Logistec announces its results for the second quarter of 2017

MONTRÉAL, July 28, 2017 /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 24, 2017.

During the second quarter of 2017, consolidated revenue reached a record level for a second quarter, totalling $101.9 million, an increase of $22.2 million or 27.9% compared with the same period in 2016. The increase in revenue came from both our marine and environmental services segments and more particularly from increases in our bulk-handling business from three new terminals, which were added to the network since the beginning of the year. Revenue from the marine services segment was up by $7.7 million or 14.5% to $53.0 million, while revenue from the environmental services segment amounted to $48.9 million, up by $14.5 million or 42.2% compared with the second quarter of 2016. The increase in revenue in the marine services segment stems primarily from bulk activity, while break-bulk cargo volumes were stable. The high revenue increase in the environmental services segment is due to higher levels of activity in both Aqua-Pipe and site remediation, partially offset by decreased activity in Europe, where we closed our asbestos removal activities. The second quarter of 2017 closed with a consolidated profit attributable to owners of the Company of $4.8 million, compared with a profit of $1.0 million for the second quarter of 2016. The profit attributable to owners of the Company translated into total diluted earnings per share of $0.37, of which $0.36 was attributable to Class A Common Shares and $0.39 was attributable to Class B Subordinate Voting Shares.

During the first six months of 2017, consolidated revenue increased to $161.9 million, compared with $144.5 million for the first half of 2016. The profit attributable to owners of the Company amounted to $3.3 million, which is substantially more than last year's profit of $0.8 million. This translated into total diluted earnings per share of $0.25, of which $0.24 was attributable to Class A Common Shares and $0.27 was attributable to Class B Subordinate Voting Shares. For the same period in 2016, diluted earnings per share totalled $0.06, of which $0.06 was attributable to Class A Common Shares and $0.07 was attributable to Class B Subordinate Voting Shares.

Outlook

"We view our outlook with optimism. We are very pleased with our results for the marine services segment. In particular, our bulk business has shown considerable improvement, especially with the addition of our two new bulk projects. Our container business has also shown double-digit growth and, with the completion of our new Viau container terminal, we are showing improved efficiencies. Results have been disappointing in our environmental services segment, and this can be linked to seasonality, lower-than-expected results for Aqua-Pipe services in the USA, but more particularly, extremely poor results in France. Despite the slow start, our backlog allows us to believe that the next six months will reach record levels. Furthermore, with the acquisition of 51% of FER-PAL Construction Ltd., we are optimistic about a strong finish to the year in both our marine and environmental services segments," 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 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 manufacturing of woven hoses.

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 24,
2017

June 25,
2016

June 24,
2017

June 25,
2016


$

$

$

$






Revenue

101,861

79,616

161,932

144,475






Employee benefits expense

(48,426)

(38,126)

(80,232)

(70,127)

Equipment and supplies expense

(29,113)

(24,762)

(46,387)

(43,139)

Rental expense

(8,185)

(6,923)

(15,118)

(13,742)

Other expenses

(4,969)

(3,081)

(8,605)

(7,266)

Depreciation and amortization expense

(4,223)

(3,450)

(8,249)

(6,486)

Share of profit of equity accounted investments

827

101

1,234

291

Other gains and losses

(59)

(730)

1,671

(1,788)

Operating profit

7,713

2,645

6,246

2,218






Finance expense

(495)

(409)

(890)

(714)

Finance income

98

45

181

107

Profit before income taxes

7,316

2,281

5,537

1,611






Income taxes

(2,535)

(1,343)

(2,315)

(1,174)

Profit for the period

4,781

938

3,222

437






Profit attributable to:










Owners of the Company

4,789

951

3,259

813






Non-controlling interests

(8)

(13)

(37)

(376)

Profit for the period

4,781

938

3,222

437











Basic earnings per Class A Common Share (1)

0.38

0.08

0.26

0.06

Basic earnings per Class B Subordinate Voting Share (2)

0.41

0.08

0.28

0.07






Diluted earnings per Class A share

0.36

0.07

0.24

0.06

Diluted earnings per Class B share

0.39

0.08

0.27

0.07






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

7,410,922

7,421,155

7,411,589

7,425,739

Weighted average number of Class B shares outstanding, basic

4,735,742

4,756,467

4,737,673

4,795,333

Weighted average number of Class B shares outstanding, diluted

5,483,448

5,510,482

5,487,482

5,184,908



(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 24,

2017

June 25,
2016

June 24, 2017

June 25, 2016


$

$

$

$






Profit for the period

4,781

938

3,222

437






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

(365)

(662)

(529)

(2,297)



Gains on derivatives designated as cash flow hedges

9

9



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

17

31



Income taxes relating to derivatives designated as cash flow hedges

(6)

(10)


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

(365)

(642)

(529)

(2,267)







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







Remeasurement losses on benefit obligation

(2,511)

(2,014)

(2,511)

(2,014)



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

(232)

262

141

47



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

737

472

637

530


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

(2,006)

(1,280)

(1,733)

(1,437)







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)

(106)


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

(14)

(106)


Other comprehensive loss for the period, net of income taxes

(2,371)

(1,936)

(2,262)

(3,810)


Total comprehensive income (loss) for the period

2,410

(998)

960

(3,373)







Total comprehensive income (loss) attributable to:










Owners of the Company

2,418

(985)

997

(2,997)

Non-controlling interests

(8)

(13)

(37)

(376)

Total comprehensive income (loss) for the period

2,410

(998)

960

(3,373)

 

(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 24,
 2017

As at
December 31,
 2016


$

$




Assets



Current assets




Cash and cash equivalents

8,289

15,971


Short-term portion of an investment in a service contract

865


Trade and other receivables

73,171

86,373


Work in progress

14,577

4,395


Current income tax assets

4,122

3,767


Other financial assets

1,051

1,014


Assets available for sale

330


Prepaid expenses

4,754

5,654


Inventories

8,045

7,506


114,009

125,875




Equity accounted investments

28,769

31,141

Property, plant and equipment

152,688

138,591

Goodwill

26,224

24,899

Other intangible assets

17,330

18,233

Other non-current assets

1,511

1,534

Non-current financial assets

6,064

7,166

Post-employment benefit assets

537

706

Deferred income tax assets

9,050

7,715

Total assets

356,182

355,860




Liabilities



Current liabilities




Trade and other payables

52,627

43,081


Deferred revenue

2,767

2,928


Current income tax liabilities

950

149


Dividends payable

947

947


Current portion of long-term debt

2,264

1,681


Provisions

902

1,344


60,457

50,130




Long-term debt

45,544

58,644

Provisions

765

800

Deferred income tax liabilities

13,308

13,382

Post-employment benefit obligations

15,529

13,076

Deferred revenue

3,933

4,133

Non-current financial liabilities

15,124

12,514

Total liabilities

154,660

152,679




Equity



Share capital

15,783

15,618

Share capital to be issued

24,689

24,898

Retained earnings

150,567

151,616

Accumulated other comprehensive income

8,722

9,251

Equity attributable to owners of the Company

199,761

201,383




Non-controlling interests

1,761

1,798

Total equity

201,522

203,181




Total liabilities and equity

356,182

355,860


 

(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, 2017

15,618

24,898

(4)

9,255

151,616

201,383

1,798

203,181










Profit for the period

3,259

3,259

(37)

3,222










Other comprehensive income (loss)










Currency translation differences arising on translation of foreign operations

(529)

(529)

(529)


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

(1,733)

(1,733)

(1,733)

Total comprehensive loss for the period

(529)

1,526

997

(37)

960










Repurchase of Class A shares

(1)

(80)

(81)

(81)

Issue and repurchase of Class B shares

(43)

(601)

(644)

(644)

Non-controlling interest arising from a business acquisition

2,545

2,545

Long-term liability for the obligation to repurchase the non-controlling interest

(2,545)

(2,545)

Issuance of Class B share capital to a subsidiary shareholder upon the exercise of put options

209

(209)

Dividends on Class A shares

(1,112)

(1,112)

(1,112)

Dividends on Class B shares

(782)

(782)

(782)

Balance as at June 24, 2017

15,783

24,689

(4)

8,726

150,567

199,761

1,761

201,522













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 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

 

(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 24,
2017

June 25,
2016


$

$




Operating activities




Profit for the period

3,222

437


Items not affecting cash and cash equivalents

10,486

13,084


Cash generated from operations

13,708

13,521


Dividends received from equity accounted investments

3,600

1,000


Contributions to defined benefit retirement plans

(557)

(479)


Settlement of provisions

(148)

(107)


Changes in non-cash working capital items

12,517

(13,354)


Income taxes paid

(2,277)

(5,998)


26,843

(5,417)




Financing activities




Net change in short-term bank loans

7,607


Issuance of long-term debt

13,614

20,269


Repayment of long-term debt

(25,966)

(4,641)


Interest paid

(956)

(707)


Repurchase of Class A shares

(81)

(727)


Repurchase of Class B shares

(643)

(8,535)


Dividends paid on Class A shares

(1,112)

(1,114)


Dividends paid on Class B shares

(782)

(802)


(15,926)

11,350




Investing activities




Customer repayment of an investment in a service contract

865

142


Interest received

190

94


Repurchase of a non-controlling interest

(1,332)

(2,393)


Business acquisition

(5,805)

(4,562)


Cash acquired in a business acquisition

197


Acquisition of property, plant and equipment

(14,668)

(16,056)


Proceeds from disposal of property, plant and equipment

2,225

106


Acquisition of other non-current financial assets

(27)


Repayment of other non-current financial assets

94


Acquisition of intangible assets

(6)

(29)


Acquisition of other non-current assets

(191)

(29)


Repayment of other non-current assets

67

3


(18,561)

(22,554)




Net change in cash and cash equivalents

(7,644)

(16,621)

Cash and cash equivalents, beginning of period

15,971

23,811

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

(38)

619

Cash and cash equivalents, end of period

8,289

7,809




Additional information






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

1,553

1,162

 

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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