MONTRÉAL, March 17, 2020 /CNW Telbec/ - LOGISTEC Corporation (TSX: LGT.A) (TSX: LGT.B) (the "Company"), a marine and environmental services provider, today announced its financial results for the year ended December 31, 2019.
2019 Highlights
- Consolidated revenue up $55.1 million or 9.4% to $639.9 million;
- Adjusted EBITDA (1) closed at a record $89.6 million;
- Profit attributable to owners of the Company up 45.0% to $26.2 million.
(1) |
Adjusted EBITDA is a non-IFRS measure, please refer to section entitled Non-IFRS measure. |
2019 Results
Consolidated revenue totalled $639.9 million in 2019, an increase of $55.1 million or 9.4% over 2018. Consolidated revenue was positively affected by $4.2 million this year due to a strengthening of the U.S. dollar against the Canadian dollar.
The marine services segment posted revenue of $385.3 million in 2019, representing higher sales compared with $340.8 million in 2018. This increase stems from two factors: the business combinations of GSM and Pate, which contributed an additional $40.8 million in sales during the year and, to a lesser extent, a general volume increase in our bulk and break-bulk terminals, which saw more activity this year than in 2018.
Revenue from the environmental services segment totalled $254.6 million, compared with $244.1 million in 2018, an increase of $10.5 million. This is mainly due to higher revenue from the rehabilitation of underground water mains, site remediation and decontamination services than last year, which was partially offset by lower revenue from woven hose manufacturing.
In 2019, the Company reported a profit of $26.4 million, of which $0.2 million was attributable to non-controlling interest, amounting to a $26.2 million profit attributable to owners of the Company. This translated into total diluted earnings per share of $2.00 of which $1.92 per share was attributable to Class A Common Shares ("Class A share") and $2.11 per share was attributable to Class B Subordinate Voting Shares ("Class B share").
Outlook
"We have and continue to benefit from our diversity of services offered, of customers we serve, and of our geographic network. This solid platform of services which focuses on customer needs is the base on which we will continue to grow.
In cargo handling, we will continue to expand our network of terminals and services, while maximizing cargo volumes in each facility. Through market intelligence, we always seek to position our services in line with the growth of imports and exports. Our growth will come from both organic and acquisition opportunities.
We also have ambitious plans for our environmental business. The rapid pace of development in urbanization, demographic shifts, climate changes and technology has required that we anticipate our customers' future challenges and deliver creative solutions that bring value not only today, but more importantly for tomorrow. We have and are developing technologies to address many of these challenges. In our suite of water technologies, we can rehabilitate aqueducts with minimal excavation, and with our next generation of Aqua-Pipe, we further differentiate ourselves by safeguarding water resources in seismic and flood zones. We have also been pro-active to develop technologies for the removal of lead in drinking water, a challenge for many large municipalities today. Furthermore, we are developing technologies to deal with per- and polyfluoroalkyl substances ("PFAS") and other emerging contaminants.
Our business development team is being strengthened to ensure increased penetration in not only the Canadian market, but also in the USA. We are also confident that our subsidiary FER-PAL is also well-positioned to grow in its markets, particularly Ontario, Western Canada and the U.S. Midwest.
In the end, with our new strategic plan, we are not breaking with our past commitments; we are simply kickstarting these efforts with renewed impetus and engaging new stakeholders to make them happen," indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
Dividends
On March 17, 2020, the Board of Directors declared a dividend of $0.09350 per Class A share and $0.10285 per Class B share, for a total consideration of $1.2 million. These dividends will be paid on April 17, 2020 to shareholders of record as of April 3, 2020.
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 34 ports and 60 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 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 rehabilitation of underground water mains, soils and 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.
Non-IFRS measure
In this press release, the Company uses a measure that is not in accordance with IFRS. Adjusted earnings before interest expense, income taxes, depreciation and amortization expense ("adjusted EBITDA") is not defined by IFRS and cannot be formally presented in the consolidated financial statements. 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 2019 adjusted EBITDA reflects the application of IFRS 16 Leases which had a favourable impact of $13.7 million and for which the comparative figures have not been restated. Refer to Company's management's discussion and analysis of the period for further information and its Non-IFRS Measure section for the definition of this indicator and the reconciliation to profit (loss) for the period.
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 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.
2019 CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statements of Earnings |
||
Years ended December 31 |
||
2019 |
2018 |
|
$ |
$ |
|
Revenue |
639,942 |
584,878 |
Employee benefits expense |
(313,091) |
(299,682) |
Equipment and supplies expense |
(169,640) |
(156,859) |
Operating expense |
(43,173) |
(46,028) |
Other expenses |
(31,936) |
(29,839) |
Depreciation and amortization expense |
(42,122) |
(28,580) |
Share of profit of equity accounted investments |
8,729 |
8,111 |
Other gains and losses |
(1,220) |
3,596 |
Impairment charge |
— |
(6,821) |
Operating profit |
47,489 |
28,776 |
Finance expense |
(12,854) |
(8,046) |
Finance income |
501 |
572 |
Profit before income taxes |
35,136 |
21,302 |
Income taxes |
(8,699) |
(3,308) |
Profit for the year |
26,437 |
17,994 |
Profit attributable to: |
||
Owners of the Company |
26,194 |
18,060 |
Non-controlling interest |
243 |
(66) |
Profit for the year |
26,437 |
17,994 |
Basic earnings per Class A Common Share (1) |
1.97 |
1.37 |
Basic earnings per Class B Subordinate Voting Share (2) |
2.16 |
1.51 |
Diluted earnings per Class A share |
1.92 |
1.32 |
Diluted earnings per Class B share |
2.11 |
1.45 |
(1) |
Class A Common Share ("Class A share") |
(2) |
Class B Subordinate Voting Share ("Class B share") |
Consolidated Statements of Comprehensive Income |
|||||
Years ended December 31 |
|||||
2019 |
2018 |
||||
$ |
$ |
||||
Profit for the year |
26,437 |
17,994 |
|||
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 |
(5,916) |
9,871 |
|||
Unrealized gain (loss) on translating debt designated as hedging item of the net investment in foreign operations |
3,653 |
(4,377) |
|||
Loss on derivatives designated as cash flow hedges |
(174) |
(5) |
|||
Income taxes relating to derivatives designated as cash flow hedges |
47 |
2 |
|||
Total items that are or may be reclassified to the consolidated statements of earnings |
(2,390) |
5,491 |
|||
Items that will not be reclassified to the consolidated statements of earnings |
|||||
Remeasurement (losses) gains on benefit obligation |
(4,384) |
1,850 |
|||
Variation on retirement plan assets excluding amounts included in profit for the year |
1,680 |
(1,637) |
|||
Income taxes on remeasurement loss (gain) on benefit obligation and variation on retirement plan assets excluding amounts included in profit for the year |
719 |
(41) |
|||
Total items that will not be reclassified to the consolidated statements of earnings |
(1,985) |
172 |
|||
Share of other comprehensive (loss) income of equity accounted investments, net of income taxes |
|||||
Items that will not be reclassified to the consolidated statements of earnings |
(26) |
118 |
|||
Total share of other comprehensive (loss) income of equity accounted investments, net of income taxes |
(26) |
118 |
|||
Other comprehensive (loss) income for the year, net of income taxes |
(4,401) |
5,781 |
|||
Total comprehensive income for the year |
22,036 |
23,775 |
|||
Total comprehensive income (loss) attributable to: |
|||||
Owners of the Company |
21,819 |
23,805 |
|||
Non-controlling interest |
217 |
(30) |
|||
Total comprehensive income for the year |
22,036 |
23,775 |
|||
Consolidated Statements of Financial Position |
|||
(in thousands of Canadian dollars) |
|||
As at |
As at |
||
$ |
$ |
||
Assets |
|||
Current assets |
|||
Cash and cash equivalents |
22,608 |
15,393 |
|
Trade and other receivables |
156,228 |
160,067 |
|
Contract assets |
10,593 |
14,282 |
|
Current income tax assets |
6,028 |
2,964 |
|
Inventories |
12,569 |
10,711 |
|
Prepaid expenses and other |
5,129 |
4,899 |
|
213,155 |
208,316 |
||
Equity accounted investments |
42,349 |
38,005 |
|
Property, plant and equipment |
184,304 |
181,284 |
|
Right-of-use assets |
89,581 |
— |
|
Goodwill |
140,617 |
142,672 |
|
Intangible assets |
40,735 |
47,006 |
|
Non-current assets |
2,417 |
2,173 |
|
Non-current financial assets |
8,829 |
6,328 |
|
Deferred income tax assets |
12,751 |
11,319 |
|
Total assets |
734,738 |
637,103 |
|
Liabilities |
|||
Current liabilities |
|||
Short-term bank loans |
— |
13,577 |
|
Trade and other payables |
86,217 |
98,668 |
|
Contract liabilities |
5,356 |
5,225 |
|
Current income tax liabilities |
3,131 |
3,480 |
|
Dividends payable |
1,245 |
1,973 |
|
Current portion of lease liabilities |
9,820 |
— |
|
Current portion of long-term debt |
9,390 |
3,294 |
|
115,159 |
126,217 |
||
Lease liabilities |
81,495 |
— |
|
Long-term debt |
168,510 |
160,003 |
|
Deferred income tax liabilities |
21,156 |
21,465 |
|
Post-employment benefit obligations |
18,383 |
14,716 |
|
Contract liabilities |
2,933 |
3,333 |
|
Non-current liabilities |
46,088 |
46,980 |
|
Total liabilities |
453,724 |
372,714 |
|
Equity |
|||
Share capital |
40,222 |
35,016 |
|
Share capital to be issued |
9,811 |
14,717 |
|
Retained earnings |
220,641 |
200,404 |
|
Accumulated other comprehensive income |
9,697 |
12,061 |
|
Equity attributable to owners of the Company |
280,371 |
262,198 |
|
Non-controlling interest |
643 |
2,191 |
|
Total equity |
281,014 |
264,389 |
|
Total liabilities and equity |
734,738 |
637,103 |
|
On behalf of the Board |
||
(signed) James C. Cherry |
(signed) Madeleine Paquin |
|
Consolidated Statements of Changes in Equity |
||||||||
(in thousands of Canadian dollars) |
||||||||
Attributable to owners of the Company |
||||||||
Share capital |
Share capital to be issued |
Accumulated other comprehensive income (Note 25) |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
||
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||
Balance as at January 1, 2019 |
35,016 |
14,717 |
12,061 |
200,404 |
262,198 |
2,191 |
264,389 |
|
Profit for the year |
— |
— |
— |
26,194 |
26,194 |
243 |
26,437 |
|
Other comprehensive (loss) income |
||||||||
Currency translation differences arising on translation of foreign operations |
— |
— |
(5,890) |
— |
(5,890) |
(26) |
(5,916) |
|
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations |
— |
— |
3,653 |
— |
3,653 |
— |
3,653 |
|
Remeasurement losses on benefit obligation and return on retirement plan assets, net of income taxes |
— |
— |
— |
(1,985) |
(1,985) |
— |
(1,985) |
|
Cash flow hedges, net of income taxes |
— |
— |
(127) |
— |
(127) |
— |
(127) |
|
Share of other comprehensive income of equity accounted investments, net of income taxes |
— |
— |
— |
(26) |
(26) |
— |
(26) |
|
Total comprehensive income (loss) for the year |
— |
— |
(2,364) |
24,183 |
21,819 |
217 |
22,036 |
|
Remeasurement of written put option liability |
— |
— |
— |
2,766 |
2,766 |
— |
2,766 |
|
Repurchase of non-controlling interests |
— |
— |
— |
(35) |
(35) |
(1,765) |
(1,800) |
|
Repurchase of Class A shares |
(6) |
— |
— |
(381) |
(387) |
— |
(387) |
|
Issuance and repurchase of Class B shares |
306 |
— |
— |
(1,384) |
(1,078) |
— |
(1,078) |
|
Issuance of Class B share capital to a subsidiary shareholder |
4,906 |
(4,906) |
— |
— |
— |
— |
— |
|
Dividends on Class A shares |
— |
— |
— |
(2,722) |
(2,722) |
— |
(2,722) |
|
Dividends on Class B shares |
— |
— |
— |
(2,190) |
(2,190) |
— |
(2,190) |
|
Balance as at December 31, 2019 |
40,222 |
9,811 |
9,697 |
220,641 |
280,371 |
643 |
281,014 |
|
Balance as at January 1, 2018 |
29,019 |
19,820 |
6,606 |
173,129 |
228,574 |
2,221 |
230,795 |
|
Profit (loss) for the year |
— |
— |
— |
18,060 |
18,060 |
(66) |
17,994 |
|
Other comprehensive income (loss) |
||||||||
Currency translation differences arising on translation of foreign operation |
— |
— |
9,835 |
— |
9,835 |
36 |
9,871 |
|
Unrealized loss on translating debt designated as hedging item of the net investment in foreign operations |
— |
— |
(4,377) |
— |
(4,377) |
— |
(4,377) |
|
Remeasurement gains on benefit obligation and variation on retirement plan assets excluding amounts included in profit for the year, net of income taxes |
— |
— |
— |
172 |
172 |
— |
172 |
|
Cash flow hedges, net of income taxes |
— |
— |
(3) |
— |
(3) |
— |
(3) |
|
Share of other comprehensive income of equity accounted investments, net of income taxes |
— |
— |
— |
118 |
118 |
— |
118 |
|
Total comprehensive income (loss) for the year |
— |
— |
5,455 |
18,350 |
23,805 |
(30) |
23,775 |
|
Remeasurement of written put option liability |
— |
— |
— |
15,644 |
15,644 |
— |
15,644 |
|
Repurchase of Class A shares |
(10) |
— |
— |
(174) |
(184) |
— |
(184) |
|
Issuance and repurchase of Class B shares |
904 |
— |
— |
(1,195) |
(291) |
— |
(291) |
|
Issuance of Class B share capital to a subsidiary shareholder |
5,103 |
(5,103) |
— |
— |
— |
— |
— |
|
Other dividend |
— |
— |
— |
(776) |
(776) |
— |
(776) |
|
Dividends on Class A shares |
— |
— |
— |
(2,565) |
(2,565) |
— |
(2,565) |
|
Dividends on Class B shares |
— |
— |
— |
(2,009) |
(2,009) |
— |
(2,009) |
|
Balance as at December 31, 2018 |
35,016 |
14,717 |
12,061 |
200,404 |
262,198 |
2,191 |
264,389 |
|
Consolidated Statements of Cash Flows |
||
Years ended December 31 (in thousands of Canadian dollars) |
||
2019 |
2018 |
|
$ |
$ |
|
Operating activities |
||
Profit for the year |
26,437 |
17,994 |
Items not affecting cash and cash equivalents |
55,912 |
43,823 |
Cash generated from operations |
82,349 |
61,817 |
Dividends received from equity accounted investments |
4,113 |
4,596 |
Contributions to defined benefit retirement plans |
(991) |
(1,049) |
Settlement of provisions |
(194) |
(359) |
Changes in non-cash working capital items |
(2,049) |
4,119 |
Income taxes paid |
(11,947) |
(10,037) |
71,281 |
59,087 |
|
Financing activities |
||
Net change in short-term bank loans |
(13,577) |
3,747 |
Issuance of long-term debt, net of transaction costs |
84,649 |
134,653 |
Repayment of long-term debt |
(66,030) |
(62,382) |
Repayment of lease liabilities |
(9,726) |
— |
Interest paid |
(12,269) |
(7,241) |
Issuance of Class B shares |
258 |
562 |
Repurchase of Class A shares |
(387) |
(177) |
Repurchase of Class B shares |
(1,635) |
(1,349) |
Dividends paid on Class A shares |
(2,703) |
(2,505) |
Dividends paid on Class B shares |
(2,161) |
(1,947) |
(23,581) |
63,361 |
|
Investing activities |
||
Acquisition of property, plant and equipment |
(34,974) |
(16,131) |
Acquisition of intangible assets |
(122) |
(208) |
Acquisition of other non-current assets |
(944) |
(286) |
Proceeds from disposal of property, plant and equipment |
1,832 |
1,416 |
Proceeds from disposal of other non-current assets |
151 |
215 |
Business combinations |
— |
(97,998) |
Cash acquired in a business combination |
— |
2,501 |
Interest received |
439 |
539 |
Cash paid to non-controlling interests |
(7,972) |
(157) |
Cash received on other non-current financial assets |
211 |
211 |
Repayment of other non-current liabilities |
(571) |
— |
(41,950) |
(109,898) |
|
Net change in cash and cash equivalents |
5,750 |
12,550 |
Cash and cash equivalents, beginning of year |
15,393 |
3,963 |
Effect of exchange rate on balances held in foreign currencies of foreign operations |
1,465 |
(1,120) |
Cash and cash equivalents, end of year |
22,608 |
15,393 |
SOURCE Logistec Corporation
Jean-Claude Dugas, CPA, CA, Chief Financial Officer, Logistec Corporation, [email protected], (514) 985-2345
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