Logistec announces its results for the third quarter of 2015

MONTRÉAL, Nov. 5, 2015 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the third quarter and first nine months ended September 26, 2015.

During the third quarter of 2015, consolidated revenue totalled $115.9 million, an increase of $22.0 million or 23.5% over the same period of 2014. The weaker Canadian dollar against the U.S. dollar had a positive impact of $3.4 million on revenue in the third quarter of 2015, in comparison with the Canadian/U.S. dollar translation rate in the third quarter of 2014. The marine services segment's revenue grew by $1.8 million or 3.7% to $50.5 million for the third quarter of 2015, whereas the environmental services segment's revenue amounted to $65.4 million, up by $20.2 million or 44.8% over the third quarter of 2014. The significant growth in the environmental services segment reflected an overall increase in activities, more specifically in Sanexen's Aqua-Pipe and site remediation business. The third quarter of 2015 closed with a consolidated profit attributable to owners of the Company of $12.1 million, up slightly by $0.1 million over the same period of 2014. Results were positively affected by a $1.6 million gain on foreign currency translation and a $1.9 million gain on a judgement and general mutual release. For the third quarter of 2015, the profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.97, of which $0.94 was attributable to Class A Common Shares and $1.03 was attributable to Class B Subordinate Voting Shares.

During the first nine months of 2015, consolidated revenue rose to a total of $265.6 million, compared with $235.3 million for the first nine months of 2014. The profit attributable to owners of the Company amounted to $21.3 million for total basic and diluted earnings per share of $1.71, of which $1.64 was attributable to Class A Common Shares and $1.81 was attributable to Class B Subordinate Voting Shares. For the same period of 2014, basic and diluted earnings per share totalled $1.88, of which $1.81 was attributable to Class A Common Shares and $1.98 was attributable to Class B Subordinate Voting Shares.

Outlook

"Overall, we are cautiously optimistic in regard to our outlook. On the one hand, our environmental services segment should keep up its positive momentum on the strength of a well-filled order backlog. On the other hand, in cargo handling, a number of challenges such as last winter's warehouse flooding in Virginia and this summer's fire in Georgia have led us to be slightly more cautious towards our year-end outlook," 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 over 30 ports and terminals in eastern North America. Logistec also offers marine transportation services geared primarily to the Arctic coastal trade, short-line rail transportation services, and 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

For the nine months ended


September 26,
2015

September 27,
2014

September 26,
2015

September 27,
2014


$

$

$

$






Revenue

115,933

93,908

265,567

235,340






Employee benefits expense

(56,452)

(44,782)

(130,491)

(110,445)

Equipment and supplies expense

(31,203)

(23,130)

(68,450)

(60,607)

Rental expense

(7,210)

(6,958)

(21,276)

(19,895)

Other expenses

(3,799)

(2,301)

(10,707)

(8,627)

Depreciation and amortization expense

(3,128)

(2,591)

(8,720)

(7,512)

Share of profit of equity accounted investments

1,758

2,907

2,555

4,050

Other gains and losses

3,712

612

4,654

2,065

Operating profit

19,611

17,665

33,132

34,369






Finance expense

(245)

(229)

(710)

(451)

Finance income

359

92

481

301

Profit before income taxes

19,725

17,528

32,903

34,219






Income taxes

(5,090)

(3,993)

(8,513)

(8,147)

Profit for the period

14,635

13,535

24,390

26,072






Profit attributable to:










Owners of the Company

12,102

11,959

21,288

23,750






Non-controlling interests

2,533

1,576

3,102

2,322

Profit for the period

14,635

13,535

24,390

26,072






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

0.94

0.91

1.64

1.81

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

1.03

1.00

1.81

1.98






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

7,443,589

7,462,922

7,449,178

7,465,944

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

4,998,300

5,111,433

5,024,856

5,176,100






(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)


Condensed Consolidated Interim Statements of Comprehensive Income





For the three months ended

For the nine months ended


September 26,
2015

September 27,
2014

September 26,
2015

September 27,
2014


$

$

$

$






Profit for the period

14,635

13,535

24,390

26,072






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

2,789

1,484

4,810

1,519



Gains (losses) on derivatives designated as cash flow hedges

(99)

-

(217)

(1)



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

21

1

50

3



Income taxes relating to derivatives designated as cash flow hedges

15

39



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

2,726

1,485

4,682

1,521








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







Remeasurement gains (losses) on benefit obligation

969

978

(1,588)



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

(787)

(54)

(524)

735



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

(48)

14

(122)

229



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

4

8

45



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

134

(36)

340

(579)







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

2,860

1,449

5,022

942







Total comprehensive income for the period

17,495

14,984

29,412

27,014







Total comprehensive income attributable to:










Owners of the Company

14,962

13,408

26,310

24,692

Non-controlling interests

2,533

1,576

3,102

2,322

Total comprehensive income for the period

17,495

14,984

29,412

27,014

 


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


Condensed Consolidated Interim Statements of Financial Position





As at
September 26,
 2015

As at
December 31,
2014


$

$




Assets



Current assets




Cash and cash equivalents

13,307

26,381


Investment in a service contract

274

1,366


Trade and other receivables

95,582

67,052


Work in progress

14,221

1,027


Current income tax assets

1,490

2,638


Prepaid expenses

6,815

3,106


Inventories

5,266

4,585


136,955

106,155




Equity accounted investments

27,300

27,123

Investment in a service contract

903

-

Property, plant and equipment

106,319

99,663

Goodwill

22,362

21,407

Other intangible assets

19,858

18,286

Other non-current assets

6,675

1,704

Post-employment benefit assets

560

768

Non-current financial assets

4,744

3,432

Deferred income tax assets

8,401

8,449

Total assets

334,077

286,987




Liabilities



Current liabilities




Short-term bank loans

3,874

-


Trade and other payables

57,370

40,452


Deferred revenue

2,985

2,475


Current income tax liabilities

1,727

1,159


Dividends payable

970

815


Current portion of long-term debt

2,131

1,261


Provisions

1,020

1,001


70,077

47,163




Long-term debt

30,642

28,007

Provisions

766

644

Deferred income tax liabilities

10,208

9,380

Post-employment benefit obligations

11,792

12,453

Deferred revenue

4,633

4,933

Non-current financial liabilities

3,468

4,983

Total liabilities

131,586

107,563




Equity



Share capital

15,039

14,906

Retained earnings

159,085

144,513

Accumulated other comprehensive income

8,764

4,082

Equity attributable to owners of the Company

182,888

163,501




Non-controlling interests

19,603

15,923

Total equity

202,491

179,424




Total liabilities and equity

334,077

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

21,288

21,288

3,102

24,390









Other comprehensive income (loss)









Currency translation differences arising on translation of foreign operations

4,810

4,810

4,810


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

332

332

332


Cash flow hedges, net of income taxes

(96)

(96)

(96)

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

(32)

8

(24)

(24)

Total comprehensive income (loss) for the period

(128)

4,810

21,628

26,310

3,102

29,412









Repurchase of Class A shares

(14)

(770)

(784)

(784)

Issuance and repurchase of Class B shares

147

 

(3,693)

(3,546)

(3,546)

Investment received from non-controlling interests

578

578

Dividends on Class A shares

(1,490)

(1,490)

(1,490)

Dividends on Class B shares

(1,103)

(1,103)

(1,103)

Balance as at September 26, 2015

15,039

(184)

8,948

159,085

182,888

19,603

202,491

















Balance as at January 1, 2014

15,030

(33)

1,342

135,552

151,891

11,791

163,682









Profit for the period

23,750

23,750

2,322

26,072









Other comprehensive income (loss)









Currency translation differences arising on translation of foreign operations

1,519

1,519

1,519


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

(624)

(624)

(624)


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

2

45

47

47

Total comprehensive income for the period

2

1,519

23,171

24,692

2,322

27,014









Repurchase of Class A shares

(7)

(363)

(370)

(370)

Issuance and repurchase of Class B shares

(67)

 

(6,649)

(6,716)

(6,716)

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

(6,848)

(6,848)

(6,848)

Dividends on Class B shares

(5,203)

(5,203)

(5,203)

Balance as at September 27, 2014

14,956

(31)

2,861

139,493

157,279

14,765

172,044

 

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


Condensed Consolidated Interim Statements of Cash Flows




For the nine months ended


September 26,
2015

September 27,
2014


$

$




Operating activities




Profit for the period

24,390

26,072


Impairment loss related to assets destroyed

9,729

-


Gain on insurance recovery of assets

(9,729)

-


Other items not affecting cash and cash equivalents

20,630

18,268


Cash generated from operations

45,020

44,340


Dividends received from equity accounted investments

2,361

2,646


Contributions to defined benefit retirement plans

(940)

(1,271)


Settlement of provisions

(117)

(45)


Changes in non-cash working capital items

(22,554)

(6,480)


Income taxes paid

(6,500)

(12,039)


17,270

27,151




Financing activities




Net change in short-term bank loans

3,874

(2,087)


Issuance of long-term debt, net of transaction cost

10,642

32,000


Repayment of long-term debt

(7,146)

(5,596)


Interest paid

(663)

(433)


Repurchase of Class A shares

(784)

(370)


Issuance of Class B shares

113

146


Repurchase of Class B shares

(3,873)

(7,097)


Repurchase of share capital by a subsidiary

-

(991)


Dividends paid on Class A shares

(1,398)

(6,773)


Dividends paid on Class B shares

(1,040)

(5,158)


(275)

3,641




Investing activities




Customer repayment of an investment in a service contract

189

172


Interest received

247

416


Cash acquired in a business acquisition

-

1,622


Business acquisition

-

(5,752)


Cash received from a non-controlling interest

578

-


Acquisition of property, plant and equipment

(20,133)

(30,651)


Proceeds from disposal of property, plant and equipment

336

863


Acquisition of intangible assets

(46)

(175)


Repayment of non-current financial assets

-

3,288


Proceeds from disposal of other non-current assets

-

6


Acquisition of other non-current assets

(10,287)

(274)


(29,116)

(30,485)




Net change in cash and cash equivalents

(12,121)

307

Cash and cash equivalents, beginning of period

26,381

19,638

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

(953)

(146)

Cash and cash equivalents, end of period

13,307

19,799




Additional information






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

4,070

1,498

 

 

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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