LOGISTEC Announces 2017 Year-end Results

MONTRÉAL, March 20, 2018 /CNW Telbec/ - LOGISTEC Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2017.

Consolidated revenue reached a record $475.7 million in 2017, an increase of $132.4 million or 38.6% over 2016.

The marine services segment posted revenue of $205.3 million in 2017, representing higher sales compared with $186.0 million in 2016. The increase was mostly due to bulk activity. The environmental services segment delivered a good performance in 2017, as revenue increased by $113.2 million or 71.4% over 2016 to reach $270.5 million. Revenue growth came primarily from the business acquisition of FER-PAL, and from increased activity in site remediation and Aqua-Pipe.

In 2017, LOGISTEC achieved a consolidated profit for the year of $27.4 million, of which $27.4 million was attributable to owners of the Company. This is higher than the 2016 consolidated profit of $18.5 million, of which $18.9 million was attributable to owners of the Company. The 2017 results were affected by a $15.8 million charge to amortize our intangible assets in FER-PAL, related to contracts that are of an annual nature and thus subject to amortization over the first year. This year, the EBITDA⁽¹⁾ reached a record $74.7 million, up $32.7 million over 2016. The 2017 profit attributable to owners of the Company computes to diluted earnings per share of $2.11, which corresponds to $2.02 attributable to Class A Common Shares and $2.22 attributable to Class B Subordinate Voting Shares. This compares to diluted earnings per share of $1.48 in 2016, of which $1.41 was attributable to Class A Common Shares and $1.56 was attributable to Class B Subordinate Voting Shares.

During the fourth quarter of 2017, consolidated revenue totalled $145.5 million, an increase of $49.7 million or 51.9% over 2016. This increase is mainly due to strong activity in the environmental services segment, and to the business acquisition of FER-PAL. The profit attributable to owners of the Company rose to $13.2 million ($8.9 million in 2016) for diluted earnings per share of $1.01, of which $0.97 was attributable to Class A Common Shares and $1.06 was attributable to Class B Subordinate Voting Shares. For the same period of 2016, diluted earnings per share totalled $0.71, of which $0.68 was attributable to Class A Common Shares and $0.74 was attributable to Class B Subordinate Voting Shares.

Outlook

"The future is bright for the LOGISTEC family! Our service sectors hold leadership positions in each of their niche markets, and each of their development plans show positive outlooks. In cargo handling, we were pleased to announce the acquisition of Gulf Stream Marine, Inc. a few days ago. We are very excited about joining our teams together. This acquisition will add a growing customer base to our strong network of ports, and we are confident that the resulting synergies will benefit all stakeholders. Our other marine businesses also have positive outlooks.

In our environmental business, we have ambitions for growth in both the traditional environmental business as well as Aqua-Pipe. This growth will be generated through geographic expansion and an increase in the scope of specialized services attached to our service package. Here again, the collaboration of our talented teams drives us to believe in the future growth of Aqua-Pipe in North America as well as selected regions of the world," indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.

"Moreover, we are still very active in identifying, studying and evaluating other acquisition targets. Our objective remains focused on profitable, accretive growth, to optimize shareholder value," concluded Madeleine Paquin.

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 some 35 ports and 58 terminals located 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, regulated materials management, site remediation, risk assessment, and manufacturing of woven hoses.

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 at www.logistec.com.

^(1)	EBITDA is a non-IFRS measure and is calculated as the sum of profit attributable to owners of the Company plus interest expense, income taxes, depreciation and amortization expense, customer repayment of investment in a service contract, and including impairment charge

2017 Consolidated Financial Statements
LOGISTEC CORPORATION
Consolidated Statements of Earnings
	2017	2016
years ended December 31
(in thousands of Canadian dollars, except for per share amounts)	$	$
Revenue	475,743	343,326
Employee benefits expense	(235,247)	(158,784)
Equipment and supplies expense	(122,651)	(102,636)
Rental expense	(33,799)	(28,899)
Other expenses	(21,997)	(15,230)
Depreciation and amortization expense	(33,859)	(14,288)
Share of profit of equity accounted investments	6,952	4,310
Other gains and losses	4,875	(345)
Impairment charge	(2,917)	—
Operating profit	37,100	27,454
Finance expense	(3,937)	(1,894)
Finance income	404	194
Profit before income taxes	33,567	25,754
Income taxes	(6,211)	(7,268)
Profit for the year	27,356	18,486
Profit attributable to:
Owners of the Company	27,426	18,858
Non-controlling interest	(70)	(372)
Profit for the year	27,356	18,486
Basic earnings per Class A Common Share ^(1)	2.14	1.48
Basic earnings per Class B Subordinate Voting Share ^(2)	2.35	1.64
Diluted earnings per Class A share	2.02	1.41
Diluted earnings per Class B share	2.22	1.56

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

2017 Consolidated Financial Statements
LOGISTEC CORPORATION
Consolidated Statements of Comprehensive Income
years ended December 31 (in thousands of Canadian dollars)
			2017	2016
			$	$
Profit for the year			27,356	18,486
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	(2,787)	(1,158)
		Gains on derivatives designated as cash flow hedges	151	—
		Transfer of gains on derivatives designated as cash flow hedges to the consolidated statements of earnings	—	167
		Income taxes relating to derivatives designated as cash flow hedges	(41)	(45)
	Total items that are or may be reclassified to the consolidated statements of earnings		(2,677)	(1,036)
	Items that will not be reclassified to the consolidated statements of earnings
		Remeasurement losses on benefit obligation	(1,515)	(44)
		Return on retirement plan assets excluding amounts included in profit for the year	830	669
		Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year	151	(168)
	Total items that will not be reclassified to the consolidated statements of earnings		(534)	457
	Share of other comprehensive income of equity accounted investments, net of income taxes
		Items that are or may be reclassified to the consolidated statements of earnings	32	1
		Items that will not be reclassified to the consolidated statements of earnings	(133)	12
Total share of other comprehensive income of equity accounted investments, net of income taxes			(101)	13
Other comprehensive loss for the year, net of income taxes			(3,312)	(566)
Total comprehensive income for the year			24,044	17,920
Total comprehensive income (loss) attributable to:
Owners of the Company			24,114	18,292
Non-controlling interest			(70)	(372)
Total comprehensive income for the year			24,044	17,920

2017 Consolidated Financial Statements
LOGISTEC CORPORATION
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
		As at December 31,  2017	As at December 31,  2016
		$	$
Assets
Current assets
	Cash and cash equivalents	3,963	15,971
	Investment in a service contract	—	865
	Trade and other receivables	153,342	86,373
	Work in progress	5,306	4,395
	Current income tax assets	494	3,767
	Other financial assets	1,055	1,014
	Assets available for sale	—	330
	Prepaid expenses	2,775	5,654
	Inventories	11,550	7,506
		178,485	125,875
Equity accounted investments		34,350	31,141
Property, plant and equipment		156,691	138,591
Goodwill		108,557	24,899
Other intangible assets		14,903	18,233
Other non-current assets		1,658	1,534
Post-employment benefit assets		606	706
Non-current financial assets		7,984	7,166
Deferred income tax assets		9,218	7,715
Total assets		512,452	355,860
Liabilities
Current liabilities
	Short-term bank loans	9,829	—
	Trade and other payables	85,174	43,081
	Deferred revenue	2,252	2,928
	Current income tax liabilities	3,699	149
	Dividends payable	1,075	947
	Current portion of long-term debt	5,447	1,681
	Provisions	813	1,344
		108,289	50,130
Long-term debt		77,957	58,644
Provisions		771	800
Deferred income tax liabilities		14,488	13,382
Post-employment benefit obligations		14,778	13,076
Deferred revenue		3,733	4,133
Non-current financial liabilities		61,641	12,514
Total liabilities		281,657	152,679
Commitments, contingent liabilities and guarantees
Equity
Share capital		29,019	15,618
Share capital to be issued		19,820	24,898
Retained earnings		173,129	151,616
Accumulated other comprehensive income		6,606	9,251
Equity attributable to owners of the Company		228,574	201,383
Non-controlling interest		2,221	1,798
Total equity		230,795	203,181
Total liabilities and equity		512,452	355,860

On behalf of the Board
	(signed) George R. Jones	(signed) Madeleine Paquin
	Director	Director

2017 Consolidated Financial Statements
LOGISTEC CORPORATION
Consolidated Statements of Changes in Equity
(in thousands of Canadian dollars)
			Attributable to owners of the Company
				Accumulated other comprehensive income
		Share capital	Share capital to be issued	Cash flow hedges	Foreign currency translation	Retained earnings	Total	Non- controlling interest	Total equity
		$	$	$	$	$	$	$	$
Balance as at January 1, 2017		15,618	24,898	(4)	9,255	151,616	201,383	1,798	203,181
Profit (loss) for the year		—	—	—	—	27,426	27,426	(70)	27,356
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	—	—	—	(2,787)	—	(2,787)	—	(2,787)
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes	—	—	—	—	(534)	(534)	—	(534)
	Cash flow hedges, net of income taxes	—	—	142	—	—	142	—	142
	Share of other comprehensive income of equity accounted investments, net of income taxes	—	—	—	—	(133)	(133)	—	(133)
Total comprehensive income (loss) for the year		—	—	142	(2,787)	26,759	24,114	(70)	24,044
Repurchase of Class A shares		(4)	—	—	—	(243)	(247)	—	(247)
Issuance and repurchase of Class B shares		327	—	—	—	(959)	(632)	—	(632)
Issuance of Class B shares related to a business acquisition		8,000	—	—	—	—	8,000	—	8,000
Long-term liability for the obligation to repurchase a non-controlling interest		—	—	—	—	—	—	(50,089)	(50,089)
Non-controlling interest arising on a business acquisition		—	—	—	—	—	—	50,582	50,582
Issuance of Class B shares capital to a subsidiary shareholder upon the exercise of the put option		5,078	(5,078)	—	—	—	—	—	—
Dividends on Class A shares		—	—	—	—	(2,334)	(2,334)	—	(2,334)
Dividends on Class B shares		—	—	—	—	(1,710)	(1,710)	—	(1,710)
Balance as at December 31, 2017		29,019	19,820	138	6,468	173,129	228,574	2,221	230,795
Balance as at January 1, 2016		14,985	—	(139)	10,413	164,154	189,413	20,232	209,645
Profit (loss) for the year		—	—	—	—	18,858	18,858	(372)	18,486
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	—	—	—	(1,158)	—	(1,158)	—	(1,158)
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes	—	—	—	—	457	457	—	457
	Cash flow hedges, net of income taxes	—	—	122	—	—	122	—	122
	Share of other comprehensive income of equity accounted investments, net of income taxes	—	—	13	—	—	13	—	13
Total comprehensive income (loss) for the year		—	—	135	(1,158)	19,315	18,292	(372)	17,920
Repurchase of Class A shares		(16)	—	—	—	(953)	(969)	—	(969)
Issuance and repurchase of Class B shares		649	—	—	—	(8,957)	(8,308)	—	(8,308)
Repurchase of non-controlling interests		—	24,898	—	—	(18,148)	6,750	(18,062)	(11,312)
Dividends on Class A shares		—	—	—	—	(2,226)	(2,226)	—	(2,226)
Dividends on Class B shares		—	—	—	—	(1,569)	(1,569)	—	(1,569)
Balance as at December 31, 2016		15,618	24,898	(4)	9,255	151,616	201,383	1,798	203,181

2017 Consolidated Financial Statements
LOGISTEC CORPORATION
Consolidated Statements of Cash Flows
		2017	2016
years ended December 31
(in thousands of Canadian dollars)		$	$
Operating activities
	Profit for the year	27,356	18,486
	Items not affecting cash and cash equivalents	43,899	29,787
	Cash generated from operations	71,255	48,273
	Dividends received from equity accounted investments	3,637	2,213
	Contributions to defined benefit retirement plans	(1,036)	(866)
	Settlement of provisions	(154)	(304)
	Changes in non-cash working capital items	(23,885)	(15,028)
	Income taxes paid	(6,021)	(7,473)
		43,796	26,815
Financing activities
	Net change in short-term bank loans	1,579	—
	Issuance of long-term debt, net of transaction costs	90,014	53,852
	Repayment of long-term debt	(70,829)	(29,909)
	Interest paid	(2,822)	(1,867)
	Issuance of Class B shares	201	607
	Repurchase of Class A shares	(248)	(969)
	Repurchase of Class B shares	(1,043)	(9,484)
	Dividends paid on Class A shares	(2,279)	(2,227)
	Dividends paid on Class B shares	(1,638)	(1,587)
		12,935	8,416
Investing activities
	Customer repayment of an investment in a service contract	865	292
	Interest received	403	206
	Cash acquired in a business acquisition	—	205
	Business acquisitions	(48,038)	(5,262)
	Repurchase of a non-controlling interest	(2,880)	(2,393)
	Acquisition of property, plant and equipment	(21,965)	(32,198)
	Proceeds from disposal of property, plant and equipment	2,473	363
	Acquisition of other financial assets	—	(4,039)
	Acquisition of intangible assets	(45)	(33)
	Repayment of non-current financial assets	104	3
	Increase of other non-current assets	(805)	(827)
	Disposal of other non-current assets	191	68
		(69,697)	(43,615)
Net change in cash and cash equivalents		(12,966)	(8,384)
Cash and cash equivalents, beginning of year		15,971	23,811
Effect of exchange rate on balances held in foreign currencies of foreign operations		958	544
Cash and cash equivalents, end of year		3,963	15,971
Non-cash transactions and supplemental information

SOURCE Logistec Corporation

Jean-Claude Dugas, CPA, CA, Vice-President, Finance, LOGISTEC Corporation, [email protected], [phone]

Related Links

http://www.logistec.com/