LOGISTEC Announces its Results of the First Quarter of 2021

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LOGISTEC Announces its Results of the First Quarter of 2021

Canada NewsWire

MONTRÉAL, May 4, 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 first quarter ended March 27, 2021.

Highlights for the first quarter of 2021

  • Consolidated revenue reached $104.9 million, down $4.5 million or 4.2%;
  • Adjusted EBITDA (1) closed at $6.2 million, down $1.3 million;
  • Cash flows from operating activities generated a solid $18.3 million;
  • Total basic loss per share closed at $0.44

Results for the first quarter of 2021

During the first quarter of 2021, consolidated revenue totalled $104.9 million, a decrease of $4.5 million or 4.2% over the same period in 2020. Revenue from the marine services segment reached $82.4 million in 2021, down $7.9 million or 8.7% compared with $90.3 million for the comparative period. Revenue from the U.S. Gulf region continues to be impacted by the slowdown of the oil and gas industry. Revenue from the environmental services segment was $22.4 million, up $3.3 million or 17.4% in the first quarter of 2021. This is mainly due to an increase revenue from sale of goods. Our environmental services segment is backed by a large order book of projects in 2021.

The adjusted EBITDA (1) for the quarter closed at $6.2 million, a decrease of $1.3 million compared with $7.5 million recorded in the comparative period. The decline in adjusted EBITDA (1) stemmed mainly from the unrealized exchange loss incurred in 2021 compared with an unrealized exchange gain in 2020. Excluding foreign exchange, our adjusted EBITDA (1) would have been ahead of last year by $3.7 million.

Cash flows from operating activities generated a solid $18.3 million for the first quarter of 2021 which is more than sufficient to cover our usual investment and financing activities.

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 $5.7 million, slightly higher than last year's loss of $5.4 million. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $0.44, of which $0.42 was attributable to Class A Common Shares and $0.47 to Class B Subordinate Voting Shares.

Outlook

"Our outlook, although still volatile due to the pandemic, seems positive in both our segments. In cargo handling, our strategic network of 79 terminals in 53 ports allows us to handle a wide range of diversified cargoes for many global industries. The economy is set to recover well, and, other than uncertainty with respect to the Port of Montréal labour situation, we should be in a position to benefit from stable and increasing volumes throughout our network. Our environmental business is also off to a good start with an order book of over $180.0 million. Our ALTRA water main renewal contracts are strong in both Québec and Ontario, and we are getting some traction in new markets. Further, lead in water and per- and polyfluoroalkyl substances ("PFAS") contamination continue to draw significant attention, especially in the USA, and we are well positioned to participate in these key markets over the coming years. We also see great opportunities for our field-proven expertise outside of Québec and are proactively expanding our environmental services across Canada, with particular emphasis on the western parts of the country", 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, 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 May 4, 2021, the Board of Directors declared a dividend of $0.09350 per Class A Common Share and $0.10285 per Class B Subordinate Voting Share, for a total consideration of $1.3 million. These dividends will be paid on July 5, 2021 to shareholders of record as of June 21, 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 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 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, soils and 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.

(1) 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



March 27,
2021

March 28,
2020



$

$





Revenue


104,850

109,431





Employee benefits expense


(57,978)

(56,877)

Equipment and supplies expense


(25,724)

(32,039)

Operating expense


(9,622)

(11,274)

Other expenses


(5,821)

(6,444)

Depreciation and amortization expense


(11,361)

(10,776)

Share of profit (loss) of equity accounted investments


1,151

(151)

Other (losses) gains


(609)

4,827

Operating loss


(5,114)

(3,303)





Finance expense


(2,549)

(3,136)

Finance income


116

130

Loss before income taxes


(7,547)

(6,309)





Income taxes


1,926

1,079

Loss for the period


(5,621)

(5,230)





Profit (loss) attributable to:








Owners of the Company


(5,724)

(5,421)





Non-controlling interests


103

191

Loss for the period


(5,621)

(5,230)









Basic and diluted loss per Class A Common Share (1)


(0.42)

(0.41)

Basic and diluted loss per Class B Subordinate Voting Share (2)


(0.47)

(0.45)









Weighted average number of Class A shares outstanding, basic and diluted


7,377,022

7,382,055

Weighted average number of Class B shares outstanding, basic and diluted


5,556,254

5,437,724

(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


March 27,
2021

March 28,
2020


$

$




Loss for the period

(5,621)

(5,230)




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

(1,465)

9,852

Unrealized gain (loss) on translating debt designated as hedging item of the net
investment in foreign operations

942

(5,340)

Income taxes relating to unrealized gain on translating debt designated as hedging
item of the net investment in foreign operations

(125)

Gains on derivatives financial instruments designated as cash flow hedges

64

Income taxes relating to derivatives financial instruments designated as cash flow
hedges

(17)

Total items that are or may be reclassified to the consolidated statements of earnings

(601)

4,512




Items that will not be reclassified to the consolidated statements of earnings



Remeasurement gains on benefit obligation

4,173

3,717

Return on retirement plan assets

(528)

(1,402)

Income taxes on remeasurement gains on benefit obligation and return on retirement
plan assets

(966)

(613)

Total items that will not be reclassified to the consolidated statements of earnings

2,679

1,702

Other comprehensive income for the period, net of income taxes

2,078

6,214

Total comprehensive (loss) income for the period

(3,543)

984




Total comprehensive (loss) income attributable to:






Owners of the Company

(3,636)

735

Non-controlling interests

93

249

Total comprehensive (loss) income for the period

(3,543)

984


 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)






As at
March 27,
 2021

As at
December 31,
 2020



$

$





Assets




Current assets




Cash and cash equivalents


46,976

45,498

Trade and other receivables


106,377

137,911

Contract assets


2,902

7,617

Current income tax assets


10,785

9,171

Inventories


13,214

12,946

Prepaid expenses and other


8,002

9,005



188,256

222,148





Equity accounted investments


45,542

45,061

Property, plant and equipment


184,062

185,181

Right-of-use assets


137,047

132,795

Goodwill


150,193

150,748

Intangible assets


37,077

38,422

Non-current assets


2,219

2,381

Non-current financial assets


7,953

9,160

Deferred income tax assets


11,565

12,385

Total assets


763,914

798,281





Liabilities




Current liabilities




Trade and other payables


67,318

90,946

Contract liabilities


11,215

8,700

Current income tax liabilities


4,008

8,570

Dividends payable


1,266

1,259

Current portion of lease liabilities


14,424

18,251

Current portion of long-term debt


3,547

3,718



101,778

131,444





Lease liabilities


125,788

116,917

Long-term debt


161,857

163,962

Deferred income tax liabilities


21,080

21,399

Post-employment benefit obligations


18,485

22,055

Contract liabilities


2,433

2,533

Non-current liabilities


36,326

38,400

Total liabilities


467,747

496,710





Equity




Share capital


48,025

45,575

Share capital to be issued


2,388

4,906

Retained earnings


237,520

242,358

Accumulated other comprehensive income


7,352

7,943

Equity attributable to owners of the Company


295,285

300,782





Non-controlling interest


882

789

Total equity


296,167

301,571





Total liabilities and equity


763,914

798,281

     

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars)







Attributable to owners of the Company



Share capital

Share
capital
to be issued

Accumulated

other
comprehensive income

Retained earnings

Total

Non-
controlling interests

Total equity


$

$


$

$

$

$

$










Balance as at January 1, 2021

45,575

4,906


7,943

242,358

300,782

789

301,571










(Loss) profit for the period


(5,724)

(5,724)

103

(5,621)










Other comprehensive income (loss)









Currency translation differences arising on
translation of foreign operations


(1,455)

(1,455)

(10)

(1,465)

Unrealized loss on translating debt designated as
hedging item of the net investment in foreign operations


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 income (loss) for the period


(591)

(3,045)

(3,636)

93

(3,543)










Remeasurement of written put option liabilities


(295)

(295)

(295)

Repurchase of Class B shares

(68)


(277)

(345)

(345)

Issuance of Class B shares 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


7,352

237,520

295,285

882

296,167


 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

(in thousands of Canadian dollars)







Attributable to owners of the Company



Share capital

Share
capital
to be issued

Accumulated

other comprehensive income

Retained earnings

Total

Non-controlling interests

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


(5,421)

(5,421)

191

(5,230)










Other comprehensive income (loss)









Currency translation differences arising on
translation of foreign operations


9,794

9,794

58

9,852

Unrealized loss on translating debt designated as
hedging item of the net investment in foreign operations


(5,340)

(5,340)

(5,340)

Remeasurement gains on benefit obligation and return
on retirement plan assets, net of income taxes


1,702

1,702

1,702

Total comprehensive income (loss) for the period


4,454

(3,719)

735

249

984










Remeasurement of written put option liabilities


(270)

(270)

(270)

Repurchase of Class A shares

(2)


(117)

(119)

(119)

Repurchase of Class B shares

(118)


(452)

(570)

(570)

Issuance of Class B shares capital to a subsidiary
shareholder

4,905

(4,905)


Dividends on Class A shares


(690)

(690)

(690)

Dividends on Class B shares


(569)

(569)

(569)

Balance as at March 28, 2020

45,007

4,906


14,151

214,824

278,888

892

279,780

 

CONSOLIDATED STATEMENTS OF CASH FLOWS



(in thousands of Canadian dollars)





For the three months ended



March 27,
2021

March 28,
2020



$

$





Operating activities




Loss for the period


(5,621)

(5,230)

Items not affecting cash and cash equivalents


11,591

13,930

Cash generated from operations


5,970

8,700

Dividends received from equity accounted investments


490

750

Contributions to defined benefit retirement plans


(194)

(218)

Settlement of provisions


(20)

(50)

Changes in non-cash working capital items


16,768

18,043

Income taxes paid


(4,734)

(3,363)



18,280

23,862





Financing activities




Issuance of long-term debt, net of transaction cost


141

Repayment of long-term debt


(1,145)

(15,408)

Repayment of other non-current liability


(2,432)

(69)

Repayment of lease liabilities


(3,272)

(2,511)

Interest paid


(3,486)

(2,985)

Repurchase of Class A shares


(119)

Repurchase of Class B shares


(345)

(570)

Dividends paid on Class A shares


(690)

(690)

Dividends paid on Class B shares


(569)

(555)



(11,939)

(22,766)





Investing activities




Acquisition of property, plant and equipment


(5,263)

(3,232)

Acquisition of intangible assets


(9)

(69)

Acquisition of other non-current assets


(16)

Proceeds from disposal of property, plant and equipment


64

43

Repayment of other non-current financial assets


57

54

Proceeds from disposal of other non-current assets


22

26

Interest received


61

65



(5,084)

(3,113)





Net change in cash and cash equivalents


1,257

(2,017)

Cash and cash equivalents, beginning of period


45,498

22,608

Effect of exchange rate on balances held in foreign currencies of foreign operations


221

(1,495)

Cash and cash equivalents, end of period


 

46,976

19,096





Additional information








Acquisition of property, plant and equipment included in trade and other payables


2,343

645


 

SOURCE Logistec Corporation

Cision View original content: http://www.newswire.ca/en/releases/archive/May2021/04/c0878.html

Copyright CNW Group 2021

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