Logistec announces its results for the third quarter of 2016

MONTRÉAL, Nov. 1, 2016 /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 24, 2016.

During the third quarter of 2016, consolidated revenue totalled $103.1 million, a decrease of $12.8 million or 11.1% over the same period in 2015. Revenue from the marine services segment revenue was down by $7.6 million or 15.1% to $42.9 million for the third quarter of 2016, while revenue from the environmental services segment amounted to $60.2 million, down by $5.2 million or 8.0% from the third quarter of 2015. The revenue decrease in the marine services segment stems from reduced bulk and break-bulk cargo volumes, whereas the revenue decrease in the environmental services segment was due to lower Aqua-Pipe activity. The third quarter of 2016 closed with a consolidated profit attributable to owners of the Company of $9.2 million, down by $2.9 million over the same period in 2015. The profit attributable to owners of the Company translated into total diluted earnings per share of $0.71, of which $0.67 was attributable to Class A Common Shares and $0.75 was attributable to Class B Subordinate Voting Shares. The profit attributable to owners of the Company was positively affected by $0.5 million non-operating gains versus a gain of $3.7 million in 2015. The gain in 2015 came from foreign exchange as well as settlement on an operating contract where the customer-guaranteed tonnage never materialized.

For the nine-month period ended September 24, 2016, consolidated revenue totalled $247.6 million, down by $18.0 million over $265.6 million for the same period in 2015. The profit attributable to owners of the Company amounted to $10.0 million for total diluted earnings per share of $0.78, of which $0.73 was attributable to Class A Common Shares and $0.82 was attributable to Class B Subordinate Voting Shares. For the same period in 2015, basic and diluted earnings per share totalled $1.71, of which $1.64 was attributable to Class A Common Shares and $1.81 was attributable to Class B Subordinate Voting Shares. This profit attributable to owners of the Company of $10.0 million includes a non-operating loss of $1.3 million versus a non-operating gain of $4.7 million last year.

Outlook

"Year-to-date results remain below our expectations. In the marine services segment, we continue to experience a weak market for bulk cargo handling, particularly with respect to mining activity and biomass. In the environmental services segment, results are lower due to fewer aqueduct contracts in our local market this year, combined with higher costs as we invest and build our new marketplace in the USA. We are confident these short-term penetration costs will pay off in the long run. Our traditional environmental services had a good quarter," 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 nine months ended


September 24,
2016

September 26,
2015

September 24,
2016

September 26,
2015


$

$

$

$






Revenue

103,093

115,933

247,568

265,567






Employee benefits expense

(45,860)

(56,452)

(115,987)

(130,491)

Equipment and supplies expense

(33,433)

(31,203)

(76,572)

(68,450)

Rental expense

(7,035)

(7,210)

(20,777)

(21,276)

Other expenses

(3,978)

(3,799)

(11,244)

(10,707)

Depreciation and amortization expense

(3,661)

(3,128)

(10,147)

(8,720)

Share of profit of equity accounted investments

2,473

1,758

2,764

2,555

Other gains and losses

488

3,712

(1,300)

4,654

Operating profit

12,087

19,611

14,305

33,132






Finance expense

(660)

(245)

(1,374)

(710)

Finance income

54

359

161

481

Profit before income taxes

11,481

19,725

13,092

32,903






Income taxes

(2,319)

(5,090)

(3,493)

(8,513)

Profit for the period

9,162

14,635

9,599

24,390






Profit (loss) attributable to:










Owners of the Company

9,153

12,102

9,966

21,288






Non-controlling interests

9

2,533

(367)

3,102

Profit for the period

9,162

14,635

9,599

24,390











Basic earnings per Class A Common Share (1)

0.72

0.94

0.78

1.64

Basic earnings per Class B Subordinate Voting Share (2)

0.80

1.03

0.87

1.81






Diluted earnings per Class A share

0.67

0.94

0.73

1.64

Diluted earnings per Class B share

0.75

1.03

0.82

1.81






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

7,414,789

7,443,589

7,422,089

7,449,178

Weighted average number of Class B shares outstanding, basic

4,763,900

4,998,300

4,784,856

5,024,856

Weighted average number of Class B shares outstanding, diluted

5,517,915

4,998,300

5,295,910

5,024,856



(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 nine months ended


September 24,
2016

September 26,
2015

September 24,
2016

September 26,
2015


$

$

$

$






Profit for the period

9,162

14,635

9,599

24,390






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

461

2,789

 

(1,836)

 

4,810



Gains (losses) on derivatives designated as cash flow hedges

(7)

(99)

2

(217)



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

18

21

49

50



Income taxes relating to derivatives designated as cash flow hedges

(4)

15

(14)

39

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

468

2,726

 

(1,799)

 

4,682






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







Remeasurement gains (losses) on benefit obligation

(1,014)

969

(3,028)

978



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

820

(787)

 

867

 

(524)



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

52

(48)

 

 

582

 

 

(122)



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

(142)

134

 

(1,579)

 

332







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

57

(49)



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

57

(49)

8







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

383

2,860

(3,427)

5,022

Total comprehensive income for the period

9,545

17,495

6,172

29,412

Total comprehensive income (loss) attributable to:










Owners of the Company

9,536

14,962

6,539

26,310

Non-controlling interests

9

2,533

(367)

3,102

Total comprehensive income for the period

9,545

17,495

6,172

29,412

 

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

Logistec Corporation

Condensed Consolidated Interim Statements of Financial Position


As at
September 24,
 2016

As at
December 31,
 2015


$

$




Assets



Current assets




Cash and cash equivalents

10,906

23,811


Investment in a service contract

941

1,157


Trade and other receivables

97,129

77,333


Work in progress

20,464

6,438


Current income tax assets

5,492

2,569


Other financial assets

52


Prepaid expenses

6,865

7,952


Inventories

6,582

6,553


148,431

125,813




Equity accounted investments

29,566

28,951

Property, plant and equipment

125,428

111,022

Goodwill

24,531

22,615

Other intangible assets

18,243

20,247

Other non-current assets

2,141

5,194

Post-employment benefit assets

369

522

Non-current financial assets

2,916

5,019

Deferred income tax assets

9,397

9,032

Total assets

361,022

328,415




Liabilities



Current liabilities




Trade and other payables

48,946

46,352


Deferred revenue

3,145

2,700


Current income tax liabilities

722

650


Dividends payable

949

967


Current portion of long-term debt

1,800

2,159


Provisions

1,270

1,268


56,832

54,096




Long-term debt

65,682

29,920

Provisions

784

766

Deferred income tax liabilities

12,328

12,433

Post-employment benefit obligations

15,508

12,955

Deferred revenue

4,233

4,533

Non-current financial liabilities

12,529

4,067

Total liabilities

167,896

118,770




Equity



Share capital

15,667

14,985

Share capital to be issued

24,898

Retained earnings

142,332

164,154

Accumulated other comprehensive income

8,426

10,274

Equity attributable to owners of the Company

191,323

189,413




Non-controlling interests

1,803

20,232

Total equity

193,126

209,645




Total liabilities and equity

361,022

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 (loss) for the period

9,966

9,966

(367)

9,599










Other comprehensive income (loss)










Currency translation differences arising on translation of foreign operations

(1,836)

(1,836)

(1,836)


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

(1,579)

(1,579)

(1,579)


Cash flow hedges, net of income taxes

37

37

37


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

(49)

(49)

(49)

Total comprehensive income (loss) for the period

(12)

(1,836)

8,387

6,539

(367)

6,172










Repurchase of Class A shares

(15)

(907)

(922)

(922)

Issuance and repurchase of Class B shares

697

(8,308)

(7,611)

(7,611)

Repurchase of non-controlling interests

24,898

(18,148)

6,750

(18,062)

(11,312)

Dividends on Class A shares

(1,671)

(1,671)

(1,671)

Dividends on Class B shares

(1,175)

(1,175)

(1,175)

Balance as at September 24, 2016

15,667

24,898

(151)

8,577

142,332

191,323

1,803

193,126




























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










 

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

Logistec Corporation

Condensed Consolidated Interim Statements of Cash Flows


For the nine months ended


September 24,
2016

September 26,
2015


$

$




Operating activities




Profit for the period

9,599

24,390


Impairment loss related to assets destroyed

9,729


Gain on insurance recovery of assets

(9,729)


Other items not affecting cash and cash equivalents

22,251

20,630


Cash generated from operations

31,850

45,020


Dividends received from equity accounted investments

2,143

2,361


Contributions to defined benefit retirement plans

(713)

(940)


Settlement of provisions

(134)

(117)


Changes in non-cash working capital items

(33,908)

(22,554)


Income taxes paid

(5,900)

(6,500)


(6,662)

17,270




Financing activities




Net change in short-term bank loans

3,874


Issuance of long-term debt, net of transaction cost

51,164

10,642


Repayment of long-term debt

(18,848)

(7,146)


Interest paid

(1,426)

(663)


Repurchase of Class A shares

(922)

(784)


Issuance of Class B shares

607

113


Repurchase of Class B shares

(8,781)

(3,873)


Dividends paid on Class A shares

(1,671)

(1,398)


Dividends paid on Class B shares

(1,194)

(1,040)


18,929

(275)




Investing activities




Customer repayment of an investment in a service contract

216

189


Interest received

161

247


Repurchase of non-controlling interests

(2,393)

-


Business acquisition

(4,562)

-


Cash acquired in a business acquisition

197

-


Cash received from a non-controlling interest

-

578


Acquisition of property, plant and equipment

(18,561)

(20,133)


Proceeds from disposal of property, plant and equipment

119

336


Acquisition of intangible assets

(30)

(46)


Acquisition of non-current financial assets

(27)

-


Repayment of non-current assets

28

-


Acquisition of other non-current assets

(761)

(10,287)


(25,613)

(29,116)




Net change in cash and cash equivalents

(13,346)

(12,121)

Cash and cash equivalents, beginning of period

23,811

26,381

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

441

(953)

Cash and cash equivalents, end of period

10,906

13,307







Additional information






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

3,153

4,070

 

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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