MONTRÉAL, May 9, 2019 /CNW Telbec/ - LOGISTEC Corporation (TSX: LGT.A) (TSX: LGT.B) (the "Company"), a marine and environmental services provider, today announced its financial results for the first quarter ended March 30, 2019.
First quarter financial highlights
- Consolidated revenue up $32.3 million or 39.2% to $114.7 million
- Adjusted EBITDA (1) closed at $1.2 million
- Loss attributable to owners of the Company reduced to $8.9 million
(1) Please refer to section entitled Non-IFRS measure
Results for the first quarter of 2019
During the first quarter of 2019, consolidated revenue totalled $114.7 million, an increase of $32.3 million or 39.2% over the same period in 2018. Revenue from the marine services segment rose by 44.0%, from $63.3 million to $91.1 million. Cargo handling activities were very strong in the first quarter. We also benefitted from two additional months of Gulf Stream Marine Inc. in 2019, our new Gulf terminals purchased in early March 2018, and, to a lesser extent, the results of Pate Stevedore Company, Inc., our new Florida terminals purchased in May 2018. Our teams have integrated well, and we are confident that we will achieve positive synergies going forward. Revenue from the environmental services segment amounted to $23.6 million, an increase of $4.4 million or 23.2% over the first quarter of 2018.
The first quarter of 2019 closed with a consolidated loss attributable to owners of the Company of $8.9 million, compared with a loss of $9.5 million in the first quarter of 2018. Loss from the marine services segment amounted to $1.0 million in the first quarter of 2019, $3.1 million less than the $2.1 million profit reported for the same quarter of 2018. However, cargo handling performance was in line with 2018 if we exclude higher professional fees, increased finance expense to support the business combinations, and the incremental expenses related to the transition to IFRS 16 that were recorded in Q1 2019. Loss from the environmental services segment amounted to $11.3 million in the first quarter of 2019, $0.9 million less than the $12.2 million loss reported for the same quarter of 2018. This segment is particularly affected by weather conditions in winter months since most of its operations, Aqua-Pipe or site remediation, require soil excavation and manipulation.
The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.70, of which $0.67 was attributable to Class A Common Shares and $0.74 to Class B Subordinate Voting Shares.
Outlook
"We are cautiously optimistic about the outlook for the remainder of the year. We expect a good performance from our marine services, where we have recently added two break-bulk terminals in Cleveland (OH) to our network. We also expect a strong year with our Arctic transportation business, where we were successful in winning larger contracts from the government of Nunavut and have taken the opportunity to modernize our fleet. We replaced two vessels with younger, larger ships.
The outlook for our environmental services is also good. Although we foresee lower revenue for our Aqua-Pipe business in Québec, we are very excited about the increasing demand for the Neofit®+Plus technology, a water pipe liner that prevents lead from seeping into the drinking water. We are also focused on improving the performance of FER-PAL, our subsidiary based in Toronto (ON), that installs Aqua-Pipe in Canada and the Midwest.
As well as pursuing margin improvement, we also continue to seek new growth opportunities in both our marine and environmental services segments", indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
Dividends
On May 9, 2019, the Board of Directors declared dividends of $0.09075 per Class A Common Share and $0.099825 per Class B Subordinate Voting Share, for a total consideration of $1.2 million. These dividends will be paid on July 5, 2019, to shareholders of record as of June 21, 2019.
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 36 ports and 62 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 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.
Non-IFRS measure
In this press release, the Company uses a measure that is not in accordance with IFRS. Adjusted earnings before interest expense, income taxes, depreciation and amortization expense ("adjusted EBITDA") is not defined by IFRS and cannot be formally presented in the unaudited condensed consolidated interim financial statements. 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. Refer to Non-IFRS Measure of the Company's management's discussion and analysis of the period for the definition of this indicator and the reconciliation to profit (loss) for the period.
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 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 2019 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(unaudited)
Condensed Consolidated Interim Statements of Earnings |
||
(in thousands of Canadian dollars, except for per share amounts and number of shares) |
||
For the three months ended |
||
March 30, |
March 31, |
|
$ |
$ |
|
Revenue |
114,748 |
82,442 |
Employee benefits expense |
(58,377) |
(46,366) |
Equipment and supplies expense |
(34,364) |
(24,338) |
Rental expense |
(9,455) |
(9,061) |
Other expenses |
(10,676) |
(6,146) |
Depreciation and amortization expense |
(10,834) |
(6,083) |
Share of profit of equity accounted investments |
562 |
70 |
Other (losses) gains |
(1,270) |
215 |
Operating loss |
(9,666) |
(9,267) |
Finance expense |
(2,890) |
(887) |
Finance income |
338 |
83 |
Loss before income taxes |
(12,218) |
(10,071) |
Income taxes |
3,287 |
1,745 |
Loss for the period |
(8,931) |
(8,326) |
Profit (loss) attributable to: |
||
Owners of the Company |
(8,890) |
(9,477) |
Non-controlling interests |
(41) |
1,151 |
Loss for the period |
(8,931) |
(8,326) |
Basic and diluted earnings per Class A Common Share (1) |
(0.67) |
(0.72) |
Basic and diluted earnings per Class B Subordinate Voting Share (2) |
(0.74) |
(0.80) |
Weighted average number of Class A shares outstanding, basic and diluted |
7,392,722 |
7,405,922 |
Weighted average number of Class B shares outstanding, basic and diluted |
5,315,890 |
5,163,331 |
(1) Class A Common Share ("Class A share") |
(2) Class B Subordinate Voting Share ("Class B share") |
Condensed Consolidated Interim Statements of Comprehensive Income |
||
(in thousands of Canadian dollars) |
||
For the three months ended |
||
March 30, |
March 31, |
|
$ |
$ |
|
Loss for the period |
(8,931) |
(8,326) |
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 |
(2,323) |
1,977 |
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations |
1,778 |
— |
Gains (losses) on derivatives financial instruments designated as cash flow hedges |
(146) |
4 |
Income taxes relating to derivatives financial instruments designated as cash flow hedges |
39 |
(1) |
Total items that are or may be reclassified to the consolidated statements of earnings |
(652) |
1,980 |
Items that will not be reclassified to the consolidated statements of earnings |
||
Remeasurement losses on benefit obligation |
(33) |
— |
Return on retirement plan assets excluding amounts included in profit for the period |
(352) |
(186) |
Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period |
103 |
49 |
Total items that will not be reclassified to the consolidated statements of earnings |
(282) |
(137) |
Other comprehensive income (loss) for the period, net of income taxes |
(934) |
1,843 |
Total comprehensive loss for the period |
(9,865) |
(6,483) |
Total comprehensive income (loss) attributable to: |
||
Owners of the Company |
(9,814) |
(7,646) |
Non-controlling interests |
(51) |
1,163 |
Total comprehensive loss for the period |
(9,865) |
(6,483) |
Condensed Consolidated Interim Statements of Financial Position |
||
(in thousands of Canadian dollars) |
||
As at |
As at |
|
$ |
$ |
|
Assets |
||
Current assets |
||
Cash and cash equivalents |
5,566 |
15,393 |
Trade and other receivables |
126,300 |
160,067 |
Contract assets |
8,004 |
14,282 |
Current income tax assets |
7,305 |
2,964 |
Prepaid expenses and other |
5,793 |
4,899 |
Inventories |
11,403 |
10,711 |
164,371 |
208,316 |
|
Equity accounted investments |
38,308 |
38,005 |
Property, plant and equipment |
263,443 |
181,284 |
Goodwill |
141,795 |
142,672 |
Intangible assets |
44,458 |
47,006 |
Non-current assets |
2,378 |
2,173 |
Non-current financial assets |
4,626 |
6,328 |
Deferred income tax assets |
12,711 |
11,319 |
Total assets |
672,090 |
637,103 |
Liabilities |
||
Current liabilities |
||
Short-term bank loans |
14,509 |
13,577 |
Trade and other payables |
68,819 |
98,668 |
Contract liabilities |
5,204 |
5,225 |
Current income tax liabilities |
699 |
3,480 |
Dividends payable |
1,987 |
1,973 |
Current portion of long-term debt |
13,036 |
3,294 |
104,254 |
126,217 |
|
Long-term debt |
228,331 |
160,003 |
Deferred income tax liabilities |
20,798 |
21,465 |
Post-employment benefit obligations |
15,303 |
14,716 |
Contract liabilities |
3,233 |
3,333 |
Non-current liabilities |
47,448 |
46,980 |
Total liabilities |
419,367 |
372,714 |
Equity |
||
Share capital |
39,856 |
35,016 |
Share capital to be issued |
9,811 |
14,717 |
Retained earnings |
189,497 |
200,404 |
Accumulated other comprehensive income |
11,419 |
12,061 |
Equity attributable to owners of the Company |
250,583 |
262,198 |
Non-controlling interest |
2,140 |
2,191 |
Total equity |
252,723 |
264,389 |
Total liabilities and equity |
672,090 |
637,103 |
Condensed Consolidated Interim Statements of Changes in Equity |
||||||||
(in thousands of Canadian dollars) |
||||||||
Attributable to owners of the Company |
||||||||
Accumulated other comprehensive |
||||||||
Share |
Share |
Cash flow |
Foreign |
Retained |
Total |
Non- |
Total |
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|
Balance as at January 1, 2019 |
35,016 |
14,717 |
135 |
11,926 |
200,404 |
262,198 |
2,191 |
264,389 |
Loss for the period |
- |
- |
- |
- |
(8,890) |
(8,890) |
(41) |
(8,931) |
Other comprehensive income (loss) |
||||||||
Currency translation differences arising on translation of foreign operations |
- |
- |
- |
(2,313) |
- |
(2,313) |
(10) |
(2,323) |
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations |
- |
- |
- |
1,778 |
- |
1,778 |
- |
1,778 |
Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes |
- |
- |
- |
- |
(282) |
(282) |
- |
(282) |
Cash flow hedges, net of income taxes |
- |
- |
(107) |
- |
- |
(107) |
- |
(107) |
Total comprehensive loss for the period |
- |
- |
(107) |
(535) |
(9,172) |
(9,814) |
(51) |
(9,865) |
Put option liabilities |
- |
- |
- |
- |
(86) |
(86) |
– |
(86) |
Repurchase of Class B shares |
(66) |
- |
- |
- |
(438) |
(504) |
- |
(504) |
Issue of Class B shares |
4,906 |
(4,906) |
- |
- |
- |
- |
- |
- |
Dividends on Class A shares |
- |
- |
- |
- |
(671) |
(671) |
- |
(671) |
Dividends on Class B shares |
- |
- |
- |
- |
(540) |
(540) |
- |
(540) |
Balance as at March 30, 2019 |
39,856 |
9,811 |
28 |
11,391 |
189,497 |
250,583 |
2,140 |
252,723 |
Balance as at January 1, 2018 |
29,019 |
19,820 |
138 |
6,468 |
173,129 |
228,574 |
2,221 |
230,795 |
Profit(loss) 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 period, net of income taxes |
- |
- |
- |
- |
(137) |
(137) |
- |
(137) |
Cash flow hedges, net of income taxes |
- |
- |
3 |
- |
- |
3 |
- |
3 |
Total comprehensive income (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 and 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 |
Condensed Consolidated Interim Statements of Cash Flows |
||
(in thousands of Canadian dollars) |
||
For the three months ended |
||
March 30, |
March 31, |
|
$ |
$ |
|
Operating activities |
||
Loss for the period |
(8,931) |
(8,326) |
Items not affecting cash and cash equivalents |
10,382 |
6,640 |
Cash generated from operations |
1,451 |
(1,686) |
Dividends received from equity accounted investments |
245 |
2,346 |
Contributions to defined benefit retirement plans |
(232) |
(294) |
Settlement of provisions |
(2) |
(43) |
Changes in non-cash working capital items |
13,700 |
25,328 |
Income taxes paid |
(5,607) |
(6,833) |
9,555 |
18,818 |
|
Financing activities |
||
Net change in short-term bank loans |
932 |
(763) |
Issuance of long-term debt |
16,269 |
90,958 |
Repayment of long-term debt |
(15,582) |
(11,972) |
Repayment of lease liabilities |
(2,538) |
- |
Interest paid |
(2,857) |
(795) |
Repurchase of Class A shares |
- |
(32) |
Repurchase of Class B shares |
(504) |
(142) |
Dividends paid on Class A shares |
(671) |
(611) |
Dividends paid on Class B shares |
(526) |
(464) |
(5,477) |
76,179 |
|
Investing activities |
||
Interest received |
282 |
86 |
Repayment of due to shareholders |
(5,386) |
(157) |
Business combination |
- |
(85,634) |
Cash acquired in a business combination |
- |
2,377 |
Issuance of note receivable |
- |
(5,067) |
Acquisition of property, plant and equipment |
(9,419) |
(4,673) |
Acquisition of intangible assets |
(27) |
(3) |
Proceeds from disposal of property, plant and equipment |
123 |
25 |
Repayment of other non-current financial assets |
52 |
52 |
Repayment of other non-current liabilities |
(86) |
- |
Acquisition of other non-current assets |
(271) |
(280) |
Disposal of other non-current assets |
63 |
106 |
(14,669) |
(93,168) |
|
Net change in cash and cash equivalents |
(10,591) |
1,829 |
Cash and cash equivalents, beginning of period |
15,393 |
3,963 |
Effect of exchange rate on balances held in foreign currencies of foreign operations |
764 |
(643) |
Cash and cash equivalents, end of period |
5,566 |
5,149 |
Additional information |
||
Acquisition of property, plant and equipment included in trade and other payables |
2,627 |
295 |
SOURCE Logistec Corporation
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Jean-Claude Dugas, cpa, ca, Chief Financial Officer, Logistec Corporation, [email protected], (514) 985-2345
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