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Press release from Marketwire

Logistec Announces Record Results for the Second Quarter of 2013

Friday, August 09, 2013

Logistec Announces Record Results for the Second Quarter of 2013

13:57 EDT Friday, August 09, 2013

MONTRÉAL, QUÉBEC--(Marketwired - Aug. 9, 2013) - Logistec Corporation [TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider, today announced its financial results for the second quarter and first six months ended June 29, 2013.

During the second quarter of 2013, consolidated revenue and profit rose to a record high for a second quarter. Revenue totalled $72.7 million, an increase of $12.4 million or 20.6% over the same period of 2012. The marine services segment's revenue grew by $12.9 million or 39.9% to $45.3 million for the second quarter of 2013, whereas the environmental services segment's revenue amounted to $27.5 million, down $0.5 million from the second quarter of 2012. The growth in the marine services segment reflected an overall increase in volumes of cargo handled in all regions. Among others, the addition of CrossGlobe Transport, Ltd. in the third quarter of 2012 contributed to the increase in this quarter. The second quarter of 2013 closed with a consolidated profit attributable to owners of the Company of $7.4 million, compared with $3.4 million for the same period of 2012. For the second quarter of 2013, the profit attributable to owners of the Company translated into total basic and diluted earnings per share of $1.14, of which $1.10 was attributable to Class A Common Shares and $1.21 was attributable to Class B Subordinate Voting Shares.

For the first six months of 2013, consolidated revenue totalled $130.1 million, compared with $104.7 million for the first half of 2012. The profit attributable to owners of the Company amounted to $9.3 million for total basic and diluted earnings per share of $1.44, of which $1.38 was attributable to Class A Common Shares and $1.52 was attributable to Class B Subordinate Voting Shares. This compares favourably to total basic and diluted earnings per share of $0.34, of which $0.33 was attributable to Class A Common Shares and $0.36 was attributable to Class B Subordinate Voting Shares for the same period of 2012.

Outlook

"We are very pleased to have had the best performance in the history of Logistec for a first semester. We believe that the second half of 2013 is also looking very promising, as demand for our marine services is growing both in Canada and the USA, while our environmental services segment should continue to perform well," 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 .

Logistec Corporation
(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 For the six months ended
June 29, June 30, June 29, June 30,
2013 2012 2013 2012
Restated (1) Restated (1)
$ $ $ $
Revenue 72,483 60,055 129,599 104,215
Interest revenue from investments in service contracts 250 236 499 498
Total revenue 72,733 60,291 130,098 104,713
Employee benefits expense (31,836 ) (28,783 ) (59,148 ) (52,226 )
Equipment and supplies expense (19,475 ) (16,836 ) (34,459 ) (30,096 )
Rental expense (6,765 ) (5,050 ) (13,816 ) (10,019 )
Other expenses (2,946 ) (2,487 ) (6,021 ) (5,038 )
Depreciation and amortization expense (2,341 ) (1,983 ) (4,597 ) (3,950 )
Share of profit of equity accounted investments 661 593 347 692
Other gains and losses 732 260 1,125 12
Operating profit 10,763 6,005 13,529 4,088
Finance expense (138 ) (173 ) (368 ) (322 )
Finance income 111 1 208 174
Profit before income taxes 10,736 5,833 13,369 3,940
Income taxes (2,649 ) (1,641 ) (3,539 ) (1,150 )
Profit for the period 8,087 4,192 9,830 2,790
Profit attributable to:
Owners of the Company 7,385 3,388 9,321 2,237
Non-controlling interests 702 804 509 553
Profit for the period 8,087 4,192 9,830 2,790
Basic and diluted earnings per Class A Common Share (2) 1.10 0.50 1.38 0.33
Basic and diluted earnings per Class B Subordinate Voting Share (3)
1.21

0.55

1.52

0.36
Weighted average number of Class A shares outstanding, basic and diluted
3,751,678

3,756,311

3,751,844

3,756,778
Weighted average number of Class B shares outstanding, basic and diluted
2,709,150

2,752,750

2,712,067

2,755,733

(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 Q2 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")
Logistec Corporation
(in thousands of Canadian dollars)
(unaudited)
Condensed Consolidated Interim Statements of Comprehensive Income
For the three months ended For the six months ended
June 29, June 30, June 29, June 30,
2013 2012 2013 2012
Restated (1) Restated (1)
$ $ $ $
Profit for the period 8,087 4,192 9,830 2,790
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
937

137

1,498

9
Gains (losses) on derivatives designated as cash flowhedges
22

(38

)

10

25
Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements ofearnings

4


5


8


10
Income taxes relating to derivatives designated as cash flow hedges
(7

)

9

(5

)

(9

)
Total items that are or may be reclassified to the consolidated statements of earnings
956

113

1,511

35
Items that will not be reclassified to the consolidated statements of earnings
Actuarial gains (losses) on retirement benefits 2,196 (763 ) 2,196 (763 )
Return on retirement plan assets excluding amounts included in profit for the period
352

363

1,423

363
Income taxes on actuarial gains on retirement benefits and return on retirement plan assets excluding amounts included in profit for the period

(686


)


100


(974


)


100
Total items that will not be reclassified to the consolidated statements of earnings
1,862

(300

)

2,645

(300

)
Other comprehensive income (loss) for the period, net of income taxes
2,818

(187

)

4,156

(265

)
Total comprehensive income for the period 10,905 4,005 13,986 2,525
Total comprehensive income attributable to:
Owners of the Company 10,396 3,201 13,477 1,972
Non-controlling interests 509 804 509 553
Total comprehensive income for the period 10,905 4,005 13,986 2,525
(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 Q2 2013 condensed consolidated interim financial statements for further details.
Logistec Corporation
(in thousands of Canadian dollars)
(unaudited)
Condensed Consolidated Interim Statements of Financial Position




As at
June 29,
2013
$




As at
December 31,
2012
Restated (1)
$




As at
January 1,
2012
Restated (1)
$




Assets
Current assets
Cash and cash equivalents 15,864 7,519 8,888
Investments in service contracts 1,704 8,107 13,065
Trade and other receivables 51,141 55,795 45,007
Work in progress 4,916 - -
Current income tax assets 4,438 1,915 2,559
Prepaid expenses 4,031 3,275 2,854
Inventories 5,069 4,492 3,922
87,163 81,103 76,295
Equity accounted investments 26,242 30,967 32,660
Property, plant and equipment 59,742 55,434 47,730
Goodwill 15,089 14,847 10,686
Other intangible assets 18,721 18,594 1,934
Other non-current assets 1,995 2,097 1,927
Post-employment benefit assets 730 441 779
Non-current financial assets 5,679 5,255 5,265
Deferred income tax assets 7,200 8,118 8,066
Total assets 222,561 216,856 185,342
Liabilities
Current liabilities
Short-term bank loans 2,578 2,200 -
Trade and other payables 27,077 28,391 27,020
Deferred revenue 1,566 1,589 819
Current income tax liabilities 1,958 562 1,907
Dividends payable 606 607 594
Current portion of long-term debt 2,169 2,179 2,499
Provisions 1,222 763 488
37,176 36,291 33,327
Long-term debt 13,814 19,808 11,873
Provisions 452 286 148
Deferred income tax liabilities 10,667 9,435 3,440
Post-employment benefit obligations 10,642 14,038 12,564
Non-current financial liabilities 2,865 2,381 2,624
Total liabilities 75,616 82,239 63,976
Equity
Share capital 15,263 15,139 15,149
Retained earnings 121,638 111,328 100,134
Accumulated other comprehensive income (loss) 1,049 (462 ) (305 )
Equity attributable to owners of the Company 137,950 126,005 114,978
Non-controlling interests 8,995 8,612 6,388
Total equity 146,945 134,617 121,366
Total liabilities and equity 222,561 216,856 185,342
(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 Q2 2013 condensed consolidated interim financial statements for further details.
Logistec Corporation
(in thousands of Canadian dollars)
(unaudited)
Condensed Consolidated Interim Statements of Changes in Equity
Attributable to owners of the Company
Accumulated other
comprehensive income
Foreign Non-
Share Cash flow currency Retained controlling Total
capital hedges translation earnings Total interests equity
$ $ $ $ $ $ $
Balance as at January 1, 2013 15,139 (9 ) (453) 111,328 126,005 8,612 134,617
Profit for the period - - - 9,321 9,321 509 9,830
Other comprehensive income
Currency translation differences arising on translation of foreign operations
-

-

1,498

-

1,498

-

1,498
Actuarial gains and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

-


-


-


2,645


2,645


-


2,645
Cash flow hedges, net of income taxes - 13 - - 13 - 13
Total comprehensive income for the period - 13 1,498 11,966 13,477 509 13,986
Repurchase of Class A shares (1 ) - - (13) (14 ) (14 )
Issuance and repurchase of Class B shares 125 - - (431) (306 ) - (306 )
Repurchase of share capital by a subsidiary - - - - - (126 ) (126 )
Dividends on Class A shares - - - (675) (675 ) - (675 )
Dividends on Class B shares - - - (537) (537 ) - (537 )
Balance as at June 29, 2013 15,263 4 1,045 121,638 137,950 8,995 146,945

Restated (1) Attributable to owners of the Company
Accumulated other
comprehensive loss
Foreign Non-
Share Cash flow currency Retained controlling Total
capital hedges translation earnings Total interests equity
$ $ $ $ $ $ $
Balance as at January 1, 2012 15,149 (52 ) (253) 100,134 114,978 6,388 121,366
Profit for the period - - - 2,237 2,237 553 2,790
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations
-

-

9

-

9

-

9
Actuarial losses and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

-


-


-


(300)


(300
)

-


(300
)
Cash flow hedges, net of income taxes - 26 - - 26 - 26
Total comprehensive income for the period - 26 9 1,937 1,972 553 2,525
Repurchase of Class A shares (2 ) - - (34) (36 ) - (36 )
Issuance and repurchase of Class B shares 99 - - (276) (177 ) - (177 )
Dividends on Class A shares - - - (657) (657 ) - (657 )
Dividends on Class B shares - - - (531) (531 ) - (531 )
Balance as at June 30, 2012 15,246 (26 ) (244) 100,573 115,549 6,941 122,490
(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 Q2 2013 condensed consolidated interim financial statements for further details.
Logistec Corporation
(in thousands of Canadian dollars)
(unaudited)
Condensed Consolidated Interim Statements of Cash Flows
For the six months ended
June 29, June 30,
2013 2012
Restated (1)
$ $
Operating activities
Profit for the period 9,830 2,790
Items not affecting cash and cash equivalents 9,177 5,204
Cash generated from operations 19,007 7,994
Dividends received from equity accounted investments 5,500 6,450
Contributions to defined benefit retirement plans (691 ) (664 )
Settlement of provisions (87 ) (229 )
Changes in non-cash working capital items (3,119 ) (11,078 )
Income taxes paid (3,562 ) (5,431 )
17,048 (2,958 )
Financing activities
Net change in short-term bank loans 378 7,608
Repayment of long-term debt (6,017 ) (5,070 )
Interest paid (351 ) (382 )
Repurchase of Class A shares (14 ) (36 )
Issuance of Class B shares 20 6
Repurchase of Class B shares (504 ) (339 )
Repurchase of share capital by a subsidiary (126 ) -
Dividends paid on Class A shares (675 ) (657 )
Dividends paid on Class B shares (537 ) (531 )
(7,826 ) 599
Investing activities
Customer repayment of investments in service contracts 6,403 2,424
Interest received 710 679
Acquisition of property, plant and equipment (8,006 ) (5,526 )
Proceeds from disposal of property, plant and equipment 391 87
Acquisition of intangible assets (18 ) (62 )
Acquisition of other non-current assets - (125 )
Proceeds from disposal of other non-current assets 8 33
(512 ) (2,490 )
Net change in cash and cash equivalents 8,710 (4,849 )
Cash and cash equivalents (2) , beginning of period 7,519 8,888
Effect of exchange rate on balances held in foreign currencies of foreign operations (365 ) (46 )
Cash and cash equivalents (2) , end of period 15,864 3,993
Additional information
Acquisition of property, plant and equipment included in trade and other payables 966 223
(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 Q2 2013 condensed consolidated interim financial statements for further details.
(2) Comprised of cash on hand and in banks

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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