Logistec Reports Record Financial Results for the First Quarter of 2013

MONTREAL, May 8, 2013 /CNW Telbec/ - Logistec Corporation (TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider, today announced its financial results for the first quarter ended March 30, 2013.

During the first quarter of 2013, consolidated revenue totalled $57.4 million, an increase of $12.9 million or 29.1% over the equivalent period of the previous year. The marine services segment's revenue grew by $13.5 million or 44.0% to $44.1 million for the first quarter of 2013, whereas the environmental services segment's revenue amounted to $13.3 million, down by $0.5 million from the first quarter of 2012. The growth in the marine services segment reflected an overall increase in volumes of cargo handled in all regions, but more specifically in the USA with the addition in the third quarter of 2012 of CrossGlobe Transport, Ltd. ("CrossGlobe"). The first quarter of 2013 closed with a consolidated profit attributable to owners of the Company of $1.9 million, compared with a loss of $1.2 million for the first quarter of 2012. The profit attributable to owners of the Company translated into total basic and diluted earnings per share of $0.30, of which $0.29 was attributable to Class A Common Shares and $0.32 was attributable to Class B Subordinate Voting Shares.

Outlook

"As attested to by our record first-quarter performance, our outlook is favourable for 2013 as our Company should benefit from the ongoing turnaround of the U.S. economy, CrossGlobe's full-year contribution and the reinforcement of our biomass handling operations at our Brunswick (GA) terminal. As was the case in the first quarter, we believe our cargo handling business is likely to continue growing in all of our cargo types as well as on a geographic basis. We are also confident in regard to Sanexen's capacity to deliver another solid performance in 2013, as we expect an increase in the demand for services related to the Aqua-Pipe technology, a further improvement in sales of woven hoses and a satisfactory level of site remediation activities," 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 24 ports in Eastern Canada, the Great Lakes and the U.S. East Coast. 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, 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 at 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.

(in thousands of Canadian dollars, except for number of shares and per share amounts) (unaudited) Condensed Consolidated Interim Statements of Earnings
	For the three months ended
	March 30, 2013		March 31, 2012
			Restated ^(1)
	$		$
Revenue	57,116		44,160
Interest revenue from investments in service contracts	249		262
Total revenue	57,365		44,422
Employee benefits expense	(27,312)		(23,443)
Equipment and supplies expense	(14,984)		(13,260)
Rental expense	(7,051)		(4,969)
Other expenses	(3,075)		(2,551)
Depreciation and amortization expense	(2,256)		(1,967)
Share of profit (loss) of equity accounted investments	(314)		99
Other gains and losses	393		(248)
Operating profit (loss)	2,766		(1,917)
Finance expense	(230)		(149)
Finance income	97		173
Profit (loss) before income taxes	2,633		(1,893)
Income taxes	(890)		491
Profit (loss) for the period	1,743		(1,402)
Profit (loss) attributable to:
Owners of the Company	1,936		(1,151)
Non-controlling interests	(193)		(251)
Profit (loss) for the period	1,743		(1,402)
Basic and diluted earnings per Class A Common Share ^(2)	0.29		(0.17)
Basic and diluted earnings per Class B Subordinate Voting Share ^(3)	0.32		(0.19)
Weighted average number of Class A shares outstanding, basic and diluted	3,752,011		3,757,244
Weighted average number of Class B shares outstanding, basic and diluted	2,714,983		2,758,717

^(1)	2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.
^(2)	Class A Common Share ("Class A share")
^(3)	Class B Subordinate Voting Share ("Class B share")

(in thousands of Canadian dollars) (unaudited) Condensed Consolidated Interim Statements of Comprehensive Income
			For the three months ended
			March 30, 2013		March 31, 2012
					Restated ^(1)
			$		$
Profit (loss) for the period			1,743		(1,402)
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	561		(128)
		Gains (losses) on derivatives designated as cash flow hedges	(12)		63
		Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings	4		5
		Income taxes relating to derivatives designated as cash flow hedges	2		(18)
	Total items that are or may be reclassified to the consolidated statements of earnings		555		(78)
	Items that will not be reclassified to the consolidated statements of earnings
		Return on plan assets excluding amounts included in profit for the period	1,071		-
		Income taxes on return on plan assets excluding amounts included in profit for the period	(288)		-
	Total items that will not be reclassified to the consolidated statements of earnings		783		-
Other comprehensive income (loss) for the period, net of income taxes			1,338		(78)
Total comprehensive income (loss) for the period			3,081		(1,480)
Total comprehensive income (loss) attributable to:
Owners of the Company			3,274		(1,229)
Non-controlling interests			(193)		(251)
Total comprehensive income (loss) for the period			3,081		(1,480)

^(1)

2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.

(in thousands of Canadian dollars) (unaudited) Condensed Consolidated Interim Statements of Financial Position
		As at March 30, 2013		As at December 31, 2012		As at January 1, 2012
				Restated ^(1)		Restated ^(1)
		$		$		$
Assets
Current assets
	Cash and cash equivalents	7,943		7,519		8,888
	Investments in service contracts	8,056		8,107		13,065
	Trade and other receivables	50,142		55,795		45,007
	Current income tax assets	3,943		1,915		2,559
	Prepaid expenses	3,643		3,275		2,854
	Inventories	4,458		4,492		3,922
		78,185		81,103		76,295
Equity accounted investments		25,372		30,967		32,660
Property, plant and equipment		57,239		55,434		47,730
Goodwill		14,937		14,847		10,686
Other intangible assets		18,529		18,594		1,934
Other non-current assets		1,994		2,097		1,927
Post-employment benefit assets		581		441		779
Non-current financial assets		5,171		5,255		5,265
Deferred income tax assets		7,851		8,118		8,066
Total assets		209,859		216,856		185,342
Liabilities
Current liabilities
	Short-term bank loans	467		2,200		-
	Trade and other payables	23,000		28,391		27,020
	Deferred revenue	1,679		1,589		819
	Current income tax liabilities	948		562		1,907
	Dividends payable	606		607		594
	Current portion of long-term debt	2,179		2,179		2,499
	Provisions	841		763		488
		29,720		36,291		33,327
Long-term debt		17,475		19,808		11,873
Provisions		373		286		148
Deferred income tax liabilities		9,812		9,435		3,440
Post-employment benefit obligations		13,130		14,038		12,564
Non-current financial liabilities		2,634		2,381		2,624
Total liabilities		73,144		82,239		63,976
Equity
Share capital		15,084		15,139		15,149
Retained earnings		113,119		111,328		100,134
Accumulated other comprehensive income (loss)		93		(462)		(305)
Equity attributable to owners of the Company		128,296		126,005		114,978
Non-controlling interests		8,419		8,612		6,388
Total equity		136,715		134,617		121,366
Total liabilities and equity		209,859		216,856		185,342

^(1)	2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.

(in thousands of Canadian dollars) (unaudited) Condensed Consolidated Interim Statements of Changes in Equity
		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 (loss) for the period		-		-		-		1,936		1,936		(193)		1,743
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	-		-		561		-		561		-		561
	Return on plan assets excluding amounts included in profit for the period, net of income taxes	-		-		-		783		783		-		783
	Cash flow hedges, net of income taxes	-		(6)		-		-		(6)		-		(6)
Total comprehensive income (loss) for the period		-		(6)		561		2,719		3,274		(193)		3,081
Repurchase of Class B shares		(55)		-		-		(323)		(378)		-		(378)
Dividends on Class A shares		-		-		-		(336)		(336)		-		(336)
Dividends on Class B shares		-		-		-		(269)		(269)		-		(269)
Balance as at March 30, 2013		15,084		(15)		108		113,119		128,296		8,419		136,715
Restated ^(1)		Attributable to owners of the Company
				Accumulated other comprehensive loss
		Share capital		Cash flow hedges		Foreign currency translation		Retained earnings		Total		Non-controlling interests		Total equity
		$		$		$		$		$		$		$
Balance as at January 1, 2012		15,149		(52)		(253)		100,134		114,978		6,388		121,366
Loss for the period		-		-		-		(1,151)		(1,151)		(251)		(1,402)
Other comprehensive income (loss)
	Currency translation differences arising on translation of foreign operations	-		-		(128)		-		(128)		-		(128)
	Cash flow hedges, net of income taxes	-		50		-		-		50		-		50
Total comprehensive income (loss) for the period		-		50		(128)		(1,151)		(1,229)		(251)		(1,480)
Repurchase of Class A shares		-		-		-		(8)		(8)		-		(8)
Repurchase of Class B shares		(7)		-		-		(28)		(35)		-		(35)
Dividends on Class A shares		-		-		-		(329)		(329)		-		(329)
Dividends on Class B shares		-		-		-		(265)		(265)		-		(265)
Balance as at March 31, 2012		15,142		(2)		(381)		98,353		113,112		6,137		119,249

^(1)	2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.

(in thousands of Canadian dollars) (unaudited) Condensed Consolidated Interim Statements of Cash Flows
		For the three months ended
		March 30, 2013		March 31, 2012
				Restated ^(1)
		$		$
Operating activities
	Profit (loss) for the period	1,743		(1,402)
	Items not affecting cash and cash equivalents	4,184		1,499
	Cash generated from operations	5,927		97
	Dividend received from an equity accounted investment	5,500		-
	Contributions to defined benefit retirement plans	(294)		(325)
	Settlement of provisions	(62)		(162)
	Changes in non-cash working capital items	990		3,421
	Income taxes paid	(2,223)		(3,333)
		9,838		(302)
Financing activities
	Net change in short-term bank loans	(1,733)		553
	Repayment of long-term debt	(2,339)		(3,078)
	Interest paid	(430)		(199)
	Repurchase of Class A shares	-		(8)
	Repurchase of Class B shares	(378)		(35)
	Dividends paid on Class A shares	(337)		(329)
	Dividends paid on Class B shares	(270)		(265)
		(5,487)		(3,361)
Investing activities
	Customer repayment of investments in service contracts	51		1,199
	Interest received	333		354
	Acquisition of property, plant and equipment	(4,385)		(2,666)
	Proceeds from disposal of property, plant and equipment	192		24
	Acquisition of intangible assets	(14)		(66)
	Acquisition of other non-current assets	-		(125)
	Proceeds from disposal of other non-current assets	8		16
		(3,815)		(1,264)
Net change in cash and cash equivalents		536		(4,927)
Cash and cash equivalents ^(2) (3), beginning of period		7,519		8,888
Effect of exchange rate on balances held in foreign currencies of foreign operations		(112)		46
Cash and cash equivalents ^(2), end of period		7,943		4,007
Additional information
Acquisition of property, plant and equipment included in trade and other payables		537		404

^(1)	2012 comparative figures were restated to reflect the changes in accounting policies following the adoption, effective January 1, 2013, of IAS 19 amendments with respect to employee benefits. Please refer to Note 3 of the notes to Q1 2013 condensed consolidated interim financial statements for further details.
^(2)	Comprised of cash on hand and in banks
^(3)	Comprised of cash on hand and in banks, and short-term investments redeemable at all times

SOURCE: Logistec Corporation

Jean-Claude Dugas CPA, CA
Vice-President, Finance
Logistec Corporation
[email protected]
[phone]