2009-11-04 19:35:04 -
MONTREAL, QUEBEC -- (Marketwire) -- 11/04/09 -- Logistec Corporation (TSX: LGT.A)(TSX: LGT.B), a diversified cargo handler in several eastern North American ports, today announced its financial results for the third quarter and nine-month period ended September 26, 2009.
During the third quarter of 2009, revenue totalled $59.9 million, compared with $70.4 million in the equivalent period of 2008. This $10.5 million or 14.9% decline is attributable to a 26.7% decrease in the marine services segment's revenue, which was partially offset by a 29.2% increase in the environmental services segment's revenue. Net income amounted to $4.1 million or $0.62 per share, compared with net income of $5.4 million or $0.81 per share for the third quarter last year. Income from continuing operations generated by the marine services segment fell 48.1% to $4.1 million, whereas that of the environmental services segment rose 58.3% to $3.4 million.
Financial Results for the First Nine Months
For the first nine months of 2009, revenue from continuing operations totalled $148.3 million, down 9.9% from $164.5 million for the equivalent period of the previous year. Net income from continuing operations amounted to $3.6 million or $0.54 per share, compared with $8.6 million or $1.29 per share for the first nine months of 2008.
"The global recession has had a devastating effect on international trade, resulting in a sharp decline in cargo volumes handled in North American ports. This has led us to continue our cost reduction program as well as curtailment of capital investments, particularly in terminals severely impacted by reduced volumes. On a positive front, we were able to capitalize on the solid performance of our environmental services segment, which continues to benefit from the strong demand for our Aqua-Pipe- underground water main rehabilitation technology," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.
Outlook
"A growing number of observers expect global economic activity to recover very slowly, especially in developed economies where companies have to destock and are faced with a scarcity of credit that has led to a sharp decline in private investment. In light of these unfavourable conditions, we remain focused on controlling our operating costs while looking for opportunities to grow our business. To that end, we were pleased to conclude two business acquisitions. On October 23, 2009, we acquired Les Terminaux Rideau Bulk Terminals Inc., a company specializing primarily in handling road salt in four ports between Montreal (QC) and Toronto (ON) and two inland terminals in the Ottawa (ON) region. And, through Sanexen, we also acquired, on October 27, 2009, the assets of Niedner, a leading North American fire-hose manufacturer and, more importantly, the exclusive manufacturer of the structural lining used in Sanexen's Aqua-Pipe- technology. These two transactions both meet our criteria of strategic complementarity and contribution to our profitability over the short, medium and long term," concluded Ms. Paquin.
About Logistec
Logistec Corporation is based in Montreal (QC) and provides specialized services to the marine community and industrial companies in the areas of container, break-bulk and bulk cargo handling at 23 ports in Eastern Canada, the Great Lakes and the U.S. East Coast, including a short-line railway linked to a coal-handling operation in Cape Breton (NS). Logistec also offers agency services to foreign shipowners and operators serving the Canadian market; as well as marine transportation services geared primarily to the Arctic coastal trade. Furthermore, the Company operates in the environmental sector where it provides services for the trenchless structural rehabilitation of water mains, PCB management, site remediation, risk assessment and fire-hose manufacturing. 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 at the Company's website at www.logistec.com :
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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 2008 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.
Additional information relating to the Company is on SEDAR at www.sedar.com :
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Consolidated Statements of Earnings
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(in thousands of dollars, except for number of shares and per share
amounts)
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For the three months For the nine months
ended ended
September September September September
26, 27, 26, 27,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
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Revenue 59,906 70,371 148,256 164,501
Operating expenses 49,928 58,177 133,188 143,510
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9,978 12,194 15,068 20,991
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Amortization of property,
plant and equipment 2,040 2,086 6,260 6,039
Amortization of other assets 193 63 383 188
Interest on long term debt 379 310 1,043 848
Other interest expense 50 49 155 146
Interest revenue from
investments in
service contracts (499) (190) (1,445) (569)
Foreign exchange loss (gain) 357 (151) 658 (297)
Loss (gain) on disposal of
property, plant and equipment (21) (37) 137 (247)
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2,499 2,130 7,191 6,108
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Income from continuing
operations 7,479 10,064 7,877 14,883
Share in the results of
companies subject to
significant influence 5 (79) (489) (128)
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Income before income taxes,
non-controlling interests
and discontinued operations 7,484 9,985 7,388 14,755
Income taxes 2,381 3,137 2,483 4,494
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Income before non-controlling
interests and discontinued
operations 5,103 6,848 4,905 10,261
Non-controlling interests 957 1,417 1,287 1,630
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Net income from
continuing operations 4,146 5,431 3,618 8,631
Net loss from
discontinued operations - (52) - (263)
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Net income 4,146 5,379 3,618 8,368
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Basic and diluted earnings
(loss) per share
Continuing operations 0.62 0.81 0.54 1.29
Discontinued operations 0.00 0.00 0.00 (0.04)
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0.62 0.81 0.54 1.25
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Weighted average number
of shares outstanding,
basic and diluted 6,660,461 6,677,794 6,653,794 6,674,439
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Consolidated Statements of Retained Earnings
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(in thousands of dollars)
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For the nine months ended
September 26, September 27,
2009 2008
(Unaudited) (Unaudited)
$ $
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Balance, beginning of period 83,435 72,507
Net income 3,618 8,368
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87,053 80,875
Excess over par value of Class A
Common Shares repurchased 10 11
Excess over par value of Class B
Subordinate Voting Shares repurchased 42 65
Dividends 1,614 1,619
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Balance, end of period 85,387 79,180
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Consolidated Statements of Comprehensive Income
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(in thousands of dollars)
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For the three months For the nine months
ended ended
September September September September
26, 27, 26, 27,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
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Net income 4,146 5,379 3,618 8,368
Other comprehensive
income (loss)
Unrealized gain (loss) on
translation of financial
statements of self-sustaining
foreign subsidiaries (298) 132 (569) 237
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Comprehensive income 3,848 5,511 3,049 8,605
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Consolidated Balance Sheets
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(in thousands of dollars)
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As at As at
September 26, December 31,
2009 2008
(Unaudited) (Audited)
$ $
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Assets
Current assets
Cash and cash equivalents 19,329 21,304
Accounts receivable 49,481 39,671
Income taxes receivable 4,204 2,375
Future income taxes 376 407
Prepaid expenses 5,472 4,565
Investments in service contracts 148 -
Assets related to discontinued operations 55 61
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79,065 68,383
Investments in service contracts 22,671 26,452
Property, plant and equipment 66,495 57,167
Goodwill 5,045 5,484
Other assets 13,120 11,803
Future income taxes 7,502 7,720
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193,898 177,009
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Liabilities
Current liabilities
Short-term bank loans 4,017 51
Short-term note payable 386 3,106
Accounts payable and
accrued liabilities 26,059 21,885
Deferred revenue 1,843 1,528
Income taxes payable 1,184 1,285
Dividends payable 539 538
Future income taxes 835 835
Current portion of long-term debt 7,210 2,115
Current portion of asset retirement
obligations 87 -
Current liabilities related to
discontinued operations 592 757
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42,752 32,100
Long-term debt 27,691 23,964
Asset retirement obligations 399 554
Future income taxes 12,088 11,891
Other liabilities 5,256 4,896
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88,186 73,405
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Non-controlling interests 7,278 6,657
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Shareholders' equity
Capital stock 15,395 15,291
Retained earnings 85,387 83,435
Accumulated other comprehensive loss (2,348) (1,779)
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83,039 81,656
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98,434 96,947
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193,898 177,009
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Consolidated Statements of Cash Flows
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(in thousands of dollars)
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For the three months For the nine months
ended ended
September September September September
26, 27, 26, 27,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
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Operating activities
Net income from
continuing operations 4,146 5,431 3,618 8,631
Items not affecting cash
and cash equivalents 3,868 4,885 10,334 10,540
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Cash provided from
operations 8,014 10,316 13,952 19,171
Dividends received from
companies subject to
significant influence - - 30 -
Contributions to defined
benefit pension plans (389) (574) (917) (908)
Changes in non-cash
working capital items (2,631) (5,231) (9,512) (7,057)
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4,994 4,511 3,553 11,206
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Financing activities
Net change in short-term
bank loans (40) (2,616) 3,966 (1,532)
Issuance of long-term debt 186 3,638 13,022 3,835
Repayment of long-term debt (308) (289) (4,191) (1,135)
Issuance of Class B
Subordinate Voting Shares - - 3 5
Repurchase of Class A
Common Shares - (10) (11) (12)
Repurchase of Class B
Subordinate Voting Shares - (81) (67) (81)
Dividends paid to
non-controlling interests - - (862) (98)
Dividends paid (537) (540) (1,613) (1,618)
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(699) 102 10,247 (636)
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Investing activities
Customer repayments of
investments in
service contracts 961 813 2,753 1,640
Investments in a
service contract (6) - (6) -
Business acquisition (932) - (932) -
Acquisition of temporary
investments - - - (125)
Disposal of temporary
investments - - - 125
Acquisition of property,
plant and equipment (1,100) (6,294) (17,809) (9,846)
Proceeds from disposal of
property, plant and equipment 234 51 316 584
Acquisition of other assets - (115) (100) (179)
Decrease in other assets 1 - 95 -
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(842) (5,545) (15,683) (7,801)
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Foreign exchange gain (loss)
on cash held in foreign
currencies of self-sustaining
subsidiaries (3) 4 26 (20)
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Net change in cash and cash
equivalents from
continuing operations 3,450 (928) (1,857) 2,749
Net change in cash and cash
equivalents from
discontinued operations (43) 240 (118) 891
Cash and cash equivalents(1),
beginning of period 15,922 18,011 21,304 13,683
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Cash and cash equivalents(1),
end of period 19,329 17,323 19,329 17,323
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Additional information
Interest paid 438 335 1,156 951
Income taxes paid 222 1,031 3,901 5,022
Acquisition of property,
plant and equipment
included in accounts payable
and accrued liabilities 244 435 244 435
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(1) Cash and cash equivalents comprise of cash on hand
Contacts:
Logistec Corporation
Jean-Claude Dugas CA
Vice-President, Finance
514-985-2345
jdugas@logistec.com :
