LOGISTEC Announces Its Results for the First Quarter of 2022

MONTRÉAL, May 5, 2022 /CNW Telbec/ - LOGISTEC Corporation ("LOGISTEC") (TSX: LGT.A) and (TSX: LGT.B) (the "Company"), a marine and environmental services provider, today announced its financial results for the first quarter ended March 26, 2022. LOGISTEC pursues its long-term growth strategy and continues to perform in a strong market.

Highlights From the First Quarter of 2022

• Consolidated revenue reached $141.4 million, up $36.5 million or 34.9%.
• Adjusted EBITDA ⁽¹⁾ reached $7.8 million, up $1.6 million.
• Total basic loss per share closed at $(0.46).
• Appointment of a new president for our environmental services business.

"We are pleased to report a solid performance for our first quarter due to significant activity in a robust marine services segment. Our dedicated teams continue to work diligently in the field to contribute to our customers' success," said Madeleine Paquin, President and CEO of LOGISTEC. "With respect to our environmental services segment, it is well positioned for the start of a busy season with a strong order book."

Our marine services segment started the year with high volumes in our bulk, forest products and steel cargoes. In January, LOGISTEC USA Inc. formed a strategic alliance with Infrastructure and Energy Alternatives, a leading engineering company with renewable energy expertise, to support new utility-scale offshore wind developments along the U.S. east coast. Also noteworthy, Rodney Corrigan, President of LOGISTEC Stevedoring Inc., received Signal Mutual's Francis R. Sharp Executive Leadership Award for Safety, for his commitment to preventing workplace incidents through integrated safety initiatives.

Our environmental services segment performed as expected, given the seasonality of this segment. The order book is filling up and we forecast a positive outlook for the balance of the year. Jean-François Bolduc was appointed President of LOGISTEC Environmental Services Inc. and SANEXEN Environmental Services Inc. in January 2022. With an impressive track record, he will focus on business strategy and operational excellence, and lead our high-performing teams to accelerate growth for LOGISTEC across North America.

Results From the First Quarter of 2022

During the first quarter of 2022, consolidated revenue totalled $141.4 million, an increase of $36.5 million or 34.9% over the same period in 2021. Revenue from the marine services segment reached $111.7 million in 2022, up $29.3 million or 35.6% compared with $82.4 million for the comparative period. The U.S. Gulf Coast region continues to benefit from the booming energy sector. Revenue from the environmental services segment was $29.7 million, up $7.3 million or 32.5% in the first quarter of 2022. This growth is mainly attributable to the acquisition of American Process Group ("APG") made in the second quarter of 2021.

Adjusted EBITDA ⁽¹⁾ for the quarter reached $7.8 million, an increase of $1.6 million compared with $6.2 million recorded in the comparative period. The increase in adjusted EBITDA ⁽¹⁾ stemmed mainly from higher revenue made during the period.

As in previous first quarters, our Company showed a loss in the first quarter. This is due to the high seasonality of our environmental services as well as marine navigation to the Arctic, and the lack of cargo handling activities in the Great Lakes, which are closed to navigation during this period. Loss attributable to owners of the Company for the first quarter amounted to $6.0 million, slightly higher than last year's loss of $5.7 million. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $0.46, of which $0.44 was attributable to Class A Common Shares and $0.49 to Class B Subordinate Voting Shares.

^(1)	Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.

Outlook

"Our 2022 outlook is positive for both of our business segments. The current economic context will positively impact our marine services segment and we are well positioned to benefit from increasing volumes throughout our network of 80 terminals in 54 ports. Our environmental business is also off to a good start with an order book of over $200.0 million. ALTRA water main renewal contracts are strong, and we are targeting new markets to pursue our growth. With our latest acquisition, namely APG, we have great opportunities to expand our field-proven expertise in Western Canada and the USA," indicated Madeleine Paquin.

Dividends

On May 5, 2022, the Board of Directors declared a dividend of $0.09818 per Class A Common Share and $0.10799 per Class B Subordinate Voting Share, for a total consideration of $1.3 million. These dividends will be paid on July 8, 2022, to shareholders of record as of June 23, 2022.

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 54 ports and 80 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 shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental industry where it provides services to industrial, municipal and other governmental customers for the renewal of underground water mains, dredging, dewatering, contaminated soils and materials management, site remediation, risk assessment, and manufacturing of fluid transportation products.

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

Adjusted earnings before interest expense, income taxes, depreciation and amortization expense ("adjusted EBITDA") is not defined by IFRS and cannot be formally presented in financial statements. The definition of adjusted EBITDA excludes the Company's impairment charge, includes the customer repayment of an investment in a service contract and, since 2021, excludes configuration and customization costs related to the implementation of an Enterprise Resource Planning ("ERP") system. 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.

The following table provides a reconciliation of profit for the year to adjusted EBITDA:

(in thousands of dollars)	For the three months ended
	March 26, 2022 $	March 27,  2021 $
Loss for the period	(5,898)	(5,621)
PLUS:
Depreciation and amortization expense	12,797	11,361
Net finance expense	2,829	2,433
Income taxes	(2,410)	(1,926)
Configuration and customization costs in a cloud computing arrangement	483	—
Adjusted EBITDA	7,801	6,247

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 impact of COVID-19 pandemic on the Company's business and results of operations, 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.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS

(in thousands of dollars, except per share amounts)
		For the three months ended
		March 26, 2022 $	March 27, 2021 $
Revenue		141,442	104,850
Employee benefits expense		(74,272)	(57,978)
Equipment and supplies expense		(40,522)	(25,724)
Operating expense		(12,092)	(9,622)
Other expenses		(7,255)	(5,821)
Depreciation and amortization expense		(12,797)	(11,361)
Share of profit of equity accounted investments		947	1,151
Other losses		(930)	(609)
Operating loss		(5,479)	(5,114)
Finance expense		(2,941)	(2,549)
Finance income		112	116
Loss before income taxes		(8,308)	(7,547)
Income taxes		2,410	1,926
Loss for the period		(5,898)	(5,621)
(Loss) profit attributable to:
Owners of the Company		(6,018)	(5,724)
Non-controlling interest		120	103
Loss for the period		(5,898)	(5,621)
Basic and diluted loss per Class A Common Share ^(1)		(0.44)	(0.42)
Basic and diluted loss per Class B Subordinate Voting Share ^(2)		(0.49)	(0.47)
Weighted average number of Class A Shares outstanding, basic and diluted		7,377,022	7,377,022
Weighted average number of Class B Shares outstanding, basic and diluted		5,680,669	5,556,254

^(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 dollars)
	For the three months ended
	March 26, 2022 $	March 27, 2021 $
Loss for the period	(5,898)	(5,621)
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	(2,489)	(1,465)
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations	845	942
Income taxes relating to unrealized gain on translating debt designated as hedging item of the net investment in foreign operations	(112)	(125)
Gains on derivatives designated as cash flow hedges	476	64
Income taxes relating to derivatives designated as cash flow hedges	(306)	(17)
Total items that are or may be reclassified to the consolidated statements of earnings	(1,586)	(601)
Items that will not be reclassified to the consolidated statements of earnings
Remeasurement gains on benefit obligations	4,597	4,173
Return on retirement plan assets	(1,453)	(528)
Income taxes on remeasurement gains on benefit obligation and return on retirement plan assets	(834)	(966)
Total items that will not be reclassified to the consolidated statements of earnings	2,310	2,679
Other comprehensive income for the period, net of income taxes	724	2,078
Total comprehensive loss for the period	(5,174)	(3,543)
Total comprehensive (loss) income attributable to:
Owners of the Company	(5,277)	(3,636)
Non-controlling interest	103	93
Total comprehensive loss for the period	(5,174)	(3,543)

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)
	As at  March 26, 2022 $	As at  December 31, 2021 $
Assets
Current assets
Cash and cash equivalents	23,985	37,530
Trade and other receivables	145,957	183,322
Contract assets	8,715	7,517
Current income tax assets	11,808	7,597
Inventories	19,039	16,830
Prepaid expenses and other	12,009	10,437
	221,513	263,233
Equity accounted investments	44,383	46,311
Property, plant and equipment	210,410	207,321
Right-of-use assets	146,157	135,049
Goodwill	181,745	182,706
Intangible assets	38,883	41,043
Non-current assets	2,415	2,448
Non-current financial assets	6,352	5,902
Deferred income tax assets	13,650	14,958
Total assets	865,508	898,971
Liabilities
Current liabilities
Short-term bank loans	2,811	8,600
Trade and other payables	105,798	127,044
Contract liabilities	14,533	14,801
Current income tax liabilities	5,903	10,442
Dividends payable	1,337	1,338
Current portion of lease liabilities	14,641	15,775
Current portion of long-term debt	2,792	3,427
	147,815	181,427
Lease liabilities	137,614	125,249
Long-term debt	190,729	191,927
Deferred income tax liabilities	25,030	25,684
Post-employment benefit obligations	13,263	16,212
Contract liabilities	2,033	2,133
Non-current liabilities	40,991	40,730
Total liabilities	557,475	583,362
Equity
Share capital	50,843	50,889
Retained earnings	248,557	254,621
Accumulated other comprehensive income	7,482	9,051
Equity attributable to owners of the Company	306,882	314,561
Non-controlling interest	1,151	1,048
Total equity	308,033	315,609
Total liabilities and equity	865,508	898,971

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars)
	Attributable to owners of the Company
	Share capital issued $	Retained earnings $	Accumulated other comprehensive income $	Total $	Non- controlling interest $	Total equity $
Balance as at January 1, 2022	50,889	254,621	9,051	314,561	1,048	315,609
(Loss) profit for the period	—	(6,018)	—	(6,018)	120	(5,898)
Other comprehensive (loss) income
Currency translation differences arising on translation of foreign operations	—	—	(2,472)	(2,472)	(17)	(2,489)
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations, net of income taxes	—	—	733	733	—	733
Remeasurement gains on benefit obligation and return on retirement plan assets, net of income taxes	—	2,310	—	2,310	—	2,310
Cash flow hedges, net of income taxes	—	—	170	170	—	170
Total comprehensive (loss) income for the period	—	(3,708)	(1,569)	(5,277)	103	(5,174)
Net remeasurement of written put option liability	—	(943)	—	(943)	—	(943)
Repurchase of Class B shares	(46)	(205)	—	(251)	—	(251)
Class B shares to be issued under the Executive Stock Option Plan	—	130	—	130	—	130
Dividends on Class A shares	—	(725)	—	(725)	—	(725)
Dividends on Class B shares	—	(613)	—	(613)	—	(613)
Balance as at March 26, 2022	50,843	248,557	7,482	306,882	1,151	308,033

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

(in thousands of Canadian dollars)
	Attributable to owners of the Company
	Share capital issued $	Share capital to be issued $	Retained earnings $	Accumulated other comprehensive income $	Total $	Non- controlling interest $	Total equity $
Balance as at January 1, 2021	45,575	4,906	242,358	7,943	300,782	789	301,571
(Loss) profit for the period	—	—	(5,724)	—	(5,724)	103	(5,621)
Other comprehensive (loss) income
Currency translation differences arising on translation of foreign operations	—	—	—	(1,455)	(1,455)	(10)	(1,465)
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations, net of income taxes	—	—	—	817	817	—	817
Remeasurement gains on benefit obligation and return on retirement plan assets, net of income taxes	—	—	2,679	—	2,679	—	2,679
Cash flow hedges, net of income taxes	—	—	—	47	47	—	47
Total comprehensive (loss) income for the period	—	—	(3,045)	(591)	(3,636)	93	(3,543)
Remeasurement of written put option liability	—	—	(295)	—	(295)	—	(295)
Repurchase of Class B shares	(68)	—	(277)	—	(345)	—	(345)
Issuance of Class B share capital to a subsidiary shareholder	2,518	(2,518)	—	—	—	—	—
Class B shares to be issued under the Executive Stock Option Plan	—	—	45	—	45	—	45
Dividends on Class A shares	—	—	(690)	—	(690)	—	(690)
Dividends on Class B shares	—	—	(576)	—	(576)	—	(576)
Balance as at March 27, 2021	48,025	2,388	237,520	7,352	295,285	882	296,167

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(in thousands of Canadian dollars)
	For the three months ended
	March 26, 2022 $	March 27, 2021 $
Operating activities
Loss for the period	(5,898)	(5,621)
Items not affecting cash and cash equivalents	13,017	11,591
Cash generated from operations	7,119	5,970
Dividends received from equity accounted investments	2,875	490
Contributions to defined benefit retirement plans	(210)	(194)
Settlement of provisions	(124)	(20)
Changes in non-cash working capital items	16,047	16,768
Income taxes paid	(7,292)	(4,734)
	18,415	18,280
Financing activities
Net change in short-term bank loans	(5,723)	—
Issuance of long-term debt, net of transaction costs	15,383	—
Repayment of long-term debt	(16,086)	(1,145)
Repayment of other non-current liabilities	—	(2,432)
Repayment of lease liabilities	(3,736)	(3,272)
Interest paid	(2,920)	(3,486)
Repurchase of Class B shares	(251)	(345)
Dividends paid on Class A shares	(724)	(690)
Dividends paid on Class B shares	(614)	(569)
	(14,671)	(11,939)
Investing activities
Dividends paid to a non-controlling interest	(8,699)	—
Acquisition of property, plant and equipment	(8,423)	(5,263)
Proceeds from disposal of property, plant and equipment	47	64
Acquisition of intangible assets	—	(9)
Interest received	9	61
Acquisition of other non-current assets	(198)	(16)
Proceeds from disposal of other non-current assets	27	22
Cash receipts from other non-current financial assets	292	57
	(16,945)	(5,084)
Net change in cash and cash equivalents	(13,201)	1,257
Cash and cash equivalents, beginning of year	37,530	45,498
Effect of exchange rate on balances held in foreign currencies of foreign operations	(344)	221
Cash and cash equivalents, end of period	23,985	46,976
Additional information Acquisition of property, plant and equipment included in trade and other payables	4,553	2,343

SOURCE Logistec Corporation

Jean-Claude Dugas, CPA, CA, Chief Financial Officer, Logistec Corporation, [email protected], [phone]