MONTREAL, March 24, 2015 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2014.
Logistec had another excellent year in 2014. Both profit for the year and revenue reached record levels and progress was achieved in all its business segments. Consolidated revenue totalled $322.2 million in 2014, an increase of $23.9 million or 8.0% over 2013. The marine services segment posted revenue of $194.7 million in 2014, representing a higher level of activity compared to the $181.6 million reported for 2013. This growth was due to an overall increase in cargo volumes handled in all regions for all cargo types, whether bulk, break-bulk or containers. The environmental services segment delivered a good performance in 2014, as revenue increased by $10.0 million or 8.5% over 2013 to reach $127.6 million. Revenue growth came primarily from increased activity in Aqua-Pipe and from site remediation, as well as additional revenue from the acquisition of Mistral Environnement SAS.
In 2014, the profit attributable to owners of the Company amounted to $31.0 million (compared to $27.5 million in 2013) for total basic and diluted earnings per share of $2.46, which corresponds to basic and diluted earnings per share of $2.37 attributable to Class A Common Shares and of $2.59 attributable to Class B Subordinate Voting Shares. This compares favourably to total basic and diluted earnings per share of $2.13 in 2013, of which $2.05 was attributable to Class A Common Shares and $2.26 was attributable to Class B Subordinate Voting Shares.
During the fourth quarter of 2014, Logistec maintained its consolidated revenue and profit momentum. Consolidated revenue totalled $86.9 million, an increase of $7.4 million or 9.3% over the same period of 2013. This increase is explained by strong activity in the marine services segment. The fourth quarter of 2014 closed with a consolidated profit attributable to owners of the Company of $7.3 million, up by $0.7 million over the same period of 2013. For the fourth quarter of 2014, the profit attributable to owners of the Company computed to total basic and diluted earnings per share of $0.58, of which $0.56 was attributable to Class A Common Shares and $0.61 was attributable to Class B Subordinate Voting Shares.
Outlook
"Our development plan is focused on strengthening and growing our footprint of cargo-handling services in North America. For 2015, we will again focus on three particular sectors: mining, biomass and port logistics. With respect to mining, we are working closely with mining companies in the Arctic and the Northern Québec/Labrador Trough region to develop and implement efficient cargo-handling solutions for the export of concentrates. The demand for export biomass facilities continues to rise and we are looking to further invest to handle larger wood-pellet volumes in Brunswick (GA). In terms of port logistics, we were successful in expanding our capacity at the Port of Montréal with the addition of a new container terminal for Termont. Projects are underway to expand our port network geographically, as well as to assist customers in improving their efficiency by offering multiuser distribution centres and made-to-measure automation solutions on an ongoing basis. We continue to seek acquisitions that fit our strategy of growing our footprint in the dry cargo-handling business in North America.
We are optimistic about our environmental services segment as well. Our plan is largely consistent with prior years as the development potential remains strong. In 2015, we will continue to build on our Aqua-Pipe technology and grow our services both in Québec, where we install our structural lining, and outside the province. Our woven-hose manufacturing business should continue to perform well and, with our increased capacity, will be able to meet the growing needs of Aqua-Pipe demand. In terms of our more traditional environmental services, we are diligently working to obtain a growing book of potential business in the fields of site remediation and biotreatment. We have built a strong team of experts who can find solutions for virtually all types of environmental contaminants and are expanding our services both in scope and geographically.
Our specialized industrial services are leaders in their individual fields. They have each developed the capacity to proactively understand the marketplace they serve and to develop opportunities based on real customer needs. This market intelligence has led to new markets for both our cargo handling and environmental businesses. The desire to continue to build is in our culture and includes teamwork, solutions-based customer orientation, professionalism and innovation. It also encompasses a long-term view for environmental sustainability as well as health and safety for our employees and those around us. We provide value-added services for our collective future by facilitating international trade, strengthening our northern communities, cleaning our environment and protecting our drinking water," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.
"All in all, we are committed and confident we can continue to build our business based on specialized services where we have developed our expertise with a solid customer base. Our industrial environment is showing positive signs, particularly south of the border, and our energy is focused on market opportunities that can benefit from this better economic outlook. Clearly, our success rests on the strength of our highly dynamic team of experts who are customer oriented and consistently bring value to an expanding customer base," concluded Madeleine 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 32 ports 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.
Consolidated Statements of Earnings | ||
years ended December 31 (in thousands of Canadian dollars, except for per share amounts) |
||
2014 | 2013 | |
$ | $ | |
Revenue | 322,220 | 298,300 |
Employee benefits expense | (151,942) | (137,057) |
Equipment and supplies expense | (86,021) | (79,603) |
Rental expense | (26,820) | (26,518) |
Other expenses | (11,507) | (11,861) |
Depreciation and amortization expense | (10,246) | (9,413) |
Share of profit of equity accounted investments | 6,403 | 5,493 |
Other gains and losses | 2,525 | 1,600 |
Operating profit | 44,612 | 40,941 |
Finance expense | (693) | (599) |
Finance income | 468 | 433 |
Profit before income taxes | 44,387 | 40,775 |
Income taxes | (9,870) | (9,948) |
Profit for the year | 34,517 | 30,827 |
Profit attributable to: | ||
Owners of the Company | 31,037 | 27,522 |
Non-controlling interests | 3,480 | 3,305 |
Profit for the year | 34,517 | 30,827 |
Basic and diluted earnings per Class A Common Share (1) (3) | 2.37 | 2.05 |
Basic and diluted earnings per Class B Subordinate Voting Share (2) (3) | 2.59 | 2.25 |
(1) | Class A Common Share ("Class A share") |
(2) | Class B Subordinate Voting Share ("Class B share") |
(3) | All per share information has been adjusted to reflect the two-for-one stock split of July 2014 |
Consolidated Statements of Comprehensive Income | ||||
years ended December 31 (in thousands of Canadian dollars) |
||||
2014 | 2013 | |||
$ | $ | |||
Profit for the year | 34,517 | 30,827 | ||
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 | 2,796 | 1,795 | ||
Losses on derivatives designated as cash flow hedges | (63) | (15) | ||
Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings | 9 | 15 | ||
Income taxes relating to derivatives designated as cash flow hedges | 17 | - | ||
Share of other comprehensive income of equity accounted investments, net of income taxes | 14 | (24) | ||
Total items that are or may be reclassified to the consolidated statements of earnings | 2,773 | 1,771 | ||
Items that will not be reclassified to the consolidated statements of earnings | ||||
Remeasurement losses on benefit obligation | (2,861) | (210) | ||
Return on retirement plan assets excluding amounts included in profit for the year | 1,430 | 3,394 | ||
Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year | 385 | (856) | ||
Share of other comprehensive income of equity accounted investments, net of income taxes | 28 | 112 | ||
Total items that will not be reclassified to the consolidated statements of earnings | (1,018) | 2,440 | ||
Other comprehensive income for the year, net of income taxes | 1,755 | 4,211 | ||
Total comprehensive income for the year | 36,272 | 35,038 | ||
Total comprehensive income attributable to: | ||||
Owners of the Company | 32,792 | 31,733 | ||
Non-controlling interests | 3,480 | 3,305 | ||
Total comprehensive income for the year | 36,272 | 35,038 |
Consolidated Statements of Financial Position | |||
(in thousands of Canadian dollars) | |||
As at December 31, 2014 |
As at December 31, 2013 |
||
$ | $ | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 26,381 | 19,638 | |
Investment in a service contract | 1,366 | 1,597 | |
Trade and other receivables | 67,052 | 69,035 | |
Work in progress | 1,027 | 254 | |
Current income tax assets | 2,638 | 1,569 | |
Prepaid expenses | 3,106 | 2,614 | |
Inventories | 4,585 | 5,241 | |
106,155 | 99,948 | ||
Equity accounted investments | 27,123 | 26,517 | |
Property, plant and equipment | 99,663 | 63,027 | |
Goodwill | 21,407 | 15,139 | |
Other intangible assets | 18,286 | 18,295 | |
Other non-current assets | 1,704 | 1,433 | |
Post-employment benefit assets | 768 | 870 | |
Non-current financial assets | 3,432 | 6,251 | |
Deferred income tax assets | 8,449 | 7,826 | |
Total assets | 286,987 | 239,306 | |
Liabilities | |||
Current liabilities | |||
Short-term bank loans | - | 2,087 | |
Trade and other payables | 40,452 | 31,999 | |
Deferred revenue | 2,475 | 1,597 | |
Current income tax liabilities | 1,159 | 4,838 | |
Dividends payable | 815 | 699 | |
Current portion of long-term debt | 1,261 | 2,034 | |
Provisions | 1,001 | 1,320 | |
47,163 | 44,574 | ||
Long-term debt | 28,007 | 3,598 | |
Provisions | 644 | 604 | |
Deferred income tax liabilities | 9,380 | 10,201 | |
Post-employment benefit obligations | 12,453 | 11,275 | |
Deferred revenue | 4,933 | - | |
Non-current financial liabilities | 4,983 | 5,372 | |
Total liabilities | 107,563 | 75,624 | |
Commitments, contingent liabilities and guarantees | |||
Equity | |||
Share capital | 14,906 | 15,030 | |
Retained earnings | 144,513 | 135,552 | |
Accumulated other comprehensive income | 4,082 | 1,309 | |
Equity attributable to owners of the Company | 163,501 | 151,891 | |
Non-controlling interests | 15,923 | 11,791 | |
Total equity | 179,424 | 163,682 | |
Total liabilities and equity | 286,987 | 239,306 |
On behalf of the Board | |||
(signed) David M. Mann | (signed) Madeleine Paquin | ||
Director | Director |
Consolidated Statements of Changes in Equity | |||||||||
(in thousands of Canadian dollars) | |||||||||
Attributable to owners of the Company | |||||||||
Accumulated other comprehensive income (loss) |
|||||||||
Share capital |
Cash flow hedges |
Foreign currency translation |
Retained earnings |
Total | Non- controlling interests |
Total equity |
|||
$ | $ | $ | $ | $ | $ | $ | |||
Balance as at January 1, 2014 | 15,030 | (33) | 1,342 | 135,552 | 151,891 | 11,791 | 163,682 | ||
Profit for the year | - | - | - | 31,037 | 31,037 | 3,480 | 34,517 | ||
Other comprehensive income (loss) | |||||||||
Currency translation differences arising on translation of foreign operations | - | - | 2,796 | - | 2,796 | - | 2,796 | ||
Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes | - | - | - | (1,046) | (1,046) | - | (1,046) | ||
Cash flow hedges, net of income taxes | - | (37) | - | - | (37) | - | (37) | ||
Share of other comprehensive income of equity accounted investments, net of income taxes | - | 14 | - | 28 | 42 | - | 42 | ||
Total comprehensive income (loss) for the year | - | (23) | 2,796 | 30,019 | 32,792 | 3,480 | 36,272 | ||
Repurchase of Class A shares | (8) | - | - | (425) | (433) | - | (433) | ||
Issuance and repurchase of Class B shares | (116) | - | - | (7,602) | (7,718) | - | (7,718) | ||
Non-controlling interest arising on a business acquisition | - | - | - | - | - | 1,475 | 1,475 | ||
Repurchase of share capital by a subsidiary | - | - | - | (167) | (167) | (823) | (990) | ||
Dividends on Class A shares | - | - | - | (7,314) | (7,314) | - | (7,314) | ||
Dividends on Class B shares | - | - | - | (5,550) | (5,550) | - | (5,550) | ||
Balance as at December 31, 2014 | 14,906 | (56) | 4,138 | 144,513 | 163,501 | 15,923 | 179,424 | ||
Balance as at January 1, 2013 | 15,139 | (9) | (453) | 111,328 | 126,005 | 8,612 | 134,617 | ||
Profit for the year | - | - | - | 27,522 | 27,522 | 3,305 | 30,827 | ||
Other comprehensive income (loss) | |||||||||
Currency translation differences arising on translation of foreign operations | - | - | 1,795 | - | 1,795 | - | 1,795 | ||
Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the year, net of income taxes | - | - | - | 2,328 | 2,328 | - | 2,328 | ||
Share of other comprehensive income of equity accounted investments, net of income taxes | - | (24) | - | 112 | 88 | - | 88 | ||
Total comprehensive income (loss) for the year | - | (24) | 1,795 | 29,962 | 31,733 | 3,305 | 35,038 | ||
Repurchase and conversion of Class A shares | (21) | - | - | (576) | (597) | - | (597) | ||
Issuance and repurchase of Class B shares | (88) | - | - | (2,547) | (2,635) | - | (2,635) | ||
Repurchase of share capital by a subsidiary | - | - | - | - | - | (126) | (126) | ||
Dividends on Class A shares | - | - | - | (1,461) | (1,461) | - | (1,461) | ||
Dividends on Class B shares | - | - | - | (1,154) | (1,154) | - | (1,154) | ||
Balance as at December 31, 2013 | 15,030 | (33) | 1,342 | 135,552 | 151,891 | 11,791 | 163,682 |
Consolidated Statements of Cash Flows | |||
years ended December 31 (in thousands of Canadian dollars) |
|||
2014 | 2013 | ||
$ | $ | ||
Operating activities | |||
Profit for the year | 34,517 | 30,827 | |
Items not affecting cash and cash equivalents | 23,579 | 18,936 | |
Cash generated from operations | 58,096 | 49,763 | |
Dividends received from equity accounted investments | 5,646 | 10,820 | |
Contributions to defined benefit retirement plans | (1,607) | (1,304) | |
Settlement of provisions | (45) | (408) | |
Changes in non-cash working capital items | 2,182 | (10,036) | |
Income taxes paid | (15,164) | (5,269) | |
49,108 | 43,566 | ||
Financing activities | |||
Net change in short-term bank loans | (2,087) | (113) | |
Issuance of long-term debt, net of transaction costs | 36,000 | - | |
Repayment of long-term debt | (13,613) | (16,379) | |
Interest paid | (705) | (623) | |
Issuance of Class B shares | 145 | 20 | |
Repurchase of share capital by a subsidiary | (990) | (126) | |
Repurchase of Class A shares | (433) | (598) | |
Repurchase of Class B shares | (8,100) | (2,832) | |
Dividends paid on Class A shares | (7,240) | (1,406) | |
Dividends paid on Class B shares | (5,508) | (1,117) | |
(2,531) | (23,174) | ||
Investing activities | |||
Customer repayment of investments in service contracts | 231 | 6,510 | |
Interest received | 613 | 1,016 | |
Cash acquired in business acquisitions | 1,622 | - | |
Business acquisitions | (5,752) | - | |
Investment in a joint venture | (100) | (25) | |
Acquisition of property, plant and equipment | (40,049) | (15,736) | |
Proceeds from disposal of property, plant and equipment | 1,071 | 548 | |
Acquisition of intangible assets | (211) | (135) | |
Repayment of non-current financial assets | 3,288 | - | |
Acquisition of other non-current assets | (298) | - | |
Disposal of other non-current assets | 6 | 38 | |
(39,579) | (7,784) | ||
Net change in cash and cash equivalents | 6,998 | 12,608 | |
Cash and cash equivalents, beginning of year | 19,638 | 7,519 | |
Effect of exchange rate on balances held in foreign currencies of foreign operations | (255) | (489) | |
Cash and cash equivalents, end of year | 26,381 | 19,638 |
SOURCE Logistec Corporation
![](http://rt.newswire.ca/rt.gif?NewsItemId=C9017&Transmission_Id=201503241136CANADANWCANADAPR_C9017&DateId=20150324)
Jean-Claude Dugas, cpa, ca
Vice-President, Finance
Logistec Corporation
[email protected]
(514) 985-2345
Share this article