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Press release from Marketwire

Logistec Announces Financial Results for the Fourth Quarter and Year 2012

Thursday, March 21, 2013

Logistec Announces Financial Results for the Fourth Quarter and Year 201213:01 EDT Thursday, March 21, 2013MONTRÉAL, QUÉBEC--(Marketwire - March 21, 2013) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2012. Consolidated revenue totalled $250.9 million in 2012, an increase of $26.2 million or 11.7% over 2011. The marine services segment posted revenue of $143.2 million in 2012, a higher level of activity when compared to the $132.9 million reported for 2011. Higher volumes of bulk cargo and increased activity in the USA, following the acquisition of CrossGlobe Transport, Ltd., contributed to this revenue growth. The environmental services segment delivered a very strong performance in 2012, as revenue increased by $15.9 million or 17.3% over 2011 to reach $107.6 million. The growth derives from a high overall level of activity, more specifically revenue from Niedner woven hoses and Aqua-Pipe® services.In 2012, Logistec achieved a consolidated profit attributable to owners of the Company of $16.1 million compared to $17.6 million in 2011. The 2012 profit attributable to owners of the Company computes to total basic and diluted earnings per share of $2.47, which corresponds to basic and diluted earnings per share of $2.37 attributable to Class Common A shares and of $2.61 attributable to Class B Subordinate Voting shares. Although consolidated profit attributable to owners of the Company decreased from $17.6 million to $16.1 million, the 2011 figures included two non-operating items, which had a net after tax positive impact of $5.3 million. These included a gain on partial disposal of an investment, partly offset by an impairment loss on goodwill. If these items are excluded, profit increased by some $4 million or 31% in 2012. The marine services segment posted a profit before income taxes of $13.7 million, down by $0.6 million over $14.3 million in 2011. The environmental services segment recorded a profit before income taxes of $10.5 million, up by $1.3 million over $9.2 million in 2011. During the fourth quarter of 2012, consolidated revenue totalled $67.7 million in the fourth quarter of 2012, up by $1.5 million over the same period of 2011. This increase can be explained by strong activity in the marine services segment in the fourth quarter, although it was partly offset by slower business in our environmental services segment. The consolidated profit attributable to owners of the Company amounted to $6.6 million, up by $3.6 million from the fourth quarter of 2011. The positive variation came from the impairment loss on goodwill and higher equipment costs incurred in the fourth quarter of 2011 combined with the strong activity in the marine services segment in the fourth quarter of 2012. The profit attributable to owners of the Company computes to total basic and diluted earnings per share of $1.04, which corresponds to basic and diluted earnings per share of $0.98 attributable to Class A Common Shares and of $1.07 attributable to Class B Subordinate Voting Shares.Outlook"We are optimistic we will be able to further develop our cargo-handling activities in 2013. In the USA, we are seeing some improvement in the building sector of the economy and this should bode well for construction materials, namely lumber and metals. We will further advance our development initiatives in the area of biomass and mining. To that effect, significant capital expenditures have been made to upgrade and specialize a portion of our Brunswick (GA) facility to handle biomass, namely wood pellets and woodchips. Customers have committed volumes to our facility and we feel strongly that the export market is growing quickly. With respect to mining, we are closely following the development of the mining sector in the Province of Québec and the Arctic and, with our cargo-handling and transportation businesses, we are well positioned to serve this developing customer base. Although there has been a slowdown based on weaker growth in China and lower-priced commodities, the sector continues to develop selectively.We are also optimistic about our environmental services segment. In 2013, we intend to build on our Aqua-Pipe® technology and grow our services both in Québec, where we install our structural lining, and outside of the Province, where we work through a select group of licensees. Although municipalities are somewhat financially constrained, there remains a huge need to repair underground drinking water pipes in North America. It has been shown that 40% of North America's drinking water is lost through existing infrastructure and this statistic is getting worse every year. Traditional methods of excavation and rebuilding are far costlier repair methods and our technology thus bodes well for the future. Our site remediation services are also promising given the continued desire to clean up the environment. We have built a strong team of experts who can find solutions for virtually all types of environmental contaminants and are expanding our services geographically, with the Arctic and France showing new revenue in the last few years. Finally, our woven-hose manufacturing business, which was purchased to secure the growing needs of our aqueduct rehabilitation services, continues to diversify its customer base. In 2013, it successfully launched a new product for the shale gas industry, a market which is expected to undergo strong growth in the coming years," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation. "All in all, we are confident we will continue to develop both our marine and environmental services segments, on the strength of our highly dynamic team of experts who are customer-oriented and consistently bring value to a growing customer base," concluded Ms. Paquin. About LogistecLogistec 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 24 ports in Eastern Canada, the Great Lakes and the U.S. East Coast. 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, PCB 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 at 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 Earningsyears ended December 31(in thousands of Canadian dollars, except for per share amounts)20122011$$Revenue250,860224,630Employee benefits expense(120,317)(109,399)Equipment and supplies expense(69,792)(60,915)Rental expense(22,891)(20,247)Other expenses(10,467)(12,054)Depreciation and amortization expense(7,819)(8,220)Share of profit of equity accounted investments5,2245,582Share of gain on partial disposal of an investment-6,171Impairment loss on goodwill-(1,300)Other gains and losses(241)(287)Operating profit24,55723,961Finance expense(808)(958)Finance income461558Profit before income taxes24,21023,561Income taxes(5,925)(3,993)Profit for the year18,28519,568Profit attributable to:Owners of the Company16,06117,592Non-controlling interests2,2241,976Profit for the year18,28519,568Basic and diluted earnings per Class A Common Share (1)2.372.58Basic and diluted earnings per Class B Subordinate Voting Share (2)2.612.84(1)Class A Common Share ("Class A share")(2)Class B Subordinate Voting Share ("Class B share")Consolidated Statements of Comprehensive Incomeyears ended December 31(in thousands of Canadian dollars)20122011$$Profit for the year18,28519,568Other comprehensive incomeCurrency translation differences arising on translation of foreign operations(200)114Actuarial losses on retirement benefits(2,159)(5,611)Income taxes on actuarial losses on retirement benefits5811,483Gains (losses) on derivatives designated as cash flow hedges40(71)Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings19-Income taxes relating to derivatives designated as cash flow hedges(16)19Share of other comprehensive income of equity accounted investmentsActuarial losses on retirement benefits(176)(272)Income taxes on actuarial losses on retirement benefits4873Gains on derivatives designated as cash flow hedges-205Transfer of gains on derivatives designated as cash flow hedges to non-financial assets-(14)Transfer of gains on derivatives designated as cash flow hedges to profit or loss on partial disposal of an investment-(191)Other comprehensive income for the year, net of income taxes(1,863)(4,265)Total comprehensive income for the year16,42215,303Total comprehensive income attributable to:Owners of the Company14,19813,327Non-controlling interests2,2241,976Total comprehensive income for the year16,42215,303Consolidated Statements of Financial Position(in thousands of Canadian dollars)As at December 31, 2012As at December 31, 2011$$AssetsCurrent assetsCash and cash equivalents7,5198,888Investments in service contracts8,10713,065Trade and other receivables55,79545,007Current income tax assets1,9152,559Prepaid expenses3,2752,854Inventories4,4923,92281,10376,295Equity accounted investments31,01932,726Property, plant and equipment55,43447,730Goodwill14,84710,686Other intangible assets18,5941,934Other non-current assets2,0971,927Post-employment benefit assets441779Non-current financial assets5,2555,265Deferred income tax assets7,8787,773Total assets216,668185,115LiabilitiesCurrent liabilitiesShort-term bank loans2,200-Trade and other payables28,39127,020Deferred revenue1,589819Current income tax liabilities5621,907Dividends payable607594Current portion of long-term debt2,1792,499Provisions76348836,29133,327Long-term debt19,80811,873Provisions286148Deferred income tax liabilities9,4353,440Post-employment benefit obligations13,14611,475Non-current financial liabilities2,3812,624Total liabilities81,34762,887Commitments, contingent liabilities and guaranteesEquityShare capital15,13915,149Retained earnings112,032100,996Accumulated other comprehensive loss(462)(305)Equity attributable to owners of the Company126,709115,840Non-controlling interests8,6126,388Total equity135,321122,228Total liabilities and equity216,668185,115On behalf of the Board (signed) David M. Mann(signed) Madeleine PaquinDirectorDirectorConsolidated Statements of Changes in Equity(in thousands of Canadian dollars)Attributable to owners of the CompanyAccumulated other comprehensive income (loss)Share capitalCash flow hedgesForeign currency translationRetained earningsTotalNon-controlling interestsTotal equity$$$$$$$Balance as at January 1, 201215,149(52)(253)100,996115,8406,388122,228Profit for the year---16,06116,0612,22418,285Other comprehensive incomeCurrency translation differences arising on translation of foreign operations--(200)-(200)-(200)Actuarial losses on retirement benefits, net of income taxes---(1,578)(1,578)-(1,578)Cash flow hedges, net of income taxes-43--43-43Share of other comprehensive income of equity accounted investments, net of income taxes---(128)(128)-(128)Total comprehensive income for the year-43(200)14,35514,1982,22416,422Repurchase of Class A shares(7)--(121)(128)-(128)Issuance and repurchase of Class B shares(3)--(794)(797)-(797)Dividends on Class A shares---(1,332)(1,332)-(1,332)Dividends on Class B shares---(1,072)(1,072)-(1,072)Balance as at December 31, 201215,139(9)(453)112,032126,7098,612135,321(in thousands of Canadian dollars)Attributable to owners of the CompanyAccumulated other comprehensive income (loss)Share capitalCash flow hedgesForeign currency translationRetained earningsTotalNon-controlling interestsTotal equity$$$$$$$Balance as at January 1, 201115,130-(367)90,702105,4654,392109,857Profit for the year---17,59217,5921,97619,568Other comprehensive incomeCurrency translation differences arising on translation of foreign operations--114-114-114Actuarial losses on retirement benefits, net of income taxes---(4,128)(4,128)-(4,128)Cash flow hedges, net of income taxes-(52)--(52)-(52)Share of other comprehensive income of equity accounted investments, net of income taxes---(199)(199)-(199)Total comprehensive income for the year-(52)11413,26513,3271,97615,303Repurchase and conversion of Class A shares(16)--(117)(133)-(133)Issuance of share capital by a subsidiary-----2020Issuance, repurchase and conversion of Class B shares35--(504)(469)-(469)Dividends on Class A shares---(1,299)(1,299)-(1,299)Dividends on Class B shares---(1,051)(1,051)-(1,051)Balance as at December 31, 201115,149(52)(253)100,996115,8406,388122,228Consolidated Statements of Cash Flowsyears ended December 31 (in thousands of Canadian dollars)20122011$$Operating activitiesProfit for the year18,28519,568Items not affecting cash and cash equivalents11,7876,184Cash generated from operations30,07225,752Dividends received from equity accounted investments7,2293,878Contributions to defined benefit retirement plans(1,314)(1,103)Settlement of provisions(1,403)(472)Changes in non-cash working capital items(12,797)(7,508)Income taxes paid(6,296)(7,312)15,49113,235Financing activitiesNet change in short-term bank loans2,200(2,278)Issuance of long-term debt, net of transaction costs16,150-Repayment of long-term debt(8,547)(3,882)Interest paid(805)(1,049)Issuance of Class B shares64Issuance of share capital by a subsidiary-20Repurchase of Class A shares(128)(125)Repurchase of Class B shares(956)(613)Dividends paid on Class A shares(1,324)(1,292)Dividends paid on Class B shares(1,067)(1,046)5,529(10,261)Investing activitiesCustomer repayment of investments in service contracts4,9584,540Interest received1,2401,826Business acquisition(15,810)-Acquisition of property, plant and equipment(12,950)(9,127)Proceeds from disposal of property, plant and equipment390321Acquisition of intangible assets(89)(100)Disposal of other non-current assets7666Acquisition of non-current financial assets(361)-(22,546)(2,474)Net change in cash and cash equivalents(1,526)500Cash and cash equivalents, beginning of year8,8888,382Effect of exchange rate on balances held in foreign currencies of foreign operations1576Cash and cash equivalents, end of year7,5198,888FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Jean-Claude Dugas CPA, CAVice-President, FinanceLogistec Corporationjdugas@logistec.com(514) 985-2345