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LOGISTEC REPORTS RECORD Q2 2022 RESULTS

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MONTRÉAL, Aug. 4, 2022 /CNW Telbec/ - LOGISTEC Corporation ("LOGISTEC") (TSX: LGT.A) (TSX: LGT.B) (the "Company"), a marine and environmental services provider, announced today its financial results for the three-month and six-month periods ended June 25, 2022. LOGISTEC reports record results for a fifth consecutive quarter as it pursues its bold growth strategy in strong markets.

Logo: Logistec Corporation (CNW Group/Logistec Corporation)
Logo: Logistec Corporation (CNW Group/Logistec Corporation)

Highlights From the Second Quarter of 2022:

  • Consolidated revenue totalled $219.0 million, up $46.5 million or 26.9%.

  • Adjusted EBITDA (1) closed at $34.2 million, up $6.9 million.

  • Total diluted earnings per share of $1.00, up $0.22.

  • Environmental services' backlog stood at $168.0 million.

Highlights From the First Half of 2022:

  • Consolidated revenue totalled $360.4 million, up $83.0 million or 29.9%.

  • Adjusted EBITDA (1) closed at $42.0 million, up $8.5 million.

  • Total diluted earnings per share of $0.54, up $0.20.

"The growth we achieved in both the second quarter and the first half of the year reflects our ability to capitalize on our sectors' strong market fundamentals, which continue to be spurred by the pandemic recovery, the ongoing public infrastructure spending, and the increasing private investments," said Carl Delisle, Chief Financial Officer. "We expect that this favorable backdrop will drive more growth as we are uniquely well positioned to take advantage of the long-term major trends, including the global infrastructure investments, the strengthening of our supply chain resilience, Environmental, Social and Governance ("ESG") priorities, and the related energy transition."

"I am proud of the way the LOGISTEC team, leaders in the field, managed the dynamic operating environment they faced in the second quarter of 2022 and once again we delivered a record performance," reinforced Madeleine Paquin, President and CEO. "And I am very pleased that as we continue to improve on our sustainability footprint by increasing revenues aligned with the United Nation Sustainability Development Goals ("SDGs"). In our recently published Sustainable Development Report, we disclosed that 40% of our 2021 revenue relates to clean revenue, demonstrating our commitment to a sustainable future."

Results From the Period

We delivered strong results for the second quarter of 2022. Consolidated revenue was $219.0 million for the period, an increase of $46.5 million or 26.9% over the same period in 2021. Our core markets are as robust as they have ever been, both in the U.S. and Canada. The diversification of LOGISTEC's activities, our scale, our reach, our deep expertise in the field and solid execution capabilities are leading to our success in essential and evolving supply chains and complex environmental projects.

Marine Services Segment

Revenue from the marine services segment reached $138.8 million in the second quarter of 2022, up $34.3 million or 32.8% compared with the same period in 2021. Our marine services segment continued to deliver excellent performance due to booming trade volumes in our core markets. We seized opportunities in this buoyant market to leverage our network and bring new solutions to today's supply chain challenges for the greater benefit of our customers.

(1)

Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.

Opportunities for growth also included the expansion of our operations into the heartland of the U.S., in Lemont (IL), a strategically located gateway to serve markets in the greater Chicago area. Our operations are already up and running at Lemont with the recent handling of steel pipes destined for the oil and gas market in southern U.S.

We strengthened our partnerships with strategic ports, signing productive long-term agreements across our network. We also made infrastructure improvements for our customers and communities through the purchase of new ecoefficient cranes. By investing in ecofriendly equipment, we are delivering on our ESG plan to reduce our carbon footprint and protect our environment for future generations.

Environmental Services Segment

Revenue from the environmental services segment was $80.1 million, up $12.1 million or 17.8% in the second quarter of 2022.

Although we were fortunate to start the season earlier with respect to our ALTRA water services in Toronto and Montréal, these benefits were somewhat offset by delays and project changes, particularly in American Process Group ("APG"), which led to lower than expected revenue and margins. However, we are now entering into our busy season and the overall book of business remains strong until the end of the year. Furthermore, we recently signed our first Construction, Renovation and Demolition ("CRD") contract, to revalorize residual materials, taking another important step as an environmental leader in deploying new circular economy solutions. The results of our per- and polyfluoroalkyl ("PFAS") pilots were excellent, as our proprietary solution was able to remove more than 99% of the PFAS compounds found in highly contaminated landfill sites.

During this quarter, our environmental team also received the prestigious "Distinction Award for Best Company and Organization" from Réseau Environnement, highlighting excellence in the development of technologies and recognizing the exceptional work of our team to preserve and renew natural resources.

Outlook

As we look forward, we are optimistic for the remainder of 2022. LOGISTEC is well positioned to face the headwinds, thanks to its financial strength, diversification, unique business model, wide-reaching North American network of terminals, and innovative environmental technologies.

Investments in infrastructure and upcoming ambitious ESG initiatives will provide strong growth opportunities over the coming years. Increased cargo handling activities are driven by strong demand, particularly in the U.S. Gulf Coast for the energy sector. Our environmental business is also off to a good start with a solid backlog of over $168.0 million for the second half the year. We are confident that we will continue to deliver a strong financial performance.

Dividends

On August 4, 2022, the Board of Directors elected to increase the dividend payment by 20.0% and declared a dividend of $0.11782 per Class A Common Share and $0.12959 per Class B Subordinate Voting Share, for a total consideration of $1.6 million. These dividends will be paid on October 7, 2022 to shareholders of record as of September 23, 2022.

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 53 ports and 79 terminals located in North America. LOGISTEC also offers marine transportation services geared primarily to the Arctic coastal trade as well as marine agency services to shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental industry where it provides services to industrial, municipal and other governmental customers for the renewal of underground water mains, dredging, dewatering, contaminated soils and materials management, site remediation, risk assessment, and manufacturing of fluid transportation products.

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.

Non-IFRS Measure

Adjusted earnings before interest expense, income taxes, depreciation and amortization expense ("adjusted EBITDA") is not defined by IFRS and cannot be formally presented in financial statements. The definition of adjusted EBITDA excludes the configuration and customization costs related to the implementation of an Enterprise Resource Planning ("ERP") system and the Company's impairment charge. The definition of adjusted EBITDA used by the Company may differ from those used by other companies. Even though adjusted EBITDA is a non-IFRS measure, it is used by managers, analysts, investors, and other financial stakeholders to analyze and assess the Company's performance and management from a financial and operational standpoint.

The following table provides a reconciliation of profit for the period to adjusted EBITDA:

(in thousands of Canadian dollars)



For the three months ended

For the six months ended


June 25,

2022
$

June 26,

  2021
$

June 25,

2022

$

June 26,

  2021
$

Profit for the period

13,150

10,287

7,252

4,666

PLUS:





Depreciation and amortization expense

14,037

11,883

26,834

23,244

Net finance expense

3,105

2,522

5,934

4,955

Income taxes

2,049

2,542

(361)

616

Configuration and customization costs in a cloud
   computing arrangement

1,881

2,364

Adjusted EBITDA

34,222

27,234

42,023

33,481






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 position 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 2021 annual report and include (but are not limited to) the impact of the COVID-19 pandemic on the Company's business and results of operations, 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.

Q2 2022 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(unaudited)

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS

(in thousands of Canadian dollars, except per share amounts and number of shares)


For the three months ended

For the six months ended


June 25,

2022

$

June 26,

2021

$

June 25,

2022

$

June 26,

2021

$

Revenue

218,972

172,593

360,414

277,443

Employee benefits expense

(106,678)

(79,618)

(180,950)

(137,596)

Equipment and supplies expense

(60,477)

(47,397)

(100,999)

(73,121)

Operating expense

(15,263)

(10,524)

(27,355)

(20,146)

Other expenses

(8,725)

(7,877)

(15,980)

(13,698)

Depreciation and amortization expense

(14,037)

(11,883)

(26,834)

(23,244)

Share of profit of equity accounted investments

5,122

936

6,069

2,087

Other losses

(610)

(879)

(1,540)

(1,488)

Operating profit

18,304

15,351

12,825

10,237

Finance expense

(3,261)

(2,708)

(6,202)

(5,257)

Finance income

156

186

268

302

Profit before income taxes

15,199

12,829

6,891

5,282

Income taxes

(2,049)

(2,542)

361

(616)

Profit for the period

13,150

10,287

7,252

4,666

Profit attributable to:





Owners of the Company

13,024

10,241

7,006

4,517

Non-controlling interest

126

46

246

149

Profit for the period

13,150

10,287

7,252

4,666

Basic earnings per Class A Common Share (1)

0.96

0.75

0.52

0.33

Basic earnings per Class B Subordinate Voting Share (2)

1.06

0.84

0.57

0.37

Diluted earnings per Class A share

0.95

0.75

0.51

0.33

Diluted earnings per Class B share

1.06

0.83

0.57

0.36

Weighted average number of Class A Shares outstanding, basic and
   diluted

7,371,689

7,377,022

7,374,355

7,377,022

Weighted average number of Class B Shares outstanding, basic

5,522,156

5,625,162

5,601,413

5,590,708

Weighted average number of Class B Shares outstanding, diluted

5,614,501

5,734,027

5,677,914

5,737,044



(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)






For the three months ended

For the six months ended


June 25,

2022

$

June 26,

2021

$

June 25,

2022

$

June 26,

2021

$






Profit for the period

13,150

10,287

7,252

4,666






Other comprehensive income (loss)





Items that are or may be reclassified to the consolidated
   statements of earnings





Currency translation differences arising on translation of foreign
   operations

6,142

(4,542)

3,653

(6,007)

Unrealized (loss) gain on translating debt designated as
   hedging item of the net investment in foreign operations

(2,069)

3,546

(1,224)

4,488

Income taxes relating to translation of debt designated as
   hedging item of the net investment in foreign operations

274

(235)

162

(360)

Gain on derivatives designated as cash flow hedges

1,137

26

1,613

90

Income taxes relating to derivatives designated as cash flow
   hedges

(122)

(7)

(428)

(24)

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

5,362

(1,212)

3,776

(1,813)






Items that will not be reclassified to the consolidated statements
   of earnings





Remeasurement gains on benefit obligation

4,642

9,239

4,174

Return on retirement plan assets

(1,431)

622

(2,884)

93

Income taxes on remeasurement of benefit obligation and
   return on retirement plan assets

(850)

(165)

(1,684)

(1,131)

Total items that will not be reclassified to the consolidated
   statements of earnings

2,361

457

4,671

3,136

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

taxes

7,723

(755)

8,447

1,323

Total comprehensive income for the period

20,873

9,532

15,699

5,989

Total comprehensive income attributable to:





Owners of the Company

20,704

9,506

15,427

5,871

Non-controlling interest

169

26

272

118

Total comprehensive income for the period

20,873

9,532

15,699

5,989

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)




As at
June 25,
2022
$

As at
December 31,
2021
$

Assets



Current assets



Cash and cash equivalents

17,069

37,530

Trade and other receivables

177,618

183,322

Contract assets

28,311

7,517

Current income tax assets

12,915

7,597

Inventories

21,584

16,830

Prepaid expenses and other

11,697

10,437


269,194

263,233

Equity accounted investments

46,705

46,311

Property, plant and equipment

223,206

207,321

Right-of-use assets

157,555

135,049

Goodwill

184,096

182,706

Intangible assets

38,645

41,043

Non-current assets

2,428

2,448

Non-current financial assets

6,332

5,902

Deferred income tax assets

13,119

14,958

Total assets

941,280

898,971

Liabilities



Current liabilities



Short-term bank loans

4,202

8,600

Trade and other payables

118,712

127,044

Contract liabilities

12,837

14,801

Current income tax liabilities

4,413

10,442

Dividends payable

1,313

1,338

Current portion of lease liabilities

16,890

15,775

Current portion of long-term debt

5,404

3,427


163,771

181,427

Lease liabilities

148,327

125,249

Long-term debt

231,090

191,927

Deferred income tax liabilities

24,929

25,684

Post-employment benefit obligations

10,341

16,212

Contract liabilities

1,933

2,133

Non-current liabilities

41,497

40,730

Total liabilities

621,888

583,362

Equity



Share capital

49,505

50,889

Retained earnings

255,766

254,621

Accumulated other comprehensive income

12,801

9,051

Equity attributable to owners of the Company

318,072

314,561

Non-controlling interest

1,320

1,048

Total equity

319,392

315,609

Total liabilities and equity

941,280

898,971

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars)





Attributable to owners of the Company



Share capital
issued
$

Retained
earnings
$

Accumulated
other
comprehensive
income
$

Total
$

Non-
controlling
interest
$

Total equity
$

Balance as at January 1, 2022

50,889

254,621

9,051

314,561

1,048

315,609

Profit for the period

7,006

7,006

246

7,252

Other comprehensive income (loss)







Currency translation differences arising on
   translation of foreign operations

3,627

3,627

26

3,653

Unrealized loss on translating debt
   designated as hedging item of the net
   investment in foreign operations, net of
   income taxes

(1,062)

(1,062)

(1,062)

Remeasurement gains on benefit
   obligation and return on retirement plan
   assets, net of income taxes

4,671

4,671

4,671

Cash flow hedges, net of income taxes

1,185

1,185

1,185

Total comprehensive income for the period

11,677

3,750

15,427

272

15,699

Net remeasurement of written put option
   liability

(124)

(124)

(124)

Issuance and repurchase of Class B shares

(1,384)

(7,872)

(9,256)

(9,256)

Class B shares to be issued under the
   Executive Stock Option Plan

241

241

241

Other dividend 

(127)

(127)

(127)

Dividends on Class A shares

(1,447)

(1,447)

(1,447)

Dividends on Class B shares

(1,203)

(1,203)

(1,203)

Balance as at June 25, 2022

49,505

255,766

12,801

318,072

1,320

319,392








CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

(in thousands of Canadian dollars)


Attributable to owners of the Company



Share
capital
issued
$

Share
capital to
be issued
$

Retained
earnings
$

Accumulated
other
comprehensive
income
$

 

 

 

Total
$

Non-
controlling
interest
$

Total
equity
$

Balance as at January 1, 2021

45,575

4,906

242,358

7,943

300,782

789

301,571

Profit for the year

4,517

4,517

149

4,666

Other comprehensive (loss) income








Currency translation differences arising on
   translation of foreign operations

(5,976)

(5,976)

(31)

(6,007)

Unrealized gain on translating debt
   designated as hedging item of the net
   investment in foreign operations, net of
   income taxes

4,128

4,128

4,128

Remeasurement gains on benefit
   obligation and return on retirement plan
   assets, net of income taxes

3,136

3,136

3,136

Cash flow hedges, net of income taxes

66

66

66

Total comprehensive income (loss) for the
   period

7,653

(1,782)

5,871

118

5,989

Remeasurement of written put option liability

(593)

(593)

(593)

Repurchase of Class B shares

(83)

(338)

(421)

(421)

Issuance of Class B share capital to a
   subsidiary shareholder

4,906

(4,906)

Class B shares to be issued under the
   Executive Stock Option Plan

105

105

105

Dividends on Class A shares

(1,380)

(1,380)

(1,380)

Dividends on Class B shares

(1,160)

(1,160)

(1,160)

Balance as at June 26, 2021

50,398

246,645

6,161

303,204

907

304,111









CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(in thousands of Canadian dollars)





For the six months ended

June 25,
2022
$

June 26,
2021
$

Operating activities



Income for the period

7,252

4,666

Items not affecting cash and cash equivalents

27,952

28,875

Cash generated from operations

35,204

33,541

Dividends received from equity accounted investments

5,675

615

Contributions to defined benefit retirement plans

(393)

(428)

Settlement of provisions

(351)

(271)

Changes in non-cash working capital items

(20,774)

6,563

Income taxes paid

(10,715)

(6,607)


8,646

33,413

Financing activities



Net change in short-term bank loans

(4,361)

Issuance of long-term debt, net of transaction costs

76,343

40,870

Repayment of long-term debt

(37,367)

(2,667)

Repayment of other non-current liabilities

(2,432)

Repayment of lease liabilities

(7,678)

(6,584)

Interest paid

(6,056)

(6,253)

Issuance of Class B shares

221

Repurchase of Class B shares

(9,937)

(421)

Dividends paid on Class A shares

(1,449)

(1,380)

Dividends paid on Class B shares

(1,227)

(1,145)


8,489

19,988

Investing activities



Dividends paid to a non-controlling interest

(8,826)

Acquisition of property, plant and equipment

(27,607)

(19,520)

Proceeds from disposal of property, plant and equipment

798

316

Business combinations

(3,264)

(50,000)

Acquisition of intangible assets

(211)

(16)

Interest received

78

512

Cash receipts from other non-current financial assets

705

698

Acquisition of other non-current assets

(362)

(104)

Proceeds from disposal of other non-current assets

282

44


(38,407)

(68,070)

Net change in cash and cash equivalents

(21,272)

(14,669)

Cash and cash equivalents, beginning of year

37,530

46,778

Effect of exchange rate on balances held in foreign currencies of foreign operations

811

288

Cash and cash equivalents, end of period

17,069

32,397

Additional information



Acquisition of property, plant and equipment included in trade and other payables

2,906

3,384

Issuance of Class B shares under the Employee Stock Purchase Plan for non-interest-bearing
   loans

460

 

SOURCE Logistec Corporation

Cision
Cision

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