MONTRÉAL, May 9, 2017 /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 25, 2017.
During the first quarter of 2017, consolidated revenue totalled $60.1 million, a decrease of $4.8 million or 7.4% over the same period in 2016. Revenue from the marine services segment was down $4.1 million or 9.1% to $41.3 million for the first quarter of 2017, while revenue from the environmental services segment amounted to $18.8 million, down by $0.7 million, or 3.4% from the first quarter of 2016.
The decline in revenue in the marine services segment stems primarily from the loss of the Saint John (NB) container terminal concession and, to a lesser degree, from reduced break-bulk cargo volumes. The slight revenue decrease in the environmental services segment was due to lower Aqua-Pipe activity, partially offset by an increase in site remediation revenue. The first quarter of 2017 closed with a consolidated loss attributable to owners of the Company of $1.5 million, compared to a loss of $0.1 million for the first quarter of 2016. The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.12, of which $0.12 was attributable to Class A Common Shares and $0.13 was attributable to Class B Subordinate Voting Shares.
Outlook
"We are disappointed in our first quarter results, but are confident in the year ahead. In cargo handling, we have worked diligently to replace the revenue from our lost concession in Saint John (NB), and are pleased to have closed on two new projects during the quarter. These projects, along with a better outlook for bulk and container business, should help us resume our growth momentum in the cargo handling business. The start at Sanexen has been difficult, as we are preparing for a strong year in a season where there is little activity. Furthermore, this has been exacerbated by a challenging contract we are dealing with in Europe. Our backlog is strong for both Aqua-Pipe rehabilitation and site remediation, and we are optimistic about our financial performance in 2017," 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 some 30 ports and 40 terminals located 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 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.
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) |
||
| Logistec Corporation |
||
| Condensed Consolidated Interim Statements of Earnings |
||
| For the three months ended |
||
| March 25, |
March 26, |
|
| $ |
$ |
|
| Revenue |
60,071 |
64,859 |
| Employee benefits expense |
(31,806) |
(32,001) |
| Equipment and supplies expense |
(17,274) |
(18,377) |
| Rental expense |
(6,933) |
(6,819) |
| Other expenses |
(3,636) |
(4,185) |
| Depreciation and amortization expense |
(4,026) |
(3,036) |
| Share of profit of equity accounted investments |
407 |
190 |
| Other gains and losses |
1,730 |
(1,058) |
| Operating profit |
(1,467) |
(427) |
| Finance expense |
(395) |
(305) |
| Finance income |
83 |
62 |
| Profit before income taxes |
(1,779) |
(670) |
| Income taxes |
220 |
169 |
| Profit (loss) for the period |
(1,559) |
(501) |
| Profit attributable to: |
||
| Owners of the Company |
(1,530) |
(138) |
| Non-controlling interests |
(29) |
(363) |
| Profit (loss) for the period |
(1,559) |
(501) |
| Basic earnings per Class A Common Share (1) |
(0.12) |
(0.01) |
| Basic earnings per Class B Subordinate Voting Share (2) |
(0.13) |
(0.01) |
| Diluted earnings per Class A share |
(0.12) |
(0.01) |
| Diluted earnings per Class B share |
(0.13) |
(0.01) |
| Weighted average number of Class A shares outstanding, basic and diluted |
7,412,255 |
7,430,322 |
| Weighted average number of Class B shares outstanding, basic |
4,739,603 |
4,834,200 |
| Weighted average number of Class B shares outstanding, diluted |
5,491,515 |
4,859,334 |
| (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) |
||||
| Logistec Corporation |
||||
| Condensed Consolidated Interim Statements of Comprehensive Income |
||||
| For the three months ended |
||||
| March 25, |
March 26, |
|||
| $ |
$ |
|||
| Loss for the period |
(1,559) |
(501) |
||
| Other comprehensive loss |
||||
| Items that are or may be reclassified to the consolidated statements of earnings |
||||
| Currency translation differences arising on translation of foreign operations |
(164) |
(1,635) |
||
| Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings |
– |
14 |
||
| Income taxes relating to derivatives designated as cash flow hedges |
– |
(4) |
||
| Total items that are or may be reclassified to the consolidated statements of earnings |
(164) |
(1,625) |
||
| Items that will not be reclassified to the consolidated statements of earnings |
||||
| Return on retirement plan assets excluding amounts included in profit for the period |
373 |
(215) |
||
| Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period |
(100) |
58 |
||
| Total items that will not be reclassified to the consolidated statements of earnings |
273 |
(157) |
||
| 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) |
||
| Total share of other comprehensive income of equity accounted investments, net of income taxes |
─ |
(92) |
||
| Other comprehensive income (loss) for the period, net of income taxes |
109 |
(1,874) |
||
| Total comprehensive loss for the period |
(1,450) |
(2,375) |
||
| Total comprehensive loss attributable to: |
||||
| Owners of the Company |
(1,421) |
(2,012) |
||
| Non-controlling interests |
(29) |
(363) |
||
| Total comprehensive loss for the period |
(1,450) |
(2,375) |
||
| (in thousands of Canadian dollars) |
|||
| (unaudited and not reviewed by the independent auditor) |
|||
| Logistec Corporation |
|||
| Condensed Consolidated Interim Statements of Financial Position |
|||
| As at |
As at |
||
| $ |
$ |
||
| Assets |
|||
| Current assets |
|||
| Cash and cash equivalents |
13,327 |
15,971 |
|
| Short-term portion of investment in a service contract |
– |
865 |
|
| Trade and other receivables |
54,224 |
86,373 |
|
| Work in progress |
7,349 |
4,395 |
|
| Current income tax assets |
4,735 |
3,767 |
|
| Other financial assets |
1,059 |
1,014 |
|
| Assets available for sale |
– |
330 |
|
| Prepaid expenses |
5,608 |
5,654 |
|
| Inventories |
7,960 |
7,506 |
|
| 94,262 |
125,875 |
||
| Equity accounted investments |
31,049 |
31,141 |
|
| Property, plant and equipment |
149,126 |
138,591 |
|
| Goodwill |
26,156 |
24,899 |
|
| Other intangible assets |
17,822 |
18,233 |
|
| Other non-current assets |
1,616 |
1,534 |
|
| Non-current financial assets |
5,128 |
7,166 |
|
| Post-employment benefit assets |
745 |
706 |
|
| Deferred income tax assets |
7,871 |
7,715 |
|
| Total assets |
333,775 |
355,860 |
|
| Liabilities |
|||
| Current liabilities |
|||
| Short-term bank loans |
98 |
– |
|
| Trade and other payables |
35,288 |
43,081 |
|
| Deferred revenue |
2,783 |
2,928 |
|
| Current income tax liabilities |
228 |
149 |
|
| Dividends payable |
947 |
947 |
|
| Current portion of long-term debt |
2,242 |
1,681 |
|
| Provisions |
787 |
1,344 |
|
| 42,373 |
50,130 |
||
| Long-term debt |
44,781 |
58,644 |
|
| Provisions |
768 |
800 |
|
| Deferred income tax liabilities |
13,369 |
13,382 |
|
| Post-employment benefit obligations |
12,946 |
13,076 |
|
| Deferred revenue |
4,033 |
4,133 |
|
| Non-current financial liabilities |
15,064 |
12,514 |
|
| Total liabilities |
133,334 |
152,679 |
|
| Equity |
|||
| Share capital |
15,805 |
15,618 |
|
| Share capital to be issued |
24,689 |
24,898 |
|
| Retained earnings |
149,090 |
151,616 |
|
| Accumulated other comprehensive income |
9,087 |
9,251 |
|
| Equity attributable to owners of the Company |
198,671 |
201,383 |
|
| Non-controlling interests |
1,770 |
1,798 |
|
| Total equity |
200,441 |
203,181 |
|
| Total liabilities and equity |
333,775 |
355,860 |
|
| (in thousands of Canadian dollars) |
|||||||||
| (unaudited and not reviewed by the independent auditor) |
|||||||||
| Logistec Corporation |
|||||||||
| Condensed Consolidated Interim Statements of Changes in Equity |
|||||||||
| Attributable to owners of the Company |
|||||||||
| Accumulated other comprehensive |
|||||||||
| Share |
Share |
Cash |
Foreign |
Retained |
Total |
Non- |
Total |
||
| $ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||
| Balance as at January 1, 2017 |
15,618 |
24,898 |
(4) |
9,255 |
151,616 |
201,383 |
1,798 |
203,181 |
|
| Profit for the period |
– |
– |
– |
– |
(1,530) |
(1,530) |
(29) |
(1,559) |
|
| Other comprehensive income (loss) |
|||||||||
| Currency translation differences arising on translation of foreign operations |
– |
– |
– |
(164) |
– |
(164) |
– |
(164) |
|
| Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes |
– |
– |
– |
– |
273 |
273 |
– |
273 |
|
| Total comprehensive loss for the period |
– |
– |
– |
(164) |
(1,257) |
(1,421) |
(29) |
(1,450) |
|
| Repurchase of Class A shares |
– |
– |
– |
– |
(21) |
(21) |
– |
(21) |
|
| Issue and Repurchase of Class B shares |
187 |
(209) |
– |
– |
(301) |
(323) |
– |
(323) |
|
| Non-controlling interest arising from a business acquisition |
– |
– |
– |
– |
– |
– |
2,545 |
2,545 |
|
| Dividends on Class A shares |
– |
– |
– |
– |
(556) |
(556) |
– |
(556) |
|
| Dividends on Class B shares |
– |
– |
– |
– |
(391) |
(391) |
– |
(391) |
|
| Balance as at March 25, 2017 |
15,805 |
24,689 |
(4) |
9,091 |
149,090 |
198,671 |
4,314 |
202,985 |
|
| Balance as at January 1, 2016 |
14,985 |
– |
(139) |
10,413 |
164,154 |
189,413 |
20,232 |
209,645 |
|
| Loss for the period |
– |
– |
– |
– |
(138) |
(138) |
(363) |
(501) |
|
| Other comprehensive 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 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 |
|
| (in thousands of Canadian dollars) |
|||
| (unaudited and not reviewed by the independent auditor) |
|||
| Logistec Corporation |
|||
| Condensed Consolidated Interim Statements of Cash Flows |
|||
| For the three months ended |
|||
| March 25, |
March 26, |
||
| $ |
$ |
||
| Operating activities |
|||
| Loss for the period |
(1,559) |
(501) |
|
| Items not affecting cash and cash equivalents |
2,546 |
4,575 |
|
| Cash generated from operations |
987 |
4,074 |
|
| Dividends received from equity accounted investments |
500 |
– |
|
| Contributions to defined benefit retirement plans |
(201) |
(306) |
|
| Settlement of provisions |
(138) |
(5) |
|
| Changes in non-cash working capital items |
23,294 |
(3,201) |
|
| Income taxes paid |
(917) |
(3,266) |
|
| 23,525 |
(2,704) |
||
| Financing activities |
|||
| Net change in short-term bank loans |
98 |
18 |
|
| Issuance of long-term debt |
10,328 |
12,358 |
|
| Repayment of long-term debt |
(23,747) |
(2,397) |
|
| Interest paid |
(399) |
(313) |
|
| Repurchase of Class A shares |
(21) |
(427) |
|
| Repurchase of Class B shares |
(322) |
(7,423) |
|
| Dividends paid on Class A shares |
(555) |
(557) |
|
| Dividends paid on Class B shares |
(392) |
(410) |
|
| (15,010) |
849 |
||
| Investing activities |
|||
| Customer repayment of an investment in a service contract |
865 |
70 |
|
| Interest received |
92 |
59 |
|
| Repurchase of a non-controlling interest |
(666) |
(2,392) |
|
| Business acquisition |
(5,805) |
(4,560) |
|
| Cash acquired in a business acquisition |
– |
197 |
|
| Acquisition of property, plant and equipment |
(7,571) |
(4,688) |
|
| Proceeds from disposal of property, plant and equipment |
2,094 |
80 |
|
| Acquisition of other non-current financial assets |
(179) |
– |
|
| Repayment of other non-current financial assets |
47 |
– |
|
| Acquisition of intangible assets |
– |
(25) |
|
| Acquisition of other non-current assets |
– |
(29) |
|
| Repayment of other non-current assets |
23 |
– |
|
| (11,100) |
(11,288) |
||
| Net change in cash and cash equivalents |
(2,585) |
(13,143) |
|
| Cash and cash equivalents, beginning of period |
15,971 |
23,811 |
|
| Effect of exchange rate on balances held in foreign currencies of foreign operations |
(59) |
396 |
|
| Cash and cash equivalents, end of period |
13,327 |
11,064 |
|
| Additional information |
|||
| Acquisition of property, plant and equipment included in trade and other payables |
329 |
1,406 |
|
SOURCE Logistec Corporation
Jean-Claude Dugas, CPA, CA, Vice-President, Finance, Logistec Corporation, [email protected], (514) 985-2345
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