MONTRÉAL, May 3, 2023
/CNW/ - 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 25, 2023. As part of its
strategic plan, LOGISTEC expanded its network of port terminals and
marine services with the announcement of an important acquisition,
bringing its total to 90 terminals and 60 ports across North America.
Highlights From the First Quarter of 2023
- Consolidated revenue reached $158.9
million, up $17.5 million or
12.3%;
- Adjusted EBITDA (1) reached $7.9 million, up $0.1
million;
- Total basic loss per share closed at $0.71;
- Finalization of acquisition of Fednav's Federal Marine
Terminals, Inc. and Fednav Direct, its logistics division,
(collectively, "FMT");
- Start of major environmental remediation project of the former
Rayrock mine in Northern
Canada.
"LOGISTEC completed the acquisition of FMT, expanding our
network of ports across North
America and allowing us to gain a significant foothold in
key markets," said Madeleine Paquin,
President and Chief Executive Officer of LOGISTEC. "We will
leverage the strength of our terminal reach to support reliable
supply chains for our customers and continue to drive growth. In
our environmental services segment, the year started strong with
the major environmental remediation project of the former Rayrock
uranium mine in Northern Canada, contributing directly to a
sustainable future."
"LOGISTEC reported revenue growth for the quarter, a
continuation of the momentum gained in 2022. During the quarter, we
invested resources to finalize the largest acquisition in our
history, a strategic move for our marine services segment," added
Carl Delisle, Chief Financial
Officer and Treasurer of LOGISTEC. "Strong volumes in our cargo
handling activities in the U.S. Gulf Coast region contributed to
increased revenue. Our environmental services segment is
capitalizing on key imperatives and market trends, and has a solid
order book of over $192.9 million for the upcoming season. Both
segments are well positioned for growth."
Results From the First Quarter of 2023
During the first quarter of 2023, consolidated revenue totalled
$158.9 million, an increase of
$17.5 million or 12.3% over the same
period in 2022. Revenue from the marine services segment reached
$121.5 million in 2023, up
$9.8 million or 8.7% compared
with $111.7 million for the
comparative period of 2022. Revenue from the environmental services
segment was $37.4 million, up
$7.7 million or 25.8% in the first
quarter of 2023.
Adjusted EBITDA (1) for the quarter reached
$7.9 million, an increase of
$0.1 million compared with
$7.8 million recorded in the
comparative period. Adjusted EBITDA (1) was
impacted by professional fees incurred in relation with the
acquisition of FMT and costs incurred to analyze other business
development opportunities. Loss attributable to owners of the
Company for the first quarter amounted to $9.1 million, higher than last year's loss
of $6.0 million. The loss
attributable to owners of the Company translated into a total basic
and diluted loss per share of $0.71,
of which $0.68 was attributable to
Class A Common Shares and $0.75 to
Class B Subordinate Voting Shares.
|
(1) Adjusted EBITDA is a
non-IFRS measure, please refer to the non-IFRS measure
section.
|
Marine Services
Our marine services segment continued to see strong demand in
the energy sector in the U.S. Gulf Coast region, which compensated
for the slower start to the year in other ports. In terms of
containers, our terminals suffered from lower volumes, which can be
explained by significant inventories in the retail market. These
are largely being depleted and we do expect volumes to resume at
more normal levels in the coming quarters. With respect to bulk and
general cargoes, we are confident with the remainder of the year
given the diverse nature of the products we handle and the breadth
of our network reach, we are able to adjust to market fluctuations
and are optimistic about sales volumes going forward. With 11
additional terminals from our FMT acquisition, we are well prepared
to deliver operational excellence to marine shippers across
North America.
Environmental Services
Our environmental services segment performed better than
expected, with a strong project backlog on hand. Additional
contracts have been secured and we forecast a positive outlook for
the balance of the year. We announced major remediation
projects, including the former Rayrock mine and Aleris industrial
site rehabilitation. Our team of experts deployed our robust and
effective polyfluoroalkyl substances ("PFAS") concentration and
removal technology, partnering with Waste Connections to remove
PFAS from landfill leachates in North
America. Our high-performing teams are positioned to
accelerate profitable growth.
Outlook
"The outlook for 2023 is positive with good momentum for both
our marine and environmental segments," indicated Madeleine Paquin. "We will be focusing on a
smooth integration of our FMT acquisition, while offering new
options to customers and connecting them to broader
markets. As mentioned, although we are seeing a slowdown in
containers during the first quarter, we do expect volumes to return
to more stable levels, albeit with substantially reduced storage
revenue. The strength of our activities in the U.S. Gulf is
expected to continue, and should make up for some expected
shortfalls in other general cargo and bulk terminals. In our
environmental services segment, we expect to execute on a strong
book of business in 2023, in both site remediation and ALTRA Water
Technologies. Furthermore, we have obtained outstanding
results from our pilots using our ALTRA PFAS solution and expect to
launch several multiyear contracts in 2023. All of these factors
combined give us a high level of confidence for the year
ahead."
Dividends
On May 3, 2023, the Board of
Directors declared a dividend of $0.11782 per Class A Common Share and
$0.12959 per Class B Subordinate
Voting Share, for a total consideration of $1.6 million. These dividends will be paid on
July 7, 2023, to shareholders of record as of June 22, 2023.
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 60 ports and 90 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:
|
For the three months ended
|
|
(in thousands of
dollars)
|
March 25,
2023
$
|
March 26,
2022
$
|
|
Loss for the
period
|
(8,937)
|
(5,898)
|
|
PLUS:
|
|
|
|
Depreciation and
amortization expense
|
14,454
|
12,797
|
|
Net finance
expense
|
4,427
|
2,829
|
|
Income taxes
|
(3,207)
|
(2,410)
|
|
Configuration and
customization costs in a cloud computing arrangement
|
1,136
|
483
|
|
Adjusted
EBITDA
|
7,873
|
7,801
|
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.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF
EARNINGS
|
(in thousands of Canadian dollars, except
per share amounts and number of shares)
|
|
|
For the three months ended
|
|
March 25,
2023
$
|
March 26,
2022
$
|
|
Revenue
|
158,881
|
141,442
|
|
Employee benefits expense
|
(78,723)
|
(74,272)
|
|
Equipment and supplies expense
|
(44,113)
|
(40,522)
|
|
Operating expense
|
(17,155)
|
(12,092)
|
|
Other expenses
|
(11,990)
|
(7,255)
|
|
Depreciation and amortization expense
|
(14,454)
|
(12,797)
|
|
Share of profit
of equity accounted investments
|
585
|
947
|
|
Other losses
|
(748)
|
(930)
|
|
Operating loss
|
(7,717)
|
(5,479)
|
|
Finance expense
|
(4,679)
|
(2,941)
|
|
Finance income
|
252
|
112
|
|
Loss before income taxes
|
(12,144)
|
(8,308)
|
|
Income taxes
|
3,207
|
2,410
|
|
Loss for the period
|
(8,937)
|
(5,898)
|
|
(Loss)
profit attributable to:
|
|
|
|
Owners of the Company
|
(9,052)
|
(6,018)
|
|
Non-controlling interest
|
115
|
120
|
|
Loss for the period
|
(8,937)
|
(5,898)
|
|
Basic
and diluted loss per Class A Common Share
(1)
|
(0.68)
|
(0.44)
|
|
Basic
and diluted loss per Class B Subordinate Voting
Share (2)
|
(0.75)
|
(0.49)
|
|
Weighted average number
of Class A Shares outstanding, basic and diluted
|
7,361,022
|
7,377,022
|
|
Weighted average number
of Class B Shares outstanding, basic and diluted
|
5,455,591
|
5,680,669
|
|
(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 25,
2023
$
|
March 26,
2022
$
|
|
|
|
|
|
Loss for the period
|
|
(8,937)
|
(5,898)
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
Items that are or may
be reclassified to the consolidated statements of
earnings
|
|
|
|
|
Currency translation
differences arising on translation of foreign operations
|
3,137
|
(2,489)
|
|
Unrealized (loss) gain
on translating debt designated as hedging item of the net
investment in foreign operations
|
|
(1,139)
|
845
|
|
Income taxes relating
to unrealized gain on translating debt designated as hedging item
of the net investment in foreign operations
|
|
—
|
(112)
|
|
(Losses) gains on
derivatives designated as cash flow hedges
|
|
(62)
|
476
|
|
Income taxes relating
to derivatives designated as cash flow hedges
|
|
100
|
(306)
|
|
Total items that are or
may be reclassified to the consolidated statements of
earnings
|
|
2,036
|
(1,586)
|
|
|
|
|
|
Items that will not be
reclassified to the consolidated statements of earnings
|
|
|
|
|
Remeasurement (losses)
gains on benefit obligation
|
|
(714)
|
4,597
|
|
Return on retirement
plan assets
|
|
551
|
(1,453)
|
|
Income taxes on
remeasurement of benefit obligation and return on retirement plan
assets
|
|
43
|
(834)
|
|
Total items that will
not be reclassified to the consolidated statements of
earnings
|
|
(120)
|
2,310
|
|
|
|
|
|
Share of other
comprehensive income of equity accounted investments, net of income
taxes
|
|
|
|
|
Items that are or may
be reclassified to the consolidated statements of
earnings
|
|
32
|
—
|
|
Other comprehensive
income for the period, net of income taxes
|
|
1,948
|
724
|
|
Total comprehensive loss for the
period
|
|
(6,989)
|
(5,174)
|
|
Total comprehensive
(loss) income attributable to:
|
|
|
|
|
Owners of the
Company
|
|
(7,129)
|
(5,277)
|
|
Non-controlling
interest
|
|
140
|
103
|
|
Total comprehensive loss for the
period
|
|
(6,989)
|
(5,174)
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF
FINANCIAL POSITION
|
(in thousands of Canadian dollars)
|
|
|
|
|
As at
March 25,
2023
$
|
As at
December 31,
2022
$
|
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash and cash equivalents
|
28,558
|
36,043
|
|
Trade and other receivables
|
174,069
|
198,247
|
|
Contract assets
|
14,019
|
14,912
|
|
Current income tax assets
|
19,402
|
11,245
|
|
Inventories
|
23,601
|
20,000
|
|
Prepaid expenses and other
|
9,997
|
8,756
|
|
269,646
|
289,203
|
|
Equity accounted investments
|
46,758
|
46,140
|
|
Property, plant and equipment
|
244,431
|
234,602
|
|
Right-of-use assets
|
171,231
|
167,274
|
|
Goodwill
|
188,624
|
187,430
|
|
Intangible assets
|
35,922
|
36,807
|
|
Non-current assets
|
1,755
|
2,030
|
|
Post-employment benefit
assets
|
1,398
|
1,264
|
|
Non-current financial assets
|
6,161
|
6,114
|
|
Deferred income tax assets
|
13,700
|
12,808
|
|
Total assets
|
979,626
|
983,672
|
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Trade and other payables
|
148,831
|
128,019
|
|
Contract liabilities
|
10,442
|
11,107
|
|
Current income tax liabilities
|
6,324
|
5,095
|
|
Dividends payable
|
1,574
|
1,574
|
|
Current portion of lease liabilities
|
21,801
|
18,662
|
|
Current portion of long-term debt
|
10,200
|
10,925
|
|
199,172
|
175,382
|
|
Lease
liabilities
|
158,936
|
157,500
|
|
Long-term
debt
|
204,111
|
224,110
|
|
Deferred income tax
liabilities
|
25,059
|
24,604
|
|
Post-employment benefit
obligations
|
14,026
|
13,690
|
|
Contract
liabilities
|
1,633
|
1,733
|
|
Non-current
liabilities
|
25,381
|
25,562
|
|
Total liabilities
|
628,318
|
622,581
|
|
Equity
|
|
|
|
Share capital
|
49,443
|
49,443
|
|
Retained earnings
|
278,807
|
290,773
|
|
Accumulated other comprehensive income
|
21,314
|
19,271
|
|
Equity attributable to owners of the Company
|
349,564
|
359,487
|
|
Non-controlling interest
|
1,744
|
1,604
|
|
Total equity
|
351,308
|
361,091
|
|
Total liabilities and equity
|
979,626
|
983,672
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN
EQUITY
|
(in thousands of Canadian dollars)
|
|
|
Attributable to owners
of the Company
|
|
|
Share capital
issued
$
|
Retained
earnings
$
|
Accumulated
other
comprehensive
income
$
|
Total
$
|
Non-
controlling interest
$
|
Total equity
$
|
|
Balance as
at January 1, 2023
|
49,443
|
290,773
|
19,271
|
359,487
|
1,604
|
361,091
|
|
(Loss)
profit for the period
|
—
|
(9,052)
|
—
|
(9,052)
|
115
|
(8,937)
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
Currency translation differences arising on
translation of foreign operations
|
—
|
—
|
3,112
|
3,112
|
25
|
3,137
|
|
Unrealized loss on
translating debt designated as hedging item of the net investment
in foreign operations, net of income taxes
|
—
|
—
|
(1,139)
|
(1,139)
|
—
|
(1,139)
|
|
Remeasurement losses
on benefit obligation and return on retirement plan assets, net of
income taxes
|
—
|
(120)
|
—
|
(120)
|
—
|
(120)
|
|
Share of other
comprehensive income of equity accounted investments, net of income
taxes
|
—
|
—
|
32
|
32
|
—
|
32
|
|
Cash flow hedges, net
of income taxes
|
—
|
—
|
38
|
38
|
—
|
38
|
|
Total comprehensive
income for the period
|
—
|
(9,172)
|
2,043
|
(7,129)
|
140
|
(6,989)
|
|
Net
remeasurement of written put
option liability
|
—
|
(1,359)
|
—
|
(1,359)
|
—
|
(1,359)
|
|
Class B shares to be
issued under the Executive Stock Option Plan
|
—
|
139
|
—
|
139
|
—
|
139
|
|
Dividends on Class A
shares
|
—
|
(867)
|
—
|
(867)
|
—
|
(867)
|
|
Dividends on Class B
shares
|
—
|
(707)
|
—
|
(707)
|
—
|
(707)
|
|
Balance as at March 25, 2023
|
49,443
|
278,807
|
21,314
|
349,564
|
1,744
|
351,308
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN
EQUITY (CONTINUED)
|
(in thousands of Canadian dollars)
|
|
|
|
|
Attributable to owners
of the Company
|
|
|
|
|
Share capital
issued
$
|
Retained
earnings
$
|
Accumulated
other
comprehensive income
$
|
Total
$
|
Non-
controlling interest
$
|
Total equity
$
|
|
Balance as
at January 1, 2022
|
50,889
|
254,621
|
9,051
|
314,561
|
1,048
|
315,609
|
|
(Loss)
profit for the period
|
—
|
(6,018)
|
—
|
(6,018)
|
120
|
(5,898)
|
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
Currency translation differences arising on
translation of foreign operations
|
—
|
—
|
(2,472)
|
(2,472)
|
(17)
|
(2,489)
|
|
Unrealized gain on
translating debt designated as hedging item of the net investment
in foreign operations, net of income taxes
|
—
|
—
|
733
|
733
|
—
|
733
|
|
Remeasurement gains on
benefit obligation and return on retirement plan assets, net of
income taxes
|
—
|
2,310
|
—
|
2,310
|
—
|
2,310
|
|
Cash flow hedges, net
of income taxes
|
—
|
—
|
170
|
170
|
—
|
170
|
|
Total comprehensive
(loss) income for the period
|
—
|
(3,708)
|
(1,569)
|
(5,277)
|
103
|
(5,174)
|
|
Net
remeasurement of written put
option liability
|
—
|
(943)
|
—
|
(943)
|
—
|
(943)
|
|
Repurchase of
Class B shares
|
(46)
|
(205)
|
—
|
(251)
|
—
|
(251)
|
|
Class B shares to be
issued under the Executive Stock Option Plan
|
—
|
130
|
—
|
130
|
—
|
130
|
|
Dividends on Class A
shares
|
—
|
(725)
|
—
|
(725)
|
—
|
(725)
|
|
Dividends on Class B
shares
|
—
|
(613)
|
—
|
(613)
|
—
|
(613)
|
|
Balance as at March 26, 2022
|
50,843
|
248,557
|
7,482
|
306,882
|
1,151
|
308,033
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH
FLOWS
|
(in thousands of
Canadian dollars)
|
|
|
|
|
For the three months ended
|
|
March 25,
2023
$
|
March 26,
2022
$
|
|
Operating activities
|
|
|
|
Loss for the period
|
(8,937)
|
(5,898)
|
|
Items not affecting cash and cash equivalents
|
16,473
|
13,017
|
|
Cash generated from operations
|
7,536
|
7,119
|
|
Dividends received from equity accounted investments
|
—
|
2,875
|
|
Contributions to defined benefit
retirement plans
|
(235)
|
(210)
|
|
Settlement of provisions
|
(44)
|
(124)
|
|
Changes in non-cash working
capital items
|
36,378
|
16,047
|
|
Income taxes
paid
|
(3,634)
|
(7,292)
|
|
40,001
|
18,415
|
|
Financing activities
|
|
|
|
Net change
in short-term bank loans
|
—
|
(5,723)
|
|
Issuance of long-term debt,
net of transaction costs
|
—
|
15,383
|
|
Repayment of long-term debt
|
(23,170)
|
(16,086)
|
|
Repayment of lease liabilities
|
(4,542)
|
(3,736)
|
|
Interest paid
|
(4,715)
|
(2,920)
|
|
Repurchase of Class B shares
|
—
|
(251)
|
|
Dividends paid on Class A shares
|
(867)
|
(724)
|
|
Dividends paid on Class B shares
|
(707)
|
(614)
|
|
(34,001)
|
(14,671)
|
|
Investing activities
|
|
|
|
Dividends paid to a
non-controlling interest
|
—
|
(8,699)
|
|
Acquisition of property, plant and equipment
|
(14,656)
|
(8,423)
|
|
Proceeds from disposal of property, plant and equipment
|
441
|
47
|
|
Acquisition of intangible assets
|
(25)
|
—
|
|
Interest received
|
166
|
9
|
|
Acquisition of other non-current assets
|
(26)
|
(198)
|
|
Proceeds from disposal of other non-current assets
|
14
|
27
|
|
Cash receipts from
other non-current financial assets
|
63
|
292
|
|
(14,023)
|
(16,945)
|
|
Net change
in cash and cash equivalents
|
(8,023)
|
(13,201)
|
|
Cash and cash equivalents, beginning of year
|
36,043
|
37,530
|
|
Effect of exchange rate on balances held in foreign
currencies of foreign operations
|
538
|
(344)
|
|
Cash and cash equivalents, end of
period
|
28,558
|
23,985
|
|
Additional information
Acquisition of
property, plant and equipment included in trade and other
payables
|
2,695
|
4,553
|
SOURCE Logistec Corporation