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Press release from Marketwire

Logistec Announces Record Results for the Third Quarter of 2013

Tuesday, November 12, 2013

Logistec Announces Record Results for the Third Quarter of 2013

13:22 EST Tuesday, November 12, 2013

MONTRÉAL, QUÉBEC--(Marketwired - Nov. 12, 2013) - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider, today announced its financial results for the third quarter and first nine months ended September 28, 2013.

During the third quarter of 2013, consolidated revenue rose to another third-quarter record high. Revenue totalled $88.7 million, an increase of $10.3 million or 13.1% over the same period of 2012. The marine services segment's revenue grew by $12.0 million or 33.6% to $47.9 million for the third quarter of 2013, whereas the environmental services segment's revenue amounted to $41.6 million, down $1.0 million from the third quarter of 2012. The growth in the marine services segment reflected an overall increase in cargo volumes handled in all regions. The third quarter of 2013 closed with a consolidated profit attributable to owners of the Company of $11.6 million, compared with $7.1 million for the same period of 2012. For the third quarter of 2013, the profit attributable to owners of the Company translated into total basic and diluted earnings per share of $1.79, of which $1.72 was attributable to Class A Common Shares and $1.89 was attributable to Class B Subordinate Voting Shares.

For the first nine months of 2013, consolidated revenue totalled $218.8 million, compared with $183.2 million for the first nine months of 2012. The profit attributable to owners of the Company amounted to $20.9 million for total basic and diluted earnings per share of $3.23, of which $3.10 was attributable to Class A Common Shares and $3.41 was attributable to Class B Subordinate Voting Shares. This compares favourably to 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 for the same period of 2012.

Outlook

"We are very pleased to report Logistec's best-ever operating performance for the period. We believe that the last quarter of 2013 also looks very promising, as demand for our marine services grows in both Canada and the USA, while our environmental services segment continues 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 23 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 For the nine months ended
September 28,
2013
September 29,
2012
September 28,
2013
September 29,
2012
Restated (1) Restated (1)
$ $ $ $
Revenue 88,686 78,255 218,285 182,470
Interest revenue from investments in service contracts 38 208 537 706
Total revenue 88,724 78,463 218,822 183,176
Employee benefits expense (39,632 ) (36,502 ) (98,780 ) (88,728 )
Equipment and supplies expense (23,503 ) (21,639 ) (57,962 ) (51,735 )
Rental expense (6,328 ) (6,193 ) (20,144 ) (16,212 )
Other expenses (2,851 ) (2,649 ) (8,872 ) (7,687 )
Depreciation and amortization expense (2,406 ) (2,122 ) (7,003 ) (6,072 )
Share of profit of equity accounted investments 3,308 2,511 3,655 3,203
Other gains and losses (276 ) (520 ) 849 (508 )
Operating profit 17,036 11,349 30,565 15,437
Finance expense (88 ) (270 ) (456 ) (592 )
Finance income 105 91 313 265
Profit before income taxes 17,053 11,170 30,422 15,110
Income taxes (3,955 ) (2,554 ) (7,494 ) (3,704 )
Profit for the period 13,098 8,616 22,928 11,406
Profit attributable to:
Owners of the Company 11,569 7,110 20,890 9,347
Non-controlling interests 1,529 1,506 2,038 2,059
Profit for the period 13,098 8,616 22,928 11,406
Basic and diluted earnings per Class A Common Share (2) 1.72 1.05 3.10 1.38
Basic and diluted earnings per Class B Subordinate Voting Share (3) 1.89 1.16 3.41 1.52
Weighted average number of Class A shares outstanding, basic and diluted 3,747,711 3,755,478 3,750,467 3,756,344
Weighted average number of Class B shares outstanding, basic and diluted 2,704,350 2,743,183 2,709,494 2,751,550
(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 Q3 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 For the nine months ended
September 28,
2013
September 29,
2012
September 28,
2013
September 29,
2012
Restated (1) Restated (1)
$ $ $ $
Profit for the period 13,098 8,616 22,928 11,406
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 (581 ) (477 ) 917 (468 )
Gains (losses) on derivatives designated as cash flow hedges (14 ) 9 (4 ) 34
Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings 3 4 11 14
Income taxes relating to derivatives designated as cash flow hedges 3 (4 ) (2 ) (13 )
Share of other comprehensive income of equity accounted investments, net of income taxes (26 ) - (26 ) -
Total items that are or may be reclassified to the consolidated statements of earnings (615 ) (468 ) 896 (433 )
Items that will not be reclassified to the consolidated statements of earnings
Actuarial gains (losses) on retirement benefits - (664 ) 2,196 (1,427 )
Return on retirement plan assets excluding amounts included in profit for the period 893 186 2,316 549
Income taxes on actuarial gains on retirement benefits and return on retirement plan assets excluding amounts included in profit for the period (239 ) 119 (1,213 ) 219
Total items that will not be reclassified to the consolidated statements of earnings 654 (359 ) 3,299 (659 )
Other comprehensive income (loss) for the period, net of income taxes 39 (827 ) 4,195 (1,092 )
Total comprehensive income for the period 13,137 7,789 27,123 10,314
Total comprehensive income attributable to:
Owners of the Company 11,608 6,985 25,085 8,255
Non-controlling interests 1,529 804 2,038 2,059
Total comprehensive income for the period 13,137 7,789 27,123 10,314
(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 Q3 2013 condensed consolidated interim financial statements for further details.
(in thousands of Canadian dollars)
(unaudited)

Condensed Consolidated Interim Statements of Financial Position

As at
September 28,
2013
As at
December 31,
2012
As at
January 1,
2012
Restated (1) Restated (1)
$ $ $
Assets
Current assets
Cash and cash equivalents 17,462 7,519 8,888
Investments in service contracts 1,651 8,107 13,065
Trade and other receivables 66,947 55,795 45,007
Work in progress 4,059 - -
Current income tax assets 5,729 1,915 2,559
Prepaid expenses 3,532 3,275 2,854
Inventories 5,320 4,492 3,922
104,700 81,103 76,295
Equity accounted investments 25,637 30,967 32,660
Property, plant and equipment 60,211 55,434 47,730
Goodwill 14,998 14,847 10,686
Other intangible assets 18,116 18,594 1,934
Other non-current assets 1,719 2,097 1,927
Post-employment benefit assets 840 441 779
Non-current financial assets 5,962 5,255 5,265
Deferred income tax assets 6,946 8,118 8,066
Total assets 239,129 216,856 185,342
Liabilities
Current liabilities
Short-term bank loans 2,325 2,200 -
Trade and other payables 37,102 28,391 27,020
Deferred revenue 1,409 1,589 819
Current income tax liabilities 6,803 562 1,907
Dividends payable 706 607 594
Current portion of long-term debt 2,150 2,179 2,499
Provisions 1,164 763 488
51,659 36,291 33,327
Long-term debt 4,337 19,808 11,873
Provisions 520 286 148
Deferred income tax liabilities 10,508 9,435 3,440
Post-employment benefit obligations 9,931 14,038 12,564
Non-current financial liabilities 3,596 2,381 2,624
Total liabilities 80,551 82,239 63,976
Equity
Share capital 15,189 15,139 15,149
Retained earnings 132,431 111,328 100,134
Accumulated other comprehensive income (loss) 434 (462 ) (305 )
Equity attributable to owners of the Company 148,054 126,005 114,978
Non-controlling interests 10,524 8,612 6,388
Total equity 158,578 134,617 121,366
Total liabilities and equity 239,129 216,856 185,342
(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 Q3 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 for the period - - - 20,890 20,890 2,038 22,928
Other comprehensive income
Currency translation differences arising on translation of foreign operations - - 917 - 917 - 917
Actuarial gains and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes - - - 3,299 3,299 - 3,299
Cash flow hedges, net of income taxes 5 5 - 5
Share of other comprehensive income of equity accounted investments, net of income taxes - (26 ) - - (26 ) - (26 )
Total comprehensive income for the period - (21 ) 917 24,189 25,085 2,038 27,123
Repurchase of Class A shares (10 ) - - (226 ) (236 ) - (236 )
Issuance and repurchase of Class B shares 60 - - (942 ) (882 ) - (882 )
Repurchase of share capital by a subsidiary - - - - - (126 ) (126 )
Dividends on Class A shares - - - (1,069 ) (1,069 ) - (1,069 )
Dividends on Class B shares - - - (849 ) (849 ) - (849 )
Balance as at September 28, 2013 15,189 (30 ) 464 132,431 148,054 10,524 158,578
(in thousands of Canadian dollars)
(unaudited)
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
Profit for the period - - - 9,347 9,347 2,059 11,406
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations - - (468 ) - (468 ) - (468 )
Actuarial losses and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes - - - (659 ) (659 ) - (659 )
Cash flow hedges, net of income taxes - 35 - - 35 - 35
Total comprehensive income for the period - 35 (468 ) 8,688 8,255 2,059 10,314
Repurchase of Class A shares (3 ) - - (45 ) (48 ) - (48 )
Issuance and repurchase of Class B shares 49 - - (521 ) (472 ) - (472 )
Dividends on Class A shares - - - (995 ) (995 ) - (995 )
Dividends on Class B shares - - - (802 ) (802 ) - (802 )
Balance as at September 29, 2012 15,195 (17 ) (721 ) 106,459 120,916 8,447 129,363
(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 Q3 2013 condensed consolidated interim financial statements for further details.
(in thousands of Canadian dollars)
(unaudited)

Condensed Consolidated Interim Statements of Cash Flows

For the nine months ended
September 28,
2013
September 29,
2012
Restated (1)
$ $
Operating activities
Profit for the period 22,928 11,406
Items not affecting cash and cash equivalents 13,542 8,451
Cash generated from operations 36,470 19,857
Dividends received from equity accounted investments 9,500 7,168
Contributions to defined benefit retirement plans (1,051 ) (1,023 )
Settlement of provisions (340 ) (454 )
Changes in non-cash working capital items (7,795 ) (18,275 )
Income taxes paid (3,999 ) (5,386 )
32,785 1,887
Financing activities
Net change in short-term bank loans 125 9,892
Issuance of long-term debt - 16,150
Repayment of long-term debt (15,518 ) (7,790 )
Interest paid (438 ) (720 )
Repurchase of Class A shares (236 ) (48 )
Issuance of Class B shares 20 6
Repurchase of Class B shares (1,079 ) (634 )
Repurchase of share capital by a subsidiary (126 ) -
Dividends paid on Class A shares (1,013 ) (986 )
Dividends paid on Class B shares (805 ) (796 )
(19,070 ) 15,074
Investing activities
Customer repayment of investments in service contracts 6,456 3,677
Interest received 824 975
Business combination - (15,810 )
Acquisition of property, plant and equipment (11,132 ) (7,285 )
Proceeds from disposal of property, plant and equipment 464 158
Acquisition of intangible assets (224 ) (62 )
Acquisition of other non-current assets - (125 )
Proceeds from disposal of other non-current assets 8 49
(3,604 ) (18,423 )
Net change in cash and cash equivalents 10,111 (1,462 )
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 (168 ) 97
Cash and cash equivalents (2) , end of period 17,462 7,523
Additional information
Acquisition of property, plant and equipment included in trade and other payables 649 1,090
(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 Q3 2013 condensed consolidated interim financial statements for further details.
(2) Comprised of cash on hand and in banks, and short-term investments redeemable at all time.
(3) 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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