Logistec announces its results for the first quarter of 2015

MONTREAL, May 8, 2015 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the first quarter ended March 28, 2015.

During the first quarter of 2015, consolidated revenue totalled $60.4 million, a decrease of $2.4 million or 3.8% from the equivalent period of the previous year. The marine services segment's revenue grew by $2.4 million or 5.2% to $48.1 million for the first quarter of 2015, whereas the environmental services segment's revenue amounted to $12.3 million, down by $4.7 million or 27.8% from the first quarter of 2014. The revenue growth in the marine services segment came from an increase in bulk cargo volumes, while the revenue decrease in the environmental services segment is explained by lower woven-hose manufacturing volumes. The first quarter of 2015 closed with a consolidated profit attributable to owners of the Company of $2.5 million, compared with $4.3 million for the first quarter of 2014. The profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.20, of which $0.19 was attributable to Class A Common Shares and $0.21 was attributable to Class B Subordinate Voting Shares.

Outlook

"The first quarter is not overly indicative of our outlook for the year due to the seasonality of our activities, and we are not concerned by the drop in revenue and net profit. All cargo types, bulk, break-bulk and containers, are showing solid performances and we should benefit from the ongoing turnaround of the U.S. economy. Furthermore, we are confident in regard to Sanexen's capacity to deliver another good year in 2015, as we expect an increase in the demand for services related to the Aqua-Pipe technology and a satisfactory level of site remediation activity," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

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 31 ports 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 woven-hose manufacturing

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.

(in thousands of Canadian dollars, except for per share amounts and number of shares) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Earnings
	For the three months ended
	March 28, 2015	March 29, 2014
	$	$
Revenue	60,372	62,735
Employee benefits expense	(31,747)	(28,594)
Equipment and supplies expense	(14,028)	(18,424)
Rental expense	(6,965)	(6,290)
Other expenses	(3,307)	(3,217)
Depreciation and amortization expense	(2,699)	(2,482)
Share of profit of equity accounted investments	107	188
Other gains and losses	1,147	2,059
Operating profit	2,880	5,975
Finance expense	(255)	(91)
Finance income	89	114
Profit before income taxes	2,714	5,998
Income taxes	(565)	(1,606)
Profit for the period	2,149	4,392
Profit attributable to:
Owners of the Company	2,518	4,347
Non-controlling interests	(369)	45
Profit for the period	2,149	4,392
Basic and diluted earnings per Class A Common Share ^(1)	0.19	0.33
Basic and diluted earnings per Class B Subordinate Voting Share ^(2)	0.21	0.36
Weighted average number of Class A shares outstanding, basic and diluted	7,457,322	7,470,022
Weighted average number of Class B shares outstanding, basic and diluted	5,049,633	5,252,634
^(1) Class A Common Share ("Class A share")
^(2) Class B Subordinate Voting Share ("Class B share")

(in thousands of Canadian dollars) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Comprehensive Income
			For the three months ended
			March 28, 2015	March 29, 2014
			$	$
Profit for the period			2,149	4,392
Other comprehensive income
	Items that are or may be reclassified to the consolidated statements of earnings
		Currency translation differences arising on translation of foreign operations	2,825	1,094
		Losses on derivatives designated as cash flow hedges	(163)	(2)
		Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings	9	2
		Income taxes relating to derivatives designated as cash flow hedges	42	-
		Share of other comprehensive income of equity accounted investments, net of income taxes	(6)	-
	Total items that are or may be reclassified to the consolidated statements of earnings		2,707	1,094
	Items that will not be reclassified to the consolidated statements of earnings
		Remeasurement losses on benefit obligation	(951)	(791)
		Return on retirement plan assets excluding amounts included in profit for the period	543	706
		Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period	110	23
		Share of other comprehensive income of equity accounted investments, net of income taxes	7	34
	Total items that will not be reclassified to the consolidated statements of earnings		(291)	(28)
Other comprehensive income for the period, net of income taxes			2,416	1,066
Total comprehensive income for the period			4,565	5,458
Total comprehensive income attributable to:
Owners of the Company			4,934	5,413
Non-controlling interests			(369)	45
Total comprehensive income for the period			4,565	5,458

(in thousands of Canadian dollars) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Financial Position
		As at March 28,  2015	As at December 31,  2014
		$	$
Assets
Current assets
	Cash and cash equivalents	18,256	26,381
	Investment in a service contract	261	1,366
	Trade and other receivables	45,933	67,052
	Work in progress	3,877	1,027
	Current income tax assets	4,631	2,638
	Prepaid expenses	7,072	3,106
	Inventories	6,458	4,585
		86,488	106,155
Equity accounted investments		27,252	27,123
Investment in a service contract		1,044	-
Property, plant and equipment		102,333	99,663
Goodwill		21,742	21,407
Other intangible assets		19,515	18,286
Other non-current assets		8,056	1,704
Post-employment benefit assets		794	768
Non-current financial assets		2,542	3,432
Deferred income tax assets		8,570	8,449
Total assets		278,336	286,987
Liabilities
Current liabilities
	Trade and other payables	32,230	40,452
	Deferred revenue	2,802	2,475
	Current income tax liabilities	163	1,159
	Dividends payable	812	815
	Current portion of long-term debt	1,584	1,261
	Provisions	951	1,001
		38,542	47,163
Long-term debt		25,018	28,007
Provisions		768	644
Deferred income tax liabilities		9,830	9,380
Post-employment benefit obligations		12,714	12,453
Deferred revenue		4,833	4,933
Non-current financial liabilities		4,941	4,983
Total liabilities		96,646	107,563
Equity
Share capital		14,837	14,906
Retained earnings		144,510	144,513
Accumulated other comprehensive income		6,789	4,082
Equity attributable to owners of the Company		166,136	163,501
Non-controlling interests		15,554	15,923
Total equity		181,690	179,424
Total liabilities and equity		278,336	286,987

(in thousands of Canadian dollars) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Changes in Equity
		Attributable to owners of the Company
			Accumulated other comprehensive income
		Share capital	Cash flow hedges	Foreign currency translation	Retained earnings	Total	Non- controlling interests	Total equity
		$	$	$	$	$	$	$
Balance as at January 1, 2015		14,906	(56)	4,138	144,513	163,501	15,923	179,424
Profit for the period		–	–	–	2,518	2,518	(369)	2,149
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	–	–	2,825	–	2,825	–	2,825
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes	–	–	–	(298)	(298)	–	(298)
	Cash flow hedges, net of income taxes	–	(112)	–	–	(112)	–	(112)
	Share of other comprehensive income of equity accounted investments, net of income taxes	–	(6)	–	8	2	–	2
Total comprehensive income (loss) for the period		–	(118)	2,825	2,228	4,935	(369)	4,566
Repurchase of Class A shares		(3)	–	–	(222)	(225)	–	(225)
Repurchase of Class B shares		(66)	–	–	(1,197)	(1,263)	–	(1,263)
Dividends on Class A shares		–	–	–	(466)	(466)	–	(466)
Dividends on Class B shares		–	–	–	(346)	(346)	–	(346)
Balance as at March 28, 2015		14,837	(174)	6,963	144,510	166,136	15,554	181,690
		Attributable to owners of the Company
			Accumulated other comprehensive income
		Share capital	Cash flow hedges	Foreign currency translation	Retained earnings	Total	Non- controlling interests	Total equity
		$	$	$	$	$	$	$
Balance as at January 1, 2014		15,030	(33)	1,342	135,552	151,891	11,791	163,682
Profit for the period		–	–	–	4,347	4,347	45	4,392
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	–	–	1,094	–	1,094	–	1,094
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes	–	–	–	(62)	(62)	–	(62)
	Share of other comprehensive income of equity accounted investments, net of income taxes	–	(2)	–	36	34	–	34
Total comprehensive income (loss) for the period		–	(2)	1,094	4,321	5,413	45	5,458
Repurchase of Class A shares		(3)	–	–	(159)	(162)	–	(162)
Repurchase of Class B shares		(215)	–	–	(2,874)	(3,089)	–	(3,089)
Non-controlling interest arising on a business acquisition		–	–	–	–	–	1,475	1,475
Repurchase of share capital by a subsidiary		–	–	–	–	–	(796)	(796)
Dividends on Class A shares		–	–	–	(392)	(392)	–	(392)
Dividends on Class B shares		–	–	–	(301)	(301)	–	(301)
Balance as at March 29, 2014		14,812	(35)	2,436	136,147	153,360	12,515	165,875

(in thousands of Canadian dollars) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Cash Flows
		For the three months ended
		March 28, 2015	March 29, 2014
		$	$
Operating activities
	Profit for the period	2,149	4,392
	Items not affecting cash and cash equivalents	4,696	3,795
	Cash generated from operations	6,845	8,187
	Dividends received from equity accounted investments	-	1,675
	Contributions to defined benefit retirement plans	(306)	(328)
	Settlement of provisions	(9)	(45)
	Changes in non-cash working capital items	9,781	8,089
	Income taxes paid	(3,527)	(6,834)
		12,784	10,744
Financing activities
	Net change in short-term bank loans	-	(2,087)
	Issuance of long-term debt	1,366	-
	Repayment of long-term debt	(4,035)	(369)
	Interest paid	(359)	(72)
	Repurchase of Class A shares	(225)	(163)
	Repurchase of Class B shares	(1,263)	(3,089)
	Repurchase of share capital by a subsidiary	-	(796)
	Dividends paid on Class A shares	(466)	(392)
	Dividends paid on Class B shares	(349)	(307)
		(5,331)	(7,275)
Investing activities
	Customer repayment of investment in a service contract	61	56
	Interest received	130	158
	Cash acquired in a business acquisition	-	319
	Acquisition of property, plant and equipment	(5,192)	(3,358)
	Proceeds from disposal of property, plant and equipment	4	101
	Acquisition of intangible assets	(42)	(182)
	Acquisition of other non-current assets	(10,268)	(20)
	Proceeds from disposal of other non-current assets	-	24
		(15,307)	(2,902)
Net change in cash and cash equivalents		(7,854)	567
Cash and cash equivalents, beginning of period		26,381	19,638
Effect of exchange rate on balances held in foreign currencies of foreign operations		(271)	(467)
Cash and cash equivalents, end of period		18,256	19,738
Additional information
Acquisition of property, plant and equipment included in trade and other payables		1,123	748

SOURCE Logistec Corporation

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