Logistec announces record 2014 results

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

Jean-Claude Dugas, cpa, ca
Vice-President, Finance
Logistec Corporation
[email protected]
[phone]