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Press release from Marketwire

Logistec Reports Record Financial Results for the First Quarter of 2013

Wednesday, May 08, 2013

Logistec Reports Record Financial Results for the First Quarter of 2013

17:39 EDT Wednesday, May 08, 2013

MONTRÉAL, QUÉBEC--(Marketwired - May 8, 2013) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider, today announced its financial results for the first quarter ended March 30, 2013.

During the first quarter of 2013, consolidated revenue totalled $57.4 million, an increase of $12.9 million or 29.1% over the equivalent period of the previous year. The marine services segment's revenue grew by $13.5 million or 44.0% to $44.1 million for the first quarter of 2013, whereas the environmental services segment's revenue amounted to $13.3 million, down by $0.5 million from the first quarter of 2012. The growth in the marine services segment reflected an overall increase in volumes of cargo handled in all regions, but more specifically in the USA with the addition in the third quarter of 2012 of CrossGlobe Transport, Ltd. ("CrossGlobe"). The first quarter of 2013 closed with a consolidated profit attributable to owners of the Company of $1.9 million, compared with a loss of $1.2 million for the first quarter of 2012. The profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.30, of which $0.29 was attributable to Class A Common Shares and $0.32 was attributable to Class B Subordinate Voting Shares.

Outlook

"As attested to by our record first-quarter performance, our outlook is favourable for 2013 as our Company should benefit from the ongoing turnaround of the U.S. economy, CrossGlobe's full-year contribution and the reinforcement of our biomass handling operations at our Brunswick (GA) terminal. As was the case in the first quarter, we believe our cargo handling business is likely to continue growing in all of our cargo types as well as on a geographic basis. We are also confident in regard to Sanexen's capacity to deliver another solid performance in 2013, as we expect an increase in the demand for services related to the Aqua-Pipe technology, a further improvement in sales of woven hoses and a satisfactory level of site remediation activities," 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 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 .

(in thousands of Canadian dollars, except for number of shares and per share amounts)

(unaudited)

Condensed Consolidated Interim Statements of Earnings

For the three months ended
March 30, 2013 March 31, 2012
Restated (1)
$ $
Revenue 57,116 44,160
Interest revenue from investments in service contracts 249 262
Total revenue 57,365 44,422
Employee benefits expense (27,312 ) (23,443 )
Equipment and supplies expense (14,984 ) (13,260 )
Rental expense (7,051 ) (4,969 )
Other expenses (3,075 ) (2,551 )
Depreciation and amortization expense (2,256 ) (1,967 )
Share of profit (loss) of equity accounted investments (314 ) 99
Other gains and losses 393 (248 )
Operating profit (loss) 2,766 (1,917 )
Finance expense (230 ) (149 )
Finance income 97 173
Profit (loss) before income taxes 2,633 (1,893 )
Income taxes (890 ) 491
Profit (loss) for the period 1,743 (1,402 )
Profit (loss) attributable to:
Owners of the Company 1,936 (1,151 )
Non-controlling interests (193 ) (251 )
Profit (loss) for the period 1,743 (1,402 )
Basic and diluted earnings per Class A Common Share (2) 0.29 (0.17 )
Basic and diluted earnings per Class B Subordinate Voting Share (3) 0.32 (0.19 )
Weighted average number of Class A shares outstanding, basic and diluted 3,752,011 3,757,244
Weighted average number of Class B shares outstanding, basic and diluted 2,714,983 2,758,717
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.
(2) Class A Common Share ("Class A share")
(3) Class B Subordinate Voting Share ("Class B share")

(in thousands of Canadian dollars)

(unaudited)

Condensed Consolidated Interim Statements of Comprehensive Income

For the three months ended
March 30, 2013 March 31, 2012
Restated (1)
$ $
Profit (loss) for the period 1,743 (1,402 )
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 561 (128 )
Gains (losses) on derivatives designated as cash flow hedges (12 ) 63
Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings 4 5
Income taxes relating to derivatives designated as cash flow hedges 2 (18 )
Total items that are or may be reclassified to the consolidated statements of earnings 555 (78 )
Items that will not be reclassified to the consolidated statements of earnings
Return on plan assets excluding amounts included in profit for the period 1,071 -
Income taxes on return on plan assets excluding amounts included in profit for the period (288 ) -
Total items that will not be reclassified to the consolidated statements of earnings 783 -
Other comprehensive income (loss) for the period, net of income taxes 1,338 (78 )
Total comprehensive income (loss) for the period 3,081 (1,480 )
Total comprehensive income (loss) attributable to:
Owners of the Company 3,274 (1,229 )
Non-controlling interests (193 ) (251 )
Total comprehensive income (loss) for the period 3,081 (1,480 )
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.

(in thousands of Canadian dollars)

(unaudited)

Condensed Consolidated Interim Statements of Financial Position

As at March 30, 2013 As at December 31, 2012 As at January 1, 2012
Restated (1) Restated (1)
$ $ $
Assets
Current assets
Cash and cash equivalents 7,943 7,519 8,888
Investments in service contracts 8,056 8,107 13,065
Trade and other receivables 50,142 55,795 45,007
Current income tax assets 3,943 1,915 2,559
Prepaid expenses 3,643 3,275 2,854
Inventories 4,458 4,492 3,922
78,185 81,103 76,295
Equity accounted investments 25,372 30,967 32,660
Property, plant and equipment 57,239 55,434 47,730
Goodwill 14,937 14,847 10,686
Other intangible assets 18,529 18,594 1,934
Other non-current assets 1,994 2,097 1,927
Post-employment benefit assets 581 441 779
Non-current financial assets 5,171 5,255 5,265
Deferred income tax assets 7,851 8,118 8,066
Total assets 209,859 216,856 185,342
Liabilities
Current liabilities
Short-term bank loans 467 2,200 -
Trade and other payables 23,000 28,391 27,020
Deferred revenue 1,679 1,589 819
Current income tax liabilities 948 562 1,907
Dividends payable 606 607 594
Current portion of long-term debt 2,179 2,179 2,499
Provisions 841 763 488
29,720 36,291 33,327
Long-term debt 17,475 19,808 11,873
Provisions 373 286 148
Deferred income tax liabilities 9,812 9,435 3,440
Post-employment benefit obligations 13,130 14,038 12,564
Non-current financial liabilities 2,634 2,381 2,624
Total liabilities 73,144 82,239 63,976
Equity
Share capital 15,084 15,139 15,149
Retained earnings 113,119 111,328 100,134
Accumulated other comprehensive income (loss) 93 (462 ) (305 )
Equity attributable to owners of the Company 128,296 126,005 114,978
Non-controlling interests 8,419 8,612 6,388
Total equity 136,715 134,617 121,366
Total liabilities and equity 209,859 216,856 185,342
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.

(in thousands of Canadian dollars)

(unaudited)

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, 2013 15,139 (9 ) (453 ) 111,328 126,005 8,612 134,617
Profit (loss) for the period - - - 1,936 1,936 (193 ) 1,743
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations - - 561 - 561 - 561
Return on plan assets excluding amounts included in profit for the period, net of income taxes - - - 783 783 - 783
Cash flow hedges, net of income taxes - (6 ) - - (6 ) - (6 )
Total comprehensive income (loss) for the period - (6 ) 561 2,719 3,274 (193 ) 3,081
Repurchase of Class B shares (55 ) - - (323 ) (378 ) - (378 )
Dividends on Class A shares - - - (336 ) (336 ) - (336 )
Dividends on Class B shares - - - (269 ) (269 ) - (269 )
Balance as at March 30, 2013 15,084 (15 ) 108 113,119 128,296 8,419 136,715
Restated (1) Attributable to owners of the Company
Accumulated other comprehensive loss
Share capital Cash flow hedges Foreign currency translation Retained earnings Total Non-controlling interests Total equity
$ $ $ $ $ $ $
Balance as at January 1, 2012 15,149 (52 ) (253 ) 100,134 114,978 6,388 121,366
Loss for the period - - - (1,151 ) (1,151 ) (251 ) (1,402 )
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations - - (128 ) - (128 ) - (128 )
Cash flow hedges, net of income taxes - 50 - - 50 - 50
Total comprehensive income (loss) for the period - 50 (128 ) (1,151 ) (1,229 ) (251 ) (1,480 )
Repurchase of Class A shares - - - (8 ) (8 ) - (8 )
Repurchase of Class B shares (7 ) - - (28 ) (35 ) - (35 )
Dividends on Class A shares - - - (329 ) (329 ) - (329 )
Dividends on Class B shares - - - (265 ) (265 ) - (265 )
Balance as at March 31, 2012 15,142 (2 ) (381 ) 98,353 113,112 6,137 119,249
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.

(in thousands of Canadian dollars)

(unaudited)

Condensed Consolidated Interim Statements of Cash Flows

For the three months ended
March 30, 2013 March 31, 2012
Restated (1)
$ $
Operating activities
Profit (loss) for the period 1,743 (1,402 )
Items not affecting cash and cash equivalents 4,184 1,499
Cash generated from operations 5,927 97
Dividend received from an equity accounted investment 5,500 -
Contributions to defined benefit retirement plans (294 ) (325 )
Settlement of provisions (62 ) (162 )
Changes in non-cash working capital items 990 3,421
Income taxes paid (2,223 ) (3,333 )
9,838 (302 )
Financing activities
Net change in short-term bank loans (1,733 ) 553
Repayment of long-term debt (2,339 ) (3,078 )
Interest paid (430 ) (199 )
Repurchase of Class A shares - (8 )
Repurchase of Class B shares (378 ) (35 )
Dividends paid on Class A shares (337 ) (329 )
Dividends paid on Class B shares (270 ) (265 )
(5,487 ) (3,361 )
Investing activities
Customer repayment of investments in service contracts 51 1,199
Interest received 333 354
Acquisition of property, plant and equipment (4,385 ) (2,666 )
Proceeds from disposal of property, plant and equipment 192 24
Acquisition of intangible assets (14 ) (66 )
Acquisition of other non-current assets - (125 )
Proceeds from disposal of other non-current assets 8 16
(3,815 ) (1,264 )
Net change in cash and cash equivalents 536 (4,927 )
Cash and cash equivalents (2) (3) , beginning of period 7,519 8,888
Effect of exchange rate on balances held in foreign currencies of foreign operations (112 ) 46
Cash and cash equivalents (2) , end of period 7,943 4,007
Additional information
Acquisition of property, plant and equipment included in trade and other payables 537 404
(1) 2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.
(2) Comprised of cash on hand and in banks
(3) Comprised of cash on hand and in banks, and short-term investments redeemable at all times

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Jean-Claude Dugas CPA, CA
Vice-President, Finance
Logistec Corporation
jdugas@logistec.com
(514) 985-2345

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