MONTRÉAL, July 29, 2016 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the second quarter and first six months ended June 25, 2016.
During the second quarter of 2016, consolidated revenue totalled $79.6 million, a decrease of $9.6 million or 10.8% from the equivalent period of the previous year. The marine services segment's revenue was down by $8.1 million or 15.2% to $45.2 million for the second quarter of 2016, while the environmental services segment's revenue amounted to $34.4 million, down by $1.5 million or 4.2% from the second quarter of 2015. The revenue decrease in the marine services segment came from reduced bulk cargo volumes, whereas the revenue decrease in the environmental services segment was due to lower volumes of Aqua-Pipe activity. The second quarter of 2016 closed with a consolidated profit attributable to owners of the Company of $1.0 million, compared with a profit of $6.7 million for the second quarter of 2015. This includes a loss on foreign currency exchange of $0.7 million. The profit attributable to owners of the Company translated into total diluted earnings per share of $0.07, of which $0.07 was attributable to Class A Common Shares and $0.08 was attributable to Class B Subordinate Voting Shares.
During the first six months of 2016, consolidated revenue decreased to $144.5 million, compared with $149.6 million for the first half of 2015. The profit attributable to owners of the Company amounted to $0.8 million for total basic and diluted earnings per share of $0.06, of which $0.06 was attributable to Class A Common Shares and $0.07 was attributable to Class B Subordinate Voting Shares. For the same period of 2015, basic and diluted earnings per share totalled $0.74, of which $0.70 was attributable to Class A Common Shares and $0.78 was attributable to Class B Subordinate Voting Shares.
Outlook
"Year-to-date results are below our expectations. In the marine services segment, the results reflect the lower volumes handled by our facilities and are typical of our economy in general. These volumes relate to many base industries, namely mining and energy. Results should improve considerably in the next months as volumes and hence revenue are projected to increase, but we do not expect to make up for the shortfall. We are not the only company experiencing such volume deterioration and, on the positive side, this may in itself create acquisition opportunities for those seeking growth," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.
"In our environmental services segment, both Aqua-Pipe and our traditional site remediation businesses had slower starts, but the outlook for the rest of the year is promising. Contracts on hand, as well as the number and quality of those being bid on, lead us to believe we will have a strong year in site remediation and regulated materials management. In Aqua-Pipe, results will likely be weaker than last year due primarily to lower levels of work being done in our local markets, but our investments in developing the vast U.S. market will no doubt pay off in the years to come. We continue to invest in our technology and are encouraged by the initial positive response of U.S. municipalities. Furthermore, our Niedner woven-hose manufacturing business is not only meeting new standards for the fabrication of large-diameter hoses, but is also enjoying tremendous success with its traditional hose business. The subsidiary has secured a foothold as the largest provider of fire-fighting hoses to governments in North America," concluded
Ms. Paquin.
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 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) |
||||
| Logistec Corporation |
||||
| Condensed Consolidated Interim Statements of Earnings |
||||
| For the three months ended |
For the six months ended |
|||
| June 25, |
June 27, |
June 25, |
June 27, |
|
| $ |
$ |
$ |
$ |
|
| Revenue |
79,616 |
89,262 |
144,475 |
149,634 |
| Employee benefits expense |
(38,126) |
(42,292) |
(70,127) |
(74,039) |
| Equipment and supplies expense |
(24,762) |
(23,219) |
(43,139) |
(37,247) |
| Rental expense |
(6,923) |
(7,101) |
(13,742) |
(14,066) |
| Other expenses |
(3,081) |
(3,601) |
(7,266) |
(6,908) |
| Depreciation and amortization expense |
(3,450) |
(2,893) |
(6,486) |
(5,592) |
| Share of profit of equity accounted investments |
101 |
690 |
291 |
797 |
| Other gains and losses |
(730) |
(205) |
(1,788) |
942 |
| Operating profit |
2,645 |
10,641 |
2,218 |
13,521 |
| Finance expense |
(409) |
(210) |
(714) |
(465) |
| Finance income |
45 |
33 |
107 |
122 |
| Profit before income taxes |
2,281 |
10,464 |
1,611 |
13,178 |
| Income taxes |
(1,343) |
(2,858) |
(1,174) |
(3,423) |
| Profit for the period |
938 |
7,606 |
437 |
9,755 |
| Profit attributable to: |
||||
| Owners of the Company |
951 |
6,668 |
813 |
9,186 |
| Non-controlling interests |
(13) |
938 |
(376) |
569 |
| Profit for the period |
938 |
7,606 |
437 |
9,755 |
| Basic earnings per Class A Common Share (1) |
0.08 |
0.51 |
0.06 |
0.70 |
| Basic earnings per Class B Subordinate Voting Share (2) |
0.08 |
0.57 |
0.07 |
0.78 |
| Diluted earnings per Class A share |
0.07 |
0.51 |
0.06 |
0.70 |
| Diluted earnings per Class B share |
0.08 |
0.57 |
0.07 |
0.78 |
| Weighted average number of Class A shares outstanding, basic and diluted |
7,421,155 |
7,446,622 |
7,425,739 |
7,451,972 |
| Weighted average number of Class B shares outstanding, basic |
4,756,467 |
5,026,633 |
4,795,333 |
5,038,133 |
| Weighted average number of Class B shares outstanding, diluted |
5,510,482 |
5,026,633 |
5,184,908 |
5,038,133 |
| (1) |
Class A Common Share ("Class A share") |
| (2) |
Class B Subordinate Voting Share ("Class B share") |
| (in thousands of Canadian dollars) |
||||||
| Logistec Corporation |
||||||
| Condensed Consolidated Interim Statements of Comprehensive Income |
||||||
| For the three months ended |
For the six months ended |
|||||
| June 25, |
June 27, |
June 25, |
June 27, |
|||
| $ |
$ |
|||||
| Profit for the period |
938 |
7,606 |
437 |
9,755 |
||
| 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 |
(662) |
(804) |
(2,297) |
2,021 |
||
| Gains (losses) on derivatives designated as cash flow hedges |
9 |
45 |
9 |
(118) |
||
| Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings |
17 |
20 |
31 |
29 |
||
| Income taxes relating to derivatives designated as cash flow hedges |
(6) |
(18) |
(10) |
24 |
||
| Total items that are or may be reclassified to the consolidated statements of earnings |
(642) |
(757) |
(2,267) |
1,956 |
||
| Items that will not be reclassified to the consolidated statements of earnings |
||||||
| Remeasurement losses on benefit obligation |
(2,014) |
960 |
(2,014) |
9 |
||
| Return on retirement plan assets excluding amounts included in profit for the period |
262 |
(280) |
47 |
263 |
||
| Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period |
472 |
(184) |
530 |
(74) |
||
| Total items that will not be reclassified to the consolidated statements of earnings |
(1,280) |
496 |
(1,437) |
198 |
||
| 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 |
(14) |
6 |
(106) |
─ |
||
| Items that will not be reclassified to the consolidated statements of earnings |
─ |
1 |
─ |
8 |
||
| Total share of other comprehensive income of equity accounted investments, net of income taxes |
(14) |
7 |
(106) |
8 |
||
| Other comprehensive income (loss) for the period, net of income taxes |
(1,936) |
(254) |
(3,810) |
2,162 |
||
| Total comprehensive income (loss) for the period |
(998) |
7,352 |
(3,373) |
11,917 |
||
| Total comprehensive income (loss) attributable to: |
||||||
| Owners of the Company |
(985) |
6,414 |
(2,997) |
11,348 |
||
| Non-controlling interests |
(13) |
938 |
(376) |
569 |
||
| Total comprehensive (loss) income for the period |
(998) |
7,352 |
(3,373) |
11,917 |
||
| (in thousands of Canadian dollars) |
|||
| Logistec Corporation |
|||
| Condensed Consolidated Interim Statements of Financial Position |
|||
| As at |
As at |
||
| $ |
$ |
||
| Assets |
|||
| Current assets |
|||
| Cash and cash equivalents |
7,809 |
23,811 |
|
| Investment in a service contract |
1,015 |
1,157 |
|
| Trade and other receivables |
78,916 |
77,333 |
|
| Work in progress |
11,418 |
6,438 |
|
| Current income tax assets |
7,373 |
2,569 |
|
| Other financial assets |
52 |
– |
|
| Prepaid expenses |
9,027 |
7,952 |
|
| Inventories |
6,691 |
6,553 |
|
| 122,301 |
125,813 |
||
| Equity accounted investments |
28,176 |
28,951 |
|
| Property, plant and equipment |
123,850 |
111,022 |
|
| Goodwill |
24,362 |
22,615 |
|
| Other intangible assets |
18,357 |
20,247 |
|
| Other non-current assets |
2,553 |
5,194 |
|
| Post-employment benefit assets |
305 |
522 |
|
| Non-current financial assets |
3,200 |
5,019 |
|
| Deferred income tax assets |
9,301 |
9,032 |
|
| Total assets |
332,405 |
328,415 |
|
| Liabilities |
|||
| Current liabilities |
|||
| Short-term bank loans |
7,607 |
– |
|
| Trade and other payables |
41,386 |
46,352 |
|
| Deferred revenue |
2,591 |
2,700 |
|
| Current income tax liabilities |
96 |
650 |
|
| Dividends payable |
948 |
967 |
|
| Current portion of long-term debt |
2,891 |
2,159 |
|
| Provisions |
1,241 |
1,268 |
|
| 56,760 |
54,096 |
||
| Long-term debt |
47,812 |
29,920 |
|
| Provisions |
777 |
766 |
|
| Deferred income tax liabilities |
12,243 |
12,433 |
|
| Post-employment benefit obligations |
15,055 |
12,955 |
|
| Deferred revenue |
4,333 |
4,533 |
|
| Non-current financial liabilities |
11,625 |
4,067 |
|
| Total liabilities |
148,605 |
118,770 |
|
| Equity |
|||
| Share capital |
14,513 |
14,985 |
|
| Share capital to be issued |
24,898 |
– |
|
| Retained earnings |
134,694 |
164,154 |
|
| Accumulated other comprehensive income |
7,901 |
10,274 |
|
| Equity attributable to owners of the Company |
182,006 |
189,413 |
|
| Non-controlling interests |
1,794 |
20,232 |
|
| Total equity |
183,800 |
209,645 |
|
| Total liabilities and equity |
332,405 |
328,415 |
|
| (in thousands of Canadian dollars) |
|||||||||
| Logistec Corporation |
|||||||||
| Condensed Consolidated Interim Statements of Changes in Equity |
|||||||||
| Attributable to owners of the Company |
|||||||||
| Accumulated other comprehensive |
|||||||||
| Share capital |
Share |
Cash |
Foreign |
Retained |
Total |
Non- |
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 |
– |
– |
– |
– |
813 |
813 |
(376) |
437 |
|
| Other comprehensive income (loss) |
|||||||||
| Currency translation differences arising on translation of foreign operations |
– |
– |
– |
(2,297) |
– |
(2,297) |
– |
(2,297) |
|
| Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes |
– |
– |
– |
– |
(1,437) |
(1,437) |
– |
(1,437) |
|
| Cash flow hedges, net of income taxes |
– |
– |
30 |
– |
– |
30 |
– |
30 |
|
| Share of other comprehensive income of equity accounted investments, net of income taxes |
– |
– |
(106) |
– |
– |
(106) |
– |
(106) |
|
|
Total comprehensive income (loss) for the period |
– |
– |
(76) |
(2,297) |
(624) |
(2,997) |
(376) |
(3,373) |
|
| Repurchase of Class A shares |
(12) |
– |
– |
– |
(715) |
(727) |
– |
(727) |
|
| Repurchase of Class B shares |
(460) |
– |
– |
– |
(8,075) |
(8,535) |
– |
(8,535) |
|
| Repurchase of non-controlling interests |
– |
24,898 |
– |
– |
(18,148) |
6,750 |
(18,062) |
(11,312) |
|
| Dividends on Class A shares |
– |
– |
– |
– |
(1,113) |
(1,113) |
– |
(1,113) |
|
| Dividends on Class B shares |
– |
– |
– |
– |
(785) |
(785) |
– |
(785) |
|
| Balance as at June 25, 2016 |
14,513 |
24,898 |
(215) |
8,116 |
134,694 |
182,006 |
1,794 |
183,800 |
|
|
|
|
|
|
|
|
|
|
||
| Balance as at January 1, 2015 |
14,906 |
– |
(56) |
4,138 |
144,513 |
163,501 |
15,923 |
179,424 |
|
| Profit for the period |
– |
– |
– |
– |
9,186 |
9,186 |
569 |
9,755 |
|
| Other comprehensive income (loss) |
|||||||||
| Currency translation differences arising on translation of foreign operations |
– |
– |
– |
2,021 |
– |
2,021 |
– |
2,021 |
|
| Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes |
– |
– |
– |
– |
198 |
198 |
– |
198 |
|
| Cash flow hedges, net of income taxes |
– |
– |
(67) |
– |
– |
(67) |
– |
(67) |
|
| Share of other comprehensive income of equity accounted investments, net of income taxes |
– |
– |
2 |
– |
8 |
10 |
– |
10 |
|
| Total comprehensive income (loss) for the period |
– |
– |
(65) |
2,021 |
9,392 |
11,348 |
569 |
11,917 |
|
| Repurchase of Class A shares |
(10) |
– |
– |
– |
(709) |
(719) |
– |
(719) |
|
| Repurchase of Class B shares |
214 |
– |
– |
– |
(2,194) |
(1,980) |
– |
(1,980) |
|
| Dividends on Class A shares |
– |
– |
– |
– |
(931) |
(931) |
– |
(931) |
|
| Dividends on Class B shares |
– |
– |
– |
– |
(692) |
(692) |
– |
(692) |
|
| Balance as at June 27, 2015 |
15,110 |
– |
(121) |
6,159 |
149,379 |
170,527 |
16,492 |
187,019 |
|
| (in thousands of Canadian dollars) |
|||
| Logistec Corporation |
|||
| Condensed Consolidated Interim Statements of Cash Flows |
|||
| For the six months ended |
|||
| June 25, |
June 27, |
||
| $ |
$ |
||
| Operating activities |
|||
| Profit for the period |
437 |
9,755 |
|
| Items not affecting cash and cash equivalents |
13,084 |
11,982 |
|
| Cash generated from operations |
13,521 |
21,737 |
|
| Dividends received from equity accounted investments |
1,000 |
1,461 |
|
| Contributions to defined benefit retirement plans |
(479) |
(735) |
|
| Settlement of provisions |
(107) |
(103) |
|
| Changes in non-cash working capital items |
(13,354) |
(9,436) |
|
| Income taxes paid |
(5,998) |
(6,054) |
|
| (5,417) |
6,870 |
||
| Financing activities |
|||
| Net change in short-term bank loans |
7,607 |
684 |
|
| Issuance of long-term debt |
20,269 |
8,642 |
|
| Repayment of long-term debt |
(4,641) |
(4,545) |
|
| Interest paid |
(707) |
(588) |
|
| Repurchase of Class A shares |
(727) |
(719) |
|
| Issuance of Class B shares |
─ |
113 |
|
| Repurchase of Class B shares |
(8,535) |
(2,307) |
|
| Dividends paid on Class A shares |
(1,114) |
(932) |
|
| Dividends paid on Class B shares |
(802) |
(695) |
|
| 11,350 |
(347) |
||
| Investing activities |
|||
| Customer repayment of an investment in a service contract |
142 |
125 |
|
| Interest received |
94 |
167 |
|
| Repurchase of non-controlling interests |
(2,393) |
- |
|
| Business acquisition |
(4,562) |
- |
|
| Cash acquired in a business acquisition |
197 |
- |
|
| Acquisition of property, plant and equipment |
(16,056) |
(11,681) |
|
| Proceeds from disposal of property, plant and equipment |
106 |
125 |
|
| Acquisition of intangible assets |
(29) |
(45) |
|
| Acquisition of non-current financial assets |
(27) |
- |
|
| Acquisition of other non-current assets |
(29) |
(10,287) |
|
| Disposal of other non-current assets |
3 |
- |
|
| (22,554) |
(21,596) |
||
| Net change in cash and cash equivalents |
(16,621) |
(15,073) |
|
| Cash and cash equivalents, beginning of period |
23,811 |
26,381 |
|
| Effect of exchange rate on balances held in foreign currencies of foreign operations |
619 |
(190) |
|
| Cash and cash equivalents, end of period |
7,809 |
11,118 |
|
| Additional information |
|||
| Acquisition of property, plant and equipment included in trade and other payables |
1,162 |
3,085 |
|
SOURCE Logistec Corporation
Jean-Claude Dugas, cpa, ca, Vice-President, Finance, Logistec Corporation, [email protected], (514) 985-2345
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