LOGISTEC announces its results for the first quarter of 2018

MONTRÉAL, May 10, 2018 /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 31, 2018.

During the first quarter of 2018, consolidated revenue totalled $82.4 million, an increase of $22.4 million or 37.2% over the same period in 2017. Revenue from the marine services segment rose by 53.2%, from $41.3 million to $63.3 million, while revenue from the environmental services segment amounted to $19.2 million, an increase of $0.4 million or 2.1% over the first quarter of 2017. The entire revenue increase for this quarter stems from the marine services segment, even though the Gulf Stream Marine operations were only involved for one month. We also benefitted from a general volume increase in our bulk and break-bulk terminals. We are pleased with the results of our marine services.

The first quarter of 2018 closed with a consolidated loss attributable to owners of the Company of $9.5 million, compared with a loss of $1.5 million for the first quarter of 2017. The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.75, of which $0.72 was attributable to Class A Common Shares and $0.80 was attributable to Class B Subordinate Voting Shares. The increased loss can largely be attributed to our acquisition of  FER-PAL Construction Ltd., which, like Sanexen, is very affected by seasonality of operations. Virtually no revenues from environmental services can be generated in the winter months in Canada for Aqua-Pipe and most site remediation work. We use these months to build the order book and prepare our people for the busy months ahead of us.

Outlook

"The outlook remains very positive. We will benefit from the strategic and impactful acquisitions made in the last twelve months, and this is in addition to our expectation of good results in our traditional businesses. We are investing in our talent to ensure we can continue to pursue our growth strategy while integrating recent acquisitions, and ensuring solid performances from our businesses in both the marine and environmental segments. We have an exciting year ahead", 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 35 ports and 58 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.

Q1 2018 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(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 31, 2018	March 25, 2017
	$	$
Revenue	82,442	60,071
Employee benefits expense	(46,366)	(31,806)
Equipment and supplies expense	(24,338)	(17,274)
Rental expense	(9,061)	(6,933)
Other expenses	(6,146)	(3,636)
Depreciation and amortization expense	(6,083)	(4,026)
Share of profit of equity accounted investments	70	407
Other gains and losses	215	1,730
Operating profit	(9,267)	(1,467)
Finance expense	(887)	(395)
Finance income	83	83
Profit before income taxes	(10,071)	(1,779)
Income taxes	1,745	220
Profit (loss) for the period	(8,326)	(1,559)
Profit attributable to:
Owners of the Company	(9,477)	(1,530)
Non-controlling interests	1,151	(29)
Profit (loss) for the period	(8,326)	(1,559)
Basic earnings per Class A Common Share ^(1)	(0.72)	(0.12)
Basic earnings per Class B Subordinate Voting Share ^(2)	(0.80)	(0.13)
Diluted earnings per Class A share	(0.72)	(0.12)
Diluted earnings per Class B share	(0.80)	(0.13)
Weighted average number of Class A shares outstanding, basic and diluted	7,405,922	7,412,255
Weighted average number of Class B shares outstanding, basic	5,163,331	4,739,603
Weighted average number of Class B shares outstanding, diluted	5,722,088	5,491,515
^(1)Class A Common Share ("Class A share")
^(2)Class B Subordinate Voting Share ("Class B share")

Q1 2018 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(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 31, 2018	March 25, 2017
			$	$
Loss for the period			(8,326)	(1,559)
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	1,977	(164)
		Gains on derivatives designated as cash flow hedges	4	-
		Income taxes relating to derivatives designated as cash flow hedges	(1)	-
	Total items that are or may be reclassified to the consolidated statements of earnings		1,980	(164)
	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	(186)	373
		Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period	49	(100)
	Total items that will not be reclassified to the consolidated statements of earnings		(137)	273
Other comprehensive income (loss) for the period, net of income taxes			1,843	109
Total comprehensive loss for the period			(6,483)	(1,450)
Total comprehensive loss attributable to:
Owners of the Company			(7,646)	(1,421)
Non-controlling interests			1,163	(29)
Total comprehensive loss for the period			(6,483)	(1,450)

Q1 2018 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(in thousands of Canadian dollars) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Financial Position
		As at March 31,  2018	As at December 31,  2017
		$	$
Assets
Current assets
	Cash and cash equivalents	5,149	3,963
	Trade and other receivables	121,297	153,342
	Work in progress	6,735	5,306
	Current income tax assets	5,739	494
	Other financial assets	1,033	1,055
	Prepaid expenses	3,589	2,775
	Inventories	11,313	11,550
		154,855	178,485
Equity accounted investments		32,067	34,350
Property, plant and equipment		176,102	156,691
Goodwill		152,251	108,557
Other intangible assets		40,838	14,903
Other non-current assets		1,779	1,658
Post-employment benefit assets		-	606
Non-current financial assets		12,526	7,984
Deferred income tax assets		9,282	9,218
Total assets		579,700	512,452
Liabilities
Current liabilities
	Short-term bank loans	9,066	9,829
	Trade and other payables	71,834	85,174
	Deferred revenue	4,854	2,252
	Current income tax liabilities	1,303	3,699
	Dividends payable	1,089	1,075
	Current portion of long-term debt	3,615	5,447
	Provisions	1,331	813
		93,092	108,289
Long-term debt		157,719	77,957
Provisions		773	771
Deferred income tax liabilities		24,781	14,488
Post-employment benefit obligations		14,520	14,778
Deferred revenue		3,633	3,733
Non-current financial liabilities		62,133	61,641
Total liabilities		356,651	281,657
Commitments, contingent liabilities and guarantees
Equity
Share capital		34,107	29,019
Share capital to be issued		14,717	19,820
Retained earnings		162,262	173,129
Accumulated other comprehensive income		8,574	6,606
Equity attributable to owners of the Company		219,665	228,574
Non-controlling interest		3,384	2,221
Total equity		223,049	230,795
Total liabilities and equity		579,700	512,452

Q1 2018 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(in thousand 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	Share capital to be issued	Cash flow hedges	Foreign currency translation	Retained earnings	Total	Non- controlling interests	Total equity
		$	$	$	$	$	$	$	$
Balance as at January 1, 2018		29,019	19,820	138	6,468	173,129	228,574	2,221	230,795
Profit for the period		-	-	-	-	(9,477)	(9,477)	1,151	(8,326)
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	-	-	-	1,965	-	1,965	12	1,977
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes	-	-	-	-	(137)	(137)	-	(137)
	Cash flow hedges, net of income taxes	-	-	3	-	-	3	-	3
Total comprehensive loss for the period		-	-	3	1,965	(9,614)	(7,646)	1,163	(6,483)
Repurchase of Class A shares		-	-	-	-	(32)	(32)	-	(32)
Issue and Repurchase of Class B shares		(15)	-	-	-	(127)	(142)	-	(142)
Issuance, repurchase of share capital		5,103	(5,103)	-	-	-	-	-	-
Dividends on Class A shares		-	-	-	-	(611)	(611)	-	(611)
Dividends on Class B shares		-	-	-	-	(478)	(478)	-	(478)
Balance as at March 31, 2018		34,107	14,717	141	8,433	162,267	219,665	3,384	223,049
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

Q1 2018 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(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 31, 2018	March 25, 2017
		$	$
Operating activities
	Loss for the period	(8,326)	(1,559)
	Items not affecting cash and cash equivalents	6,640	2,546
	Cash generated from operations	(1,686)	987
	Dividends received from equity accounted investments	2,346	500
	Contributions to defined benefit retirement plans	(294)	(201)
	Settlement of provisions	(43)	(138)
	Changes in non-cash working capital items	25,328	23,294
	Income taxes paid	(6,833)	(917)
		18,818	23,525
Financing activities
	Net change in short-term bank loans	(763)	98
	Issuance of long-term debt	90,958	10,328
	Repayment of long-term debt	(11,972)	(23,747)
	Interest paid	(795)	(399)
	Repurchase of Class A shares	(32)	(21)
	Repurchase of Class B shares	(142)	(322)
	Dividends paid on Class A shares	(611)	(555)
	Dividends paid on Class B shares	(464)	(392)
		76,179	(15,010)
Investing activities
	Customer repayment of an investment in a service contract	-	865
	Interest received	86	92
	Repurchase of a non-controlling interest	(157)	(666)
	Business acquisition	(85,634)	(5,805)
	Cash acquired in a business acquisition	2,377	-
	Note receivable	(5,067)	-
	Acquisition of property, plant and equipment	(4,673)	(7,571)
	Proceeds from disposal of property, plant and equipment	25	2,094
	Acquisition of other non-current financial assets	-	(179)
	Repayment of other non-current financial assets	52	47
	Acquisition of intangible assets	(3)	-
	Acquisition of other non-current assets	(280)	-
	Repayment of other non-current assets	106	23
		(93,168)	(11,100)
Net change in cash and cash equivalents		1,829	(2,585)
Cash and cash equivalents, beginning of period		3,963	15,971
Effect of exchange rate on balances held in foreign currencies of foreign operations		(643)	(59)
Cash and cash equivalents, end of period		5,149	13,327
Additional information
Acquisition of property, plant and equipment included in trade and other payables		295	329

SOURCE Logistec Corporation

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

Related Links

http://www.logistec.com/