Logistec announces its results for the first quarter of 2016

MONTRÉAL, May 6, 2016 /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 26, 2016.

During the first quarter of 2016, consolidated revenue totalled $64.9 million, an increase of $4.5 million or 7.4% over the equivalent period of the previous year. The marine services segment's revenue was down by $2.7 million or 5.6% to $45.4 million for the first quarter of 2016, whereas the environmental services segment's revenue amounted to $19.4 million, up by $7.2 million or 58.6% over the first quarter of 2015. The revenue decrease in the marine services segment came from reduced bulk cargo volumes, whereas the revenue increase in the environmental services segment is due to greater woven-hose manufacturing volumes. The first quarter of 2016 closed with a consolidated loss attributable to owners of the Company of $0.1 million, compared with a profit of $2.5 million for the first quarter of 2015. This includes a loss on foreign currency exchange of $1.1 million versus a gain of $1.1 million last year. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $0.01, of which $0.01 was attributable to Class A Common Shares and $0.01 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 it is not unusual for us to incur a first-quarter loss. However, we are impacted by lower volumes in cargo handling as well as the continued impact of last year's fire at our Georgia facility. The outlook for our environmental services remains favourable and we are pleased to report that we acquired the minority interest in Sanexen at the end of the first quarter of 2016," 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 28 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 26, 2016	March 28, 2015
	$	$
Revenue	64,859	60,372
Employee benefits expense	(32,001)	(31,747)
Equipment and supplies expense	(18,377)	(14,028)
Rental expense	(6,819)	(6,965)
Other expenses	(4,185)	(3,307)
Depreciation and amortization expense	(3,036)	(2,699)
Share of profit of equity accounted investments	190	107
Other gains and losses	(1,058)	1,147
Operating profit	(427)	2,880
Finance expense	(305)	(255)
Finance income	62	89
Profit before income taxes	(670)	2,714
Income taxes	169	(565)
Profit (loss) for the period	(501)	2,149
Profit attributable to:
Owners of the Company	(138)	2,518
Non-controlling interests	(363)	(369)
Profit (loss) for the period	(501)	2,149
Basic and diluted earnings per Class A Common Share ^(1)	(0.01)	0.19
Basic earnings per Class B Subordinate Voting Share ^(2)	(0.01)	0.21
Diluted earnings per Class B share	(0.01)	0.21
Weighted average number of Class A shares outstanding, basic and diluted	7,430,322	7,457,322
Weighted average number of Class B shares outstanding, basic	4,834,200	5,049,633
Weighted average number of Class B shares outstanding, diluted	4,859,334	5,049,633
^(1) Class A Common Share ("Class A share")
^(2) Class B Subordinate Voting Share ("Class B share")

(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 Comprehensive Income
			For the three months ended
			March 26, 2016	March 28, 2015
			$	$
Profit for the period			(501)	2,149
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	(1,635)	2,825
		Losses on derivatives designated as cash flow hedges	─	(163)
		Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings	14	9
		Income taxes relating to derivatives designated as cash flow hedges	(4)	42
	Total items that are or may be reclassified to the consolidated statements of earnings		(1,625)	2,713
	Items that will not be reclassified to the consolidated statements of earnings
		Remeasurement losses on benefit obligation	─	(951)
		Return on retirement plan assets excluding amounts included in profit for the period	(215)	543
		Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period	58	110
	Total items that will not be reclassified to the consolidated statements of earnings		(157)	(298)
	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	(92)	(6)
		Items that will not be reclassified to the consolidated statements of earnings	─	8
	Total share of other comprehensive income of equity accounted investments, net of income taxes		(92)	2
Other comprehensive income (loss) for the period, net of income taxes			(1,874)	2,417
Total comprehensive income (loss)for the period			(2,375)	4,566
Total comprehensive income (loss) attributable to:
Owners of the Company			(2,012)	4,935
Non-controlling interests			(363)	(369)
Total comprehensive (loss) income for the period			(2,375)	4,566

(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 Financial Position
		As at March 26,  2016	As at December 31,  2015
		$	$
Assets
Current assets
	Cash and cash equivalents	11,064	23,811
	Investment in a service contract	1,087	1,157
	Trade and other receivables	72,785	77,333
	Work in progress	6,535	6,438
	Current income tax assets	5,599	2,569
	Prepaid expenses	8,828	7,952
	Inventories	6,707	6,553
		112,605	125,813
Equity accounted investments		29,039	28,951
Property, plant and equipment		116,588	111,022
Goodwill		24,570	22,615
Other intangible assets		19,049	20,247
Other non-current assets		4,462	5,194
Post-employment benefit assets		429	522
Non-current financial assets		3,491	5,019
Deferred income tax assets		9,223	9,032
Total assets		319,456	328,415
Liabilities
Current liabilities
	Short-term bank loans	18	–
	Trade and other payables	37,629	46,352
	Deferred revenue	2,730	2,700
	Current income tax liabilities	221	650
	Dividends payable	950	967
	Current portion of long-term debt	3,368	2,159
	Provisions	1,497	1,268
		46,413	54,096
Long-term debt		41,676	29,920
Provisions		760	766
Deferred income tax liabilities		12,452	12,433
Post-employment benefit obligations		13,185	12,955
Deferred revenue		4,433	4,533
Non-current financial liabilities		13,378	4,067
Total liabilities		132,297	118,770
Equity
Share capital		14,572	14,985
Share capital to be issued		24,898	–
Retained earnings		137,324	164,154
Accumulated other comprehensive income		8,557	10,274
Equity attributable to owners of the Company		185,351	189,413
Non-controlling interests		1,808	20,232
Total equity		187,159	209,645
Total liabilities and equity		319,456	328,415

(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 Changes in Equity
		Attributable to owners of the Company
				Accumulated other comprehensive income
		Share capital	Share capital to be issued	Cash flow hedges	Foreign currency translation	Retained earnings	Total	Non- controlling interests	Total equity
		$	$	$	$	$	$	$	$
Balance as at January 1, 2016		14,985	–	(139)	10,413	164,154	189,413	20,232	209,645
Profit for the period		–	–	–	–	(138)	(138)	(363)	(501)
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	–	–	–	(1,635)	–	(1,635)	–	(1,635)
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes	–	–	–	–	(157)	(157)	–	(157)
	Cash flow hedges, net of income taxes	–	–	10	–	–	10	–	10
	Share of other comprehensive income of equity accounted investments, net of income taxes	–	–	(92)	–	–	(92)	–	(92)
Total comprehensive income (loss) for the period		–	–	(82)	(1,635)	(295)	(2,012)	(363)	(2,375)
Repurchase of Class A shares		(7)	–	–	–	(420)	(427)	–	(427)
Repurchase of Class B shares		(406)	–	–	–	(7,017)	(7,423)	–	(7,423)
Repurchase of non-controlling interests		–	24,898	–	–	(18,148)	6,750	(18,061)	(11,311)
Dividends on Class A shares		–	–	–	–	(557)	(557)	–	(557)
Dividends on Class B shares		–	–	–	–	(393)	(393)	–	(393)
Balance as at March 26, 2016		14,572	24,898	(221)	8,778	137,324	185,351	1,808	187,159
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

(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 Cash Flows
		For the three months ended
		March 26, 2016	March 28, 2015
		$	$
Operating activities
	Profit for the period	(501)	2,149
	Items not affecting cash and cash equivalents	4,575	4,696
	Cash generated from operations	4,074	6,845
	Contributions to defined benefit retirement plans	(306)	(306)
	Settlement of provisions	(5)	(9)
	Changes in non-cash working capital items	(3,201)	9,781
	Income taxes paid	(3,266)	(3,527)
		(2,704)	12,784
Financing activities
	Net change in short-term bank loans	18	-
	Issuance of long-term debt	12,358	1,366
	Repayment of long-term debt	(2,397)	(4,035)
	Interest paid	(313)	(359)
	Repurchase of Class A shares	(427)	(225)
	Repurchase of Class B shares	(7,423)	(1,263)
	Dividends paid on Class A shares	(557)	(466)
	Dividends paid on Class B shares	(410)	(349)
		849	(5,331)
Investing activities
	Customer repayment of an investment in a service contract	70	61
	Interest received	59	130
	Repurchase of non-controlling interests	(2,392)	-
	Business acquisition	(4,560)	-
	Cash acquired in a business acquisition	197	-
	Acquisition of property, plant and equipment	(4,688)	(5,192)
	Proceeds from disposal of property, plant and equipment	80	4
	Acquisition of intangible assets	(25)	(42)
	Acquisition of other non-current assets	(29)	(10,268)
		(11,288)	(15,307)
Net change in cash and cash equivalents		(13,143)	(7,854)
Cash and cash equivalents, beginning of period		23,811	26,381
Effect of exchange rate on balances held in foreign currencies of foreign operations		396	(271)
Cash and cash equivalents, end of period		11,064	18,256
Additional information
Acquisition of property, plant and equipment included in trade and other payables		1,406	1,123

SOURCE Logistec Corporation

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