Logistec announces its results for the second quarter of 2016

MONTRÉAL, July 29, 2016 /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 25, 2016.

During the second quarter of 2016, consolidated revenue totalled $79.6 million, a decrease of $9.6 million or 10.8% from the equivalent period of the previous year. The marine services segment's revenue was down by $8.1 million or 15.2% to $45.2 million for the second quarter of 2016, while the environmental services segment's revenue amounted to $34.4 million, down by $1.5 million or 4.2% from the second quarter of 2015. The revenue decrease in the marine services segment came from reduced bulk cargo volumes, whereas the revenue decrease in the environmental services segment was due to lower volumes of Aqua-Pipe activity. The second quarter of 2016 closed with a consolidated profit attributable to owners of the Company of $1.0 million, compared with a profit of $6.7 million for the second quarter of 2015. This includes a loss on foreign currency exchange of $0.7 million. The profit attributable to owners of the Company translated into total diluted earnings per share of $0.07, of which $0.07 was attributable to Class A Common Shares and $0.08 was attributable to Class B Subordinate Voting Shares.

During the first six months of 2016, consolidated revenue decreased to $144.5 million, compared with $149.6 million for the first half of 2015. The profit attributable to owners of the Company amounted to $0.8 million for total basic and diluted earnings per share of $0.06, of which $0.06 was attributable to Class A Common Shares and $0.07 was attributable to Class B Subordinate Voting Shares. For the same period of 2015, basic and diluted earnings per share totalled $0.74, of which $0.70 was attributable to Class A Common Shares and $0.78 was attributable to Class B Subordinate Voting Shares.

Outlook

"Year-to-date results are below our expectations. In the marine services segment, the results reflect the lower volumes handled by our facilities and are typical of our economy in general. These volumes relate to many base industries, namely mining and energy. Results should improve considerably in the next months as volumes and hence revenue are projected to increase, but we do not expect to make up for the shortfall. We are not the only company experiencing such volume deterioration and, on the positive side, this may in itself create acquisition opportunities for those seeking growth," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

"In our environmental services segment, both Aqua-Pipe and our traditional site remediation businesses had slower starts, but the outlook for the rest of the year is promising. Contracts on hand, as well as the number and quality of those being bid on, lead us to believe we will have a strong year in site remediation and regulated materials management. In Aqua-Pipe, results will likely be weaker than last year due primarily to lower levels of work being done in our local markets, but our investments in developing the vast U.S. market will no doubt pay off in the years to come. We continue to invest in our technology and are encouraged by the initial positive response of U.S. municipalities. Furthermore, our Niedner woven-hose manufacturing business is not only meeting new standards for the fabrication of large-diameter hoses, but is also enjoying tremendous success with its traditional hose business. The subsidiary has secured a foothold as the largest provider of fire-fighting hoses to governments in North America," concluded
Ms. Paquin.

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 some 30 ports and 40 terminals located 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)


Logistec Corporation

Condensed Consolidated Interim Statements of Earnings


For the three months ended

For the six months ended


June 25,
2016

June 27,
2015

June 25,
2016

June 27,
2015


$

$

$

$






Revenue

79,616

89,262

144,475

149,634






Employee benefits expense

(38,126)

(42,292)

(70,127)

(74,039)

Equipment and supplies expense

(24,762)

(23,219)

(43,139)

(37,247)

Rental expense

(6,923)

(7,101)

(13,742)

(14,066)

Other expenses

(3,081)

(3,601)

(7,266)

(6,908)

Depreciation and amortization expense

(3,450)

(2,893)

(6,486)

(5,592)

Share of profit of equity accounted investments

101

690

291

797

Other gains and losses

(730)

(205)

(1,788)

942

Operating profit

2,645

10,641

2,218

13,521






Finance expense

(409)

(210)

(714)

(465)

Finance income

45

33

107

122

Profit before income taxes

2,281

10,464

1,611

13,178






Income taxes

(1,343)

(2,858)

(1,174)

(3,423)

Profit for the period

938

7,606

437

9,755






Profit attributable to:










Owners of the Company

951

6,668

813

9,186






Non-controlling interests

(13)

938

(376)

569

Profit for the period

938

7,606

437

9,755











Basic earnings per Class A Common Share (1)

0.08

0.51

0.06

0.70

Basic earnings per Class B Subordinate Voting Share (2)

0.08

0.57

0.07

0.78






Diluted earnings per Class A share

0.07

0.51

0.06

0.70

Diluted earnings per Class B share

0.08

0.57

0.07

0.78






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

7,421,155

7,446,622

7,425,739

7,451,972

Weighted average number of Class B shares outstanding, basic

4,756,467

5,026,633

4,795,333

5,038,133

Weighted average number of Class B shares outstanding, diluted

5,510,482

5,026,633

5,184,908

5,038,133

(1)

Class A Common Share ("Class A share")

(2)

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

 

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


Logistec Corporation

Condensed Consolidated Interim Statements of Comprehensive Income


For the three months ended

For the six months ended


June 25,
2016

June 27,
2015

June 25,
2016

June 27,
2015




$

$


Profit for the period

 

938

 

7,606

437

9,755


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

(662)

(804)

(2,297)

2,021



Gains (losses) on derivatives designated as cash flow hedges

9

45

9

(118)



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

17

20

31

29



Income taxes relating to derivatives designated as cash flow hedges

(6)

(18)

(10)

24


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

(642)

(757)

(2,267)

1,956



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







Remeasurement losses on benefit obligation

(2,014)

960

(2,014)

9



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

262

(280)

47

263



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

472

(184)

530

(74)


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

(1,280)

496

(1,437)

198







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

(14)

6

(106)



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

1

8


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

(14)

7

(106)

8

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

(1,936)

(254)

(3,810)

2,162

Total comprehensive income (loss) for the period

(998)

7,352

(3,373)

11,917


Total comprehensive income (loss) attributable to:


Owners of the Company

(985)

6,414

(2,997)

11,348

Non-controlling interests

(13)

938

(376)

569

Total comprehensive (loss) income for the period

(998)

7,352

(3,373)

11,917

 

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


Logistec Corporation

Condensed Consolidated Interim Statements of Financial Position


As at
June 25,
 2016

As at
December 31,
 2015


$

$


Assets



Current assets




Cash and cash equivalents

7,809

23,811


Investment in a service contract

1,015

1,157


Trade and other receivables

78,916

77,333


Work in progress

11,418

6,438


Current income tax assets

7,373

2,569


Other financial assets

52


Prepaid expenses

9,027

7,952


Inventories

6,691

6,553


122,301

125,813


Equity accounted investments

28,176

28,951

Property, plant and equipment

123,850

111,022

Goodwill

24,362

22,615

Other intangible assets

18,357

20,247

Other non-current assets

2,553

5,194

Post-employment benefit assets

305

522

Non-current financial assets

3,200

5,019

Deferred income tax assets

9,301

9,032

Total assets

332,405

328,415


Liabilities



Current liabilities




Short-term bank loans

7,607


Trade and other payables

41,386

46,352


Deferred revenue

2,591

2,700


Current income tax liabilities

96

650


Dividends payable

948

967


Current portion of long-term debt

2,891

2,159


Provisions

1,241

1,268


56,760

54,096


Long-term debt

47,812

29,920

Provisions

777

766

Deferred income tax liabilities

12,243

12,433

Post-employment benefit obligations

15,055

12,955

Deferred revenue

4,333

4,533

Non-current financial liabilities

11,625

4,067

Total liabilities

148,605

118,770


Equity



Share capital

14,513

14,985

Share capital to be issued

24,898

Retained earnings

134,694

164,154

Accumulated other comprehensive income

7,901

10,274

Equity attributable to owners of the Company

182,006

189,413


Non-controlling interests

1,794

20,232

Total equity

183,800

209,645




Total liabilities and equity

332,405

328,415

 

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

Logistec Corporation

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

813

813

(376)

437










Other comprehensive income (loss)










Currency translation differences arising on translation of foreign operations

(2,297)

(2,297)

(2,297)


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

(1,437)

(1,437)

(1,437)


Cash flow hedges, net of income taxes

30

30

30


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

(106)

(106)

(106)

 

Total comprehensive income (loss) for the period

(76)

(2,297)

(624)

(2,997)

(376)

(3,373)










Repurchase of Class A shares

(12)

(715)

(727)

(727)

Repurchase of Class B shares

(460)

(8,075)

(8,535)

(8,535)

Repurchase of non-controlling interests

24,898

(18,148)

6,750

(18,062)

(11,312)

Dividends on Class A shares

(1,113)

(1,113)

(1,113)

Dividends on Class B shares

(785)

(785)

(785)

Balance as at June 25, 2016

14,513

24,898

(215)

8,116

134,694

182,006

1,794

183,800










 

 

 

 

 

 

 

 



















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)

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

 

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


Logistec Corporation

Condensed Consolidated Interim Statements of Cash Flows


For the six months ended


June 25,
2016

June 27,
2015


$

$




Operating activities




Profit for the period

437

9,755


Items not affecting cash and cash equivalents

13,084

11,982


Cash generated from operations

13,521

21,737


Dividends received from equity accounted investments

1,000

1,461


Contributions to defined benefit retirement plans

(479)

(735)


Settlement of provisions

(107)

(103)


Changes in non-cash working capital items

(13,354)

(9,436)


Income taxes paid

(5,998)

(6,054)


(5,417)

6,870




Financing activities




Net change in short-term bank loans

7,607

684


Issuance of long-term debt

20,269

8,642


Repayment of long-term debt

(4,641)

(4,545)


Interest paid

(707)

(588)


Repurchase of Class A shares

(727)

(719)


Issuance of Class B shares

113


Repurchase of Class B shares

(8,535)

(2,307)


Dividends paid on Class A shares

(1,114)

(932)


Dividends paid on Class B shares

(802)

(695)


11,350

(347)




Investing activities




Customer repayment of an investment in a service contract

142

125


Interest received

94

167


Repurchase of non-controlling interests

(2,393)

-


Business acquisition

(4,562)

-


Cash acquired in a business acquisition

197

-


Acquisition of property, plant and equipment

(16,056)

(11,681)


Proceeds from disposal of property, plant and equipment

106

125


Acquisition of intangible assets

(29)

(45)


Acquisition of non-current financial assets

(27)

-


Acquisition of other non-current assets

(29)

(10,287)


Disposal of other non-current assets

3

-


(22,554)

(21,596)




Net change in cash and cash equivalents

(16,621)

(15,073)

Cash and cash equivalents, beginning of period

23,811

26,381

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

619

(190)

Cash and cash equivalents, end of period

7,809

11,118




Additional information






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

1,162

3,085

 

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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