MONTREAL, Aug. 1, 2014 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the second quarter and first six months ended June 28, 2014.
Logistec closed the second quarter with satisfactory results. Revenue totalled $78.7 million, an increase of $6.0 million or 8.2% over the same period of 2013. The marine services segment's revenue grew by $3.8 million or 8.3% to $49.1 million for the second quarter of 2014, whereas the environmental services segment's revenue amounted to $29.6 million, up by $2.2 million over the second quarter of 2013. The growth in the marine services segment reflected an overall increase in volumes of cargo handled, especially with respect to bulk cargo and our activities along the U.S. East Coast. The second quarter of 2014 closed with a consolidated profit attributable to owners of the Company of $7.4 million, slightly up from the same period of 2013. Although operating profit was superior, results were affected by a loss on foreign currency translation of $0.5 million. For the second quarter of 2014, the profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.59, of which $0.57 was attributable to Class A Common Shares and $0.62 was attributable to Class B Subordinate Voting Shares.
During the first six months of 2014, consolidated revenue and profit rose to a record high. Consolidated revenue totalled $141.4 million, compared with $130.1 million for the first half of 2013. The profit attributable to owners of the Company amounted to $11.8 million for total basic and diluted earnings per share of $0.93, of which $0.90 was attributable to Class A Common Shares and $0.98 was attributable to Class B Subordinate Voting Shares. This compares favourably to total basic and diluted earnings per share of $0.72 for the same period of 2013, of which $0.69 was attributable to Class A Common Shares and $0.76 was attributable to Class B Subordinate Voting Shares.
Outlook
"We are very pleased to have achieved Logistec's best-ever performance for a first half of the year. The second half of 2014 also looks promising, as demand for our marine services is growing both in Canada and the USA while our environmental services segment should continue to perform well. The combination of new contracts with the acquisition of businesses and an ambitious capital expenditure program for 2014 makes us confident for the balance of the year, as well as for the years ahead," 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 29 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, PCB management, site remediation, risk assessment, woven-hose manufacturing, and asbestos removal work.
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.
| Condensed Consolidated Interim Statements of Earnings (in thousands of Canadian dollars, except for per share amounts and number of shares) (unaudited) |
||||
| For the three months ended | For the six months ended | |||
| June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | |
| $ | $ | $ | $ | |
| Revenue | 78,697 | 72,733 | 141,432 | 130,098 |
| Employee benefits expense | (37,069) | (31,836) | (65,663) | (59,148) |
| Equipment and supplies expense | (19,053) | (19,475) | (37,477) | (34,459) |
| Rental expense | (6,647) | (6,765) | (12,937) | (13,816) |
| Other expenses | (3,109) | (2,946) | (6,326) | (6,021) |
| Depreciation and amortization expense | (2,439) | (2,341) | (4,921) | (4,597) |
| Share of profit of equity accounted investments | 955 | 661 | 1,143 | 347 |
| Other gains and losses | (606) | 732 | 1,453 | 1,125 |
| Operating profit | 10,729 | 10,763 | 16,704 | 13,529 |
| Finance expense | (131) | (138) | (222) | (368) |
| Finance income | 95 | 111 | 209 | 208 |
| Profit before income taxes | 10,693 | 10,736 | 16,691 | 13,369 |
| Income taxes | (2,548) | (2,649) | (4,154) | (3,539) |
| Profit for the period | 8,145 | 8,087 | 12,537 | 9,830 |
| Profit attributable to: | ||||
| Owners of the Company | 7,444 | 7,385 | 11,791 | 9,321 |
| Non-controlling interests | 701 | 702 | 746 | 509 |
| Profit for the period | 8,145 | 8,087 | 12,537 | 9,830 |
| Basic and diluted earnings per Class A Common Share (1) (2) | 0.57 | 0.55 | 0.90 | 0.69 |
| Basic and diluted earnings per Class B Subordinate Voting Share (2) (3) | 0.62 | 0.60 | 0.98 | 0.76 |
| Weighted average number of Class A shares outstanding, basic and diluted (2) | 7,464,889 | 7,503,355 | 7,467,455 | 7,503,689 |
| Weighted average number of Class B shares outstanding, basic and diluted (2) | 5,164,233 | 5,418,300 | 5,208,433 | 5,424,133 |
| (1) | Class A Common Share ("Class A share") |
| (2) | All share-based information has been adjusted to reflect the impact of the two-for-one stock split as if it occurred January 1, 2013. |
| (3) | Class B Subordinate Voting Share ("Class B share") |
| Condensed Consolidated Interim Statements of Comprehensive Income (in thousands of Canadian dollars) (unaudited) |
|||||
| For the three months ended | For the six months ended | ||||
| June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | ||
| $ | $ | $ | $ | ||
| Profit for the period | 8,145 | 8,087 | 12,537 | 9,830 | |
| 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 | (1,059) | 937 | 35 | 1,498 | |
| Gains (losses) on derivatives designated as cash flow hedges | 1 | 22 | (1) | 10 | |
| Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings | ─ | 4 | 2 | 8 | |
| Income taxes relating to derivatives designated as cash flow hedges | ─ | (7) | ─ | (5) | |
| Total items that are or may be reclassified to the consolidated statements of earnings | (1,058) | 956 | 36 | 1,511 | |
| Items that will not be reclassified to the consolidated statements of earnings | |||||
| Remeasurement gains (losses) on benefit obligation | (797) | 2,196 | (1,588) | 2,196 | |
| Return on retirement plan assets excluding amounts included in profit for the period | 83 | 352 | 789 | 1,423 | |
| Income taxes on remeasurement gains (losses) on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period | 192 | (686) | 215 | (974) | |
| Share of other comprehensive income of equity accounted investments, net of income taxes | 7 | ─ | 41 | ─ | |
| Total items that will not be reclassified to the consolidated statements of earnings | (515) | 1,862 | (543) | 2,645 | |
| Other comprehensive income (loss) for the period, net of income taxes | (1,573) | 2,818 | (507) | 4,156 | |
| Total comprehensive income for the period | 6,572 | 10,905 | 12,030 | 13,986 | |
| Total comprehensive income attributable to: | |||||
| Owners of the Company | 5,871 | 10,203 | 11,284 | 13,477 | |
| Non-controlling interests | 701 | 702 | 746 | 509 | |
| Total comprehensive income for the period | 6,572 | 10,905 | 12,030 | 13,986 | |
| Condensed Consolidated Interim Statements of Financial Position (in thousands of Canadian dollars) (unaudited) |
|||
| As at June 28, 2014 |
As at December 31, 2013 |
||
| $ | $ | ||
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 21,980 | 19,638 | |
| Investments in service contracts | 1,484 | 1,597 | |
| Trade and other receivables | 58,344 | 69,035 | |
| Work in progress | 7,289 | 254 | |
| Current income tax assets | 3,245 | 1,569 | |
| Prepaid expenses | 3,470 | 2,614 | |
| Inventories | 5,930 | 5,241 | |
| 101,742 | 99,948 | ||
| Equity accounted investments | 25,503 | 26,517 | |
| Property, plant and equipment | 75,838 | 63,027 | |
| Goodwill | 21,142 | 15,139 | |
| Other intangible assets | 17,497 | 18,295 | |
| Other non-current assets | 1,677 | 1,433 | |
| Post-employment benefit assets | 846 | 870 | |
| Non-current financial assets | 5,027 | 6,251 | |
| Deferred income tax assets | 7,460 | 7,826 | |
| Total assets | 256,732 | 239,306 | |
| Liabilities | |||
| Current liabilities | |||
| Short-term bank loans | ─ | 2,087 | |
| Trade and other payables | 32,037 | 31,999 | |
| Deferred revenue | 1,933 | 1,597 | |
| Current income tax liabilities | 1,903 | 4,838 | |
| Dividends payable | 10,545 | 699 | |
| Current portion of long-term debt | 2,105 | 2,034 | |
| Provisions | 673 | 1,320 | |
| 49,196 | 44,574 | ||
| Long-term debt | 15,868 | 3,598 | |
| Provisions | 608 | 604 | |
| Deferred income tax liabilities | 9,033 | 10,201 | |
| Post-employment benefit obligations | 12,018 | 11,275 | |
| Deferred revenue | 3,600 | ─ | |
| Non-current financial liabilities | 6,647 | 5,372 | |
| Total liabilities | 96,970 | 75,624 | |
| Equity | |||
| Share capital | 15,053 | 15,030 | |
| Retained earnings | 130,175 | 135,552 | |
| Accumulated other comprehensive income | 1,345 | 1,309 | |
| Equity attributable to owners of the Company | 146,573 | 151,891 | |
| Non-controlling interests | 13,189 | 11,791 | |
| Total equity | 159,762 | 163,682 | |
| Total liabilities and equity | 256,732 | 239,306 | |
| Condensed Consolidated Interim Statements of Changes in Equity (in thousands of Canadian dollars) (unaudited) |
|||||||||
| 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, 2014 | 15,030 | (33) | 1,342 | 135,552 | 151,891 | 11,791 | 163,682 | ||
| Profit for the period | ─ | ─ | ─ | 11,791 | 11,791 | 746 | 12,537 | ||
| Other comprehensive income (loss) | |||||||||
| Currency translation differences arising on translation of foreign operations | ─ | ─ | 35 | ─ | 35 | ─ | 35 | ||
| Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes | ─ | ─ | ─ | (584) | (584) | ─ | (584) | ||
| Share of other comprehensive income of equity accounted investments, net of income taxes | ─ | 1 | ─ | 41 | 42 | ─ | 42 | ||
| Total comprehensive income for the period | ─ | 1 | 35 | 11,248 | 11,284 | 746 | 12,030 | ||
| Repurchase of Class A shares | (6) | ─ | ─ | (273) | (279) | ─ | (279) | ||
| Issuance and repurchase of Class B shares | 29 | ─ | ─ | (4,946) | (4,917) | ─ | (4,917) | ||
| Non-controlling interest arising on business acquisition | ─ | ─ | ─ | ─ | ─ | 1,475 | 1,475 | ||
| Issuance and repurchase of share capital by a subsidiary | ─ | ─ | ─ | (167) | (167) | (823) | (990) | ||
| Dividends on Class A shares | ─ | ─ | ─ | (6,382) | (6,382) | ─ | (6,382) | ||
| Dividends on Class B shares | ─ | ─ | ─ | (4,857) | (4,857) | ─ | (4,857) | ||
| Balance as at June 28, 2014 | 15,053 | (32) | 1,377 | 130,175 | 146,573 | 13,189 | 159,762 | ||
| Condensed Consolidated Interim Statements of Changes in Equity (Continued) (in thousands of Canadian dollars) (unaudited) |
||||||||
| 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, 2013 | 15,139 | (9) | (453) | 111,328 | 126,005 | 8,612 | 134,617 | |
| Profit for the period | - | - | - | 9,321 | 9,321 | 509 | 9,830 | |
| Other comprehensive income | ||||||||
| Currency translation differences arising on translation of foreign operations | ─ | - | 1,498 | - | 1,498 | - | 1,498 | |
| Remeasurement gains on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes | ─ | - | - | 2,645 | 2,645 | - | 2,645 | |
| Cash flow hedges, net of income taxes | ─ | 13 | - | - | 13 | - | 13 | |
| Total comprehensive income for the period | - | 13 | 1,498 | 11,966 | 13,477 | 509 | 13,986 | |
| Repurchase of Class A shares | (1) | - | - | (13) | (14) | ─ | (14) | |
| Issuance and repurchase of Class B shares | 125 | - | - | (431) | (306) | - | (306) | |
| Repurchase of share capital by a subsidiary | - | - | - | - | - | (126) | (126) | |
| Dividends on Class A shares | - | - | - | (675) | (675) | - | (675) | |
| Dividends on Class B shares | - | - | - | (537) | (537) | - | (537) | |
| Balance as at June 29, 2013 | 15,263 | 4 | 1,045 | 121,638 | 137,950 | 8,995 | 146,945 | |
| Condensed Consolidated Interim Statements of Cash Flows (in thousands of Canadian dollars) (unaudited) |
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| For the six months ended | |||
| June 28, 2014 | June 29, 2013 | ||
| $ | $ | ||
| Operating activities | |||
| Profit for the period | 12,537 | 9,830 | |
| Items not affecting cash and cash equivalents | 12,147 | 9,177 | |
| Cash generated from operations | 24,684 | 19,007 | |
| Dividends received from equity accounted investments | 1,871 | 5,500 | |
| Contributions to defined benefit retirement plans | (741) | (691) | |
| Settlement of provisions | (43) | (87) | |
| Changes in non-cash working capital items | 2,162 | (3,119) | |
| Income taxes paid | (8,536) | (3,562) | |
| 19,397 | 17,048 | ||
| Financing activities | |||
| Net change in short-term bank loans | (2,087) | 378 | |
| Issuance of long-term debt, net of transaction cost | 12,000 | - | |
| Repayment of long-term debt | (925) | (6,017) | |
| Interest paid | (209) | (351) | |
| Repurchase of Class A shares | (279) | (14) | |
| Issuance of Class B shares | 146 | 20 | |
| Repurchase of Class B shares | (5,299) | (504) | |
| Repurchase of share capital by a subsidiary | (989) | (126) | |
| Dividends paid on Class A shares | (785) | (675) | |
| Dividends paid on Class B shares | (608) | (537) | |
| 965 | (7,826) | ||
| Investing activities | |||
| Customer repayment of investments in service contracts | 113 | 6,403 | |
| Interest received | 305 | 710 | |
| Cash acquired in business acquisitions | 1,622 | ─ | |
| Business acquisitions | (5,752) | ─ | |
| Acquisition of property, plant and equipment | (14,570) | (8,006) | |
| Proceeds from disposal of property, plant and equipment | 589 | 391 | |
| Acquisition of intangible assets | (123) | (18) | |
| Acquisition of other non-current assets | (182) | - | |
| Proceeds from disposal of other non-current assets | ─ | 8 | |
| (17,998) | (512) | ||
| Net change in cash and cash equivalents | 2,364 | 8,710 | |
| Cash and cash equivalents, beginning of period | 19,638 | 7,519 | |
| Effect of exchange rate on balances held in foreign currencies of foreign operations | (22) | (365) | |
| Cash and cash equivalents, end of period | 21,980 | 15,864 | |
| Additional information | |||
| Acquisition of property, plant and equipment included in trade and other payables | 1,171 | 966 | |
SOURCE: Logistec Corporation
Jean-Claude Dugas, cpa, ca
Vice-President, Finance
Logistec Corporation
[email protected]
(514) 985-2345
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