LOGISTEC Announces 2020 Year-End Results

MONTRÉAL, March 16, 2021 /CNW Telbec/ - LOGISTEC Corporation ("LOGISTEC") (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, 2020.

2020 Highlights

• Consolidated revenue reached $604.7 million, down $35.2 million or 5.5%;
• Adjusted EBITDA ⁽¹⁾ closed at $100.7million, up $11.0 million;
• Total diluted earnings per share of $2.49, up 24.5%;
• Launch of ALTRA Proven Solutions, LOGISTEC's field-proven innovation in water technology solutions.

"I am proud of our people's resiliency in safely navigating COVID-19 while continuing to provide the essential services that our customers and communities rely upon on a day-to-day basis," said Madeleine Paquin, President and CEO, LOGISTEC. " We remain focused on our strategic and sustainable long-term priorities, which gives us confidence in our growth in the years ahead. While short-term uncertainty remains, we are well-positioned to emerge stronger, more resilient and more innovative than ever."

2020 Results
Consolidated revenue totalled $604.7 million in 2020, a decrease of $35.2 million or 5.5% over 2019. Revenue from the marine services segment was lower at $344.6 million, compared to $385.3 million in 2019. As anticipated, cargo volumes were depressed, as global trade decelerated in response to government measures put in place to slow the spread of the COVID-19 virus. In addition, volumes in the United States further suffered from a heavy hurricane season on the U.S. Gulf Coast. Revenue from the environmental services segment amounted to $260.1 million, an increase of $5.5 million over 2019. This is mostly attributable to the performance of our services related to the renewal of underground water mains, despite delays encountered at the beginning of the season due to pandemic constraints.

In 2020, the Company benefitted from the Canada Emergency Wage Subsidy program. The subsidies received were instrumental in assisting us to maintain employment and respond to our stakeholders' needs, which included implementing new working protocols and incurring additional costs to protect our people in the field and customers alike. 

The Company reported a profit for the year of $32.8 million, of which $32.6 million was attributable to owners of the Company. This translated into total diluted earnings per share of $2.49, of which $2.39 per share was attributable to Class A Common Shares and $2.63 per share was attributable to Class B Subordinate Voting Shares.

Outlook
We expect renewed growth in both marine and environmental services, as industries resume more normal production levels. In addition, we will realize the benefits from the acquisitions completed in 2020.

In marine services, we expect volumes to return to historical levels, as the economy adjusts to the new normal and vaccines are rolled out. Our marine services remain essential and will continually operate with the health and safety of our people and our customers as a top priority. We remain focused on maximizing the use of our facilities for the benefit of our customers while continuing to grow and strengthen our network. In addition, we continue to embed operational excellence into our day-to-day activities by applying our innovative approach, thereby resulting in increased productivity and expanding margins.

In our environmental services segment, we begin 2021 with a solid project order book of approximately $120 million, representing 46% of the segment's revenue in 2020, thus positioning the segment to surpass this year's results. We also expect environmental services to deliver solid growth by continuing to provide our customers with innovative solutions. This will be supported by a product rollout to promote our suite of ALTRA Proven Solutions in Canada and the United States, and expand the service offering to include additional large remediation sites across Canada.

Our Response to COVID-19
LOGISTEC continues to monitor developments related to the COVID-19 pandemic and takes all appropriate measures to protect the health and safety of its people, its customers, and its communities. 

Terminal operations, which were deemed essential services by the government authorities in Canada and the United States, remained open and functional. On the environmental services side, our manufacturing of woven hoses, which is essential in providing communities with drinking water and fighting forest fires, remained operational. In all our business segments, we kept operating under strict distancing and sanitation protocols.

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 foreign 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, 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.

⁽¹⁾ 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 Company's impairment charge and includes the customer repayment of an investment in a service contract. 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.

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.

CONSOLIDATED STATEMENTS OF EARNINGS

Years ended December 31 (in thousands of dollars, except per share amounts)	2020 $	2019 $
Revenue	604,701	639,942
Employee benefits expense	(287,665)	(313,091)
Equipment and supplies expense	(155,611)	(169,640)
Operating expense	(41,864)	(43,173)
Other expenses	(27,509)	(31,936)
Depreciation and amortization expense	(45,390)	(42,122)
Share of profit of equity accounted investments	9,529	8,729
Other losses	(923)	(1,220)
Operating profit	55,268	47,489
Finance expense	(12,453)	(12,854)
Finance income	635	501
Profit before income taxes	43,450	35,136
Income taxes	(10,662)	(8,699)
Profit for the period	32,788	26,437
Profit attributable to:
Owners of the Company	32,614	26,194
Non-controlling interest	174	243
Profit for the period	32,788	26,437
Basic earnings per Class A Common Share	2.43	1.97
Basic earnings per Class B Subordinate Voting Share	2.67	2.16
Diluted earnings per Class A share	2.39	1.92
Diluted earnings per Class B share	2.63	2.11

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years ended December 31 (in thousands of dollars, except per share amounts)	2020 $	2019 $
Profit for the year	32,788	26,437
Other comprehensive (loss) income
Items that are or may be reclassified to the consolidated statements  of earnings
Net change in value of currency translation differences arising on
translation of foreign operations, net of $302 tax recovery in
2020 (nil in 2019)	(2,921)	(5,916)
Net change in value of unrealized gain on translating debt	1,253	3,653
designated as hedging item of the net investment in foreign	(92)	(174)
operations, net of	(11)	47
$1,053 tax expense in 2020 (nil in 2019)
Loss on derivatives designated as cash flow hedges
Income taxes relating to derivatives designated as cash flow hedges
Total items that are or may be reclassified to the consolidated
statements of earnings	(1,771)	(2,390)
Items that will not be reclassified to the consolidated statements of earnings
Remeasurement losses on benefit	(2,732)	(4,384)
obligation Return on retirement plan  assets	333	1,680
Income taxes on remeasurement gain on benefit obligation and  return	636	719
on retirement plan assets
Total items that will not be reclassified to the consolidated statements  of earnings	(1,763)	(1,985)
Share of other comprehensive (loss) income of equity accounted  investments, net of income taxes
Items that are or may be reclassified to the consolidated statements of earnings	(199)	—
Items that will not be reclassified to the consolidated statements of	53	(26)
earnings
Total share of other comprehensive loss of equity accounted     investments, net of income taxes	(146)	(26)
Other comprehensive loss for the year, net of income taxes	(3,680)	(4,401)
Total comprehensive income for the year	29,108	22,036
Total comprehensive income attributable to:
Owners of the Company	28,962	21,819
Non-controlling interest	146	217
Total comprehensive income for the year	29,108	22,036

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)	As at December 31, 2020 $	As at  December 31,  2019 $
Assets
Current assets
Cash and cash equivalents	45,498	22,608
Trade and other receivables	137,911	156,228
Contract assets	7,617	10,593
Current income tax assets	9,171	6,028
Inventories	12,946	12,569
Prepaid expenses and other	9,005	5,129
	222,148	213,155
Equity accounted investments	45,061	42,349
Property, plant and equipment	185,181	184,304
Right-of-use assets	132,795	89,581
Goodwill	149,848	140,617
Intangible assets	38,422	40,735
Non-current assets	2,381	2,417
Non-current financial assets	9,160	8,829
Deferred income tax assets	12,385	12,751
Total assets	797,381	734,738
Liabilities
Current liabilities
Trade and other payables	90,046	86,217
Contract liabilities	8,700	5,356
Current income tax liabilities	8,570	3,131
Dividends payable	1,259	1,245
Current portion of lease liabilities	18,251	9,820
Current portion of long-term debt	3,718	9,390
	130,544	115,159
Lease liabilities	116,917	81,495
Long-term debt	163,962	168,510
Deferred income tax liabilities	21,399	21,156
Post-employment benefit obligations	22,055	18,383
Contract liabilities	2,533	2,933
Non-current liabilities	38,400	46,088
Total liabilities	495,810	453,724
Equity
Share capital	45,575	40,222
Share capital to be issued	4,906	9,811
Retained earnings	242,358	220,641
Accumulated other comprehensive income	7,943	9,697
Equity attributable to owners of the Company	300,782	280,371
Non-controlling interest	789	643
Total equity	301,571	281,014
Total liabilities and equity	797,381	734,738

On behalf of the Board	(signed) James C. Cherry	(signed) Madeleine
	James C. Cherry, FCPA, FCA	Paquin Madeleine
	Director	Paquin, C.M. Director

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Attributable to owners of the Company
(in thousands of Canadian  dollars)	Share  capital $	Share capital to be issued $	Accumulated other comprehensive income $	Retained earnings $	Total $	Non- controlling interest  $	Total equity $
Balance as at January 1, 2020	40,222	9,811	9,697	220,641	280,371	643	281,014
Profit for the year	—	—	—	32,614	32,614	74	32,788
Other comprehensive (loss)
income
Currency translation
differences arising on
translation of foreign
operations	—	—	(2,893)	—	(2,893)	(28)	(2,921)
Unrealized gain on
translating debt
designated as hedging
item of the net investment
in foreign operations	—	—	1,253	—	1,253	—	1,253
Remeasurement losses on
benefit obligation and
return on retirement plan
assets, net of income taxes	—	—	—	(1,763)	(1,763)	—	(1,763)
Share of other
comprehensive loss
of equity accounted
investments, net of
income taxes	—	—	(11)	(135)	(146)	—	(146)
Cash flow hedges, net of
income taxes	—	—	(103)	—	(103)	—	(103)
Total comprehensive (loss) income for the  year	—	—	(1,754)	30,716	28,962	146	29,108
Remeasurement of written put
option liability	—	—	—	(2,732)	(2,732)	—	(2,732)
Repurchase of Class A shares	(4)	—	—	(182)	(186)	—	(186)
Issuance and repurchase of
Class B shares	452	—	—	(888)	(436)	—	(436)
Issuance of Class B shares
capital to a subsidiary
shareholder	4,905	(4,905)	—	—	—	—	—
Class B shares to be issued
under the Executive Stock
Option Plan	—	—	—	136	136	—	136
Other dividends	—	—	—	(299)	(299)	—	(299)
Dividends on Class A shares	—	—	—	(2,758)	(2,758)	—	(2,758)
Dividends on Class B shares	—	—	—	(2,276)	(2,276)	—	(2,276)
Balance as at December 31, 2020	45,575	4,906	7,943	242,358	300,782	789	301,571

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

	Attributable to owners of the Company
(in thousands of Canadian dollars)	Share capital $	Share  capital to be issued $	Accumulated other comprehensive income $	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)
Share of other
comprehensive loss
of equity accounted
investments, net of
income taxes	—	—	—	(26)	(26)	—	(26)
Cash flow hedges, net of
income taxes	—	—	(127)	—	(127)	—	(127)
Total comprehensive (loss) income 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 shares
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

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31 (in thousands of Canadian dollars)	2020 $	2019 $
Operating activities
Profit for the year	32,788	26,437
Items not affecting cash and cash equivalents	60,517	55,912
Cash generated from operations	93,305	82,349
Dividends received from equity accounted investments	6,600	4,113
Contributions to defined benefit retirement plans	(871)	(991)
Settlement of provisions	(481)	(194)
Changes in non-cash working capital items	15,066	(2,049)
Income taxes paid	(5,164)	(11,947)
	108,455	71,281
Financing activities
Net change in short-term bank loans	—	(13,577)
Issuance of long-term debt, net of transaction costs	76,518	84,649
Repayment of long-term debt	(83,962)	(66,030)
Repayment of other non- current liability	(2,557)	(571)
Repayment of lease liabilities	(14,049)	(9,726)
Interest paid	(10,755)	(12,269)
Issuance of Class B shares	190	258
Repurchase of Class A shares	(186)	(387)
Repurchase of Class B shares	(1,131)	(1,635)
Dividends paid on Class A shares	(2,760)	(2,703)
Dividends paid on Class B shares	(2,262)	(2,161)
	(40,954)	(24,152)
Investing activities
Acquisition of property, plant and equipment	(23,375)	(34,974)
Acquisition of intangible assets	(248)	(122)
Proceeds from disposal of property, plant and equipment	634	1,832
Business combinations	(19,957)	—
Interest received	330	439
Acquisition of other non-current assets	(228)	(944)
Proceeds from disposal of other non-current assets	109	151
Cash paid to non-controlling interests	(2,056)	(7,972)
Cash received on other non-current financial assets	222	211
	(44,569)	(41,379)
Net change in cash and cash equivalents	22,932	5,750
Cash and cash equivalents, beginning of year	22,608	15,393
Effect of exchange rate on balances held in foreign currencies
of foreign operations	(42)	1,465
Cash and cash equivalents, end of year	45,498	22,608

SOURCE Logistec Corporation

Jean-Claude Dugas, CPA, CA, Chief Financial Officer, Logistec Corporation, [email protected], [phone]

Related Links

http://www.logistec.com