Logistec Announces Financial Results for the Third Quarter of 2012

Marketwired

MONTREAL, QUEBEC--(Marketwire - Nov 12, 2012) - 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 29, 2012.

During the third quarter of 2012, consolidated revenue reached a record high for the Company, totalling $78.5 million, an increase of $11.3 million or 16.8% over the equivalent period of the previous year. The marine services segment''s revenue grew by $2.8 million to $35.8 million, whereas the environmental services segment''s revenue rose to $42.6 million, an increase of $8.4 million or 24.5% due essentially to the Aqua-Pipe® related business. The consolidated profit attributable to owners of the Company amounted to $7.1 million for the third quarter of 2012, compared with $13.2 million for the equivalent period of 2011, which included a $6.2 million share of gain on partial disposal of a subsidiary of an equity accounted investment. The profit attributable to owners of the Company translated into total basic and diluted earnings per share of $1.10, of which $1.05 is attributable to Class A Common Shares and $1.16 is attributable to Class B Subordinate Voting Shares.

For the first nine months of 2012, consolidated revenue totalled $183.2 million, up by 15.6% over $158.4 million for the first nine months of 2011. The profit attributable to owners of the Company amounted to $9.5 million for total basic and diluted earnings per share of $1.45, of which $1.39 is attributable to Class A Common Shares and $1.53 is attributable to Class B Subordinate Voting Shares. If we exclude the impact of the aforementioned share of gain of $6.2 million, the Company shows an improvement of profit for the period of 18.7%.

Outlook

"Considering that activity in our environmental services segment is still very busy and our marine services segment continues to perform well despite the persisting weakness of the global economy, we are confident we will close 2012 on a positive note. Sanexen''s development is largely focused on aqueduct rehabilitation and site remediation, while cargo handling''s growth is based on the handling of growing biomass volumes and the development of mining resources in Northern Québec. We are also always on the lookout for business acquisition opportunities complementary to our operations, and it was moreover with this in mind that we acquired CrossGlobe Transport, Ltd. last August," 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 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

  For the three months ended   For the nine months ended  
  September 29,
2012
  September 24,
2011
  September 29,
2012
  September 24,
2011
 
  $   $   $   $  
                 
Revenue 78,255   66,888   182,470   157,399  
Interest revenue from investments in service contracts 208   314   706   1,016  
Total revenue 78,463   67,202   183,176   158,415  
                 
Employee benefits expense (36,452 ) (31,451 ) (88,577 ) (78,438 )
Equipment and supplies expense (21,639 ) (19,106 ) (51,735 ) (42,150 )
Rental expense (6,193 ) (5,075 ) (16,212 ) (14,854 )
Other expenses (2,649 ) (2,483 ) (7,687 ) (8,411 )
Depreciation and amortization expense (2,122 ) (2,141 ) (6,072 ) (6,260 )
Share of profit of equity accounted investments 2,511   3,049   3,203   4,045  
Share of gain on disposal of an investment -   6,171   -   6,171  
Other gains and losses (520 ) 399   (508 ) (129 )
Operating profit 11,399   16,565   15,588   18,389  
                 
Finance expense (270 ) (289 ) (592 ) (716 )
Finance income 91   103   265   441  
Profit before income taxes 11,220   16,379   15,261   18,114  
                 
Income taxes (2,567 ) (2,027 ) (3,744 ) (2,243 )
Profit for the period 8,653   14,352   11,517   15,871  
                 
Profit attributable to:                
                 
Owners of the Company 7,147   13,202   9,458   14,608  
                 
Non-controlling interests 1,506   1,150   2,059   1,263  
Profit for the period 8,653   14,352   11,517   15,871  
                 
                 
Basic and diluted earnings per Class A Common Share(1) 1.05   1.94   1.39   2.15  
Basic and diluted earnings per Class B Subordinate Voting Share(2) 1.16   2.13   1.53   2.35  
                 
Weighted average number of Class A shares outstanding, basic and diluted 3,755,478   3,759,011   3,756,344   3,763,189  
Weighted average number of Class B shares outstanding, basic and diluted 2,743,183   2,767,250   2,751,550   2,769,817  
   
(1) Class A Common Share ("Class A share")
(2) Class B Subordinate Voting Share ("Class B share")

Condensed Consolidated Interim Statements of Comprehensive Income

  For the three months ended   For the nine months ended  
  September 29,
2012
  September 24,
2011
  September 29,
2012
  September 24,
2011
 
  $   $   $   $  
                 
Profit for the period 8,653   14,352   11,517   15,871  
                 
Other comprehensive income (loss)                
  Currency translation differences arising on translation of foreign operations (477 ) 247   (468 ) 203  
  Actuarial losses on retirement benefits (478 ) -   (878 ) -  
  Income taxes on actuarial losses on retirement benefits 119   -   219   -  
  Gains on derivatives designated as cash flow hedges 9   -   34   -  
  Transfer of losses on derivatives designated as cash flow hedges to profit or loss 4   -   14   -  
  Income taxes relating to derivatives designated as cash flow hedges (4 ) -   (13 ) -  
  Share of other comprehensive income of equity accounted investments                
    Gains (losses) on derivatives designated as cash flow hedges -   (39 ) -   100  
    Transfer of gains on derivatives designated as cash flow hedges to non-financial assets -   -   -   (19 )
    Income taxes relating to derivatives designated as cash flow hedges -   5   -   (12 )
Other comprehensive income (loss) for the period, net of income taxes (827 ) 213   (1,092 ) 272  
                 
Total comprehensive income for the period 7,826   14,565   10,425   16,143  
                 
Total comprehensive income attributable to:                
                 
Owners of the Company 6,320   13,415   8,366   14,880  
Non-controlling interests 1,506   1,150   2,059   1,263  
Total comprehensive income for the period 7,826   14,565   10,425   16,143  

Condensed Consolidated Interim Statements of Financial Position

  As at
September 29,
 2012
  As at
December 31,
2011
 
  $   $  
         
Assets        
Current assets        
  Cash and cash equivalents 7,523   8,888  
  Investments in service contracts 9,388   13,065  
  Trade and other receivables 67,207   45,007  
  Current income tax assets 3,289   2,559  
  Prepaid expenses 3,537   2,854  
  Inventories 5,226   3,922  
  96,170   76,295  
         
Equity accounted investments 29,102   32,726  
Property, plant and equipment 50,751   47,730  
Goodwill 15,293   10,686  
Other intangible assets 18,781   1,934  
Other non-current assets 1,813   1,927  
Post-employment benefit assets 701   779  
Non-current financial assets 5,711   5,265  
Deferred income tax assets 7,842   7,773  
Total assets 226,164   185,115  
         
Liabilities        
Current liabilities        
  Short-term bank loans 9,892   -  
  Trade and other payables 35,624   27,020  
  Deferred revenue 1,054   819  
  Current income tax liabilities 360   1,907  
  Dividends payable 610   594  
  Current portion of long-term debt 2,274   2,499  
  Provisions 594   488  
  50,408   33,327  
         
Long-term debt 20,462   11,873  
Provisions 244   148  
Deferred income tax liabilities 10,557   3,440  
Post-employment benefit obligations 12,017   11,475  
Non-current financial liabilities 2,140   2,624  
Total liabilities 95,828   62,887  
         
         
Equity        
Share capital 15,195   15,149  
         
Retained earnings 107,432   100,996  
Accumulated other comprehensive loss (738 ) (305 )
Equity attributable to owners of the Company 121,889   115,840  
         
Non-controlling interests 8,447   6,388  
Total equity 130,336   122,228  
         
Total liabilities and equity 226,164   185,115  

Condensed Consolidated Interim Statements of Changes in Equity

  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 ) 100,996   115,840   6,388 122,228  
                           
Profit for the period -   -   -   9,458   9,458   2,059 11,517  
                           
Other comprehensive income (loss)                          
  Currency translation differences arising on translation of foreign operations -   -   (468 ) -   (468 ) - (468 )
  Actuarial losses on retirement benefits, net of income taxes -   -   -   (659 ) (659 ) - (659 )
  Cash flow hedges, net of income taxes -   35   -   -   35   - 35  
Total comprehensive income (loss) for the period -   35   (468 ) 8,799   8,366   2,059 10,425  
                           
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 ) 107,432   121,889   8,447 130,336  
                           
                           
                           
  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, 2011 15,130   - (367 ) 90,702   105,465   4,392 109,857  
                         
Profit for the period -   - -   14,608   14,608   1,263 15,871  
                         
Other comprehensive income                        
  Currency translation differences arising on translation of foreign operations -   - 203   -   203   - 203  
  Share of cash flow hedges of equity accounted investments, net of income taxes -   69 -   -   69   - 69  
Total comprehensive income for the period -   69 203   14,608   14,880   1,263 16,143  
                         
Repurchase and conversion of Class A shares (14 ) - -   (82 ) (96 ) - (96 )
Issuance, repurchase and conversion of Class B shares 56   - -   (426 ) (370 ) - (370 )
Dividends on Class A shares -   - -   (970 ) (970 ) - (970 )
Dividends on Class B shares -   - -   (786 ) (786 ) - (786 )
Balance as at September 24, 2011 15,172   69 (164 ) 103,046   118,123   5,655 123,778  

Condensed Consolidated Interim Statements of Cash Flows

  For the nine months ended  
  September 29,
2012
  September 24,
2011
 
  $   $  
         
Operating activities        
  Profit for the period 11,517   15,871  
  Items not affecting cash and cash equivalents 8,340   (2,183 )
  Cash generated from operations 19,857   13,688  
  Dividends received from equity accounted investments 7,168   3,878  
  Contributions to defined benefit retirement plans (1,023 ) (928 )
  Settlement of provisions (454 ) (324 )
  Changes in non-cash working capital items (18,275 ) (17,674 )
  Income taxes paid (5,386 ) (5,966 )
  1,887   (7,326 )
         
Financing activities        
  Net change in short-term bank loans 9,892   10,724  
  Issuance of long-term debt 16,150   -  
  Repayment of long-term debt (7,790 ) (1,810 )
  Interest paid (720 ) (722 )
  Repurchase of Class A shares (48 ) (96 )
  Issuance of Class B shares 6   4  
  Repurchase of Class B shares (634 ) (505 )
  Dividends paid on Class A shares (986 ) (642 )
  Dividends paid on Class B shares (796 ) (1,101 )
  15,074   5,852  
         
Investing activities        
  Customer repayment of investments in service contracts 3,677   3,367  
  Interest received 975   1,428  
  Business acquisition (15,810 ) -  
  Acquisition of property, plant and equipment (7,285 ) (4,650 )
  Proceeds from disposal of property, plant and equipment 158   90  
  Acquisition of intangible assets (62 ) (70 )
  Acquisition of other non-current assets (125 ) -  
  Proceeds from disposal of other non-current assets 49   -  
  (18,423 ) 165  
         
Net change in cash and cash equivalents (1,462 ) (1,309 )
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 97   (5 )
Cash and cash equivalents(2), end of period 7,523   7,068  
         
         
Additional information        
         
Acquisition of property, plant and equipment included in trade and other payables 1,090   820  
   
(1) Comprised of cash on hand and in banks
(2) Comprised of cash on hand and in banks, and short-term investments redeemable at all times
Contact:
Jean-Claude Dugas CPA, CA
Vice-President, Finance
Logistec Corporation
jdugas@logistec.com
(514) 985-2345

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