LOGISTEC Announces its Results of the First Quarter of 2021

MONTRÉAL, May 4, 2021 /CNW Telbec/ - LOGISTEC Corporation ("LOGISTEC") (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 27, 2021.

Highlights for the first quarter of 2021

• Consolidated revenue reached $104.9 million, down $4.5 million or 4.2%;
• Adjusted EBITDA ⁽¹⁾ closed at $6.2 million, down $1.3 million;
• Cash flows from operating activities generated a solid $18.3 million;
• Total basic loss per share closed at $0.44

Results for the first quarter of 2021

During the first quarter of 2021, consolidated revenue totalled $104.9 million, a decrease of $4.5 million or 4.2% over the same period in 2020. Revenue from the marine services segment reached $82.4 million in 2021, down $7.9 million or 8.7% compared with $90.3 million for the comparative period. Revenue from the U.S. Gulf region continues to be impacted by the slowdown of the oil and gas industry. Revenue from the environmental services segment was $22.4 million, up $3.3 million or 17.4% in the first quarter of 2021. This is mainly due to an increase revenue from sale of goods. Our environmental services segment is backed by a large order book of projects in 2021.

The adjusted EBITDA ⁽¹⁾ for the quarter closed at $6.2 million, a decrease of $1.3 million compared with $7.5 million recorded in the comparative period. The decline in adjusted EBITDA ⁽¹⁾ stemmed mainly from the unrealized exchange loss incurred in 2021 compared with an unrealized exchange gain in 2020. Excluding foreign exchange, our adjusted EBITDA ⁽¹⁾ would have been ahead of last year by $3.7 million.

Cash flows from operating activities generated a solid $18.3 million for the first quarter of 2021 which is more than sufficient to cover our usual investment and financing activities.

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 $5.7 million, slightly higher than last year's loss of $5.4 million. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $0.44, of which $0.42 was attributable to Class A Common Shares and $0.47 to Class B Subordinate Voting Shares.

Outlook

"Our outlook, although still volatile due to the pandemic, seems positive in both our segments. In cargo handling, our strategic network of 79 terminals in 53 ports allows us to handle a wide range of diversified cargoes for many global industries. The economy is set to recover well, and, other than uncertainty with respect to the Port of Montréal labour situation, we should be in a position to benefit from stable and increasing volumes throughout our network. Our environmental business is also off to a good start with an order book of over $180.0 million. Our ALTRA water main renewal contracts are strong in both Québec and Ontario, and we are getting some traction in new markets. Further, lead in water and per- and polyfluoroalkyl substances ("PFAS") contamination continue to draw significant attention, especially in the USA, and we are well positioned to participate in these key markets over the coming years. We also see great opportunities for our field-proven expertise outside of Québec and are proactively expanding our environmental services across Canada, with particular emphasis on the western parts of the country", indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.

Our Response to COVID-19

LOGISTEC continues to monitor developments related to the COVID-19 pandemic and takes all appropriate measures to protect the health and safety of its people, its customers, and its communities.

LOGISTEC continues to operate under its business continuity plan. To date, all our operations were deemed essential services by the government authorities in Canada and the United States. As such, the Company's marine operations, including our terminal operations across our North American network, remain open and functional. Similarly, the Company's environmental operations, including renewal of underground water mains, site remediation, soils and materials management, and manufacturing of woven hoses, are operational. Nonetheless, the economic slowdown due to COVID-19, as well as the strict distancing and sanitation protocols have increased the operating costs in our marine and environmental services segments.

Dividends

On May 4, 2021, the Board of Directors declared a dividend of $0.09350 per Class A Common Share and $0.10285 per Class B Subordinate Voting Share, for a total consideration of $1.3 million. These dividends will be paid on July 5, 2021 to shareholders of record as of June 21, 2021.

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 53 ports and 79 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 industry where it provides services to industrial, municipal and other governmental customers for the renewal of underground water mains, soils and 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.

⁽¹⁾ 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. 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.

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 the 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 Canadian dollars, except for per share amounts and number of shares)
		For the three months ended
		March 27, 2021	March 28, 2020
		$	$
Revenue		104,850	109,431
Employee benefits expense		(57,978)	(56,877)
Equipment and supplies expense		(25,724)	(32,039)
Operating expense		(9,622)	(11,274)
Other expenses		(5,821)	(6,444)
Depreciation and amortization expense		(11,361)	(10,776)
Share of profit (loss) of equity accounted investments		1,151	(151)
Other (losses) gains		(609)	4,827
Operating loss		(5,114)	(3,303)
Finance expense		(2,549)	(3,136)
Finance income		116	130
Loss before income taxes		(7,547)	(6,309)
Income taxes		1,926	1,079
Loss for the period		(5,621)	(5,230)
Profit (loss) attributable to:
Owners of the Company		(5,724)	(5,421)
Non-controlling interests		103	191
Loss for the period		(5,621)	(5,230)
Basic and diluted loss per Class A Common Share ^(1)		(0.42)	(0.41)
Basic and diluted loss per Class B Subordinate Voting Share ^(2)		(0.47)	(0.45)
Weighted average number of Class A shares outstanding, basic and diluted		7,377,022	7,382,055
Weighted average number of Class B shares outstanding, basic and diluted		5,556,254	5,437,724

^(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 27, 2021	March 28, 2020
	$	$
Loss for the period	(5,621)	(5,230)
Other comprehensive (loss) income
Items that are or may be reclassified to the consolidated statements of earnings
Currency translation differences arising on translation of foreign operations	(1,465)	9,852
Unrealized gain (loss) on translating debt designated as hedging item of the net investment in foreign operations	942	(5,340)
Income taxes relating to unrealized gain on translating debt designated as hedging item of the net investment in foreign operations	(125)	—
Gains on derivatives financial instruments designated as cash flow hedges	64	—
Income taxes relating to derivatives financial instruments designated as cash flow hedges	(17)	—
Total items that are or may be reclassified to the consolidated statements of earnings	(601)	4,512
Items that will not be reclassified to the consolidated statements of earnings
Remeasurement gains on benefit obligation	4,173	3,717
Return on retirement plan assets	(528)	(1,402)
Income taxes on remeasurement gains on benefit obligation and return on retirement plan assets	(966)	(613)
Total items that will not be reclassified to the consolidated statements of earnings	2,679	1,702
Other comprehensive income for the period, net of income taxes	2,078	6,214
Total comprehensive (loss) income for the period	(3,543)	984
Total comprehensive (loss) income attributable to:
Owners of the Company	(3,636)	735
Non-controlling interests	93	249
Total comprehensive (loss) income for the period	(3,543)	984

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(in thousands of Canadian dollars)
		As at March 27,  2021	As at December 31,  2020
		$	$
Assets
Current assets
Cash and cash equivalents		46,976	45,498
Trade and other receivables		106,377	137,911
Contract assets		2,902	7,617
Current income tax assets		10,785	9,171
Inventories		13,214	12,946
Prepaid expenses and other		8,002	9,005
		188,256	222,148
Equity accounted investments		45,542	45,061
Property, plant and equipment		184,062	185,181
Right-of-use assets		137,047	132,795
Goodwill		150,193	150,748
Intangible assets		37,077	38,422
Non-current assets		2,219	2,381
Non-current financial assets		7,953	9,160
Deferred income tax assets		11,565	12,385
Total assets		763,914	798,281
Liabilities
Current liabilities
Trade and other payables		67,318	90,946
Contract liabilities		11,215	8,700
Current income tax liabilities		4,008	8,570
Dividends payable		1,266	1,259
Current portion of lease liabilities		14,424	18,251
Current portion of long-term debt		3,547	3,718
		101,778	131,444
Lease liabilities		125,788	116,917
Long-term debt		161,857	163,962
Deferred income tax liabilities		21,080	21,399
Post-employment benefit obligations		18,485	22,055
Contract liabilities		2,433	2,533
Non-current liabilities		36,326	38,400
Total liabilities		467,747	496,710
Equity
Share capital		48,025	45,575
Share capital to be issued		2,388	4,906
Retained earnings		237,520	242,358
Accumulated other comprehensive income		7,352	7,943
Equity attributable to owners of the Company		295,285	300,782
Non-controlling interest		882	789
Total equity		296,167	301,571
Total liabilities and equity		763,914	798,281

     

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
(in thousands of Canadian dollars)
	Attributable to owners of the Company
	Share capital	Share capital to be issued	Accumulated other comprehensive income		Retained earnings	Total	Non- controlling interests	Total equity
	$	$		$	$	$	$	$
Balance as at January 1, 2021	45,575	4,906		7,943	242,358	300,782	789	301,571
(Loss) profit for the period	—	—		—	(5,724)	(5,724)	103	(5,621)
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations	—	—		(1,455)	—	(1,455)	(10)	(1,465)
Unrealized loss on translating debt designated as hedging item of the net investment in foreign operations	—	—		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 income (loss) for the period	—	—		(591)	(3,045)	(3,636)	93	(3,543)
Remeasurement of written put option liabilities	—	—		—	(295)	(295)	—	(295)
Repurchase of Class B shares	(68)	—		—	(277)	(345)	—	(345)
Issuance of Class B shares 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		7,352	237,520	295,285	882	296,167

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONTINUED)
(in thousands of Canadian dollars)
	Attributable to owners of the Company
	Share capital	Share capital to be issued	Accumulated other comprehensive income		Retained earnings	Total	Non-controlling interests	Total equity
	$	$		$	$	$	$	$
Balance as at January 1, 2020	40,222	9,811		9,697	220,641	280,371	643	281,014
(Loss) profit for the period	—	—		—	(5,421)	(5,421)	191	(5,230)
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations	—	—		9,794	—	9,794	58	9,852
Unrealized loss on translating debt designated as hedging item of the net investment in foreign operations	—	—		(5,340)	—	(5,340)	—	(5,340)
Remeasurement gains on benefit obligation and return on retirement plan assets, net of income taxes	—	—		—	1,702	1,702	—	1,702
Total comprehensive income (loss) for the period	—	—		4,454	(3,719)	735	249	984
Remeasurement of written put option liabilities	—	—		—	(270)	(270)	—	(270)
Repurchase of Class A shares	(2)	—		—	(117)	(119)	—	(119)
Repurchase of Class B shares	(118)	—		—	(452)	(570)	—	(570)
Issuance of Class B shares capital to a subsidiary shareholder	4,905	(4,905)		—	—	—	—	—
Dividends on Class A shares	—	—		—	(690)	(690)	—	(690)
Dividends on Class B shares	—	—		—	(569)	(569)	—	(569)
Balance as at March 28, 2020	45,007	4,906		14,151	214,824	278,888	892	279,780

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)
		For the three months ended
		March 27, 2021	March 28, 2020
		$	$
Operating activities
Loss for the period		(5,621)	(5,230)
Items not affecting cash and cash equivalents		11,591	13,930
Cash generated from operations		5,970	8,700
Dividends received from equity accounted investments		490	750
Contributions to defined benefit retirement plans		(194)	(218)
Settlement of provisions		(20)	(50)
Changes in non-cash working capital items		16,768	18,043
Income taxes paid		(4,734)	(3,363)
		18,280	23,862
Financing activities
Issuance of long-term debt, net of transaction cost		—	141
Repayment of long-term debt		(1,145)	(15,408)
Repayment of other non-current liability		(2,432)	(69)
Repayment of lease liabilities		(3,272)	(2,511)
Interest paid		(3,486)	(2,985)
Repurchase of Class A shares		—	(119)
Repurchase of Class B shares		(345)	(570)
Dividends paid on Class A shares		(690)	(690)
Dividends paid on Class B shares		(569)	(555)
		(11,939)	(22,766)
Investing activities
Acquisition of property, plant and equipment		(5,263)	(3,232)
Acquisition of intangible assets		(9)	(69)
Acquisition of other non-current assets		(16)	—
Proceeds from disposal of property, plant and equipment		64	43
Repayment of other non-current financial assets		57	54
Proceeds from disposal of other non-current assets		22	26
Interest received		61	65
		(5,084)	(3,113)
Net change in cash and cash equivalents		1,257	(2,017)
Cash and cash equivalents, beginning of period		45,498	22,608
Effect of exchange rate on balances held in foreign currencies of foreign operations		221	(1,495)
Cash and cash equivalents, end of period		46,976	19,096
Additional information
Acquisition of property, plant and equipment included in trade and other payables		2,343	645

SOURCE Logistec Corporation

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

Related Links

http://www.logistec.com