LOGISTEC Announces 2022 Year-End Results: A Year of Remarkable Achievements and Financial Results

MONTRÉAL, March 22, 2023 /CNW/ - LOGISTEC Corporation ("LOGISTEC") (TSX: LGT.A) (TSX: LGT.B) (the "Company"), a leading marine and environmental services provider, today announced its financial results for the year ended December 31, 2022. Pursuing its long-term sustainable growth strategy, LOGISTEC was able to report historic results surpassing an all-time high in an economic context favorable to our activities.

2022 Highlights

• Consolidated revenue reached $897.6 million, an increase of $153.9 million or 20.7%;
• Adjusted EBITDA ⁽¹⁾ closed at $142.1 million, up $21.3 million;
• Total diluted earnings per share of $4.12, up 19.1%;

"The year of LOGISTEC's 70^th anniversary was a memorable one for its record results, outstanding performance and remarkable innovations," said Madeleine Paquin, President and CEO, LOGISTEC. "LOGISTEC is well-positioned for sustainable growth with financial strength, diversification, a unique business model, an extensive North American terminal network and innovative environmental technologies. I am grateful to all the members of our team, our customers and our partners for their continuous support, collaboration, trust and loyalty."

"Our 2022 financial performance once again exceeds our expectations on key financial metrics for the year," added Carl Delisle, Chief Financial Officer and Treasurer of LOGISTEC. "Thanks to the ingenuity and dedication of our people, thought-out diversifications, organic growth and strategic acquisitions over the last few years, LOGISTEC has continued to build a more resilient platform while expanding our reach, scope and expertise to our customers."

2022 Results – Strong Financial Performance

Consolidated revenue totaled $897.6 million in 2022, an increase of $153.9 million or 20.7% over fiscal 2021. More importantly, we achieved record adjusted earnings before interest expense, income taxes, depreciation, and amortization expense ("Adjusted EBITDA") ⁽¹⁾ of $142.1 million and a profit attributable to owners of the Company of $53.5 million, a first in our history. These earnings also led us to achieve another milestone: earnings per share ("EPS") above $4.00 per share, with total diluted earnings per share computing at $4.12 per share.

The marine services segment handled record volumes in response to high demand in the supply chain and delivered great results with 2022 revenue closing at $565.8 million, compared to $427.0 million, an increase of 32.5% over 2021. Operations expanded at Lemont (IL), a strategic gateway to the greater Chicago area markets and other Midwest states. We strengthened our partnerships with key ports, signing long-term agreements across our network.

The environmental services segment produced revenue reaching $331.7 million for 2022, up 4.7% from $316.7 million from the prior year. Revenue was driven by our recent acquisition of American Process Group, which contributed to a full year of revenue in 2022.

LOGISTEC reported a profit for the year of $54.0 million, of which $53.5 million was attributable to owners of the Company. This translated into total diluted earnings per share of $4.12, of which $3.95 per share was attributable to Class A Common Shares and $4.34 per share was attributable to Class B Subordinate Voting Shares.

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

Outlook

In today's environment, as both our business segments evolve, adapt and grow, we will leverage the strength of our network of marine terminals to support reliable and sustainable supply chains and help our customers solve their most complex environmental challenges. Our 2022 results served as clear evidence of the resiliency of our business and the benefits of our focused strategy. Both segments offer solutions to capitalize on growth opportunities in response to current market trends and key environmental imperatives.

LOGISTEC has a history of continuous growth for over 70 years. In the last 10 years, the marine services segment, a mature industry, has grown revenue at an impressive 14.7% compound annual growth rate ("CAGR"). LOGISTEC is a leader in handling dimensional parts such as wind energy components. The safe handling of over-dimensional cargoes is growing fast and our experts in the field are recognized internationally as the best terminal operators, by the International Heavy Lift Awards. We remain confident that our customers, partners and communities will present us with great opportunities to support resilient supply chains.

On the environmental front, our customers and communities are facing unprecedented challenges. From extreme weather events, aging drinking water infrastructure, water scarcity, our customers are looking for unique solutions for an increasingly complex set of issues. Our team has the expertise to play an important role in accelerating solution delivery. We believe that our environmental team is also in a great position to perform, with a strong order book to start 2023 and new business opportunities.

In 2023, we enter a new strategic cycle with good momentum. Fuelled by our successful achievements and our long-term vision, we will keep building on our strong foundation. In this context, we believe that we are well positioned to support a fluid and resilient supply chain and make a significant impact on building resilient and vibrant communities.

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 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 configuration and customization costs related to the implementation of an Enterprise Resource Planning ("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)	2022 $	2021 $
Profit for the year	54,002	45,624
PLUS:
Depreciation and amortization expense	56,196	49,100
Net finance expense	14,816	10,562
Income taxes	10,804	10,471
Configuration and customization costs in a cloud computing arrangement	6,276	5,064
Adjusted EBITDA	142,094	120,821

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 2022 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)
		2022 $	2021 $
Revenue		897,565	743,703
Employee benefits expense		(429,458)	(363,331)
Equipment and supplies expense		(247,002)	(187,225)
Operating expense		(61,555)	(50,095)
Other expenses		(38,753)	(33,327)
Depreciation and amortization expense		(56,196)	(49,100)
Share of profit of equity accounted investments		18,760	10,084
Other losses		(3,739)	(4,052)
Operating profit		79,622	66,657
Finance expense		(15,429)	(11,103)
Finance income		613	541
Profit before income taxes		64,806	56,095
Income taxes		(10,804)	(10,471)
Profit for the year		54,002	45,624
Profit attributable to:
Owners of the Company		53,543	45,364
Non-controlling interest		459	260
Profit for the year		54,002	45,624
Basic earnings per Class A Common Share ^(1)		3.98	3.34
Basic earnings per Class B Subordinate Voting Share ^(2)		4.38	3.68
Diluted earnings per Class A share		3.95	3.31
Diluted earnings per Class B share		4.34	3.64

⁽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)
		2022	2021
		$	$
Profit for the year		54,002	45,624
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		12,477	848
Unrealized (loss) gain on translating debt designated as hedging item of the net investment in foreign operations		(4,260)	521
Income taxes relating to unrealized (loss) gain on translating debt designated as hedging item of the net investment in foreign operations		430	(121)
Gain (loss) on derivatives designated as cash flow hedges		2,101	(235)
Income taxes relating to derivatives designated as cash flow hedges		(431)	62
Total items that are or may be reclassified to the consolidated statements of earnings		10,317	1,075
Items that will not be reclassified to the consolidated statements of earnings
Remeasurement gains (losses) on benefit obligations		8,733	5,178
Return on retirement plan assets		(3,452)	1,034
Income taxes on remeasurement gains (losses) on benefit obligation and return on retirement plan assets		(1,420)	(1,646)
Total items that will not be reclassified to the consolidated statements of earnings		3,861	4,566
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		312	318
Items that will not be reclassified to the consolidated statements of earnings		(83)	(84)
Total share of other comprehensive income of equity accounted investments, net of income taxes		229	234
Other comprehensive income for the year, net of income taxes		14,407	5,875
Total comprehensive income for the year		68,409	51,499
Total comprehensive income attributable to:
Owners of the Company		67,853	51,240
Non-controlling interest		556	259
Total comprehensive income for the year		68,409	51,499

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)
		As at December 31, 2022 $	As at December 31, 2021 $
Assets
Current assets
Cash and cash equivalents		36,043	37,530
Trade and other receivables		198,247	183,322
Contract assets		14,912	7,517
Current income tax assets		11,245	7,597
Inventories		20,000	16,830
Prepaid expenses and other		8,756	10,437
		289,203	263,233
Equity accounted investments		46,140	46,311
Property, plant and equipment		234,602	207,321
Right-of-use assets		167,274	135,049
Goodwill		187,430	182,706
Intangible assets		36,807	41,043
Non-current assets		2,030	2,448
Post-employment benefit assets		1,264	—
Non-current financial assets		6,114	5,902
Deferred income tax assets		12,808	14,958
Total assets		983,672	898,971
Liabilities
Current liabilities
Short-term bank loans		—	8,600
Trade and other payables		128,019	127,044
Contract liabilities		11,107	14,801
Current income tax liabilities		5,095	10,442
Dividends payable		1,574	1,338
Current portion of lease liabilities		18,662	15,775
Current portion of long-term debt		10,925	3,427
		175,382	181,427
Lease liabilities		157,500	125,249
Long-term debt		224,110	191,927
Deferred income tax liabilities		24,604	25,684
Post-employment benefit obligations		13,690	16,212
Contract liabilities		1,733	2,133
Non-current liabilities		25,562	40,730
Total liabilities		622,581	583,362
Equity
Share capital		49,443	50,889
Retained earnings		290,773	254,621
Accumulated other comprehensive income		19,271	9,051
Equity attributable to owners of the Company		359,487	314,561
Non-controlling interest		1,604	1,048
Total equity		361,091	315,609
Total liabilities and equity		983,672	898,971

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars)
	Attributable to owners of the Company
	Share capital issued $	Retained earnings $	Accumulated other comprehensive income $	Total $	Non-controlling interest $	Total equity $
Balance as at January 1, 2022	50,889	254,621	9,051	314,561	1,048	315,609
Profit for the year	—	53,543	—	53,543	459	54,002
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations	—	—	12,380	12,380	97	12,477
Unrealized loss on translating debt designated as hedging item of the net investment in foreign operations, net of income taxes	—	—	(3,830)	(3,830)	—	(3,830)
Remeasurement gains on benefit obligation and return on retirement plan assets, net of income taxes	—	3,861	—	3,861	—	3,861
Share of other comprehensive income of equity accounted investments, net of income taxes	—	229	—	229	—	229
Cash flow hedges, net of income taxes	—	—	1,670	1,670	—	1,670
Total comprehensive income for the year	—	57,633	10,220	67,853	556	68,409
Net remeasurement of written put option liability	—	(7,872)	—	(7,872)	—	(7,872)
Issuance of Class B shares	683	—	—	683	—	683
Repurchase of Class B shares	(2,129)	(8,101)	—	(10,230)	—	(10,230)
Class B shares to be issued under the Executive Stock Option Plan	—	683	—	683	—	683
Other dividend	—	(394)	—	(394)	—	(394)
Dividends on Class A shares	—	(3,183)	—	(3,183)	—	(3,183)
Dividends on Class B shares	—	(2,614)	—	(2,614)	—	(2,614)
Balance as at December 31, 2022	49,443	290,773	19,271	359,487	1,604	361,091

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

		Attributable to owners of the Company
		Share capital issued $	Share capital to be issued $	Retained earnings $	Accumulated other comprehensive income $	Total $		Non- controlling interest $	Total equity $
Balance as at January 1, 2021		45,575	4,906	242,358	7,943	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 translation of foreign operations		—	—	—	849	849		(1)	848
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations, net of income taxes		—	—	—	400	400		—	400
Remeasurement gains on benefit obligation and return on retirement plan assets, net of income taxes		—	—	4,566	—	4,566		—	4,566
Share of other comprehensive income of equity accounted investments, net of income taxes		—	—	202	32	234		—	234
Cash flow hedges, net of income taxes		—	—	—	(173)	(173)		—	(173)
Total comprehensive income for the year		—	—	50,132	1,108	51,240		259	51,499
Remeasurement of written put option liability		—	—	(32,403)	—	(32,403)		—	(32,403)
Issuance of Class B shares		515	—	—	—	515		—	515
Repurchase of Class B shares		(107)	—	(444)	—	(551)		—	(551)
Issuance of Class B share capital to a subsidiary shareholder		4,906	(4,906)	—	—	—		—	—
Class B shares to be issued under the Executive Stock Option Plan		—	—	364	—	364		—	364
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	—	254,621	9,051	314,561		1,048	315,609

CONSOLIDATED STATEMENTS OF CASH FLOWS

years ended December 31 (in thousands of Canadian dollars)
		2022 $	2021 $
Operating activities
Profit for the year		54,002	45,624
Items not affecting cash and cash equivalents		68,040	64,265
Cash generated from operations		122,042	109,889
Dividends received from equity accounted investments		19,160	8,859
Contributions to defined benefit retirement plans		(675)	(1,022)
Settlement of provisions		(396)	(865)
Changes in non-cash working capital items		(20,900)	(27,556)
Income taxes paid		(20,553)	(9,719)
		98,678	79,586
Financing activities
Net change in short-term bank loans		(8,565)	8,600
Issuance of long-term debt, net of transaction costs		139,661	91,681
Repayment of long-term debt		(108,130)	(63,601)
Repayment of other non-current liabilities		—	(2,635)
Repayment of lease liabilities		(15,685)	(13,384)
Repayment of due to a non-controlling interest		(19,086)	—
Interest paid		(15,043)	(11,508)
Issuance of Class B shares		221	130
Repurchase of Class B shares		(10,230)	(551)
Dividends paid on Class A shares		(3,040)	(2,794)
Dividends paid on Class B shares		(2,521)	(2,343)
		(42,418)	3,595
Investing activities
Dividends paid to a non-controlling interest		(10,060)	(170)
Acquisition of property, plant and equipment		(52,146)	(44,306)
Acquisition of intangible assets		(347)	(117)
Proceeds from disposal of property, plant and equipment		2,434	699
Business combinations, net of cash acquired		(3,338)	(50,390)
Interest received		375	576
Acquisition of other non-current assets		(1,274)	(632)
Proceeds from disposal of other non-current assets		410	84
Cash received on other non-current financial assets		2,579	1,398
		(61,367)	(92,858)
Net change in cash and cash equivalents		(5,107)	(9,677)
Cash and cash equivalents, beginning of year		37,530	46,778
Effect of exchange rate on balances held in foreign currencies
of foreign operations		3,620	429
Cash and cash equivalents, end of year		36,043	37,530

SOURCE Logistec Corporation

Carl Delisle, cpa auditor, Chief Financial Officer and Treasurer, Logistec Corporation, [email protected], [phone]