LOGISTEC Announces 2021 Year-End Results: A Record-Breaking Year Reaching Key Financial Milestones

MONTRÉAL, March 18, 2022 /CNW Telbec/ - LOGISTEC Corporation ("LOGISTEC") (TSX: LGT.A) and (TSX: LGT.B) (the "Company"), a marine and environmental services provider, today announced its financial results for the year ended December 31, 2021. Pursuing its long-term growth strategy, LOGISTEC was able to report the most successful year of its history, reaching key milestones on the financial, operational, and environmental fronts.

2021 Highlights

• Consolidated revenue reached $743.7 million, an increase of $139.0 million or 23.0%;
• Adjusted EBITDA ⁽¹⁾ closed at $120.8 million, up $20.2 million;
• Total diluted earnings per share of $3.46, up 39.0%;
• Acquisition of American Process Group ("APG"), an Alberta-based environmental industry leader, specialized in dredging, dewatering and residuals management in Western Canada and select urban areas in the U.S.

"This record-breaking performance is the result of a clear vision, a solid strategic plan, well-defined business objectives, and great execution," said Madeleine Paquin, President and CEO, LOGISTEC. "I am grateful to all the members of our team who were ready to go beyond and adapt to our customers' and partners' needs, providing reliable and creative solutions in this buoyant market. We are at an exciting moment in our history where we can drive change with our expertise and technology, and continue to push boundaries for many years to come."

2021 Results

Consolidated revenue totaled $743.7 million in 2020, an increase of $139.0 million or 23.0% over 2020. The marine services segment delivered the best performance ever with 2021 revenue closing at $427.0 million, compared to $344.6 million, an increase of 23.9%. Our port terminal operations reported a record tonnage handled in 2021 due to strong demand throughout the year, which led to these outstanding results. The environmental services segment also achieved a remarkable performance with revenue reaching $316.7 million for 2021, up from $260.1 million or 21.8% from the previous year. Revenue growth was especially robust in the drinking water infrastructure renewal market. Our field-proven technologies provide solutions to ensure safe and reliable water supply and represents a significant driver for our growth in the Canadian and U.S. markets.

LOGISTEC reported a profit for the year of $45.6 million, of which $45.4 million was attributable to owners of the Company. This translated into total diluted earnings per share of $3.46 of which $3.31 per share was attributable to Class A Common Shares and $3.64 per share was attributable to Class B Subordinate Voting Shares.

Outlook

In 2021, the COVID-19 pandemic persisted with the emergence of variants, but despite that, we benefited from a gradual economic recovery. Our expertise combined with a proven strategy of innovation and targeted diversification, allowed us to increase our revenue and improve our profitability.

From a global perspective, the current situation between Russia and Ukraine and the related sanctions being brought forth by various countries may influence the flow of industrial commodities. It is difficult to predict what the outcome will be, as some cargoes could be negatively affected, whereas alternative cargoes could be favoured.

Coming out of our best year ever, our marine services segment remains strong, and we have the confidence and support of our customers and our partners. Our environmental services segment is also in a good position to perform, with a solid order book to start 2022 and new business opportunities from our latest acquisition, American Process Group.

^(1)	Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.

From an organizational standpoint, we are in the process of redefining and deploying our data strategy and have built the foundation for our Enterprise Resource Planning ("ERP") system that will be deployed in the coming years. We believe in investing in technologies to modernize our IT infrastructure to leverage data in support of our decision-making process. 

We are confident we can continue to deliver a strong financial performance in the future, as we can count on our talented team, our vision and values, a solid strategic plan and a sound financial position. We will continue to seek growth opportunities, both organic and through acquisitions, while creating value for all our stakeholders.

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 54 ports and 80 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 Company's impairment charge, includes the customer repayment of an investment in a service contract and, since 2021, excludes configuration and customization costs related to the implementation of an ERP system. 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 year to adjusted EBITDA:

(in thousands of dollars)	2021 $	2020 $
Profit for the year	45,624	32,788
PLUS:
Depreciation and amortization expense	49,100	45,390
Impairment charge	—	—
Net finance expense	10,562	11,818
Income taxes	10,471	10,662
Configuration and customization costs in a cloud computing arrangement	5,064	—
Customer repayment of an investment in a service contract	—	—
Adjusted EBITDA	120,821	100,658

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 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.

CONSOLIDATED STATEMENTS OF EARNINGS

years ended December 31 (in thousands of dollars, except per share amounts)
		2021 $	2020 $
Revenue		743,703	604,701
Employee benefits expense		(363,331)	(287,665)
Equipment and supplies expense		(187,225)	(155,611)
Operating expense		(50,095)	(41,864)
Other expenses		(33,327)	(27,509)
Depreciation and amortization expense		(49,100)	(45,390)
Share of profit of equity accounted investments		10,084	9,529
Other losses		(4,052)	(923)
Operating profit		66,657	55,268
Finance expense		(11,103)	(12,453)
Finance income		541	635
Profit before income taxes		56,095	43,450
Income taxes		(10,471)	(10,662)
Profit for the year		45,624	32,788
Profit attributable to:
Owners of the Company		45,364	32,614
Non-controlling interest		260	174
Profit for the year		45,624	32,788
Basic earnings per Class A Common Share ^(1)		3.34	2.43
Basic earnings per Class B Subordinate Voting Share ^(2)		3.68	2.67
Diluted earnings per Class A share		3.31	2.39
Diluted earnings per Class B share		3.64	2.63

⁽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 (in thousands of dollars)
		2021	2020
		$	$
Profit for the year		45,624	32,788
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		848	(3,223)
Income taxes relating to currency translation differences arising on translation		—	302
of foreign operations
Unrealized gain on translating debt designated as hedging item of the net		521	2,306
investment in foreign operations
Income taxes relating to unrealized gain on translating debt designated as		(121)	(1,053)
hedging item of the net investment in foreign operations
Loss on derivatives designated as cash flow hedges		(235)	(92)
Income taxes relating to derivatives designated as cash flow hedges		62	(11)
Total items that are or may be reclassified to the consolidated statements of		1,075	(1,771)
earnings
Items that will not be reclassified to the consolidated statements of earnings
Remeasurement gains (losses) on benefit obligations		5,178	(2,732)
Return on retirement plan assets		1,034	333
Income taxes on remeasurement gains (losses) on benefit obligation and		(1,646)	636
return on retirement plan assets
Total items that will not be reclassified to the consolidated statements of		4,566	(1,763)
earnings
Share of other comprehensive income (loss) of equity accounted investments,
net of income taxes
Items that are or may be reclassified to the consolidated statements of		318	(199)
earnings
Items that will not be reclassified to the consolidated statements of		(84)	53
earnings
Total share of other comprehensive income (loss) of equity accounted investments,		234	(146)
net of income taxes
Other comprehensive income (loss) for the year, net of income taxes		5,875	(3,680)
Total comprehensive income for the year		51,499	29,108
Total comprehensive income attributable to:
Owners of the Company		51,240	28,962
Non-controlling interest		259	146
Total comprehensive income for the year		51,499	29,108

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)
		As at December 31, 2021 $	As at  December 31,  2020 $
Assets
Current assets
Cash and cash equivalents		37,530	46,778
Trade and other receivables		183,322	138,649
Contract assets		7,517	7,617
Current income tax assets		7,597	9,171
Inventories		16,830	12,946
Prepaid expenses and other		10,437	9,056
		263,233	224,217
Equity accounted investments		46,311	45,061
Property, plant and equipment		207,321	185,686
Right-of-use assets		135,049	132,779
Goodwill		182,706	149,311
Intangible assets		41,043	38,422
Non-current assets		2,448	2,381
Non-current financial assets		5,902	9,210
Deferred income tax assets		14,958	12,385
Total assets		898,971	799,452
Liabilities
Current liabilities
Short-term bank loans		8,600	—
Trade and other payables		127,044	91,694
Contract liabilities		14,801	8,941
Current income tax liabilities		10,442	8,719
Dividends payable		1,338	1,259
Current portion of lease liabilities		15,775	18,251
Current portion of long-term debt		3,427	3,748
		181,427	132,612
Lease liabilities		125,249	116,901
Long-term debt		191,927	163,962
Deferred income tax liabilities		25,684	21,418
Post-employment benefit obligations		16,212	22,055
Contract liabilities		2,133	2,533
Non-current liabilities		40,730	38,400
Total liabilities		583,362	497,881
Equity
Share capital		50,889	45,575
Share capital to be issued		—	4,906
Retained earnings		254,621	242,358
Accumulated other comprehensive income		9,051	7,943
Equity attributable to owners of the Company		314,561	300,782
Non-controlling interest		1,048	789
Total equity		315,609	301,571
Total liabilities and equity		898,971	799,452

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars)
		Attributable to owners of the Company
		Share capital issued $	Share capital to be issued $	Accumulated other comprehensive income $	Retained earnings $	Total $	Non- controlling interest $	Total equity $
Balance as at January 1, 2021		45,575	4,906	7,943	242,358	300,782	789	301,571
Profit for the year		—	—	—	45,364	45,364	260	45,624
Other comprehensive income (loss)
Currency translation differences arising on		—	—	849	—	849	(1)	848
translation of foreign operations
Unrealized gain on translating debt designated		—	—	400	—	400	—	400
as hedging item of the net investment in foreign
operations, net of income taxes
Remeasurement gains on benefit obligation		—	—	—	4,566	4,566	—	4,566
and return on retirement plan assets, net of
income taxes
Share of other comprehensive income of		—	—	32	202	234	—	234
equity accounted investments, net of income
taxes
Cash flow hedges, net of income taxes		—	—	(173)	—	(173)	—	(173)
Total comprehensive income for the year		—	—	1,108	50,132	51,240	259	51,499
Remeasurement of written put option liability		—	—	—	(32,403)	(32,403)	—	(32,403)
Issuance and repurchase of Class B shares		408	—	—	(444)	(36)	—	(36)
Issuance of Class B share capital to a subsidiary		4,906	(4,906)	—	—	—	—	—
shareholder
Class B shares to be issued under the Executive		—	—	—	364	364	—	364
Stock Option Plan
Other dividend		—	—	—	(170)	(170)	—	(170)
Dividends on Class A shares		—	—	—	(2,828)	(2,828)	—	(2,828)
Dividends on Class B shares		—	—	—	(2,388)	(2,388)	—	(2,388)
Balance as at December 31, 2021		50,889	—	9,051	254,621	314,561	1,048	315,609

CONSOLIDATED 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 $	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	174	32,788
Other comprehensive (loss) income
Currency translation differences arising on		—	—	(2,893)	—	(2,893)	(28)	(2,921)
translation of foreign operations
Unrealized gain on translating debt designated		—	—	1,253	—	1,253	—	1,253
as hedging item of the net investment in foreign
operations, net of income taxes
Remeasurement losses on benefit obligation		—	—	—	(1,763)	(1,763)	—	(1,763)
and return on retirement plan assets, net of
income taxes
Share of other comprehensive loss of equity		—	—	(11)	(135)	(146)	—	(146)
accounted investments, net of income taxes
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 share capital to a subsidiary		4,905	(4,905)	—	—	—	—	—
shareholder
Class B shares to be issued under the Executive		—	—	—	136	136	—	136
Stock Option Plan
Other dividend		—	—	—	(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 CASH FLOWS

years ended December 31 (in thousands of Canadian dollars)
		2021 $	2020 $
Operating activities
Profit for the year		45,624	32,788
Items not affecting cash and cash equivalents		64,265	60,517
Cash generated from operations		109,889	93,305
Dividends received from equity accounted investments		8,859	6,600
Contributions to defined benefit retirement plans		(1,022)	(871)
Settlement of provisions		(865)	(481)
Changes in non-cash working capital items		(27,556)	15,066
Income taxes paid		(9,719)	(5,164)
		79,586	108,455
Financing activities
Net change in short-term bank loans		8,600	—
Issuance of long-term debt, net of transaction costs		91,681	76,518
Repayment of long-term debt		(63,601)	(83,962)
Repayment of other non-current liabilities		(2,635)	(2,557)
Repayment of lease liabilities		(13,384)	(14,049)
Interest paid		(11,508)	(10,755)
Issuance of Class B shares		130	190
Repurchase of Class A shares		—	(186)
Repurchase of Class B shares		(551)	(1,131)
Dividends paid on Class A shares		(2,794)	(2,760)
Dividends paid on Class B shares		(2,343)	(2,262)
		3,595	(40,954)
Investing activities
Cash acquired in a business combination		—	1,280
Acquisition of property, plant and equipment		(44,306)	(23,375)
Acquisition of intangible assets		(117)	(248)
Proceeds from disposal of property, plant and equipment		699	634
Business combinations		(50,390)	(19,957)
Interest received		576	330
Acquisition of other non-current assets		(632)	(228)
Proceeds from disposal of other non-current assets		84	109
Cash paid to non-controlling interests		(170)	(2,056)
Cash received on other non-current financial assets		1,398	222
		(92,858)	(43,289)
Net change in cash and cash equivalents		(9,677)	24,212
Cash and cash equivalents, beginning of year		46,778	22,608
Effect of exchange rate on balances held in foreign currencies
of foreign operations		429	(42)
Cash and cash equivalents, end of year		37,530	46,778

SOURCE Logistec Corporation

Jean-Claude Dugas, cpa, ca, Chief Financial Officer, Logistec Corporation, [email protected], [phone]