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LOGISTEC announces its results for the second quarter of 2018

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LOGISTEC announces its results for the second quarter of 2018

Canada NewsWire

MONTRÉAL, Aug. 9, 2018 /CNW Telbec/ - LOGISTEC Corporation (TSX:LGT) (TSX:LGT), a marine and environmental services provider, today announced its financial results for the second quarter and first six months ended June 30, 2018.

In the second quarter of 2018, consolidated revenue totalled $149.2 million, an increase of $47.3 million or 46.5% over the same period in 2017. Revenue from the marine services segment rose by 62.0%, from $52.9 million to $85.7 million, while revenue from the environmental services segment amounted to $63.5 million, an increase of $14.5 million or 29.7% over the second quarter of 2017. Cargo handling activities were very strong in the second quarter, and we also benefited from our first full quarter with Gulf Stream Marine, Inc., the new Gulf terminals we purchased in early March. Our teams have integrated well and we are confident that we will achieve positive synergies going forward. We are pleased with our marine services results.

The second quarter of 2018 closed with a consolidated profit attributable to owners of the Company of $1.9 million, compared with a profit of $4.8 million for the second quarter of 2017. The profit attributable to owners of the Company translated to a total diluted profit per share of $0.14, of which $0.14 was attributable to Class A Common Shares and $0.15 was attributable to Class B Subordinate Voting Shares. The lower results can largely be attributed to our acquisition of FER-PAL Construction Ltd., which, like Sanexen, is very affected by the seasonality of operations. For the second quarter, this was further exacerbated by a late start to the rehabilitation season in our largest market due to weather and delayed contract awards. That being said, operations are now in full swing and will remain as such until November.

During the first six months of 2018, consolidated revenue increased to $231.6 million, compared with $161.9 million for the first half of 2017. The loss attributable to owners of the Company amounted to $7.6 million, compared with a profit of $3.3 million for the same period last year. This translated into a total basic and diluted loss per share of $0.60, of which $0.58 was attributable to Class A Common Shares and $0.64 was attributable to Class B Subordinate Voting Shares. For the same period in 2017, diluted earnings per share totalled $0.25, of which $0.24 was attributable to Class A Common Shares and $0.27 was attributable to Class B Subordinate Voting Shares.

Outlook

"The outlook remains positive. Both our marine and environmental services segments are expected to have a strong finish, each benefiting from acquisitions made over the last year. We continue to invest in our talent to pursue our growth strategy while integrating recent acquisitions", 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 37 ports and 61 terminals across 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 services segment where it provides services to industrial, municipal and other governmental customers for the trenchless structural rehabilitation of underground watermains, regulated materials management, site remediation, 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.

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.

 

Q2 2018 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(in thousands of Canadian dollars, except for per share amounts and number of shares)
(unaudited and not reviewed by the independent auditor)  

 

Condensed Consolidated Interim Statements of Earnings





For the three months ended

For the six months ended


June 30,
2018

June 24,
2017

June 30,
2018

June 24,
2017


$

$

$

$






Revenue

149,182

101,861

231,624

161,932






Employee benefits expense

(77,284)

(48,426)

(123,650)

(80,232)

Equipment and supplies expense

(39,292)

(29,113)

(63,630)

(46,387)

Rental expense

(11,777)

(8,185)

(20,838)

(15,118)

Other expenses

(7,812)

(4,969)

(13,958)

(8,605)

Depreciation and amortization expense

(6,485)

(4,223)

(12,568)

(8,249)

Share of profit of equity accounted investments

962

827

1,032

1,234

Other gains and losses

941

(59)

1,156

1,671

Operating profit (loss)

8,435

7,713

(832)

6,246






Finance expense

(2,760)

(495)

(3,647)

(890)

Finance income

15

98

98

181

Profit (loss) before income taxes

5,690

7,316

(4,381)

5,537






Income taxes

(2,630)

(2,535)

(885)

(2,315)

Profit (loss) for the period

3,060

4,781

(5,266)

3,222






Profit (loss) attributable to:










Owners of the Company

1,868

4,789

(7,609)

3,259






Non-controlling interests

1,192

(8)

2,343

(37)

Profit (loss) for the period

3,060

4,781

(5,266)

3,222











Basic earnings (loss) per Class A Common Share (1)

0.14

0.38

(0.58)

0.26

Basic earnings (loss) per Class B Subordinate Voting Share (2)

0.16

0.41

(0.64)

0.28






Diluted earnings (loss) per Class A share

0.14

0.36

(0.58)

0.24

Diluted earnings (loss) per Class B share

0.15

0.39

(0.64)

0.27






Weighted average number of Class A shares outstanding, basic and diluted

7,405,455

7,410,922

7,405,689

7,411,589

Weighted average number of Class B shares outstanding, basic

5,271,167

4,735,742

5,217,249

4,737,673

Weighted average number of Class B shares outstanding, diluted

5,726,904

5,483,448

5,724,496

5,487,482


(1)  Class A Common Share ("Class A share")

(2)  Class B Subordinate Voting Share ("Class B share")

 

Condensed Consolidated Interim Statements of Comprehensive Income





For the three months ended

For the six months ended


June 30,

2018

June 24,

2017

June 30,
2018

June 24,
2017


$

$

$

$






Profit (loss) for the period

3,060

4,781

(5,266)

3,222






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

3,004

(365)

4,981

(529)



Gain on derivatives

4



Income tax related

(1)


Total items that are or may be reclassified to the consolidated statements of earnings

3,004

(365)

4,984

(529)







Items that will not be reclassified to the consolidated statements of earnings







Remeasurement gain (loss) on benefit obligation

1,171

(2,511)

1,171

(2,511)



Return on retirement plan assets excluding amounts included in profit (loss) for the period

153

(232)

(33)

141



Income taxes on remeasurement gain (loss) on benefit obligation and return on retirement plan assets excluding amounts included in profit (loss) for the period

(354)

737

(305)

637


Total items that will not be reclassified to the consolidated statements of earnings

970

(2,006)

833

(1,733)








Other comprehensive income for the period, net of income taxes

3,974

(2,371)

5,817

(2,262)


Total comprehensive income for the period

7,034

2,410

551

960






Total comprehensive income attributable to:










Owners of the Company

5,832

2,418

(1,814)

997

Non-controlling interests

1,202

(8)

2,365

(37)

Total comprehensive income for the period

7,034

2,410

551

960

 

Condensed Consolidated Interim Statements of Financial Position





As at
June 30,
 2018

As at
December 31,
 2017


$

$




Assets



Current assets




Cash and cash equivalents

8,977

3,963


Trade and other receivables

142,329

153,342


Work in progress

15,146

5,306


Current income tax assets

4,962

494


Other financial assets

206

1,055


Prepaid expenses

5,300

2,775


Inventories

13,619

11,550


190,539

178,485




Equity accounted investments

32,038

34,350

Property, plant and equipment

181,712

160,717

Goodwill

161,881

105,618

Other intangible assets

42,637

14,903

Other non-current assets

1,915

1,658

Post-employment benefit assets

606

Non-current financial assets

12,406

7,984

Deferred income tax assets

8,930

9,218

Total assets

632,058

513,539




Liabilities



Current liabilities




Short-term bank loans

13,818

9,829


Trade and other payables

87,880

85,174


Deferred revenue

4,207

2,252


Current income tax liabilities

1,405

3,699


Dividends payable

1,089

1,075


Current portion of long-term debt

6,490

5,447


Provisions

1,163

813


116,052

108,289




Long-term debt

182,732

77,957

Provisions

784

771

Deferred income tax liabilities

26,009

15,575

Post-employment benefit obligations

13,345

14,778

Deferred revenue

3,533

3,733

Non-current financial liabilities

60,535

61,641

Total liabilities

402,990

282,744




Equity



Share capital

35,149

29,019

Share capital to be issued

14,717

19,820

Retained earnings

163,048

173,129

Accumulated other comprehensive income

11,568

6,606

Equity attributable to owners of the Company

224,482

228,574




Non-controlling interest

4,586

2,221

Total equity

229,068

230,795




Total liabilities and equity

632,058

513,539

 

Condensed Consolidated Interim Statements of Changes in Equity







Attributable to owners of the Company






Accumulated
other comprehensive
income






Share
capital

Share
capital
to be
issued

Cash
flow
hedges

Foreign
currency
translation

Retained
earnings

Total

Non-
controlling
interests

Total
equity


$

$

$

$

$

$

$

$










Balance as at January 1, 2018

29,019

19,820

138

6,468

173,129

228,574

2,221

230,795










Profit (loss) for the period

(7,609)

(7,609)

2,343

(5,266)










Other comprehensive income










Currency translation differences arising on translation of foreign operations

4,959

4,959

22

4,981


Remeasurement gain (loss) on benefit obligation and return on retirement plan assets excluding amounts included in profit (loss) for the period, net of income taxes

833

833

833


Cash flow hedges, net of income taxes

3

3

3

Total comprehensive income for the period

3

4,959

(6,776)

(1,814)

2,365

551










Remeasurement of written put option liability

(900)

(900)

(900)

Repurchase of Class A shares

(32)

(32)

(32)

Issue and Repurchase of Class B shares

(24)

(196)

(220)

(220)

Issuance, repurchase of share capital

6,154

(5,103)

1,051

1,051

Dividends on Class A shares

(1,220)

(1,220)

(1,220)

Dividends on Class B shares

(957)

(957)

(957)

Balance as at June 30, 2018

35,149

14,717

141

11,427

163,048

224,482

4,586

229,068



















Balance as at January 1, 2017

15,618

24,898

(4)

9,255

151,616

201,383

1,798

203,181










Profit (loss) for the period

3,259

3,259

(37)

3,222










Other comprehensive income (loss)










Currency translation differences arising on translation of foreign operations

(529)

(529)

(529)


Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

(1,733)

(1,733)

(1,733)

Total comprehensive income for the period

(529)

1,526

997

(37)

960










Repurchase of Class A shares

(1)

(80)

(81)

(81)

Issue and repurchase of Class B shares

(43)

(601)

(644)

(644)

Non-controlling interest arising from a business acquisition

2,545

2,545

Long-term liability for the obligation to repurchase the non-controlling interest

(2,545)

(2,545)

Issuance of Class B share capital to a subsidiary shareholder upon the exercise of put options

209

(209)

Dividends on Class A shares

(1,112)

(1,112)

(1,112)

Dividends on Class B shares

(782)

(782)

(782)

Balance as at June 24, 2017

15,783

24,689

(4)

8,726

150,567

199,761

1,761

201,522

 

Condensed Consolidated Interim Statements of Cash Flows




For the six months ended


June 30,
2018

June 24,
2017


$

$




Operating activities




Profit (loss) for the period

(5,266)

3,222


Items not affecting cash and cash equivalents

20,334

10,486


Cash generated from operations

15,068

13,708


Dividends received from equity accounted investments

3,346

3,600


Contributions to defined benefit retirement plans

(595)

(557)


Settlement of provisions

(165)

(148)


Changes in non-cash working capital items

5,808

12,517


Income taxes paid

(7,998)

(2,277)


15,464

26,843




Financing activities




Net change in short-term bank loans

3,989


Issuance of long-term debt

117,226

13,614


Repayment of long-term debt

(16,425)

(25,966)


Interest paid

(1,844)

(955)


Issuance of Class B shares

562


Repurchase of Class A shares

(32)

(81)


Repurchase of Class B shares

(220)

(644)


Dividends paid on Class A shares

(1,222)

(1,112)


Dividends paid on Class B shares

(942)

(782)


101,092

(15,926)




Investing activities




Customer repayment of an investment in a service contract

865


Interest received

108

190


Repurchase of a non-controlling interest

(1,332)


Business acquisitions

(97,998)

(5,805)


Cash acquired in a business acquisition

2,585


Note receivable

(5,067)


Cash paid to minority interest

(157)


Acquisition of property, plant and equipment

(10,144)

(14,668)


Proceeds from disposal of property, plant and equipment

290

2,225


Repayment of other non-current financial assets

101

94


Acquisition of intangible assets

(93)

(6)


Acquisition of other non-current assets

(285)

(191)


Repayment of other non-current assets

150

67


(110,510)

(18,561)




Net change in cash and cash equivalents

6,046

(7,644)

Cash and cash equivalents, beginning of period

3,963

15,971

Effect of exchange rate on balances held in foreign currencies of foreign operations

(1,032)

(38)

Cash and cash equivalents, end of period

8,977

8,289




Additional information






Acquisition of property, plant and equipment included in trade and other payables

253

1,553

 

SOURCE Logistec Corporation

View original content: http://www.newswire.ca/en/releases/archive/August2018/09/c2476.html

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