Logistec announces record 2014 results

MONTREAL, March 24, 2015 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2014.

Logistec had another excellent year in 2014. Both profit for the year and revenue reached record levels and progress was achieved in all its business segments. Consolidated revenue totalled $322.2 million in 2014, an increase of $23.9 million or 8.0% over 2013. The marine services segment posted revenue of $194.7 million in 2014, representing a higher level of activity compared to the $181.6 million reported for 2013. This growth was due to an overall increase in cargo volumes handled in all regions for all cargo types, whether bulk, break-bulk or containers. The environmental services segment delivered a good performance in 2014, as revenue increased by $10.0 million or 8.5% over 2013 to reach $127.6 million. Revenue growth came primarily from increased activity in Aqua-Pipe and from site remediation, as well as additional revenue from the acquisition of Mistral Environnement SAS.

In 2014, the profit attributable to owners of the Company amounted to $31.0 million (compared to $27.5 million in 2013) for total basic and diluted earnings per share of $2.46, which corresponds to basic and diluted earnings per share of $2.37 attributable to Class A Common Shares and of $2.59 attributable to Class B Subordinate Voting Shares. This compares favourably to total basic and diluted earnings per share of $2.13 in 2013, of which $2.05 was attributable to Class A Common Shares and $2.26 was attributable to Class B Subordinate Voting Shares.

During the fourth quarter of 2014, Logistec maintained its consolidated revenue and profit momentum. Consolidated revenue totalled $86.9 million, an increase of $7.4 million or 9.3% over the same period of 2013. This increase is explained by strong activity in the marine services segment. The fourth quarter of 2014 closed with a consolidated profit attributable to owners of the Company of $7.3 million, up by $0.7 million over the same period of 2013. For the fourth quarter of 2014, the profit attributable to owners of the Company computed to total basic and diluted earnings per share of $0.58, of which $0.56 was attributable to Class A Common Shares and $0.61 was attributable to Class B Subordinate Voting Shares.

Outlook

"Our development plan is focused on strengthening and growing our footprint of cargo-handling services in North America. For 2015, we will again focus on three particular sectors: mining, biomass and port logistics. With respect to mining, we are working closely with mining companies in the Arctic and the Northern Québec/Labrador Trough region to develop and implement efficient cargo-handling solutions for the export of concentrates. The demand for export biomass facilities continues to rise and we are looking to further invest to handle larger wood-pellet volumes in Brunswick (GA). In terms of port logistics, we were successful in expanding our capacity at the Port of Montréal with the addition of a new container terminal for Termont. Projects are underway to expand our port network geographically, as well as to assist customers in improving their efficiency by offering multiuser distribution centres and made-to-measure automation solutions on an ongoing basis. We continue to seek acquisitions that fit our strategy of growing our footprint in the dry cargo-handling business in North America.

We are optimistic about our environmental services segment as well. Our plan is largely consistent with prior years as the development potential remains strong. In 2015, we will continue to build on our Aqua-Pipe technology and grow our services both in Québec, where we install our structural lining, and outside the province. Our woven-hose manufacturing business should continue to perform well and, with our increased capacity, will be able to meet the growing needs of Aqua-Pipe demand. In terms of our more traditional environmental services, we are diligently working to obtain a growing book of potential business in the fields of site remediation and biotreatment. We have built a strong team of experts who can find solutions for virtually all types of environmental contaminants and are expanding our services both in scope and geographically.

Our specialized industrial services are leaders in their individual fields. They have each developed the capacity to proactively understand the marketplace they serve and to develop opportunities based on real customer needs. This market intelligence has led to new markets for both our cargo handling and environmental businesses. The desire to continue to build is in our culture and includes teamwork, solutions-based customer orientation, professionalism and innovation. It also encompasses a long-term view for environmental sustainability as well as health and safety for our employees and those around us. We provide value-added services for our collective future by facilitating international trade, strengthening our northern communities, cleaning our environment and protecting our drinking water," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

"All in all, we are committed and confident we can continue to build our business based on specialized services where we have developed our expertise with a solid customer base. Our industrial environment is showing positive signs, particularly south of the border, and our energy is focused on market opportunities that can benefit from this better economic outlook. Clearly, our success rests on the strength of our highly dynamic team of experts who are customer oriented and consistently bring value to an expanding customer base," concluded Madeleine 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 32 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.

 
Consolidated Statements of Earnings
years ended December 31
(in thousands of Canadian dollars, except for per share amounts)
  2014 2013
  $ $
     
Revenue 322,220 298,300
     
Employee benefits expense (151,942) (137,057)
Equipment and supplies expense (86,021) (79,603)
Rental expense (26,820) (26,518)
Other expenses (11,507) (11,861)
Depreciation and amortization expense (10,246) (9,413)
Share of profit of equity accounted investments 6,403 5,493
Other gains and losses 2,525 1,600
Operating profit 44,612 40,941
     
Finance expense (693) (599)
Finance income 468 433
Profit before income taxes 44,387 40,775
     
Income taxes (9,870) (9,948)
Profit for the year 34,517 30,827
     
Profit attributable to:    
     
Owners of the Company 31,037 27,522
     
Non-controlling interests 3,480 3,305
Profit for the year 34,517 30,827
     
Basic and diluted earnings per Class A Common Share (1) (3) 2.37 2.05
Basic and diluted earnings per Class B Subordinate Voting Share (2) (3) 2.59 2.25

(1) Class A Common Share ("Class A share")
(2) Class B Subordinate Voting Share ("Class B share")
(3) All per share information has been adjusted to reflect the two-for-one stock split of July 2014


     
Consolidated Statements of Comprehensive Income
years ended December 31
(in thousands of Canadian dollars)    
  2014 2013
  $ $
     
Profit for the year 34,517 30,827
     
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 2,796 1,795
    Losses on derivatives designated as cash flow hedges (63) (15)
    Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings 9 15
    Income taxes relating to derivatives designated as cash flow hedges 17 -
    Share of other comprehensive income of equity accounted investments, net of income taxes 14 (24)
  Total items that are or may be reclassified to the consolidated statements of earnings 2,773 1,771
     
  Items that will not be reclassified to the consolidated statements of earnings    
    Remeasurement losses on benefit obligation (2,861) (210)
    Return on retirement plan assets excluding amounts included in profit for the year 1,430 3,394
    Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year 385 (856)
    Share of other comprehensive income of equity accounted investments, net of income taxes 28 112
  Total items that will not be reclassified to the consolidated statements of earnings (1,018) 2,440
     
Other comprehensive income for the year, net of income taxes 1,755 4,211
     
Total comprehensive income for the year 36,272 35,038
     
Total comprehensive income attributable to:    
     
Owners of the Company 32,792 31,733
Non-controlling interests 3,480 3,305
Total comprehensive income for the year 36,272 35,038


     
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
  As at
December 31,
2014
As at
December 31,
2013
  $ $
     
Assets    
Current assets    
  Cash and cash equivalents 26,381 19,638
  Investment in a service contract 1,366 1,597
  Trade and other receivables 67,052 69,035
  Work in progress 1,027 254
  Current income tax assets 2,638 1,569
  Prepaid expenses 3,106 2,614
  Inventories 4,585 5,241
  106,155 99,948
     
Equity accounted investments 27,123 26,517
Property, plant and equipment 99,663 63,027
Goodwill 21,407 15,139
Other intangible assets 18,286 18,295
Other non-current assets 1,704 1,433
Post-employment benefit assets 768 870
Non-current financial assets 3,432 6,251
Deferred income tax assets 8,449 7,826
Total assets 286,987 239,306
     
Liabilities    
Current liabilities    
  Short-term bank loans - 2,087
  Trade and other payables 40,452 31,999
  Deferred revenue 2,475 1,597
  Current income tax liabilities 1,159 4,838
  Dividends payable 815 699
  Current portion of long-term debt 1,261 2,034
  Provisions 1,001 1,320
  47,163 44,574
     
Long-term debt 28,007 3,598
Provisions 644 604
Deferred income tax liabilities 9,380 10,201
Post-employment benefit obligations 12,453 11,275
Deferred revenue 4,933 -
Non-current financial liabilities 4,983 5,372
Total liabilities 107,563 75,624
     
Commitments, contingent liabilities and guarantees    
     
Equity    
Share capital 14,906 15,030
Retained earnings 144,513 135,552
Accumulated other comprehensive income 4,082 1,309
Equity attributable to owners of the Company 163,501 151,891
     
Non-controlling interests 15,923 11,791
Total equity 179,424 163,682
     
Total liabilities and equity 286,987 239,306

On behalf of the Board      
       
  (signed) David M. Mann   (signed) Madeleine Paquin
  Director   Director


               
Consolidated Statements of Changes in Equity
(in thousands of Canadian dollars)    
  Attributable to owners of the Company  
    Accumulated other
comprehensive
income (loss)
 
  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 year - - - 31,037 31,037 3,480 34,517
               
Other comprehensive income (loss)              
  Currency translation differences arising on translation of foreign operations - - 2,796 - 2,796 - 2,796
  Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes - - - (1,046) (1,046) - (1,046)
  Cash flow hedges, net of income taxes - (37) - - (37) - (37)
  Share of other comprehensive income of equity accounted investments, net of income taxes - 14 - 28 42 - 42
Total comprehensive income (loss) for the year - (23) 2,796 30,019 32,792 3,480 36,272
               
Repurchase of Class A shares (8) - - (425) (433) - (433)
Issuance and repurchase of Class B shares (116) - - (7,602) (7,718) - (7,718)
Non-controlling interest arising on a business acquisition - - - - - 1,475 1,475
Repurchase of share capital by a subsidiary - - - (167) (167) (823) (990)
Dividends on Class A shares - - - (7,314) (7,314) - (7,314)
Dividends on Class B shares - - - (5,550) (5,550) - (5,550)
Balance as at December 31, 2014 14,906 (56) 4,138 144,513 163,501 15,923 179,424
               
Balance as at January 1, 2013 15,139 (9) (453) 111,328 126,005 8,612 134,617
               
Profit for the year - - - 27,522 27,522 3,305 30,827
               
Other comprehensive income (loss)              
  Currency translation differences arising on translation of foreign operations - - 1,795 - 1,795 - 1,795
  Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes - - - 2,328 2,328 - 2,328
  Share of other comprehensive income of equity accounted investments, net of income taxes - (24) - 112 88 - 88
Total comprehensive income (loss) for the year - (24) 1,795 29,962 31,733 3,305 35,038
               
Repurchase and conversion of Class A shares (21) - - (576) (597) - (597)
Issuance and repurchase of Class B shares (88) - - (2,547) (2,635) - (2,635)
Repurchase of share capital by a subsidiary - - - - - (126) (126)
Dividends on Class A shares - - - (1,461) (1,461) - (1,461)
Dividends on Class B shares - - - (1,154) (1,154) - (1,154)
Balance as at December 31, 2013 15,030 (33) 1,342 135,552 151,891 11,791 163,682


 
Consolidated Statements of Cash Flows
years ended December 31
(in thousands of Canadian dollars)
  2014 2013
  $ $
     
Operating activities    
  Profit for the year 34,517 30,827
  Items not affecting cash and cash equivalents 23,579 18,936
  Cash generated from operations 58,096 49,763
  Dividends received from equity accounted investments 5,646 10,820
  Contributions to defined benefit retirement plans (1,607) (1,304)
  Settlement of provisions (45) (408)
  Changes in non-cash working capital items 2,182 (10,036)
  Income taxes paid (15,164) (5,269)
  49,108 43,566
     
Financing activities    
  Net change in short-term bank loans (2,087) (113)
  Issuance of long-term debt, net of transaction costs 36,000 -
  Repayment of long-term debt (13,613) (16,379)
  Interest paid (705) (623)
  Issuance of Class B shares 145 20
  Repurchase of share capital by a subsidiary (990) (126)
  Repurchase of Class A shares (433) (598)
  Repurchase of Class B shares (8,100) (2,832)
  Dividends paid on Class A shares (7,240) (1,406)
  Dividends paid on Class B shares (5,508) (1,117)
  (2,531) (23,174)
     
Investing activities    
  Customer repayment of investments in service contracts 231 6,510
  Interest received 613 1,016
  Cash acquired in business acquisitions 1,622 -
  Business acquisitions (5,752) -
  Investment in a joint venture (100) (25)
  Acquisition of property, plant and equipment (40,049) (15,736)
  Proceeds from disposal of property, plant and equipment 1,071 548
  Acquisition of intangible assets (211) (135)
  Repayment of non-current financial assets 3,288 -
  Acquisition of other non-current assets (298) -
  Disposal of other non-current assets 6 38
  (39,579) (7,784)
     
Net change in cash and cash equivalents 6,998 12,608
Cash and cash equivalents, beginning of year 19,638 7,519
Effect of exchange rate on balances held in foreign currencies of foreign operations (255) (489)
Cash and cash equivalents, end of year 26,381 19,638

 

 

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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