MONTRÉAL, Aug. 5, 2021 /CNW Telbec/ – LOGISTEC Corporation (“LOGISTEC”) (TSX: LGT.A) (TSX: LGT.B) (the “Company”), a marine and environmental services provider, today announced its financial results for the three-month and six-month periods ended June 26, 2021.
Highlights from the second quarter of 2021
- Consolidated revenue totalled $172.5 million, up $48.9 million or 39.6%;
- Adjusted EBITDA (1) closed at $27.3 million, up $7.4 million;
- Total diluted earnings per share of $0.78, up $0.43;
- Closed the acquisition of America Process Group for a total purchase price of $50.0 million;
- Five additional terminals certified as part of the industry leading Green Marine program.
Highlights from the first half of 2021
- Consolidated revenue totalled $277.4 million, up $44.4 million or 19.1%;
- Adjusted EBITDA (1) closed at $33.5 million, up $6.1 million;
- Total diluted earnings per share of $0.34, up $0.41.
Results of the period
Supported by a favourable current environment and strong demand we delivered positive results in both of our business segments in the second quarter of 2021. Consolidated revenue was $172.5 million in the period, an increase of $48.9 million or 39.6% over the same period in 2020.
Revenue from the marine services segment reached $104.5 million in 2021, up $23.1 million or 28.4% compared with the same period in 2020. The effect of the economic recovery has served LOGISTEC well and as a result, we have seen volumes in cargo handling return to pre-pandemic levels. In addition, the stabilization of work relations in the Port of Montréal is also having a positive impact on financial performance in our marine services segment.
Revenue from the environmental services segment was $68.0 million, up $25.8 million or 61.4% in the second quarter of 2021. We executed on our strong order book, driving higher revenue from services relating to the renewal of underground water mains, site remediation, and soils and materials management services.
Outlook
“We look at the remainder of 2021 with optimism and we remain focused on continuing to drive profitable growth and delivering long-term, sustainable value to our stakeholders.
In our cargo handling business, activity is increasing at our 80 terminals in the 54 ports we serve for global industries and we are encouraged that the volumes are trending towards pre-pandemic levels. In addition, the underlying economy is growing, leading to expectations of continued growth in cargo traffic. As we look towards the next few quarters, we are seeing an up-tick in investment, particularly in wind turbines and major infrastructure projects, both which lead to a robust demand for steel.
|
(1) |
Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measures section. |
In addition to growth driven by our acquisition of APG, performance from our environmental services segment is anticipated to remain strong through the remainder of the year. This year’s early spring gave our team a head start in both our ALTRA Proven Solutions line of product as well as our more traditional environmental activities. Furthermore, our ALTRA PFAS Treatment continue to gain recognition as being an ideal solution for this serious environmental issue, boding well for future growth.
Our strategy remains unchanged: leverage our high-quality assets, strong geographic footprint and culture of innovation to drive future growth. Our experts are committed to finding solutions to support reliable and sustainable supply chains, and to protect and renew our environment and water resources. The path forward is bright”, indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
Strategic Acquisition of American Process Group
We continue to grow both operationally and geographically. In June, we acquired American Process Group (“APG”) for a total purchase price of $50.0 million, subject to adjustments. Based in Edmonton (AB), APG is a leader in dredging, dewatering, and residual management, expertise that is complementary to our skillsets, enabling our team to enhance our service offering and positioning us to take advantage of high growth markets in both Western Canada and the United States.
Fire in the Port of Brunswick
In early May, we experienced a significant fire in one of our warehouses at the Port of Brunswick in Georgia. We are grateful to the fire departments who quickly responded and controlled the incident to assure the safety of the community and are pleased to report that all safety protocols were followed and there were no injuries.
As always, the health and well-being of the community remains our priority. To that end, we have established open and transparent communication channels with the port neighborhood and the surrounding community to collect their comments and keep them informed of the situation. In addition. we are working with the Georgia Ports Authority on a plan to determine next steps, prior to our teams resuming wood pellet handling activities.
The impact of the fire on LOGISTEC’s overall business is minimal, given the strength of the Company’s diversified portfolio of businesses and geographies.
Green Marine Certification
The Green Marine program is an essential part of our ESG strategy and we are proud to report that our subsidiary, Gulf Stream Marine, Inc. located on the U.S. Gulf Coast has obtained Green Marine environmental certification for five terminals in Texas: Corpus Christi, Manchester, Brownville, Care and Freeport. This brings the number of Green Marine certified facilities in our portfolio to 18 terminals throughout Canada and the United States, the highest number of terminal ports in North America certified by Green Marine. Our teams are committed to reducing the marine environmental footprint and contributing to a sustainable future.
Our Response to COVID-19
LOGISTEC continues to monitor developments related to the COVID-19 pandemic and takes all appropriate measures to protect the health and safety of its people, its customers, and its communities.
LOGISTEC continues to operate under its business continuity plan. To date, all our operations were deemed essential services by the government authorities in Canada and the United States. As such, the Company’s marine operations, including our terminal operations across our North American network, remain open and functional. Similarly, the Company’s environmental operations, including renewal of underground water mains, site remediation, soils and materials management, and manufacturing of woven hoses, are operational. Nonetheless, the economic slowdown due to COVID-19, as well as the strict distancing and sanitation protocols, have increased the operating costs in our marine and environmental services segments.
Dividends
On August 5, 2021, the Board of Directors elected to increase the dividend payment by 5% and 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 October 8, 2021 to shareholders of record as of September 24, 2021.
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 foreign 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, site remediation, dredging and dewatering, soils and materials management, 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.
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. 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.
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 the 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 Canadian dollars, except for per share amounts and number of shares) |
||||
|
For the three months ended |
For the six months ended |
|||
|
June 26, |
June 27, |
June 26, |
June 27, |
|
|
$ |
$ |
$ |
$ |
|
|
Revenue |
172,593 |
123,595 |
277,443 |
233,026 |
|
Employee benefits expense |
(79,618) |
(54,839) |
(137,596) |
(111,716) |
|
Equipment and supplies expense |
(47,397) |
(32,099) |
(73,121) |
(64,138) |
|
Operating expense |
(10,524) |
(9,329) |
(20,146) |
(20,603) |
|
Other expenses |
(7,877) |
(6,047) |
(13,698) |
(12,491) |
|
Depreciation and amortization expense |
(11,883) |
(11,223) |
(23,244) |
(21,999) |
|
Share of profit of equity accounted investments |
936 |
695 |
2,087 |
544 |
|
Other (losses) gains |
(879) |
(2,046) |
(1,488) |
2,781 |
|
Operating profit |
15,351 |
8,707 |
10,237 |
5,404 |
|
Finance expense |
(2,708) |
(2,835) |
(5,257) |
(5,971) |
|
Finance income |
186 |
159 |
302 |
289 |
|
Profit (loss) before income taxes |
12,829 |
6,031 |
5,282 |
(278) |
|
Income taxes |
(2,542) |
(1,416) |
(616) |
(337) |
|
Profit (loss) for the period |
10,287 |
4,615 |
4,666 |
(615) |
|
Profit (loss) attributable to: |
||||
|
Owners of the Company |
10,241 |
4,590 |
4,517 |
(831) |
|
Non-controlling interest |
46 |
25 |
149 |
216 |
|
Profit (loss) for the period |
10,287 |
4,615 |
4,666 |
(615) |
|
Basic earnings (loss) per Class A Common Share (1) |
0.75 |
0.35 |
0.33 |
(0.06) |
|
Basic earnings (loss) per Class B Subordinate Voting Share (2) |
0.84 |
0.38 |
0.37 |
(0.07) |
|
Diluted earnings (loss) per Class A share |
0.75 |
0.34 |
0.33 |
(0.06) |
|
Diluted earnings (loss) per Class B share |
0.83 |
0.37 |
0.36 |
(0.07) |
|
Weighted average number of Class A shares outstanding, basic and diluted |
7,377,022 |
7,380,389 |
7,377,022 |
7,380,389 |
|
Weighted average number of Class B shares outstanding, basic |
5,625,162 |
5,485,163 |
5,590,708 |
5,485,163 |
|
Weighted average number of Class B shares outstanding, diluted |
5,734,027 |
5,693,288 |
5,737,044 |
5,693,288 |
|
(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 Canadian dollars) |
||||
|
For the three months ended |
For the six months ended |
|||
|
June 26, |
June 27, |
June 26, |
June 27, |
|
|
$ |
$ |
$ |
$ |
|
|
Profit (loss) for the period |
10,287 |
4,615 |
4,666 |
(615) |
|
Other comprehensive (loss) income |
||||
|
Items that are or may be reclassified to the consolidated statements of earnings |
||||
|
Currency translation differences arising on translation of foreign operations |
(4,542) |
(3,379) |
(6,007) |
6,473 |
|
Unrealized gain (loss) on translating debt designated as hedging item of the net investment in foreign operations |
3,546 |
1,793 |
4,488 |
(3,547) |
|
Income taxes relating to unrealized gain on translating debt designated as hedging item of the net investment in foreign operations |
(235) |
— |
(360) |
— |
|
Gain on derivatives designated as cash flow hedges |
26 |
— |
90 |
— |
|
Income taxes relating to derivatives designated as cash flow hedges |
(7) |
— |
(24) |
— |
|
Total items that are or may be reclassified to the consolidated statements of earnings |
(1,212) |
(1,586) |
(1,813) |
2,926 |
|
Items that will not be reclassified to the consolidated statements of earnings |
||||
|
Remeasurement (losses) gains on benefit obligation |
— |
(5,005) |
4,174 |
(1,288) |
|
Return on retirement plan assets |
622 |
1,235 |
93 |
(167) |
|
Income taxes on remeasurement (losses) gains on benefit obligation and return on retirement plan assets |
(165) |
998 |
(1,131) |
385 |
|
Total items that will not be reclassified to the consolidated statements of earnings |
457 |
(2,772) |
3,136 |
(1,070) |
|
Share of other comprehensive (loss) income of equity accounted investments, net of income taxes |
||||
|
Items that are or may be reclassified to the consolidated statements of earnings |
— |
(19) |
— |
(19) |
|
Items that will not be reclassified to the consolidated statements of earnings |
— |
5 |
— |
5 |
|
Total share of other comprehensive loss of equity accounted investments, net of income taxes |
— |
(14) |
— |
(14) |
|
Other comprehensive (loss) income for the period, net of income taxes |
(755) |
(4,372) |
1,323 |
1,842 |
|
Total comprehensive income for the period |
9,532 |
243 |
5,989 |
1,227 |
|
Total comprehensive income attributable to: |
||||
|
Owners of the Company |
9,506 |
241 |
5,871 |
976 |
|
Non-controlling interest |
26 |
2 |
118 |
251 |
|
Total comprehensive income for the period |
9,532 |
243 |
5,989 |
1,227 |
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION |
||
|
(in thousands of Canadian dollars) |
||
|
As at |
As at |
|
|
$ |
$ |
|
|
Assets |
||
|
Current assets |
||
|
Cash and cash equivalents |
32,397 |
46,778 |
|
Trade and other receivables |
135,261 |
138,649 |
|
Contract assets |
20,097 |
7,617 |
|
Current income tax assets |
11,919 |
9,171 |
|
Inventories |
17,316 |
12,946 |
|
Prepaid expenses and other |
9,621 |
9,056 |
|
226,611 |
224,217 |
|
|
Equity accounted investments |
46,354 |
45,061 |
|
Property, plant and equipment |
196,130 |
185,686 |
|
Right-of-use assets |
135,268 |
132,779 |
|
Goodwill |
177,045 |
149,311 |
|
Intangible assets |
43,355 |
38,422 |
|
Non-current assets |
2,177 |
2,381 |
|
Non-current financial assets |
6,985 |
9,210 |
|
Deferred income tax assets |
11,049 |
12,385 |
|
Total assets |
844,974 |
799,452 |
|
Liabilities |
||
|
Current liabilities |
||
|
Trade and other payables |
99,191 |
91,694 |
|
Contract liabilities |
10,879 |
8,941 |
|
Current income tax liabilities |
5,803 |
8,719 |
|
Dividends payable |
1,273 |
1,259 |
|
Current portion of lease liabilities |
14,863 |
18,251 |
|
Current portion of long-term debt |
3,472 |
3,748 |
|
135,481 |
132,612 |
|
|
Lease liabilities |
124,806 |
116,901 |
|
Long-term debt |
199,192 |
163,962 |
|
Deferred income tax liabilities |
23,901 |
21,418 |
|
Post-employment benefit obligations |
18,042 |
22,055 |
|
Contract liabilities |
2,333 |
2,533 |
|
Non-current liabilities |
37,108 |
38,400 |
|
Total liabilities |
540,863 |
497,881 |
|
Equity |
||
|
Share capital |
50,398 |
45,575 |
|
Share capital to be issued |
— |
4,906 |
|
Retained earnings |
246,645 |
242,358 |
|
Accumulated other comprehensive income |
6,161 |
7,943 |
|
Equity attributable to owners of the Company |
303,204 |
300,782 |
|
Non-controlling interest |
907 |
789 |
|
Total equity |
304,111 |
301,571 |
|
Total liabilities and equity |
844,974 |
799,452 |
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY |
|||||||||||||
|
(in thousands of Canadian dollars) |
|||||||||||||
|
Attributable to owners of the Company |
|||||||||||||
|
Share capital |
Share |
Accumulated other |
Retained earnings |
Total |
Non- |
Total equity |
|||||||
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||
|
Balance as at January 1, 2021 |
45,575 |
4,906 |
7,943 |
242,358 |
300,782 |
789 |
301,571 |
||||||
|
Profit for the period |
— |
— |
— |
4,517 |
4,517 |
149 |
4,666 |
||||||
|
Other comprehensive (loss) income |
|||||||||||||
|
Currency translation differences arising on translation of foreign operations |
— |
— |
(5,976) |
— |
(5,976) |
(31) |
(6,007) |
||||||
|
Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations |
— |
— |
4,128 |
— |
4,128 |
— |
4,128 |
||||||
|
Remeasurement gains on benefit obligation and return on retirement plan assets, net of income taxes |
— |
— |
— |
3,136 |
3,136 |
— |
3,136 |
||||||
|
Cash flow hedges, net of income taxes |
— |
— |
66 |
— |
66 |
— |
66 |
||||||
|
Total comprehensive income for the period |
— |
— |
(1,782) |
7,653 |
5,871 |
118 |
5,989 |
||||||
|
Remeasurement of written put option liabilities |
— |
— |
— |
(593) |
(593) |
— |
(593) |
||||||
|
Repurchase of Class B shares |
(83) |
— |
— |
(338) |
(421) |
— |
(421) |
||||||
|
Issuance of Class B shares capital to a subsidiary shareholder |
4,906 |
(4,906) |
— |
— |
— |
— |
— |
||||||
|
Class B shares to be issued under the Executive Stock Option Plan |
— |
— |
— |
105 |
105 |
— |
105 |
||||||
|
Dividends on Class A shares |
— |
— |
— |
(1,380) |
(1,380) |
— |
(1,380) |
||||||
|
Dividends on Class B shares |
— |
— |
— |
(1,160) |
(1,160) |
— |
(1,160) |
||||||
|
Balance as at June 26, 2021 |
50,398 |
— |
6,161 |
246,645 |
303,204 |
907 |
304,111 |
||||||
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONTINUED) |
|||||||||||||
|
(in thousands of Canadian dollars) |
|||||||||||||
|
Attributable to owners of the Company |
|||||||||||||
|
Share capital |
Share |
Accumulated other |
Retained earnings |
Total |
Non- |
Total equity |
|||||||
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||
|
Balance as at January 1, 2020 |
40,222 |
9,811 |
9,697 |
220,641 |
280,371 |
643 |
281,014 |
||||||
|
(Loss) profit for the period |
— |
— |
— |
(831) |
(831) |
216 |
(615) |
||||||
|
Other comprehensive income (loss) |
|||||||||||||
|
Currency translation differences arising on translation of foreign operations |
— |
— |
6,438 |
— |
6,438 |
35 |
6,473 |
||||||
|
Unrealized loss on translating debt designated as hedging item of the net investment in foreign operations |
— |
— |
(3,547) |
— |
(3,547) |
— |
(3,547) |
||||||
|
Remeasurement gains on benefit obligation and return on retirement plan assets, net of income taxes |
— |
— |
— |
(1,070) |
(1,070) |
— |
(1,070) |
||||||
|
Share of other comprehensive (loss) of equity accounted investments, net of income taxes |
— |
— |
(14) |
— |
(14) |
— |
(14) |
||||||
|
Total comprehensive income (loss) for the period |
— |
— |
2,877 |
(1,901) |
976 |
251 |
1,227 |
||||||
|
Remeasurement of written put option liabilities |
— |
— |
— |
(543) |
(543) |
— |
(543) |
||||||
|
Repurchase of Class A shares |
(3) |
— |
— |
(140) |
(143) |
— |
(143) |
||||||
|
Repurchase of Class B shares |
539 |
— |
— |
(563) |
(24) |
— |
(24) |
||||||
|
Issuance of Class B shares capital to a subsidiary shareholder |
4,905 |
(4,905) |
— |
— |
— |
— |
— |
||||||
|
Class B shares to be issued under the Executive Stock Option Plan |
— |
— |
— |
45 |
45 |
— |
45 |
||||||
|
Other dividend |
— |
— |
— |
(121) |
(121) |
— |
(121) |
||||||
|
Dividends on Class A shares |
— |
— |
— |
(1,380) |
(1,380) |
— |
(1,380) |
||||||
|
Dividends on Class B shares |
— |
— |
— |
(1,136) |
(1,136) |
— |
(1,136) |
||||||
|
Balance as at June 27, 2020 |
45,663 |
4,906 |
12,574 |
214,902 |
278,045 |
894 |
278,939 |
||||||
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS |
||
|
(in thousands of Canadian dollars) |
||
|
For the six months ended |
||
|
June 26, |
June 27, |
|
|
$ |
$ |
|
|
Operating activities |
||
|
Income (loss) for the period |
4,666 |
(615) |
|
Items not affecting cash and cash equivalents |
28,875 |
26,645 |
|
Cash generated from operations |
33,541 |
26,030 |
|
Dividends received from equity accounted investments |
615 |
3,600 |
|
Contributions to defined benefit retirement plans |
(428) |
(471) |
|
Settlement of provisions |
(271) |
(243) |
|
Changes in non-cash working capital items |
6,563 |
13,677 |
|
Income taxes paid |
(6,607) |
(4,799) |
|
33,413 |
37,794 |
|
|
Financing activities |
||
|
Issuance of long-term debt, net of transaction cost |
40,870 |
36,655 |
|
Repayment of long-term debt |
(2,667) |
(36,123) |
|
Repayment of other non-current liabilities |
(2,432) |
— |
|
Repayment of lease liabilities |
(6,584) |
(6,797) |
|
Interest paid |
(6,253) |
(5,184) |
|
Issuance of Class B shares |
— |
190 |
|
Repurchase of Class A shares |
— |
(143) |
|
Repurchase of Class B shares |
(421) |
(718) |
|
Dividends paid on Class A shares |
(1,380) |
(1,380) |
|
Dividends paid on Class B shares |
(1,145) |
(1,124) |
|
19,988 |
(14,624) |
|
|
Investing activities |
||
|
Acquisition of property, plant and equipment |
(19,520) |
(9,742) |
|
Acquisition of intangible assets |
(16) |
(84) |
|
Proceeds from disposal of property, plant and equipment |
316 |
185 |
|
Business combinations |
(50,000) |
(16,457) |
|
Repayment of due to shareholders |
— |
(121) |
|
Interest received |
512 |
114 |
|
Repayment of other non-current financial assets |
698 |
110 |
|
Acquisition of other non-current assets |
(104) |
(327) |
|
Proceeds from disposal of other non-current assets |
44 |
49 |
|
(68,070) |
(26,273) |
|
|
Net change in cash and cash equivalents |
(14,669) |
(3,103) |
|
Cash and cash equivalents, beginning of period |
46,778 |
22,608 |
|
Effect of exchange rate on balances held in foreign currencies of foreign operations |
288 |
(1,056) |
|
Cash and cash equivalents, end of period |
32,397 |
18,449 |
|
Additional information |
||
|
Acquisition of property, plant and equipment included in trade and other payables |
3,384 |
835 |
|
Issuance of Class B shares under the Employee Stock Purchase Plan for non-interest-bearing loans |
— |
504 |
SOURCE Logistec Corporation
For further information: For further information: Jean-Claude Dugas, CPA, CA, Chief Financial Officer, Logistec Corporation, [email protected], (514) 985-2345