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Press release from CNW Group

Logistec announces record results for the first quarter of 2014

Wednesday, May 07, 2014

Logistec announces record results for the first quarter of 2014

13:17 EDT Wednesday, May 07, 2014

MONTRÉAL, May 7, 2014 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the first quarter ended March 29, 2014.

During the first quarter of 2014, consolidated revenue totalled $62.7 million, an increase of $5.4 million or 9.4% over the equivalent period of the previous year. The marine services segment's revenue grew by $1.6 million or 3.7% to $45.8 million for the first quarter of 2014, whereas the environmental services segment's revenue amounted to $17.0 million, up by $3.7 million or 27.9% over the first quarter of 2013. The revenue growth in the marine services segment came from an increase in bulk cargo volumes, while the revenue growth in the environmental services segment can be explained by the performance of our woven-hose manufacturing and management of PCB activities. The first quarter of 2014 closed with a consolidated profit attributable to owners of the Company of $4.3 million, compared to $1.9 million for the first quarter of 2013. The profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.68, of which $0.65 was attributable to Class A Common Shares and $0.72 was attributable to Class B Subordinate Voting Shares.

The momentum set in 2013 has carried on into 2014. Going forward, we have signed a multi-year contract with a mining company operating in Northern Québec, further cementing our involvement in the mining industry. During the first quarter, we also acquired a majority position in our joint venture, Mestco Terminal Inc., in Montréal (QC), which, incidentally, becomes a subsidiary of the Company. This transaction strengthens our position and confirms our interest in the port logistics industry.

Outlook
"As shown by our record first quarter performance, our outlook is favourable for 2014, since our Company should benefit from the ongoing turnaround of the U.S. economy and further capitalize on the growth drivers that served it so well in 2013, namely mining, biomass, containers and port logistics. We also believe our cargo handling business is likely to continue growing in all of our cargo types, as well as on a geographical basis. Finally, we are confident in regard to Sanexen's capacity to deliver another solid performance in 2014, as we expect an increase in the demand for services related to the Aqua-Pipe technology, further improvement in sales of woven hoses and a satisfactory level of site remediation activity," 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 27 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, 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 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 atwww.logistec.com.

Condensed Consolidated Interim Statements of Earnings    
(in thousands of Canadian dollars except for per share amounts and number of shares)
(unaudited)
   
     
  For the three months ended
  March 29,
2014
March 30,
2013
  $ $
     
Revenue 62,735 57,365
     
Employee benefits expense (28,594) (27,312)
Equipment and supplies expense (18,424) (14,984)
Rental expense (6,290) (7,051)
Other expenses (3,217) (3,075)
Depreciation and amortization expense (2,482) (2,256)
Share of profit (loss) of equity accounted investments 188 (314)
Other gains and losses 2,059 393
Operating profit 5,975 2,766
     
Finance expense (91) (230)
Finance income 114 97
Profit before income taxes 5,998 2,633
     
Income taxes (1,606) (890)
Profit for the period 4,392 1,743
     
Profit attributable to:    
     
Owners of the Company 4,347 1,936
     
Non-controlling interests 45 (193)
Profit for the period 4,392 1,743
     
     
Basic and diluted earnings per Class A Common Share (1) 0.65 0.29
Basic and diluted earnings per Class B Subordinate Voting Share (2) 0.72 0.32
     
Weighted average number of Class A shares outstanding, basic and diluted 3,735,011 3,752,011
Weighted average number of Class B shares outstanding, basic and diluted 2,626,317 2,714,983

(1) Class A Common Share ("Class A share")
(2) Class B Subordinate Voting Share ("Class B share")

Condensed Consolidated Interim Statements of Comprehensive Income    
(in thousands of Canadian dollars)
(unaudited)
   
     
  For the three months ended
  March 29,
2014
March 30,
2013
  $ $
     
Profit for the period 4,392 1,743
     
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 1,094 561
    Losses on derivatives designated as cash flow hedges (2) (12)
    Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings 2 4
    Income taxes relating to derivatives designated as cash flow hedges - 2
  Total items that are or may be reclassified to the consolidated statements of earnings 1,094 555
     
  Items that will not be reclassified to the consolidated statements of earnings    
    Remeasurement losses on benefit obligation (791) -
    Return on retirement plan assets excluding amounts included in profit for the period 706 1,071
    Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period 23 (288)
    Share of other comprehensive income of equity accounted investments, net of income taxes 34 -
  Total items that will not be reclassified to the consolidated statements of earnings (28) 783
     
Other comprehensive income for the period, net of income taxes 1,066 1,338
     
Total comprehensive income for the period 5,458 3,081
     
Total comprehensive income attributable to:    
     
Owners of the Company 5,413 3,274
Non-controlling interests 45 (193)
Total comprehensive income for the period 5,458 3,081

Condensed Consolidated Interim Statements of Financial Position    
(in thousands of Canadian dollars)
(unaudited)
   
  As at
March 29,
2014
As at
December 31,
2013
  $ $
     
Assets    
Current assets    
  Cash and cash equivalents 19,738 19,638
  Investments in service contracts 1,541 1,597
  Trade and other receivables 51,446 69,035
  Work in progress 1,178 254
  Current income tax assets 3,316 1,569
  Prepaid expenses 3,378 2,614
  Inventories 5,174 5,241
  85,771 99,948
     
Equity accounted investments 24,705 26,517
Property, plant and equipment 66,976 63,027
Goodwill 17,518 15,139
Other intangible assets 18,531 18,295
Other non-current assets 1,724 1,433
Post-employment benefit assets 927 870
Non-current financial assets 4,983 6,251
Deferred income tax assets 8,459 7,826
Total assets 229,594 239,306
     
Liabilities    
Current liabilities    
  Short-term bank loans - 2,087
  Trade and other payables 23,621 31,999
  Deferred revenue 1,955 1,597
  Current income tax liabilities 1,294 4,838
  Dividends payable 693 699
  Current portion of long-term debt 2,185 2,034
  Provisions 678 1,320
  30,426 44,574
     
Long-term debt 4,539 3,598
Provisions 573 604
Deferred income tax liabilities 10,477 10,201
Post-employment benefit obligations 11,437 11,275
Non-current financial liabilities 6,267 5,372
Total liabilities 63,719 75,624
     
Equity    
Share capital 14,812 15,030
Retained earnings 136,147 135,552
Accumulated other comprehensive income 2,401 1,309
Equity attributable to owners of the Company 153,360 151,891
     
Non-controlling interests 12,515 11,791
Total equity 165,875 163,682
     
Total liabilities and equity 229,594 239,306

Condensed Consolidated Interim Statements of Changes in Equity              
(in thousands of Canadian dollars)
(unaudited)
             
  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, 2014 15,030 (33) 1,342 135,552 151,891 11,791 163,682
               
Profit for the period - - - 4,347 4,347 45 4,392
               
Other comprehensive income (loss)              
  Currency translation differences arising on
translation of foreign operations
- - 1,094 - 1,094 - 1,094
  Remeasurement losses on benefit obligation and
return on retirement plan assets excluding
amounts included in profit for the year, net of
income taxes
- - - (62) (62) - (62)
  Share of other comprehensive income of equity
accounted investments, net of income taxes
- (2) - 36 34 - 34
Total comprehensive income (loss) for the period - (2) 1,094 4,321 5,413 45 5,458
               
Repurchase of Class A shares (3) - - (159) (162) - (162)
Repurchase of Class B shares (215) - - (2,874) (3,089) - (3,089)
Non-controlling interest arising on business
acquisition
- - - - - 1,475 1,475
Repurchase of share capital by a subsidiary - - - - - (796) (796)
Dividends on Class A shares - - - (392) (392) - (392)
Dividends on Class B shares - - - (301) (301) - (301)
Balance as at March 29, 2014 14,812 (35) 2,436 136,147 153,360 12,515 165,875

  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, 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 retirement 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

Condensed Consolidated Interim Statements of Cash Flows    
(in thousands of Canadian dollars)
(unaudited)
   
  For the three months ended
  March 29,
2014
March 30,
2013
  $ $
     
Operating activities    
  Profit for the period 4,392 1,743
  Items not affecting cash and cash equivalents 3,795 4,184
  Cash generated from operations 8,187 5,927
     
  Dividends received from equity accounted investments 1,675 5,500
  Contributions to defined benefit retirement plans (328) (294)
  Settlement of provisions (45) (62)
  Changes in non-cash working capital items 8,089 990
  Income taxes paid (6,834) (2,223)
  10,744 9,838
     
Financing activities    
  Net change in short-term bank loans (2,087) (1,733)
  Repayment of long-term debt (369) (2,339)
  Interest paid (72) (430)
  Repurchase of Class A shares (163) -
  Repurchase  of Class B shares (3,089) (378)
  Repurchase of share capital by a subsidiary (796) -
  Dividends paid on Class A shares (392) (337)
  Dividends paid on Class B shares (307) (270)
  (7,275) (5,487)
     
Investing activities    
  Customer repayment of investments in service contracts 56 51
  Interest received 158 333
  Cash acquired in a business acquisition 319 -
  Acquisition of property, plant and equipment (3,358) (4,385)
  Proceeds from disposal of property, plant and equipment 101 192
  Acquisition of intangible assets (182) (14)
  Acquisition of other non-current assets (20) -
  Proceeds from disposal of other non-current assets 24 8
  (2,902) (3,815)
     
Net change in cash and cash equivalents 567 536
Cash and cash equivalents, beginning of period 19,638 7,519
Effect of exchange rate on balances held in foreign currencies of foreign operations (467) (112)
Cash and cash equivalents, end of period 19,738 7,943
     
     
Additional information    
     
Acquisition of property, plant and equipment included in trade and other payables 748 537

 

 

 

 

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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