Montréal, Québec – LOGISTEC Corporation (“LOGISTEC”) [TSX: LGT.A and LGT.B] (the “Company”), a marine and environmental services provider, today announced its financial results for the three-month and nine-month periods ended September 25, 20
Highlights from the third quarter of 2021
· Consolidated revenue totalled $236.2 million, up $44.3 million or 23.1%;
· Adjusted EBITDA(1) closed at $49.7 million, up $8.0 million;
· Total diluted earnings per share of $2.04, up $0.48;
· On August 5, 2021, the Company’s Board of Directors elected to increase the dividend payment by 5.0%.
Highlights from the nine-month period ended September 25, 2021
· Consolidated revenue totalled $513.6 million, up $88.7 million or 20.9%;
· Adjusted EBITDA(1) closed at $83.2 million, up $14.1 million;
· Total diluted earnings per share of $2.38, up 59.7%.
Delivered the Strongest Quarter in LOGISTEC’s History
LOGISTEC reported its strongest quarter results to date in revenue and profit attributable to owners of the Company. Both the marine and the environmental services segments contributed to these great results. Together with our customers and communities, LOGISTEC continues to embrace the relaunch of an anticipated post-COVID economy. Consolidated revenue was $236.2 million in the period, an increase of $44.3 million or 23.1% over the same period in 2020.
Marine Services
Revenue from the marine services segment reached $111.9 million in 2021, up $32.7 million or 41.2% compared with the same period in 2020. The rebound in manufacturing production had a favourable impact on global trade which translated into incremental cargo handled at most of LOGISTEC’s terminals. Furthermore, the traditional energy industry and wind energy sector continue to fuel the growth of our operations in the U.S. Gulf Coast.
Overall, volumes are at pre-pandemic levels and strategic acquisitions we have made over the years are contributing to LOGISTEC’s performance. Sharing our expertise and best practices across our network is beneficial to our customers and represents a key component of our strategic growth plan. We are appreciative of our dedicated teams who are delivering successfully across our network, despite ongoing challenges including operating constraints due to the pandemic, as well as storms and disruptions in the supply chain. Our market intelligence indicates that the upswing in volumes will continue for some time.
In August, LOGISTEC resumed peanut pellet operations at the Port of Brunswick terminal, following the fire in May, and took necessary steps to put in place new measures to meet all the safety conditions for our operations. We expect to resume wood pellet activities in the fourth quarter of 2021.
(1) Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measures section.
Further solidifying LOGISTEC’s commitment to Environmental, Social and Governance (“ESG”) and sustainability goals, we took delivery of two electric cranes at the Port of Montréal. In addition, Gulf Stream Marine, Inc. (“GSM”) qualified for Government grants to purchase new and upgraded equipment with reduced environmental impact, contributing to cleaner air in Texas.
We were honoured to receive two prestigious recognitions presented by the international Heavy Lift Awards, and have been named marine Terminal Operator of the Year, a distinction that recognizes our talent and unique operational expertise. Our wholly owned subsidiary GSM also received an award in the “Safety” category for its exemplary commitment to develop and nurture a culture of health and safety in handling project cargo and wind energy components.
Environmental Services
Revenue from the environmental services segment was $124.3 million, up $11.7 million or 10.4% in the third quarter of 2021. The growth is mainly attributable to the acquisition of American Process Group (“APG”) while our ALTRA line of products continues to perform as expected. So far, our recent acquisition in APG has generated synergies of expertise and allowed us to expand market reach by providing complementary services for large-scale projects. However, ALTRA Proven Water Technologies renewal projects across the U.S. are currently affected by disruption in the supply chain but projects are expected to resume in the fourth quarter, with the arrival of materials that are currently in short supply.
Outlook
“As we move through 2021, we remain focused on continuing to drive profitable growth and delivering long-term, sustainable value to our stakeholders. This was demonstrated as we delivered record results in this third quarter. With three quarters of the year completed and a positive outlook for the coming months, we anticipate a strong close to this year.
On the marine side of the business, we see a steady return to normal. With large infrastructure projects underway both in the U.S. and Canada, it is expected that bulk and break-bulk cargo handling will remain very busy for the foreseeable future. We continue to focus on Green Marine certification of our terminals to reduce our environmental footprint in everything we do.
In our environmental services segment, we are optimistic for the remainder of 2021 thanks to a strong order book and the success of ongoing projects and operations. We continue to work closely with customers to find innovative, sustainable, and reliable solutions in support of a strong and prosperous global economy. As part of this work with our customers, we have seen an increase in the number of companies looking to work with partners providing sustainable solutions. This positions LOGISTEC well to leverage our ambitious sustainability plan in line with our ESG goals.
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 delivering this strategy and driving shareholder value”, indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
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, remained open and functional. Similarly, the Company’s environmental operations, including renewal of underground water mains, dredging, dewatering, site remediation, soils and materials management, and
manufacturing of woven hoses, remained 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.
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.
Montréal, Québec – LOGISTEC Corporation (“LOGISTEC”) [TSX: LGT.A and LGT.B] (the “Company”), a marine and environmental services provider, today announced its financial results for the three-month and nine-month periods ended September 25, 20
Highlights from the third quarter of 2021
· Consolidated revenue totalled $236.2 million, up $44.3 million or 23.1%;
· Adjusted EBITDA(1) closed at $49.7 million, up $8.0 million;
· Total diluted earnings per share of $2.04, up $0.48;
· On August 5, 2021, the Company’s Board of Directors elected to increase the dividend payment by 5.0%.
Highlights from the nine-month period ended September 25, 2021
· Consolidated revenue totalled $513.6 million, up $88.7 million or 20.9%;
· Adjusted EBITDA(1) closed at $83.2 million, up $14.1 million;
· Total diluted earnings per share of $2.38, up 59.7%.
Delivered the Strongest Quarter in LOGISTEC’s History
LOGISTEC reported its strongest quarter results to date in revenue and profit attributable to owners of the Company. Both the marine and the environmental services segments contributed to these great results. Together with our customers and communities, LOGISTEC continues to embrace the relaunch of an anticipated post-COVID economy. Consolidated revenue was $236.2 million in the period, an increase of $44.3 million or 23.1% over the same period in 2020.
Marine Services
Revenue from the marine services segment reached $111.9 million in 2021, up $32.7 million or 41.2% compared with the same period in 2020. The rebound in manufacturing production had a favourable impact on global trade which translated into incremental cargo handled at most of LOGISTEC’s terminals. Furthermore, the traditional energy industry and wind energy sector continue to fuel the growth of our operations in the U.S. Gulf Coast.
Overall, volumes are at pre-pandemic levels and strategic acquisitions we have made over the years are contributing to LOGISTEC’s performance. Sharing our expertise and best practices across our network is beneficial to our customers and represents a key component of our strategic growth plan. We are appreciative of our dedicated teams who are delivering successfully across our network, despite ongoing challenges including operating constraints due to the pandemic, as well as storms and disruptions in the supply chain. Our market intelligence indicates that the upswing in volumes will continue for some time.
In August, LOGISTEC resumed peanut pellet operations at the Port of Brunswick terminal, following the fire in May, and took necessary steps to put in place new measures to meet all the safety conditions for our operations. We expect to resume wood pellet activities in the fourth quarter of 2021.
(1) Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measures section.
Further solidifying LOGISTEC’s commitment to Environmental, Social and Governance (“ESG”) and sustainability goals, we took delivery of two electric cranes at the Port of Montréal. In addition, Gulf Stream Marine, Inc. (“GSM”) qualified for Government grants to purchase new and upgraded equipment with reduced environmental impact, contributing to cleaner air in Texas.
We were honoured to receive two prestigious recognitions presented by the international Heavy Lift Awards, and have been named marine Terminal Operator of the Year, a distinction that recognizes our talent and unique operational expertise. Our wholly owned subsidiary GSM also received an award in the “Safety” category for its exemplary commitment to develop and nurture a culture of health and safety in handling project cargo and wind energy components.
Environmental Services
Revenue from the environmental services segment was $124.3 million, up $11.7 million or 10.4% in the third quarter of 2021. The growth is mainly attributable to the acquisition of American Process Group (“APG”) while our ALTRA line of products continues to perform as expected. So far, our recent acquisition in APG has generated synergies of expertise and allowed us to expand market reach by providing complementary services for large-scale projects. However, ALTRA Proven Water Technologies renewal projects across the U.S. are currently affected by disruption in the supply chain but projects are expected to resume in the fourth quarter, with the arrival of materials that are currently in short supply.
Outlook
“As we move through 2021, we remain focused on continuing to drive profitable growth and delivering long-term, sustainable value to our stakeholders. This was demonstrated as we delivered record results in this third quarter. With three quarters of the year completed and a positive outlook for the coming months, we anticipate a strong close to this year.
On the marine side of the business, we see a steady return to normal. With large infrastructure projects underway both in the U.S. and Canada, it is expected that bulk and break-bulk cargo handling will remain very busy for the foreseeable future. We continue to focus on Green Marine certification of our terminals to reduce our environmental footprint in everything we do.
In our environmental services segment, we are optimistic for the remainder of 2021 thanks to a strong order book and the success of ongoing projects and operations. We continue to work closely with customers to find innovative, sustainable, and reliable solutions in support of a strong and prosperous global economy. As part of this work with our customers, we have seen an increase in the number of companies looking to work with partners providing sustainable solutions. This positions LOGISTEC well to leverage our ambitious sustainability plan in line with our ESG goals.
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 delivering this strategy and driving shareholder value”, indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
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, remained open and functional. Similarly, the Company’s environmental operations, including renewal of underground water mains, dredging, dewatering, site remediation, soils and materials management, and
manufacturing of woven hoses, remained 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.
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.