MONTRÉAL, May 5, 2022 /CNW Telbec/ - LOGISTEC Corporation
("LOGISTEC") (TSX: LGT.A) and (TSX: LGT.B) (the "Company"), a
marine and environmental services provider, today announced its
financial results for the first quarter ended March 26, 2022.
LOGISTEC pursues its long-term growth strategy and continues to
perform in a strong market.
Highlights From the First Quarter of 2022
- Consolidated revenue reached $141.4
million, up $36.5 million or
34.9%.
- Adjusted EBITDA (1) reached $7.8 million, up $1.6
million.
- Total basic loss per share closed at $(0.46).
- Appointment of a new president for our environmental services
business.
"We are pleased to report a solid performance for our first
quarter due to significant activity in a robust marine services
segment. Our dedicated teams continue to work diligently in the
field to contribute to our customers' success," said Madeleine Paquin, President and CEO of LOGISTEC.
"With respect to our environmental services segment, it is well
positioned for the start of a busy season with a strong order
book."
Our marine services segment started the year with high volumes
in our bulk, forest products and steel cargoes. In January,
LOGISTEC USA Inc. formed a
strategic alliance with Infrastructure and Energy Alternatives, a
leading engineering company with renewable energy expertise, to
support new utility-scale offshore wind developments along the U.S.
east coast. Also noteworthy, Rodney
Corrigan, President of LOGISTEC Stevedoring Inc., received
Signal Mutual's Francis R. Sharp Executive Leadership Award
for Safety, for his commitment to preventing workplace incidents
through integrated safety initiatives.
Our environmental services segment performed as expected, given
the seasonality of this segment. The order book is filling up and
we forecast a positive outlook for the balance of the year.
Jean-François Bolduc was appointed President of LOGISTEC
Environmental Services Inc. and SANEXEN Environmental Services Inc.
in January 2022. With an impressive
track record, he will focus on business strategy and operational
excellence, and lead our high-performing teams to accelerate growth
for LOGISTEC across North
America.
Results From the First Quarter of 2022
During the first quarter of 2022, consolidated revenue totalled
$141.4 million, an increase of
$36.5 million or 34.9% over the
same period in 2021. Revenue from the marine services segment
reached $111.7 million in 2022,
up $29.3 million or 35.6%
compared with $82.4 million for
the comparative period. The U.S. Gulf Coast region continues to
benefit from the booming energy sector. Revenue from the
environmental services segment was $29.7 million, up $7.3 million or 32.5% in the first quarter
of 2022. This growth is mainly attributable to the acquisition of
American Process Group ("APG") made in the second quarter of
2021.
Adjusted EBITDA (1) for the quarter
reached $7.8 million, an
increase of $1.6 million
compared with $6.2 million
recorded in the comparative period. The increase in adjusted
EBITDA (1) stemmed mainly from higher
revenue made during the period.
As in previous first quarters, our Company showed a loss in the
first quarter. This is due to the high seasonality of our
environmental services as well as marine navigation to the Arctic,
and the lack of cargo handling activities in the Great Lakes,
which are closed to navigation during this period. Loss
attributable to owners of the Company for the first quarter
amounted to $6.0 million,
slightly higher than last year's loss of $5.7 million. The loss attributable to
owners of the Company translated into a total basic and diluted
loss per share of $0.46, of which
$0.44 was attributable to Class A
Common Shares and $0.49 to Class B
Subordinate Voting Shares.
(1)
|
Adjusted EBITDA is
a non-IFRS measure, please refer to the non-IFRS measure
section.
|
Outlook
"Our 2022 outlook is positive for both of our business segments.
The current economic context will positively impact our marine
services segment and we are well positioned to benefit from
increasing volumes throughout our network of 80 terminals in
54 ports. Our environmental business is also off to a good
start with an order book of over $200.0 million. ALTRA water main renewal
contracts are strong, and we are targeting new markets to pursue
our growth. With our latest acquisition, namely APG, we have great
opportunities to expand our field-proven expertise in Western Canada and the USA," indicated Madeleine Paquin.
Dividends
On May 5, 2022, the Board of
Directors declared a dividend of $0.09818 per Class A Common Share and
$0.10799 per Class B Subordinate
Voting Share, for a total consideration of $1.3 million. These dividends will be paid
on July 8, 2022, to shareholders of record as of
June 23, 2022.
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 54 ports and 80 terminals located in
North America. LOGISTEC also
offers marine transportation services geared primarily to the
Arctic coastal trade as well as marine agency services to
shipowners and operators serving the Canadian market. Furthermore,
the Company operates in the environmental industry where it
provides services to industrial, municipal and other governmental
customers for the renewal of underground water mains, dredging,
dewatering, contaminated soils and materials management, site
remediation, risk assessment, and manufacturing of fluid
transportation products.
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.
Non-IFRS Measure
Adjusted earnings before interest expense, income taxes,
depreciation and amortization expense ("adjusted EBITDA") is not
defined by IFRS and cannot be formally presented in financial
statements. The definition of adjusted EBITDA excludes the
Company's impairment charge, includes the customer repayment of an
investment in a service contract and, since 2021, excludes
configuration and customization costs related to the implementation
of an Enterprise Resource Planning ("ERP") system. The definition
of adjusted EBITDA used by the Company may differ from those used
by other companies. Even though adjusted EBITDA is a non-IFRS
measure, it is used by managers, analysts, investors, and other
financial stakeholders to analyze and assess the Company's
performance and management from a financial and operational
standpoint.
The following table provides a reconciliation of profit for the
year to adjusted EBITDA:
(in thousands of dollars)
|
For the three months ended
|
|
March
26, 2022 $
|
March
27,
2021
$
|
Loss for the
period
|
(5,898)
|
(5,621)
|
PLUS:
|
|
|
Depreciation and
amortization expense
|
12,797
|
11,361
|
Net finance
expense
|
2,829
|
2,433
|
Income taxes
|
(2,410)
|
(1,926)
|
Configuration and
customization costs in a cloud computing arrangement
|
483
|
—
|
Adjusted
EBITDA
|
7,801
|
6,247
|
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 position 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 impact of COVID-19 pandemic on
the Company's business and results of operations, 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.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
(in thousands of
dollars, except per share amounts)
|
|
|
For the three months
ended
|
|
|
March
26, 2022 $
|
March
27, 2021 $
|
Revenue
|
|
141,442
|
104,850
|
Employee benefits expense
|
|
(74,272)
|
(57,978)
|
Equipment and supplies expense
|
|
(40,522)
|
(25,724)
|
Operating expense
|
|
(12,092)
|
(9,622)
|
Other expenses
|
|
(7,255)
|
(5,821)
|
Depreciation and amortization expense
|
|
(12,797)
|
(11,361)
|
Share of profit of equity accounted investments
|
|
947
|
1,151
|
Other losses
|
|
(930)
|
(609)
|
Operating loss
|
|
(5,479)
|
(5,114)
|
Finance expense
|
|
(2,941)
|
(2,549)
|
Finance income
|
|
112
|
116
|
Loss before income taxes
|
|
(8,308)
|
(7,547)
|
Income taxes
|
|
2,410
|
1,926
|
Loss for the period
|
|
(5,898)
|
(5,621)
|
(Loss)
profit attributable to:
|
|
|
|
Owners of the Company
|
|
(6,018)
|
(5,724)
|
Non-controlling interest
|
|
120
|
103
|
Loss for the period
|
|
(5,898)
|
(5,621)
|
Basic and diluted
loss
per Class A Common Share (1)
|
|
(0.44)
|
(0.42)
|
Basic and diluted
loss per Class B Subordinate Voting
Share (2)
|
|
(0.49)
|
(0.47)
|
Weighted average number
of Class A Shares outstanding, basic and diluted
|
|
7,377,022
|
7,377,022
|
Weighted average number
of Class B Shares outstanding, basic and diluted
|
|
5,680,669
|
5,556,254
|
(1)
|
Class A
Common Share ("Class A share")
|
(2)
|
Class B Subordinate
Voting Share ("Class B share")
|
CONDENSED CONSOLIDATED INTERIM
STATEMENTS OF COMPREHENSIVE
INCOME
(in thousands of dollars)
|
|
|
|
For the three months
ended
|
|
March 26,
2022 $
|
March
27, 2021 $
|
|
|
|
Loss for the
period
|
(5,898)
|
(5,621)
|
|
|
|
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
|
(2,489)
|
(1,465)
|
Unrealized gain on
translating debt designated as hedging item of the net investment
in foreign operations
|
845
|
942
|
Income taxes relating
to unrealized gain on translating debt designated as hedging item
of the net investment in foreign operations
|
(112)
|
(125)
|
Gains on derivatives
designated as cash flow hedges
|
476
|
64
|
Income taxes relating
to derivatives designated as cash flow hedges
|
(306)
|
(17)
|
Total items that are or
may be reclassified to the consolidated statements of
earnings
|
(1,586)
|
(601)
|
|
|
|
Items that will
not be reclassified to the consolidated statements of
earnings
|
|
|
Remeasurement gains on
benefit obligations
|
4,597
|
4,173
|
Return on retirement
plan assets
|
(1,453)
|
(528)
|
Income taxes on
remeasurement gains on benefit obligation and return on retirement
plan assets
|
(834)
|
(966)
|
Total items that will
not be reclassified to the consolidated statements of
earnings
|
2,310
|
2,679
|
Other comprehensive
income for the period, net of income taxes
|
724
|
2,078
|
Total
comprehensive loss for the period
|
(5,174)
|
(3,543)
|
Total comprehensive
(loss) income attributable to:
|
|
|
Owners of the
Company
|
(5,277)
|
(3,636)
|
Non-controlling
interest
|
103
|
93
|
Total
comprehensive loss for the period
|
(5,174)
|
(3,543)
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF
FINANCIAL POSITION
(in thousands of Canadian dollars)
|
|
|
|
As at
March 26,
2022 $
|
As at
December 31, 2021 $
|
Assets
|
|
|
Current assets
|
|
|
Cash and cash equivalents
|
23,985
|
37,530
|
Trade and other receivables
|
145,957
|
183,322
|
Contract assets
|
8,715
|
7,517
|
Current income tax assets
|
11,808
|
7,597
|
Inventories
|
19,039
|
16,830
|
Prepaid expenses and other
|
12,009
|
10,437
|
|
221,513
|
263,233
|
Equity accounted investments
|
44,383
|
46,311
|
Property, plant and equipment
|
210,410
|
207,321
|
Right-of-use assets
|
146,157
|
135,049
|
Goodwill
|
181,745
|
182,706
|
Intangible assets
|
38,883
|
41,043
|
Non-current assets
|
2,415
|
2,448
|
Non-current financial assets
|
6,352
|
5,902
|
Deferred income tax assets
|
13,650
|
14,958
|
Total assets
|
865,508
|
898,971
|
Liabilities
|
|
|
Current liabilities
|
|
|
Short-term bank
loans
|
2,811
|
8,600
|
Trade and other payables
|
105,798
|
127,044
|
Contract liabilities
|
14,533
|
14,801
|
Current income tax liabilities
|
5,903
|
10,442
|
Dividends payable
|
1,337
|
1,338
|
Current portion of lease liabilities
|
14,641
|
15,775
|
Current portion of long-term debt
|
2,792
|
3,427
|
|
147,815
|
181,427
|
Lease liabilities
|
137,614
|
125,249
|
Long-term debt
|
190,729
|
191,927
|
Deferred income tax liabilities
|
25,030
|
25,684
|
Post-employment benefit obligations
|
13,263
|
16,212
|
Contract liabilities
|
2,033
|
2,133
|
Non-current liabilities
|
40,991
|
40,730
|
Total liabilities
|
557,475
|
583,362
|
Equity
|
|
|
Share capital
|
50,843
|
50,889
|
Retained earnings
|
248,557
|
254,621
|
Accumulated other comprehensive income
|
7,482
|
9,051
|
Equity attributable to owners of the Company
|
306,882
|
314,561
|
Non-controlling interest
|
1,151
|
1,048
|
Total
equity
|
308,033
|
315,609
|
Total liabilities
and equity
|
865,508
|
898,971
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN
EQUITY
(in thousands of Canadian dollars)
|
|
|
|
Attributable to owners
of the Company
|
|
Share capital
issued $
|
Retained
earnings $
|
Accumulated other
comprehensive
income $
|
Total $
|
Non-
controlling
interest $
|
Total
equity $
|
Balance as at January 1, 2022
|
50,889
|
254,621
|
9,051
|
314,561
|
1,048
|
315,609
|
(Loss)
profit for the period
|
—
|
(6,018)
|
—
|
(6,018)
|
120
|
(5,898)
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
Currency translation
differences arising on
translation of foreign operations
|
—
|
—
|
(2,472)
|
(2,472)
|
(17)
|
(2,489)
|
Unrealized gain on
translating
debt designated as hedging
item of the net investment in
foreign operations, net of income taxes
|
—
|
—
|
733
|
733
|
—
|
733
|
Remeasurement gains
on
benefit obligation and return
on retirement plan assets, net of income taxes
|
—
|
2,310
|
—
|
2,310
|
—
|
2,310
|
Cash flow hedges, net
of income taxes
|
—
|
—
|
170
|
170
|
—
|
170
|
Total comprehensive
(loss) income for the period
|
—
|
(3,708)
|
(1,569)
|
(5,277)
|
103
|
(5,174)
|
Net
remeasurement of written put
option liability
|
—
|
(943)
|
—
|
(943)
|
—
|
(943)
|
Repurchase of
Class B shares
|
(46)
|
(205)
|
—
|
(251)
|
—
|
(251)
|
Class B shares to be
issued under
the Executive Stock Option Plan
|
—
|
130
|
—
|
130
|
—
|
130
|
Dividends on Class A
shares
|
—
|
(725)
|
—
|
(725)
|
—
|
(725)
|
Dividends on Class B
shares
|
—
|
(613)
|
—
|
(613)
|
—
|
(613)
|
Balance as at March
26, 2022
|
50,843
|
248,557
|
7,482
|
306,882
|
1,151
|
308,033
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS
OF CHANGES IN EQUITY (CONTINUED)
(in thousands of Canadian dollars)
|
|
|
|
Attributable to owners
of the Company
|
|
Share
capital
issued $
|
Share
capital to
be issued $
|
Retained
earnings $
|
Accumulated other
comprehensive income $
|
Total $
|
Non-
controlling
interest $
|
Total
equity $
|
Balance as at January 1, 2021
|
45,575
|
4,906
|
242,358
|
7,943
|
300,782
|
789
|
301,571
|
(Loss)
profit for the period
|
—
|
—
|
(5,724)
|
—
|
(5,724)
|
103
|
(5,621)
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
Currency translation
differences arising on translation of foreign
operations
|
—
|
—
|
—
|
(1,455)
|
(1,455)
|
(10)
|
(1,465)
|
Unrealized gain on
translating debt designated as hedging item of the net investment
in foreign operations, net of income taxes
|
—
|
—
|
—
|
817
|
817
|
—
|
817
|
Remeasurement gains
on benefit obligation and return on retirement plan assets, net of
income taxes
|
—
|
—
|
2,679
|
—
|
2,679
|
—
|
2,679
|
Cash flow hedges, net
of income taxes
|
—
|
—
|
—
|
47
|
47
|
—
|
47
|
Total comprehensive
(loss) income for the period
|
—
|
—
|
(3,045)
|
(591)
|
(3,636)
|
93
|
(3,543)
|
Remeasurement of
written put option liability
|
—
|
—
|
(295)
|
—
|
(295)
|
—
|
(295)
|
Repurchase of Class B
shares
|
(68)
|
—
|
(277)
|
—
|
(345)
|
—
|
(345)
|
Issuance of Class B
share capital to a subsidiary shareholder
|
2,518
|
(2,518)
|
—
|
—
|
—
|
—
|
—
|
Class B shares to be
issued under the Executive Stock Option Plan
|
—
|
—
|
45
|
—
|
45
|
—
|
45
|
Dividends on Class A
shares
|
—
|
—
|
(690)
|
—
|
(690)
|
—
|
(690)
|
Dividends on Class B
shares
|
—
|
—
|
(576)
|
—
|
(576)
|
—
|
(576)
|
Balance as at March
27, 2021
|
48,025
|
2,388
|
237,520
|
7,352
|
295,285
|
882
|
296,167
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
|
|
|
(in thousands of
Canadian dollars)
|
|
|
|
For the three months
ended
|
March
26, 2022 $
|
March
27, 2021 $
|
Operating activities
|
|
|
Loss for the period
|
(5,898)
|
(5,621)
|
Items not affecting cash and cash equivalents
|
13,017
|
11,591
|
Cash generated from operations
|
7,119
|
5,970
|
Dividends received from equity accounted investments
|
2,875
|
490
|
Contributions to defined benefit retirement plans
|
(210)
|
(194)
|
Settlement of provisions
|
(124)
|
(20)
|
Changes in non-cash working capital items
|
16,047
|
16,768
|
Income taxes paid
|
(7,292)
|
(4,734)
|
|
18,415
|
18,280
|
Financing
activities
|
|
|
Net change in short-term bank loans
|
(5,723)
|
—
|
Issuance of long-term debt, net of transaction costs
|
15,383
|
—
|
Repayment of long-term debt
|
(16,086)
|
(1,145)
|
Repayment of other non-current liabilities
|
—
|
(2,432)
|
Repayment of lease liabilities
|
(3,736)
|
(3,272)
|
Interest paid
|
(2,920)
|
(3,486)
|
Repurchase of Class B shares
|
(251)
|
(345)
|
Dividends paid on Class A shares
|
(724)
|
(690)
|
Dividends paid on Class B shares
|
(614)
|
(569)
|
|
(14,671)
|
(11,939)
|
Investing
activities
|
|
|
Dividends paid to a
non-controlling interest
|
(8,699)
|
—
|
Acquisition of property, plant and equipment
|
(8,423)
|
(5,263)
|
Proceeds from disposal of property, plant and equipment
|
47
|
64
|
Acquisition of intangible assets
|
—
|
(9)
|
Interest received
|
9
|
61
|
Acquisition of other non-current assets
|
(198)
|
(16)
|
Proceeds from disposal of other non-current assets
|
27
|
22
|
Cash receipts from
other non-current financial assets
|
292
|
57
|
|
(16,945)
|
(5,084)
|
Net change in cash and cash equivalents
|
(13,201)
|
1,257
|
Cash and cash equivalents, beginning of year
|
37,530
|
45,498
|
Effect of exchange rate on balances held in foreign currencies
of foreign operations
|
(344)
|
221
|
Cash and cash equivalents, end of period
|
23,985
|
46,976
|
Additional
information Acquisition of
property, plant and equipment included in trade and other
payables
|
4,553
|
2,343
|
SOURCE Logistec Corporation