Logistec announces its results for the third quarter of 2015

MONTRÉAL, Nov. 5, 2015 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the third quarter and first nine months ended September 26, 2015.

During the third quarter of 2015, consolidated revenue totalled $115.9 million, an increase of $22.0 million or 23.5% over the same period of 2014. The weaker Canadian dollar against the U.S. dollar had a positive impact of $3.4 million on revenue in the third quarter of 2015, in comparison with the Canadian/U.S. dollar translation rate in the third quarter of 2014. The marine services segment's revenue grew by $1.8 million or 3.7% to $50.5 million for the third quarter of 2015, whereas the environmental services segment's revenue amounted to $65.4 million, up by $20.2 million or 44.8% over the third quarter of 2014. The significant growth in the environmental services segment reflected an overall increase in activities, more specifically in Sanexen's Aqua-Pipe and site remediation business. The third quarter of 2015 closed with a consolidated profit attributable to owners of the Company of $12.1 million, up slightly by $0.1 million over the same period of 2014. Results were positively affected by a $1.6 million gain on foreign currency translation and a $1.9 million gain on a judgement and general mutual release. For the third quarter of 2015, the profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.97, of which $0.94 was attributable to Class A Common Shares and $1.03 was attributable to Class B Subordinate Voting Shares.

During the first nine months of 2015, consolidated revenue rose to a total of $265.6 million, compared with $235.3 million for the first nine months of 2014. The profit attributable to owners of the Company amounted to $21.3 million for total basic and diluted earnings per share of $1.71, of which $1.64 was attributable to Class A Common Shares and $1.81 was attributable to Class B Subordinate Voting Shares. For the same period of 2014, basic and diluted earnings per share totalled $1.88, of which $1.81 was attributable to Class A Common Shares and $1.98 was attributable to Class B Subordinate Voting Shares.

Outlook

"Overall, we are cautiously optimistic in regard to our outlook. On the one hand, our environmental services segment should keep up its positive momentum on the strength of a well-filled order backlog. On the other hand, in cargo handling, a number of challenges such as last winter's warehouse flooding in Virginia and this summer's fire in Georgia have led us to be slightly more cautious towards our year-end outlook," 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 over 30 ports and terminals in eastern North America. Logistec also offers marine transportation services geared primarily to the Arctic coastal trade, short-line rail transportation services, and 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) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Earnings
	For the three months ended		For the nine months ended
	September 26, 2015	September 27, 2014	September 26, 2015	September 27, 2014
	$	$	$	$
Revenue	115,933	93,908	265,567	235,340
Employee benefits expense	(56,452)	(44,782)	(130,491)	(110,445)
Equipment and supplies expense	(31,203)	(23,130)	(68,450)	(60,607)
Rental expense	(7,210)	(6,958)	(21,276)	(19,895)
Other expenses	(3,799)	(2,301)	(10,707)	(8,627)
Depreciation and amortization expense	(3,128)	(2,591)	(8,720)	(7,512)
Share of profit of equity accounted investments	1,758	2,907	2,555	4,050
Other gains and losses	3,712	612	4,654	2,065
Operating profit	19,611	17,665	33,132	34,369
Finance expense	(245)	(229)	(710)	(451)
Finance income	359	92	481	301
Profit before income taxes	19,725	17,528	32,903	34,219
Income taxes	(5,090)	(3,993)	(8,513)	(8,147)
Profit for the period	14,635	13,535	24,390	26,072
Profit attributable to:
Owners of the Company	12,102	11,959	21,288	23,750
Non-controlling interests	2,533	1,576	3,102	2,322
Profit for the period	14,635	13,535	24,390	26,072
Basic and diluted earnings per Class A Common Share ^(1)	0.94	0.91	1.64	1.81
Basic and diluted earnings per Class B Subordinate Voting Share ^(2)	1.03	1.00	1.81	1.98
Weighted average number of Class A shares outstanding, basic and diluted	7,443,589	7,462,922	7,449,178	7,465,944
Weighted average number of Class B shares outstanding, basic and diluted	4,998,300	5,111,433	5,024,856	5,176,100
^(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)
Condensed Consolidated Interim Statements of Comprehensive Income
			For the three months ended		For the nine months ended
			September 26, 2015	September 27, 2014	September 26, 2015	September 27, 2014
			$	$	$	$
Profit for the period			14,635	13,535	24,390	26,072
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	2,789	1,484	4,810	1,519
		Gains (losses) on derivatives designated as cash flow hedges	(99)	-	(217)	(1)
		Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings	21	1	50	3
		Income taxes relating to derivatives designated as cash flow hedges	15	─	39	─
		Total items that are or may be reclassified to the consolidated statements of earnings	2,726	1,485	4,682	1,521
		Items that will not be reclassified to the consolidated statements of earnings
		Remeasurement gains (losses) on benefit obligation	969	─	978	(1,588)
		Return on retirement plan assets excluding amounts included in profit for the period	(787)	(54)	(524)	735
		Income taxes on remeasurement gains (losses) on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period	(48)	14	(122)	229
		Share of other comprehensive income of equity accounted investments, net of income taxes	─	4	8	45
		Total items that will not be reclassified to the consolidated statements of earnings	134	(36)	340	(579)
	Other comprehensive income (loss) for the period, net of income taxes		2,860	1,449	5,022	942
	Total comprehensive income for the period		17,495	14,984	29,412	27,014
	Total comprehensive income attributable to:
Owners of the Company			14,962	13,408	26,310	24,692
Non-controlling interests			2,533	1,576	3,102	2,322
Total comprehensive income for the period			17,495	14,984	29,412	27,014

(in thousands of Canadian dollars) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Financial Position
		As at September 26,  2015	As at December 31, 2014
		$	$
Assets
Current assets
	Cash and cash equivalents	13,307	26,381
	Investment in a service contract	274	1,366
	Trade and other receivables	95,582	67,052
	Work in progress	14,221	1,027
	Current income tax assets	1,490	2,638
	Prepaid expenses	6,815	3,106
	Inventories	5,266	4,585
		136,955	106,155
Equity accounted investments		27,300	27,123
Investment in a service contract		903	-
Property, plant and equipment		106,319	99,663
Goodwill		22,362	21,407
Other intangible assets		19,858	18,286
Other non-current assets		6,675	1,704
Post-employment benefit assets		560	768
Non-current financial assets		4,744	3,432
Deferred income tax assets		8,401	8,449
Total assets		334,077	286,987
Liabilities
Current liabilities
	Short-term bank loans	3,874	-
	Trade and other payables	57,370	40,452
	Deferred revenue	2,985	2,475
	Current income tax liabilities	1,727	1,159
	Dividends payable	970	815
	Current portion of long-term debt	2,131	1,261
	Provisions	1,020	1,001
		70,077	47,163
Long-term debt		30,642	28,007
Provisions		766	644
Deferred income tax liabilities		10,208	9,380
Post-employment benefit obligations		11,792	12,453
Deferred revenue		4,633	4,933
Non-current financial liabilities		3,468	4,983
Total liabilities		131,586	107,563
Equity
Share capital		15,039	14,906
Retained earnings		159,085	144,513
Accumulated other comprehensive income		8,764	4,082
Equity attributable to owners of the Company		182,888	163,501
Non-controlling interests		19,603	15,923
Total equity		202,491	179,424
Total liabilities and equity		334,077	286,987

(in thousands 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	Cash flow hedges	Foreign currency translation	Retained earnings	Total	Non- controlling interests	Total equity
		$	$	$	$	$	$	$
Balance as at January 1, 2015		14,906	(56)	4,138	144,513	163,501	15,923	179,424
Profit for the period		–	–	–	21,288	21,288	3,102	24,390
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	–	–	4,810	–	4,810	–	4,810
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes	–	–	–	332	332	–	332
	Cash flow hedges, net of income taxes	–	(96)	–	–	(96)	–	(96)
Share of other comprehensive income of equity accounted investments, net of income taxes		–	(32)	–	8	(24)	–	(24)
Total comprehensive income (loss) for the period		–	(128)	4,810	21,628	26,310	3,102	29,412
Repurchase of Class A shares		(14)	─	─	(770)	(784)	─	(784)
Issuance and repurchase of Class B shares		147	─	─	(3,693)	(3,546)	─	(3,546)
Investment received from non-controlling interests		–	–	–	–	–	578	578
Dividends on Class A shares		–	–	–	(1,490)	(1,490)	─	(1,490)
Dividends on Class B shares		–	–	–	(1,103)	(1,103)	─	(1,103)
Balance as at September 26, 2015		15,039	(184)	8,948	159,085	182,888	19,603	202,491
Balance as at January 1, 2014		15,030	(33)	1,342	135,552	151,891	11,791	163,682
Profit for the period		–	–	–	23,750	23,750	2,322	26,072
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	–	–	1,519	–	1,519	–	1,519
	Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes	–	–	–	(624)	(624)	–	(624)
	Share of other comprehensive income of equity accounted investments, net of income taxes	–	2	–	45	47	–	47
Total comprehensive income for the period		–	2	1,519	23,171	24,692	2,322	27,014
Repurchase of Class A shares		(7)	─	─	(363)	(370)	─	(370)
Issuance and repurchase of Class B shares		(67)	─	─	(6,649)	(6,716)	─	(6,716)
Non-controlling interests arising on a business acquisition		–	–	–	–	–	1,475	1,475
Issuance and repurchase of share capital by a subsidiary		–	–	–	(167)	(167)	(823)	(990)
Dividends on Class A shares		–	–	–	(6,848)	(6,848)	–	(6,848)
Dividends on Class B shares		–	–	–	(5,203)	(5,203)	–	(5,203)
Balance as at September 27, 2014		14,956	(31)	2,861	139,493	157,279	14,765	172,044

(in thousands of Canadian dollars) (unaudited and not reviewed by the independent auditor)
Condensed Consolidated Interim Statements of Cash Flows
		For the nine months ended
		September 26, 2015	September 27, 2014
		$	$
Operating activities
	Profit for the period	24,390	26,072
	Impairment loss related to assets destroyed	9,729	-
	Gain on insurance recovery of assets	(9,729)	-
	Other items not affecting cash and cash equivalents	20,630	18,268
	Cash generated from operations	45,020	44,340
	Dividends received from equity accounted investments	2,361	2,646
	Contributions to defined benefit retirement plans	(940)	(1,271)
	Settlement of provisions	(117)	(45)
	Changes in non-cash working capital items	(22,554)	(6,480)
	Income taxes paid	(6,500)	(12,039)
		17,270	27,151
Financing activities
	Net change in short-term bank loans	3,874	(2,087)
	Issuance of long-term debt, net of transaction cost	10,642	32,000
	Repayment of long-term debt	(7,146)	(5,596)
	Interest paid	(663)	(433)
	Repurchase of Class A shares	(784)	(370)
	Issuance of Class B shares	113	146
	Repurchase of Class B shares	(3,873)	(7,097)
	Repurchase of share capital by a subsidiary	-	(991)
	Dividends paid on Class A shares	(1,398)	(6,773)
	Dividends paid on Class B shares	(1,040)	(5,158)
		(275)	3,641
Investing activities
	Customer repayment of an investment in a service contract	189	172
	Interest received	247	416
	Cash acquired in a business acquisition	-	1,622
	Business acquisition	-	(5,752)
	Cash received from a non-controlling interest	578	-
	Acquisition of property, plant and equipment	(20,133)	(30,651)
	Proceeds from disposal of property, plant and equipment	336	863
	Acquisition of intangible assets	(46)	(175)
	Repayment of non-current financial assets	-	3,288
	Proceeds from disposal of other non-current assets	-	6
	Acquisition of other non-current assets	(10,287)	(274)
		(29,116)	(30,485)
Net change in cash and cash equivalents		(12,121)	307
Cash and cash equivalents, beginning of period		26,381	19,638
Effect of exchange rate on balances held in foreign currencies of foreign operations		(953)	(146)
Cash and cash equivalents, end of period		13,307	19,799
Additional information
Acquisition of property, plant and equipment included in trade and other payables		4,070	1,498

SOURCE Logistec Corporation

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