LOGISTEC Announces its results of the third quarter of 2021

MONTRÉAL, Nov. 9, 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 three-month and nine-month periods ended September 25, 2021.

Highlights from the third quarter of 2021

• Consolidated revenue totalled $236.2 million, up $44.3 million or 23.1%;
• Adjusted EBITDA⁽¹⁾ closed at $49.7 million, up $8.0 million;
• Total diluted earnings per share of $2.04, up $0.48;
• On August 5, 2021, the Company's Board of Directors elected to increase the dividend payment by 5.0%.

Highlights from the nine-month period ended September 25, 2021

• Consolidated revenue totalled $513.6 million, up $88.7 million or 20.9%;
• Adjusted EBITDA⁽¹⁾ closed at $83.2 million, up $14.1 million;
• Total diluted earnings per share of $2.38, up 59.7%.

Delivered the Strongest Quarter in LOGISTEC's History
LOGISTEC reported its strongest quarter results to date in revenue and profit attributable to owners of the Company. Both the marine and the environmental services segments contributed to these great results. Together with our customers and communities, LOGISTEC continues to embrace the relaunch of an anticipated post-COVID economy. Consolidated revenue was $236.2 million in the period, an increase of $44.3 million or 23.1% over the same period in 2020.

Marine Services
Revenue from the marine services segment reached $111.9 million in 2021, up $32.7 million or 41.2% compared with the same period in 2020. The rebound in manufacturing production had a favourable impact on global trade which translated into incremental cargo handled at most of LOGISTEC's terminals. Furthermore, the traditional energy industry and wind energy sector continue to fuel the growth of our operations in the U.S. Gulf Coast.

Overall, volumes are at pre-pandemic levels and strategic acquisitions we have made over the years are contributing to LOGISTEC's performance. Sharing our expertise and best practices across our network is beneficial to our customers and represents a key component of our strategic growth plan. We are appreciative of our dedicated teams who are delivering successfully across our network, despite ongoing challenges including operating constraints due to the pandemic, as well as storms and disruptions in the supply chain. Our market intelligence indicates that the upswing in volumes will continue for some time.

In August, LOGISTEC resumed peanut pellet operations at the Port of Brunswick terminal, following the fire in May, and took necessary steps to put in place new measures to meet all the safety conditions for our operations. We expect to resume wood pellet activities in the fourth quarter of 2021.

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

Further solidifying LOGISTEC's commitment to Environmental, Social and Governance ("ESG") and sustainability goals, we took delivery of two electric cranes at the Port of Montréal. In addition, Gulf Stream Marine, Inc. ("GSM") qualified for Government grants to purchase new and upgraded equipment with reduced environmental impact, contributing to cleaner air in Texas.

We were honoured to receive two prestigious recognitions presented by the international Heavy Lift Awards, and have been named marine Terminal Operator of the Year, a distinction that recognizes our talent and unique operational expertise. Our wholly owned subsidiary GSM also received an award in the "Safety" category for its exemplary commitment to develop and nurture a culture of health and safety in handling project cargo and wind energy components.

Environmental Services
Revenue from the environmental services segment was $124.3 million, up $11.7 million or 10.4% in the third quarter of 2021. The growth is mainly attributable to the acquisition of American Process Group ("APG") while our ALTRA line of products continues to perform as expected. So far, our recent acquisition in APG has generated synergies of expertise and allowed us to expand market reach by providing complementary services for large-scale projects. However, ALTRA Proven Water Technologies renewal projects across the U.S. are currently affected by disruption in the supply chain but projects are expected to resume in the fourth quarter, with the arrival of materials that are currently in short supply.

Outlook
"As we move through 2021, we remain focused on continuing to drive profitable growth and delivering long-term, sustainable value to our stakeholders. This was demonstrated as we delivered record results in this third quarter.  With three quarters of the year completed and a positive outlook for the coming months, we anticipate a strong close to this year.

On the marine side of the business, we see a steady return to normal. With large infrastructure projects underway both in the U.S. and Canada, it is expected that bulk and break-bulk cargo handling will remain very busy for the foreseeable future. We continue to focus on Green Marine certification of our terminals to reduce our environmental footprint in everything we do.

In our environmental services segment, we are optimistic for the remainder of 2021 thanks to a strong order book and the success of ongoing projects and operations. We continue to work closely with customers to find innovative, sustainable, and reliable solutions in support of a strong and prosperous global economy. As part of this work with our customers, we have seen an increase in the number of companies looking to work with partners providing sustainable solutions. This positions LOGISTEC well to leverage our ambitious sustainability plan in line with our ESG goals.

Our strategy remains unchanged: leverage our high-quality assets, strong geographic footprint and culture of innovation to drive future growth. Our experts are committed to delivering this strategy and driving shareholder value", 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, remained open and functional. Similarly, the Company's environmental operations, including renewal of underground water mains, dredging, dewatering, site remediation, soils and materials management, and manufacturing of woven hoses, remained 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.

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 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, site remediation, dredging and dewatering, soils and materials management, 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
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		For the nine months ended
	September 25, 2021	September 26, 2020	September 25, 2021	September 26, 2020
	$	$	$	$
Revenue	236,171	191,847	513,614	424,873
Employee benefits expense	(110,596)	(89,548)	(248,192)	(201,264)
Equipment and supplies expense	(59,485)	(45,153)	(132,606)	(109,291)
Operating expense	(14,602)	(10,588)	(34,748)	(31,191)
Other expenses	(7,931)	(6,828)	(21,629)	(19,319)
Depreciation and amortization expense	(12,564)	(11,602)	(35,808)	(33,601)
Share of profit of equity accounted investments	4,020	3,527	6,107	4,071
Other gains (losses)	2,110	(1,537)	622	1,244
Operating profit	37,123	30,118	47,360	35,522
Finance expense	(2,660)	(3,060)	(7,917)	(9,031)
Finance income	109	146	411	435
Profit before income taxes	34,572	27,204	39,854	26,926
Income taxes	(7,815)	(6,740)	(8,431)	(7,077)
Profit for the period	26,757	20,464	31,423	19,849
Profit (loss) attributable to:
Owners of the Company	26,739	20,465	31,256	19,634
Non-controlling interest	18	(1)	167	215
Profit for the period	26,757	20,464	31,423	19,849
Basic earnings per Class A Common Share ^(1)	1.98	1.52	2.31	1.46
Basic earnings per Class B Subordinate Voting Share ^(2)	2.17	1.68	2.54	1.61
Diluted earnings per Class A share	1.95	1.50	2.28	1.44
Diluted earnings per Class B share	2.15	1.65	2.51	1.58
Weighted average number of Class A shares outstanding, basic and diluted	7,377,022	7,377,655	7,377,022	7,379,478
Weighted average number of Class B shares outstanding, basic	5,677,569	5,544,436	5,619,662	5,504,921
Weighted average number of Class B shares outstanding, diluted	5,738,227	5,703,038	5,737,438	5,696,538

^(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		For the nine months ended
	September 25, 2021	September 26, 2020	September 25, 2021	September 26, 2020
	$	$	$	$
Profit for the period	26,757	20,464	31,423	19,849
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	5,775	(2,906)	(232)	3,567
Unrealized (loss) gain on translating debt designated as hedging item of the net investment in foreign operations	(4,275)	1,872	213	(1,675)
Income taxes relating to unrealized gain on translating debt designated as hedging item of the net investment in foreign operations	332	—	(28)	—
Gain (loss) on derivatives designated as cash flow hedges	10	(92)	100	(92)
Income taxes relating to derivatives designated as cash flow hedges	(3)	24	(27)	24
Total items that are or may be reclassified to the consolidated statements of earnings	1,839	(1,102)	26	1,824
Items that will not be reclassified to the consolidated statements of earnings
Remeasurement (losses) gains on benefit obligations	—	(1,260)	4,174	(2,548)
Return on retirement plan assets	125	188	218	21
Income taxes on remeasurement (losses) gains on benefit obligations and return on retirement plan assets	(33)	285	(1,164)	670
Total items that will not be reclassified to the consolidated statements of earnings	92	(787)	3,228	(1,857)
Share of other comprehensive income (loss) of equity accounted investments, net of income taxes
Items that are or may be reclassified to the consolidated statements of earnings	—	4	—	(15)
Items that will not be reclassified to the consolidated statements of earnings	—	(1)	—	4
Total share of other comprehensive income (loss) of equity accounted investments, net of income taxes	—	3	—	(11)
Other comprehensive income (loss) for the period, net of income taxes	1,931	(1,886)	3,254	(44)
Total comprehensive income for the period	28,688	18,578	34,677	19,805
Total comprehensive income (loss) attributable to:
Owners of the Company	28,642	18,599	34,513	19,575
Non-controlling interest	46	(21)	164	230
Total comprehensive income for the period	28,688	18,578	34,677	19,805

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)
	As at September 25,  2021	As at December 31,  2020
	$	$
Assets
Current assets
Cash and cash equivalents	31,408	46,778
Trade and other receivables	174,898	138,649
Contract assets	36,606	7,617
Current income tax assets	9,161	9,171
Inventories	16,821	12,946
Prepaid expenses and other	16,916	9,056
	285,810	224,217
Equity accounted investments	47,424	45,061
Property, plant and equipment	202,612	185,686
Right-of-use assets	134,434	132,779
Goodwill	181,675	149,311
Intangible assets	42,636	38,422
Non-current assets	2,432	2,381
Non-current financial assets	8,949	9,210
Deferred income tax assets	11,635	12,385
Total assets	917,607	799,452
Liabilities
Current liabilities
Short-term bank loans	524	—
Trade and other payables	151,311	91,694
Contract liabilities	12,573	8,941
Current income tax liabilities	9,887	8,719
Dividends payable	1,337	1,259
Current portion of lease liabilities	14,466	18,251
Current portion of long-term debt	2,829	3,748
	192,927	132,612
Lease liabilities	124,929	116,901
Long-term debt	208,672	163,962
Deferred income tax liabilities	24,039	21,418
Post-employment benefit obligations	16,133	22,055
Contract liabilities	2,233	2,533
Non-current liabilities	30,830	38,400
Total liabilities	599,763	497,881
Equity
Share capital	50,913	45,575
Share capital to be issued	—	4,906
Retained earnings	258,006	242,358
Accumulated other comprehensive income	7,972	7,943
Equity attributable to owners of the Company	316,891	300,782
Non-controlling interest	953	789
Total equity	317,844	301,571
Total liabilities and equity	917,607	799,452

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
Profit for the period	—		—				—		31,256		31,256	167	31,423
Other comprehensive (loss) income
Currency translation differences arising on translation of foreign operations	—		—				(229)		—		(229)	(3)	(232)
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations	—		—				185		—		185	—	185
Remeasurement gains on benefit obligations and return on retirement plan assets, net of income taxes	—		—				—		3,228		3,228	—	3,228
Cash flow hedges, net of income taxes	—		—				73		—		73	—	73
Total comprehensive income for the period	—		—				29		34,484		34,513	164	34,677
Remeasurement of written put option liability	—		—				—		(14,756)		(14,756)	—	(14,756)
Repurchase of Class B shares	(83)		—				—		(338)		(421)	—	(421)
Issuance of Class B shares capital to a subsidiary shareholder	5,421		(4,906)				—		—		515	—	515
Class B shares to be issued under the Executive Stock Option Plan	—		—				—		241		241	—	241
Other dividend									(107)		(107)		(107)
Dividends on Class A shares	—		—				—		(2,104)		(2,104)	—	(2,104)
Dividends on Class B shares	—		—				—		(1,772)		(1,772)	—	(1,772)
Balance as at September 25, 2021	50,913		—				7,972		258,006		316,891	953	317,844

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
Profit for the period	—		—				—		19,634		19,634	215	19,849
Other comprehensive income (loss)
Currency translation differences arising on translation of foreign operations	—		—				3,552		—		3,552	15	3,567
Unrealized loss on translating debt designated as hedging item of the net investment in foreign operations	—		—				(1,675)		—		(1,675)	—	(1,675)
Remeasurement losses on benefit obligations and return on retirement plan assets, net of income taxes	—		—				—		(1,857)		(1,857)	—	(1,857)
Share of other comprehensive (loss) of equity accounted investments, net of income taxes	—		—				(11)		—		(11)	—	(11)
Cash flow hedges, net of income taxes	—		—				(68)		—		(68)	—	(68)
Total comprehensive income for the period	—		—				1,798		17,777		19,575	230	19,805
Remeasurement of written put option liability	—		—				—		(818)		(818)	—	(818)
Repurchase of Class A shares	(4)		—				—		(159)		(163)	—	(163)
Repurchase of Class B shares	499		—				—		(708)		(209)	—	(209)
Issuance of Class B shares capital to a subsidiary shareholder	4,905		(4,905)				—		—		—	—	—
Class B shares to be issued under the Executive Stock Option Plan	—		—				—		91		91	—	91
Other dividend	—		—				—		(121)		(121)	—	(121)
Dividends on Class A shares	—		—				—		(2,070)		(2,070)	—	(2,070)
Dividends on Class B shares	—		—				—		(1,707)		(1,707)	—	(1,707)
Balance as at September 26, 2020	45,622		4,906				11,495		232,926		294,949	873	295,822

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(in thousands of Canadian dollars)
	For the nine months ended
	September 25, 2021	September 26, 2020
	$	$
Operating activities
Income for the period	31,423	19,849
Items not affecting cash and cash equivalents	46,264	45,824
Cash generated from operations	77,687	65,673
Dividends received from equity accounted investments	3,565	3,600
Contributions to defined benefit retirement plans	(752)	(674)
Settlement of provisions	(726)	(371)
Changes in non-cash working capital items	(30,133)	(7,900)
Income taxes paid	(8,019)	(4,392)
	41,622	55,936
Financing activities
Net change in short-term banks	524	—
Issuance of long-term debt, net of transaction cost	59,870	59,639
Repayment of long-term debt	(15,280)	(57,465)
Repayment of other non-current liabilities	(2,432)	(2,447)
Repayment of lease liabilities	(10,019)	(9,641)
Interest paid	(8,962)	(7,424)
Issuance of Class B shares	130	190
Repurchase of Class A shares	—	(163)
Repurchase of Class B shares	(421)	(903)
Dividends paid on Class A shares	(2,069)	(2,070)
Dividends paid on Class B shares	(1,729)	(1,692)
	19,612	(21,976)
Investing activities
Acquisition of property, plant and equipment	(28,129)	(16,290)
Acquisition of intangible assets	(14)	(89)
Proceeds from disposal of property, plant and equipment	505	340
Business combinations	(50,390)	(16,457)
Repayment of due to shareholders	(107)	(121)
Interest received	565	205
Repayment of other non-current financial assets	1,049	165
Acquisition of other non-current assets	(204)	(496)
Proceeds from disposal of other non-current assets	60	79
	(76,665)	(32,664)
Net change in cash and cash equivalents	(15,431)	1,296
Cash and cash equivalents, beginning of period	46,778	22,608
Effect of exchange rate on balances held in foreign currencies of foreign operations	61	(247)
Cash and cash equivalents, end of period	31,408	23,657
Additional information
Acquisition of property, plant and equipment included in trade and other payables	5,703	3,297
Issuance of Class B shares under the Employee Stock Purchase Plan for non-interest-bearing loans	385	504

SOURCE Logistec Corporation

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

Related Links

http://www.logistec.com