Montréal, Québec, March 22, 2023 – LOGISTEC Corporation (“LOGISTEC”) [TSX: LGT.A and LGT.B] (the “Company”), a leading marine and environmental services provider, today announced its financial results for the year ended December 31, 2022. Pursuing its long-term sustainable growth strategy, LOGISTEC was able to report historic results surpassing an all-time high in an economic context favorable to our activities.
2022 Highlights
- Consolidated revenue reached $897.6 million, an increase of $153.9 million or 20.7%;
- Adjusted EBITDA (1)closed at $142.1 million, up $21.3 million;
- Total diluted earnings per share of $4.12, up 19.1%;
“The year of LOGISTEC’s 70th anniversary was a memorable one for its record results, outstanding performance and remarkable innovations,” said Madeleine Paquin, President and CEO, LOGISTEC. “LOGISTEC is well-positioned for sustainable growth with financial strength, diversification, a unique business model, an extensive North American terminal network and innovative environmental technologies. I am grateful to all the members of our team, our customers and our partners for their continuous support, collaboration, trust and loyalty.”
“Our 2022 financial performance once again exceeds our expectations on key financial metrics for the year,” added Carl Delisle, Chief Financial Officer and Treasurer of LOGISTEC. “Thanks to the ingenuity and dedication of our people, thought-out diversifications, organic growth and strategic acquisitions over the last few years, LOGISTEC has continued to build a more resilient platform while expanding our reach, scope and expertise to our customers.”
2022 Results – Strong Financial Performance
Consolidated revenue totaled $897.6 million in 2022, an increase of $153.9 million or 20.7% over fiscal 2021. More importantly, we achieved record adjusted earnings before interest expense, income taxes, depreciation, and amortization expense (“Adjusted EBITDA”) (1) of $142.1 million and a profit attributable to owners of the Company of $53.5 million, a first in our history. These earnings also led us to achieve another milestone: earnings per share (“EPS”) above $4.00 per share, with total diluted earnings per share computing at $4.12 per share.
The marine services segment handled record volumes in response to high demand in the supply chain and delivered great results with 2022 revenue closing at $565.8 million, compared to $427.0 million, an increase of 32.5% over 2021. Operations expanded at Lemont (IL), a strategic gateway to the greater Chicago area markets and other Midwest states. We strengthened our partnerships with key ports, signing long-term agreements across our network.
The environmental services segment produced revenue reaching $331.7 million for 2022, up 4.7% from $316.7 million from the prior year. Revenue was driven by our recent acquisition of American Process Group, which contributed to a full year of revenue in 2022.
LOGISTEC reported a profit for the year of $54.0 million, of which $53.5 million was attributable to owners of the Company. This translated into total diluted earnings per share of $4.12, of which $3.95 per share was attributable to Class A Common Shares and $4.34 per share was attributable to Class B Subordinate Voting Shares.
- Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.
Outlook
In today’s environment, as both our business segments evolve, adapt and grow, we will leverage the strength of our network of marine terminals to support reliable and sustainable supply chains and help our customers solve their most complex environmental challenges. Our 2022 results served as clear evidence of the resiliency of our business and the benefits of our focused strategy. Both segments offer solutions to capitalize on growth opportunities in response to current market trends and key environmental imperatives.
LOGISTEC has a history of continuous growth for over 70 years. In the last 10 years, the marine services segment, a mature industry, has grown revenue at an impressive 14.7% compound annual growth rate (“CAGR”). LOGISTEC is a leader in handling dimensional parts such as wind energy components. The safe handling of over-dimensional cargoes is growing fast and our experts in the field are recognized internationally as the best terminal operators, by the International Heavy Lift Awards. We remain confident that our customers, partners and communities will present us with great opportunities to support resilient supply chains.
On the environmental front, our customers and communities are facing unprecedented challenges. From extreme weather events, aging drinking water infrastructure, water scarcity, our customers are looking for unique solutions for an increasingly complex set of issues. Our team has the expertise to play an important role in accelerating solution delivery. We believe that our environmental team is also in a great position to perform, with a strong order book to start 2023 and new business opportunities.
In 2023, we enter a new strategic cycle with good momentum. Fuelled by our successful achievements and our long-term vision, we will keep building on our strong foundation. In this context, we believe that we are well positioned to support a fluid and resilient supply chain and make a significant impact on building resilient and vibrant communities.
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 53 ports and 79 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 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) |
2022 $ |
2021 $ |
|
Profit for the year |
54,002 |
45,624 |
|
PLUS: |
|
|
|
Depreciation and amortization expense |
56,196 |
49,100 |
|
Net finance expense |
14,816 |
10,562 |
|
Income taxes |
10,804 |
10,471 |
|
Configuration and customization costs in a cloud computing arrangement |
6,276 |
5,064 |
|
Adjusted EBITDA |
142,094 |
120,821 |
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 2022 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