Logistec announces its results for the second quarter of 2015

MONTRÉAL, July 31, 2015 /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 27, 2015.

During the second quarter of 2015, consolidated revenue totalled $89.3 million, an increase of $10.6 million or 13.4% over the same period of 2014. The weaker Canadian dollar against the U.S. dollar had a positive impact of $3.9 million on revenue in the second quarter of 2015, in comparison with the Canadian/U.S. dollar translation rate in the second quarter of 2014. The marine services segment's revenue grew by $4.3 million or 8.8% to $53.4 million for the second quarter of 2015, whereas the environmental services segment's revenue amounted to $35.9 million, up by $6.2 million over the second quarter of 2014. The growth in the marine services segment reflected an overall increase in volumes of cargo handled. The second quarter of 2015 closed with a consolidated profit attributable to owners of the Company of $6.7 million, down from the same period of 2014. Although operating profit was very similar to last year, overall results were affected by various tax adjustments in 2014 that explain the higher net profit in the second quarter of 2014. For the second quarter of 2015, the profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.54, of which $0.51 was attributable to Class A Common Shares and $0.57 was attributable to Class B Subordinate Voting Shares.

During the first six months of 2015, consolidated revenue rose to a total of $149.6 million, compared with $141.4 million for the first half of 2014. The profit attributable to owners of the Company amounted to $9.2 million for total basic and diluted earnings per share of $0.74, of which $0.70 was attributable to Class A Common Shares and $0.78 was attributable to Class B Subordinate Voting Shares. For the same period of 2014, basic and diluted earnings per share totalled $0.93, of which $0.90 was attributable to Class A Common Shares and $0.98 was attributable to Class B Subordinate Voting Shares.

Outlook

"Overall, our outlook can be qualified as cautiously optimistic. Our environmental services segment should keep up its positive momentum on the strength of a well-filled order backlog. In cargo-handling, a few headwinds, namely a warehouse flooding in Virginia and a fire in Georgia, have led us to be a little more cautious as to the outlook for our year-end results," 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 31 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.

 

(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 Earnings


For the three months ended

For the six months ended


June 27,

2015

June 28,

2014

June 27,

2015

June 28,

2014


$

$

$

$






Revenue

89,262

78,697

149,634

141,432






Employee benefits expense

(42,292)

(37,069)

(74,039)

(65,663)

Equipment and supplies expense

(23,219)

(19,053)

(37,247)

(37,477)

Rental expense

(7,101)

(6,647)

(14,066)

(12,937)

Other expenses

(3,601)

(3,109)

(6,908)

(6,326)

Depreciation and amortization expense

(2,893)

(2,439)

(5,592)

(4,921)

Share of profit of equity accounted investments

690

955

797

1,143

Other gains and losses

(205)

(606)

942

1,453

Operating profit

10,641

10,729

13,521

16,704






Finance expense

(210)

(131)

(465)

(222)

Finance income

33

95

122

209

Profit before income taxes

10,464

10,693

13,178

16,691






Income taxes

(2,858)

(2,548)

(3,423)

(4,154)

Profit for the period

7,606

8,145

9,755

12,537






Profit attributable to:










Owners of the Company

6,668

7,444

9,186

11,791






Non-controlling interests

938

701

569

746

Profit for the period

7,606

8,145

9,755

12,537











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

0.51

0.57

0.70

0.90

Basic and diluted earnings per Class B Subordinate Voting Share (2)

0.57

0.62

0.78

0.98






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

7,446,622

7,464,889

7,451,972

7,467,455

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

5,026,633

5,164,233

5,038,133

5,208,433

 

(in thousands of Canadian dollars)
(unaudited and not reviewed by the independent auditor)




Condensed Consolidated Interim Statements of Comprehensive Income


For the three months ended

For the six months ended


June 27,

2015

June 28,

2014

June 27,

2015

June 28,

2014


$

$

$

$






Profit for the period

7,606

8,145

9,755

12,537






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

(804)

(1,059)

2,021

35



Gains (losses) on derivatives designated as cash flow hedges

45

1

(118)

(1)



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

20

29

2



Income taxes relating to derivatives designated as cash flow hedges

(18)

24



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

6

 


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

(751)

(1,058)

1,956

36







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







Remeasurement gains (losses) on benefit obligation

960

(797)

9

(1,588)



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

(280)

83

263

789



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

(184)

192

(74)

215



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

1

7

8

41


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

497

(515)

206

(543)






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

(254)

(1,573)

2,162

(507)






Total comprehensive income for the period

7,352

6,572

11,917

12,030






Total comprehensive income attributable to:





Owners of the Company

6,414

5,871

11,348

11,284

Non-controlling interests

938

701

569

746

Total comprehensive income for the period

7,352

6,572

11,917

12,030

 

(in thousands of Canadian dollars)
(unaudited and not reviewed by the independent auditor)




Condensed Consolidated Interim Statements of Financial Position


As at

June 27,

 2015

As at

December 31,

2014


$

$




Assets



Current assets




Cash and cash equivalents

11,118

26,381


Investment in a service contract

267

1,366


Trade and other receivables

69,488

67,052


Work in progress

5,858

1,027


Current income tax assets

5,055

2,638


Prepaid expenses

6,301

3,106


Inventories

6,586

4,585


104,673

106,155




Equity accounted investments

26,472

27,123

Investment in a service contract

974

-

Property, plant and equipment

107,648

99,663

Goodwill

21,644

21,407

Other intangible assets

18,735

18,286

Other non-current assets

7,580

1,704

Post-employment benefit assets

736

768

Non-current financial assets

3,338

3,432

Deferred income tax assets

8,457

8,449

Total assets

300,257

286,987




Liabilities



Current liabilities




Short-term bank loans

684

-


Trade and other payables

43,196

40,452


Deferred revenue

3,733

2,475


Current income tax liabilities

708

1,159


Dividends payable

811

815


Current portion of long-term debt

2,145

1,261


Provisions

959

1,001


52,236

47,163




Long-term debt

31,199

28,007

Provisions

754

644

Deferred income tax liabilities

9,735

9,380

Post-employment benefit obligations

11,934

12,453

Deferred revenue

4,733

4,933

Non-current financial liabilities

2,647

4,983

Total liabilities

113,238

107,563




Equity



Share capital

15,110

14,906

Retained earnings

149,379

144,513

Accumulated other comprehensive income

6,038

4,082

Equity attributable to owners of the Company

170,527

163,501




Non-controlling interests

16,492

15,923

Total equity

187,019

179,424




Total liabilities and equity

300,257

286,987

 

 

(in thousands of Canadian dollars)
(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

Cash flow hedges

Foreign currency translation

Retained earnings

Total

Non-controlling interests

Total equity


$

$

$

$

$

$

$









Balance as at January 1, 2015

14,906

(56)

4,138

144,513

163,501

15,923

179,424








Profit for the period

9,186

9,186

569

9,755









Other comprehensive income (loss)









Currency translation differences arising on translation of foreign operations

2,021

2,021

2,021


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

198

198

198


Cash flow hedges, net of income taxes

(67)

(67)

(67)

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

2

8

10

10

Total comprehensive income (loss) for the period

(65)

2,021

9,392

11,348

569

11,917









Repurchase of Class A shares

(10)

(709)

(719)

(719)

Issuance and repurchase of Class B shares

214

(2,194)

(1,980)

(1,980)

Dividends on Class A shares

(931)

(931)

(931)

Dividends on Class B shares

(692)

(692)

(692)

Balance as at June 27, 2015

15,110

(121)

6,159

149,379

170,527

16,492

187,019

 


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 interests arising on a 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

 

(in thousands of Canadian dollars)
(unaudited and not reviewed by the independent auditor)





Condensed Consolidated Interim Statements of Cash Flows



For the six months ended


June 27,
2015

June 28,
2014


$

$




Operating activities




Profit for the period

9,755

12,537


Items not affecting cash and cash equivalents

11,982

12,147


Cash generated from operations

21,737

24,684


Dividends received from equity accounted investments

1,461

1,871


Contributions to defined benefit retirement plans

(735)

(741)


Settlement of provisions

(103)

(43)


Changes in non-cash working capital items

(9,436)

2,162


Income taxes paid

(6,054)

(8,536)


6,870

19,397




Financing activities




Net change in short-term bank loans

684

(2,087)


Issuance of long-term debt, net of transaction cost

8,642

12,000


Repayment of long-term debt

(4,545)

(925)


Interest paid

(588)

(209)


Repurchase of Class A shares

(719)

(279)


Issuance of Class B shares

113

146


Repurchase of Class B shares

(2,307)

(5,299)


Repurchase of share capital by a subsidiary

(989)


Dividends paid on Class A shares

(932)

(785)


Dividends paid on Class B shares

(695)

(608)


(347)

965




Investing activities




Customer repayment of an investment in a service contract

125

113


Interest received

167

305


Cash acquired in a business acquisition

1,622


Business acquisition

(5,752)


Acquisition of property, plant and equipment

(11,681)

(14,570)


Proceeds from disposal of property, plant and equipment

125

589


Acquisition of intangible assets

(45)

(123)


Acquisition of other non-current assets

(10,287)

(182)


(21,596)

(17,998)




Net change in cash and cash equivalents

(15,073)

2,364

Cash and cash equivalents, beginning of period

26,381

19,638

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

(190)

(22)

Cash and cash equivalents, end of period

11,118

21,980







Additional information






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

3,085

1,171

 

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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