tax assets

9,223

9,032

Total assets

319,456

328,415




Liabilities



Current liabilities




Short-term bank loans

18


Trade and other payables

37,629

46,352


Deferred revenue

2,730

2,700


Current income tax liabilities

221

650


Dividends payable

950

967


Current portion of long-term debt

3,368

2,159


Provisions

1,497

1,268


46,413

54,096




Long-term debt

41,676

29,920

Provisions

760

766

Deferred income tax liabilities

12,452

12,433

Post-employment benefit obligations

13,185

12,955

Deferred revenue

4,433

4,533

Non-current financial liabilities

13,378

4,067

Total liabilities

132,297

118,770




Equity



Share capital

14,572

14,985

Share capital to be issued

24,898

Retained earnings

137,324

164,154

Accumulated other comprehensive income

8,557

10,274

Equity attributable to owners of the Company

185,351

189,413




Non-controlling interests

1,808

20,232

Total equity

187,159

209,645




Total liabilities and equity

319,456

328,415

 


(in thousands of Canadian dollars, except for per share amounts and number of shares)
(unaudited and not reviewed by the independent auditor)


Condensed Consolidated Interim Statements of Changes in Equity





Attributable to owners of the Company





Accumulated
other comprehensive
income




Share
capital

Share
capital
to be
issued

Cash
flow
hedges

Foreign
currency
translation

Retained
earnings

Total

Non-
controlling
interests

Total
equity


$

$

$

$

$

$

$

$










Balance as at January 1, 2016

14,985

(139)

10,413

164,154

189,413

20,232

209,645










Profit for the period

(138)

(138)

(363)

(501)










Other comprehensive income (loss)










Currency translation differences arising on translation of foreign operations

(1,635)

(1,635)

(1,635)


Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

(157)

(157)

(157)


Cash flow hedges, net of income taxes

10

10

10


Share of other comprehensive income of equity accounted investments, net of income taxes

(92)

(92)

(92)

Total comprehensive income (loss) for the period

(82)

(1,635)

(295)

(2,012)

(363)

(2,375)










Repurchase of Class A shares

(7)

(420)

(427)

(427)

Repurchase of Class B shares

(406)

(7,017)

(7,423)

(7,423)

Repurchase of non-controlling interests

24,898

(18,148)

6,750

(18,061)

(11,311)

Dividends on Class A shares

(557)

(557)

(557)

Dividends on Class B shares

(393)

(393)

(393)

Balance as at March 26, 2016

14,572

24,898

(221)

8,778

137,324

185,351

1,808

187,159



















Balance as at January 1, 2015

14,906

(56)

4,138

144,513

163,501

15,923

179,424










Profit for the period

2,518

2,518

(369)

2,149










Other comprehensive income (loss)










Currency translation differences arising on translation of foreign operations

2,825

2,825

2,825


Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

(298)

(298)

(298)


Cash flow hedges, net of income taxes

(112)

(112)

(112)


Share of other comprehensive income of equity accounted investments, net of income taxes

(6)

8

2

2

Total comprehensive income (loss) for the period

(118)

2,825

2,228

4,935

(369)

4,566










Repurchase of Class A shares

(3)

(222)

(225)

(225)

Repurchase of Class B shares

(66)

(1,197)

(1,263)

(1,263)

Dividends on Class A shares

(466)

(466)

(466)

Dividends on Class B shares

(346)

(346)

(346)

Balance as at March 28, 2015

14,837

(174)

6,963

144,510

166,136

15,554

181,690

 

(in thousands of Canadian dollars, except for per share amounts and number of shares)
(unaudited and not reviewed by the independent auditor)


Condensed Consolidated Interim Statements of Cash Flows




For the three months ended


March 26,
2016

March 28,
2015


$

$




Operating activities




Profit for the period

(501)

2,149


Items not affecting cash and cash equivalents

4,575

4,696


Cash generated from operations

4,074

6,845


Contributions to defined benefit retirement plans

(306)

(306)


Settlement of provisions

(5)

(9)


Changes in non-cash working capital items

(3,201)

9,781


Income taxes paid

(3,266)

(3,527)


(2,704)

12,784




Financing activities




Net change in short-term bank loans

18

-


Issuance of long-term debt

12,358

1,366


Repayment of long-term debt

(2,397)

(4,035)


Interest paid

(313)

(359)


Repurchase of Class A shares

(427)

(225)


Repurchase of Class B shares

(7,423)

(1,263)


Dividends paid on Class A shares

(557)

(466)


Dividends paid on Class B shares

(410)

(349)


849

(5,331)




Investing activities




Customer repayment of an investment in a service contract

70

61


Interest received

59

130


Repurchase of non-controlling interests

(2,392)

-


Business acquisition

(4,560)

-


Cash acquired in a business acquisition

197

-


Acquisition of property, plant and equipment

(4,688)

(5,192)


Proceeds from disposal of property, plant and equipment

80

4


Acquisition of intangible assets

(25)

(42)


Acquisition of other non-current assets

(29)

(10,268)


(11,288)

(15,307)




Net change in cash and cash equivalents

(13,143)

(7,854)

Cash and cash equivalents, beginning of period

23,811

26,381

Effect of exchange rate on balances held in foreign currencies of foreign operations

396

(271)

Cash and cash equivalents, end of period

11,064

18,256




Additional information






Acquisition of property, plant and equipment included in trade and other payables

1,406

1,123

 

 

SOURCE Logistec Corporation

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

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