MONTREAL, QUEBEC--(Marketwire - May 9, 2012) - Logistec Corporation (LGT-A.TO - News)(LGT-B.TO - News), a marine and environmental services provider, today announced its financial results for the first quarter ended March 31, 2012.
During the first quarter of 2012, consolidated revenue totalled $44.4 million, an increase of $3.4 million or 8.2% over the equivalent period of the previous year. The marine services segment's revenue was stable at $30.6 million whereas the environmental services segment's revenue amounted to $13.8 million, up by $3.2 million over the first quarter of 2011, as a result of increased site remediation activity and improved sales of woven hoses. The first quarter of 2012 closed with a consolidated loss attributable to owners of the Company of $1.1 million, compared with a profit of $0.1 million for the first quarter of 2011. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $(0.17), of which $(0.16) is attributable to Class A Common Shares and $(0.18) to Class B Subordinate Voting Shares.
Outlook
"The first quarter always attests to the seasonal nature of our marine and environmental services segments in that winter temperatures slow down our business and therefore affect our profitability. However, experience has shown that these results are not a reliable indicator of our performance in upcoming quarters. In an economic context that remains uncertain, we continue to capitalize on relatively stable container volumes, on reinforcing biomass handling operations at our Brunswick (GA) terminal, as well as on the solid positioning of our cargo-handling and shipping activities in connection with Quebec's Plan Nord. Furthermore, our subsidiary Sanexen benefits from a strong order backlog for its site remediation services. Finally, we also look forward to growing demand for Aqua-Pipe(R) technology related services, as municipalities are expected to resume their capital spending on aging water main networks," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.
About Logistec
Logistec Corporation is based in Montreal (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 companies and municipalities 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.
Condensed Consolidated Interim Statements of Earnings
(column figures are in thousands of Canadian dollars, except for number of
shares and per share amounts)
(unaudited)
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For the three months ended
March 31, March 26,
2012 2011
$ $
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Revenue 44,160 40,679
Interest revenue from investments in service
contracts 262 363
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Total revenue 44,422 41,042
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Employee benefits expense (23,392) (21,261)
Equipment and supplies expense (13,260) (10,554)
Rental expense (4,969) (5,134)
Other expenses (2,551) (2,245)
Depreciation and amortization expense (1,967) (1,876)
Share of profit of equity accounted investments 100 132
Other gains and losses (248) (104)
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Operating profit (loss) (1,865) -
----------------------------------------------------------------------------
Finance expense (149) (235)
Finance income 173 108
----------------------------------------------------------------------------
Loss before income taxes (1,841) (127)
Income taxes recovery 477 62
----------------------------------------------------------------------------
Loss for the period (1,364) (65)
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Profit (loss) attributable to:
----------------------------------------------------------------------------
Owners of the Company (1,113) 77
----------------------------------------------------------------------------
Non-controlling interests (251) (142)
----------------------------------------------------------------------------
Loss for the period (1,364) (65)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted earnings (loss) per Class A
Common Share (1) (0.16) 0.01
Basic and diluted earnings (loss) per Class B
Subordinate Voting Share (2) (0.18) 0.01
----------------------------------------------------------------------------
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Weighted average number of Class A shares
outstanding, basic and diluted 3,757,244 3,768,344
Weighted average number of Class B shares
outstanding, basic and diluted 2,758,717 2,772,150
(1) Class A Common Share ("Class A share")
(2) Class B Subordinate Voting Share ("Class B share")
Condensed Consolidated Interim Statements of Comprehensive Income
(column figures are in thousands of Canadian dollars, except for number of
shares and per share amounts)
(unaudited)
----------------------------------------------------------------------------
For the three months ended
March 31, March 26,
2012 2011
$ $
----------------------------------------------------------------------------
Loss for the period (1,364) (65)
----------------------------------------------------------------------------
Other comprehensive income (loss)
Currency translation differences arising on
translation of foreign operations (128) (79)
Gains on derivatives designated as cash flow
hedges 63 -
Transfer of losses on derivatives designated
as cash flow hedges to profit or loss 5 -
Income taxes relating to derivatives
designated as cash flow hedges (18) -
Share of other comprehensive income of
equity accounted investments
Gains on derivatives designated as cash
flow hedges - 118
Income taxes relating to derivatives
designated as cash flow hedges - (17)
----------------------------------------------------------------------------
Other comprehensive income (loss) for the
period, net of income taxes (78) 22
----------------------------------------------------------------------------
Total comprehensive loss for the period (1,442) (43)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total comprehensive income (loss) attributable
to:
Owners of the Company (1,191) 99
Non-controlling interests (251) (142)
----------------------------------------------------------------------------
Total comprehensive loss for the period (1,442) (43)
----------------------------------------------------------------------------
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Condensed Consolidated Interim Statements of Financial Position
(column figures are in thousands of Canadian dollars, except for number of
shares and per share amounts)
(unaudited)
----------------------------------------------------------------------------
As at As at
March 31, December 31,
2012 2011
$ $
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents 4,007 8,888
Investments in service contracts 11,866 13,065
Trade and other receivables 31,050 45,007
Current income tax assets 4,561 2,559
Prepaid expenses 3,260 2,854
Inventories 4,138 3,922
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58,882 76,295
Equity accounted investments 32,942 32,726
Property, plant and equipment 48,605 47,730
Goodwill 10,686 10,686
Other intangible assets 1,791 1,934
Other non-current assets 1,943 1,927
Post-employment benefit assets 754 779
Non-current financial assets 5,153 5,265
Deferred income tax assets 7,794 7,773
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Total assets 168,550 185,115
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Current liabilities
Short-term bank loans 553 -
Trade and other payables 17,375 27,020
Deferred revenue 758 819
Current income tax liabilities 67 1,907
Dividends payable 594 594
Current portion of long-term debt 2,419 2,499
Provisions 556 488
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22,322 33,327
Long-term debt 8,864 11,873
Provisions 150 148
Deferred income tax liabilities 3,440 3,440
Post-employment benefit obligations 11,396 11,475
Non-current financial liabilities 2,229 2,624
----------------------------------------------------------------------------
Total liabilities 48,401 62,887
----------------------------------------------------------------------------
Equity
Share capital 15,142 15,149
Retained earnings 99,253 100,996
Accumulated other comprehensive loss (383) (305)
----------------------------------------------------------------------------
Equity attributable to owners of the Company 114,012 115,840
Non-controlling interests 6,137 6,388
----------------------------------------------------------------------------
Total equity 120,149 122,228
----------------------------------------------------------------------------
Total liabilities and equity 168,550 185,115
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Condensed Consolidated Interim Statements of Changes in Equity
(column figures are in thousands of Canadian dollars, except for number of
shares and per share amounts)
(unaudited)
----------------------------------------------------------------------------
Attributable to owners of the Company
---------------------------------------------------
Accumulated other
comprehensive loss
----------------------
Foreign
Share Cash flow currency Retained
capital hedges translation earnings Total
$ $ $ $ $
----------------------------------------------------------------------------
Balance as at January 1,
2012 15,149 (52) (253) 100,996 115,840
----------------------------------------------------------------------------
Loss for the period - - - (1,113) (1,113)
Other comprehensive
income
Currency translation
differences arising
on translation of
foreign operations - - (128) - (128)
Cash flow hedges, net
of income taxes - 50 - - 50
----------------------------------------------------------------------------
Total comprehensive
income (loss) for the
period - 50 (128) (1,113) (1,191)
----------------------------------------------------------------------------
Repurchase and
conversion of Class A
shares - - - (8) (8)
Repurchase and
conversion of Class B
shares (7) - - (28) (35)
Dividends on Class A
shares - - - (329) (329)
Dividends on Class B
shares - - - (265) (265)
----------------------------------------------------------------------------
Balance as at March 31,
2012 15,142 (2) (381) 99,253 114,012
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-----------------------------------------------------
Non-
controlling
interests Total equity
$ $
------------------------------------------------------
Balance as at January 1,
2012 6,388 122,228
------------------------------------------------------
Loss for the period (251) (1,364)
Other comprehensive
income
Currency translation
differences arising
on translation of
foreign operations - (128)
Cash flow hedges, net
of income taxes - 50
------------------------------------------------------
Total comprehensive
income (loss) for the
period (251) (1,442)
------------------------------------------------------
Repurchase and
conversion of Class A
shares - (8)
Repurchase and
conversion of Class B
shares - (35)
Dividends on Class A
shares - (329)
Dividends on Class B
shares - (265)
------------------------------------------------------
Balance as at March 31,
2012 6,137 120,149
------------------------------------------------------
------------------------------------------------------
----------------------------------------------------------------------------
Attributable to owners of the Company
--------------------------------------------------
Accumulated other
comprehensive loss
---------------------
Foreign
Share Cash flow currency Retained
capital hedgestranslation earnings Total
$ $ $ $ $
----------------------------------------------------------------------------
Balance as at January 1,
2011 15,130 - (367) 90,702 105,465
----------------------------------------------------------------------------
Profit (loss) for the
period - - - 77 77
Other comprehensive
income
Currency translation
differences arising on
translation of foreign
operations - - (79) - (79)
Share of cash flow
hedges of equity
accounted investments,
net of income taxes - 101 - - 101
----------------------------------------------------------------------------
Total comprehensive
income (loss) for the
period - 101 (79) 77 99
----------------------------------------------------------------------------
Repurchase and conversion
of Class A shares (4) - - (35) (39)
Repurchase and conversion
of Class B shares (20) - - (99) (119)
Dividends on Class A
shares - - - (321) (321)
Dividends on Class B
shares - - - (260) (260)
----------------------------------------------------------------------------
Balance as at March 26,
2011 15,106 101 (446) 90,064 104,825
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-------------------------------------------------------
Non-
controlling
interests Total equity
$ $
-------------------------------------------------------
Balance as at January 1,
2011 4,392 109,857
-------------------------------------------------------
Profit (loss) for the
period (142) (65)
Other comprehensive
income
Currency translation
differences arising on
translation of foreign
operations - (79)
Share of cash flow
hedges of equity
accounted investments,
net of income taxes - 101
-------------------------------------------------------
Total comprehensive
income (loss) for the
period (142) (43)
-------------------------------------------------------
Repurchase and conversion
of Class A shares - (39)
Repurchase and conversion
of Class B shares - (119)
Dividends on Class A
shares - (321)
Dividends on Class B
shares - (260)
-------------------------------------------------------
Balance as at March 26,
2011 4,250 109,075
-------------------------------------------------------
-------------------------------------------------------
Condensed Consolidated Interim Statements of Cash Flows
(column figures are in thousands of Canadian dollars, except for number of
shares and per share amounts)
(unaudited)
----------------------------------------------------------------------------
For the three months ended
March 31, March 26,
2012 2011
$ $
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Operating activities
Loss for the period (1,364) (65)
Items not affecting cash and cash
equivalents 1,461 2,182
----------------------------------------------------------------------------
Cash generated from operations 97 2,117
Contributions to defined benefit retirement
plans (325) (271)
Settlement of provisions (162) (53)
Changes in non-cash working capital items 3,421 240
Income taxes paid (3,333) (2,708)
----------------------------------------------------------------------------
(302) (675)
----------------------------------------------------------------------------
Financing activities
Net change in short-term bank loans 553 92
Repayment of long-term debt (3,078) (451)
Interest paid (199) (200)
Repurchase of Class A shares (8) (39)
Repurchase of Class B shares (35) (119)
Dividends paid on Class A shares (329) (321)
Dividends paid on Class B shares (265) (261)
----------------------------------------------------------------------------
(3,361) (1,299)
----------------------------------------------------------------------------
Investing activities
Customer repayment of investments in service
contracts 1,199 1,098
Interest received 354 458
Disposal of other non-current assets 16 -
Acquisition of property, plant and equipment (2,666) (1,477)
Proceeds from disposal of property, plant
and equipment 24 50
Acquisition of intangible assets (66) -
Acquisition of other non-current assets (125) -
----------------------------------------------------------------------------
(1,264) 129
----------------------------------------------------------------------------
Net change in cash and cash equivalents (4,927) (1,845)
Cash and cash equivalents (1), beginning of
period 8,888 8,382
Effect of exchange rate on balances held in
foreign currencies of foreign operations 46 (2)
----------------------------------------------------------------------------
Cash and cash equivalents (1), end of period 4,007 6,535
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Additional information
Acquisition of property, plant and equipment
included in trade and other payables 404 103
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(1)Comprised of cash on hand and in banks
