MONTREAL, QUEBEC -- (Marketwire) -- 11/12/12 -- 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 Quebec. 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 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 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, September 24, September 29, September 24, 2012 2011 2012 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, September 24, September 29, September 24, 2012 2011 2012 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 As at September 29, December 31, 2012 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 ---------------------- Cash Foreign Share flow currency Retained capital hedges translation earnings Total $ $ $ $ $ ---------------------------------------------------------------------------- Balance as at January 1, 2012 15,149 (52) (253) 100,996 115,840 ---------------------------------------------------------------------------- Profit for the period - - - 9,458 9,458 Other comprehensive income (loss) Currency translation differences arising on translation of foreign operations - - (468) - (468) Actuarial losses on retirement benefits, net of income taxes - - - (659) (659) Cash flow hedges, net of income taxes - 35 - - 35 ---------------------------------------------------------------------------- Total comprehensive income (loss) for the period - 35 (468) 8,799 8,366 ---------------------------------------------------------------------------- Repurchase of Class A shares (3) - - (45) (48) Issuance and repurchase of Class B shares 49 - - (521) (472) Dividends on Class A shares - - - (995) (995) Dividends on Class B shares - - - (802) (802) ---------------------------------------------------------------------------- Balance as at September 29, 2012 15,195 (17) (721) 107,432 121,889 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ------------------------------------------------------- Non-controlling interests Total equity $ $ ------------------------------------------------------- Balance as at January 1, 2012 6,388 122,228 ------------------------------------------------------- Profit for the period 2,059 11,517 Other comprehensive income (loss) Currency translation differences arising on translation of foreign operations - (468) Actuarial losses on retirement benefits, net of income taxes - (659) Cash flow hedges, net of income taxes - 35 ------------------------------------------------------- Total comprehensive income (loss) for the period 2,059 10,425 ------------------------------------------------------- Repurchase of Class A shares - (48) Issuance and repurchase of Class B shares - (472) Dividends on Class A shares - (995) Dividends on Class B shares - (802) ------------------------------------------------------- Balance as at September 29, 2012 8,447 130,336 ------------------------------------------------------- ------------------------------------------------------- ---------------------------------------------------------------------------- Attributable to owners of the Company --------------------------------------------------- Accumulated other comprehensive loss --------------------- Cash Foreign Share flow currency Retained capital hedges translation earnings Total $ $ $ $ $ ---------------------------------------------------------------------------- Balance as at January 1, 2011 15,130 - (367) 90,702 105,465 ---------------------------------------------------------------------------- Profit for the period - - - 14,608 14,608 Other comprehensive income Currency translation differences arising on translation of foreign operations - - 203 - 203 Share of cash flow hedges of equity accounted investments, net of income taxes - 69 - - 69 ---------------------------------------------------------------------------- Total comprehensive income for the period - 69 203 14,608 14,880 ---------------------------------------------------------------------------- Repurchase and conversion of Class A shares (14) - - (82) (96) Issuance, repurchase and conversion of Class B shares 56 - - (426) (370) Dividends on Class A shares - - - (970) (970) Dividends on Class B shares - - - (786) (786) ---------------------------------------------------------------------------- Balance as at September 24, 2011 15,172 69 (164) 103,046 118,123 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- -------------------------------------------------------- Non-controlling interests Total equity $ $ -------------------------------------------------------- Balance as at January 1, 2011 4,392 109,857 -------------------------------------------------------- Profit for the period 1,263 15,871 Other comprehensive income Currency translation differences arising on translation of foreign operations - 203 Share of cash flow hedges of equity accounted investments, net of income taxes - 69 -------------------------------------------------------- Total comprehensive income for the period 1,263 16,143 -------------------------------------------------------- Repurchase and conversion of Class A shares - (96) Issuance, repurchase and conversion of Class B shares - (370) Dividends on Class A shares - (970) Dividends on Class B shares - (786) -------------------------------------------------------- Balance as at September 24, 2011 5,655 123,778 -------------------------------------------------------- --------------------------------------------------------
Condensed Consolidated Interim Statements of Cash Flows
---------------------------------------------------------------------------- For the nine months ended September 29, September 24, 2012 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
Contacts:
Jean-Claude Dugas CPA, CA
Vice-President, Finance
Logistec Corporation
jdugas@logistec.com
(514) 985-2345