Montréal, Québec, May 10, 2018 – LOGISTEC Corporation [TSX: LGT.A and LGT.B], a marine and environmental services provider, today announced its financial results for the first quarter ended March 31, 2018.
During the first quarter of 2018, consolidated revenue totalled $82.4 million, an increase of $22.4 million or 37.2% over the same period in 2017. Revenue from the marine services segment rose by 53.2%, from $41.3 million to $63.3 million, while revenue from the environmental services segment amounted to $19.2 million, an increase of $0.4 million or 2.1% over the first quarter of 2017. The entire revenue increase for this quarter stems from the marine services segment, even though the Gulf Stream Marine operations were only involved for one month. We also benefitted from a general volume increase in our bulk and break-bulk terminals. We are pleased with the results of our marine services.
The first quarter of 2018 closed with a consolidated loss attributable to owners of the Company of $9.5 million, compared with a loss of $1.5 million for the first quarter of 2017. The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.75, of which $0.72 was attributable to Class A Common Shares and $0.80 was attributable to Class B Subordinate Voting Shares. The increased loss can largely be attributed to our acquisition of
FER-PAL Construction Ltd., which, like Sanexen, is very affected by seasonality of operations. Virtually no revenues from environmental services can be generated in the winter months in Canada for Aqua-Pipe and most site remediation work. We use these months to build the order book and prepare our people for the busy months ahead of us.
Outlook
“The outlook remains very positive. We will benefit from the strategic and impactful acquisitions made in the last twelve months, and this is in addition to our expectation of good results in our traditional businesses. We are investing in our talent to ensure we can continue to pursue our growth strategy while integrating recent acquisitions, and ensuring solid performances from our businesses in both the marine and environmental segments. We have an exciting year ahead”, 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 some 35 ports and 58 terminals located in eastern 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 sector where it provides services to industrial, municipal and other governmental customers for the trenchless structural rehabilitation of underground water mains, 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.