Logistec Announces Financial Results for the Fourth Quarter and Year 2012

Logistec Announces Financial Results for the Fourth Quarter and Year 2012 
MONTREAL, QUEBEC -- (Marketwire) -- 03/21/13 -- Logistec Corporation
(TSX:LGT.A)(TSX:LGT.B), a marine and environmental services provider,
today announced its financial results for the fourth quarter and the
year ended December 31, 2012.  
Consolidated revenue totalled $250.9 million in 2012, an increase of
$26.2 million or 11.7% over 2011. The marine services segment posted
revenue of $143.2 million in 2012, a higher level of activity when
compared to the $132.9 million reported for 2011. Higher volumes of
bulk cargo and increased activity in the USA, following the
acquisition of CrossGlobe Transport, Ltd., contributed to this
revenue growth. The environmental services segment delivered a very
strong performance in 2012, as revenue increased by $15.9 million or
17.3% over 2011 to reach $107.6 million. The growth derives from a
high overall level of activity, more specifically revenue from
Niedner woven hoses and Aqua-Pipe(R) services. 
In 2012, Logistec achieved a consolidated profit attributable to
owners of the Company of $16.1 million compared to $17.6 million in
2011. The 2012 profit attributable to owners of the Company computes
to total basic and diluted earnings per share of $2.47, which
corresponds to basic and diluted earnings per share of $2.37
attributable to Class Common A shares and of $2.61 attributable to
Class B Subordinate Voting shares. Although consolidated profit
attributable to owners of the Company decreased from $17.6 million to
$16.1 million, the 2011 figures included two non-operating items,
which had a net after tax positive impact of $5.3 million. These
included a gain on partial disposal of an investment, partly offset
by an impairment loss on goodwill. If these items are excluded,
profit increased by some $4 million or 31% in 2012. The marine
services segment posted a profit before income taxes of $13.7
million, down by $0.6 million over $14.3 million in 2011. The
environmental services segment recorded a profit before income taxes
of $10.5 million, up by $1.3 million over $9.2 million in 2011.  
During the fourth quarter of 2012, consolidated revenue totalled
$67.7 million in the fourth quarter of 2012, up by $1.5 million over
the same period of 2011. This increase can be explained by strong
activity in the marine services segment in the fourth quarter,
although it was partly offset by slower business in our environmental
services segment. The consolidated profit attributable to owners of
the Company amounted to $6.6 million, up by $3.6 million from the
fourth quarter of 2011. The positive variation came from the
impairment loss on goodwill and higher equipment costs incurred in
the fourth quarter of 2011 combined with the strong activity in the
marine services segment in the fourth quarter of 2012. The profit
attributable to owners of the Company computes to total basic and
diluted earnings per share of $1.04, which corresponds to basic and
diluted earnings per share of $0.98 attributable to Class A Common
Shares and of $1.07 attributable to Class B Subordinate Voting
Shares. 
Outlook 
"We are optimistic we will be able to further develop our
cargo-handling activities in 2013. In the USA, we are seeing some
improvement in the building sector of the economy and this should
bode well for construction materials, namely lumber and metals. We
will further advance our development initiatives in the area of
biomass and mining. To that effect, significant capital expenditures
have been made to upgrade and specialize a portion of our Brunswick
(GA) facility to handle biomass, namely wood pellets and woodchips.
Customers have committed volumes to our facility and we feel strongly
that the export market is growing quickly. With respect to mining, we
are closely following the development of the mining sector in the
Province of Quebec and the Arctic and, with our cargo-handling and
transportation businesses, we are well positioned to serve this
developing customer base. Although there has been a slowdown based on
weaker growth in China and lower-priced commodities, the sector
continues to develop selectively. 
We are also optimistic about our environmental services segment. In
2013, we intend to build on our Aqua-Pipe(R) technology and grow our
services both in Quebec, where we install our structural lining, and
outside of the Province, where we work through a select group of
licensees. Although municipalities are somewhat financially
constrained, there remains a huge need to repair underground drinking
water pipes in North America. It has been shown that 40% of North
America's drinking water is lost through existing infrastructure and
this statistic is getting worse every year. Traditional methods of
excavation and rebuilding are far costlier repair methods and our
technology thus bodes well for the future. Our site remediation
services are also promising given the continued desire to clean up
the environment. We have built a strong team of experts who can find
solutions for virtually all types of environmental contaminants and
are expanding our services geographically, with the Arctic and France
showing new revenue in the last few years. Finally, our woven-hose
manufacturing business, which was purchased to secure the growing
needs of our aqueduct rehabilitation services, continues to diversify
its customer base. In 2013, it successfully launched a new product
for the shale gas industry, a market which is expected to undergo
strong growth in the coming years," indicated Madeleine Paquin,
President and Chief Executive Officer of Logistec Corporation.  
"All in all, we are confident we will continue to develop both our
marine and environmental services segments, on the strength of our
highly dynamic team of experts who are customer-oriented and
consistently bring value to a growing customer base," 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 bulk, break-bulk and container cargo handling in 24
ports in Eastern Canada, the Great Lakes and the U.S. East Coast.
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, PCB management,
site remediation, risk assessment, and woven-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.  
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. 
Additional information relating to our Company can be found on
SEDAR's website at www.sedar.com and on Logistec's website at
www.logistec.com. 


 
Consolidated Statements of Earnings                                         
                                                                            
years ended December 31                                                     
(in thousands of Canadian dollars, except for per share amounts)            
----------------------------------------------------------------------------
                                                          2012         2011 
                                                             $            $ 
----------------------------------------------------------------------------
                                                                            
Revenue                                                250,860      224,630 
----------------------------------------------------------------------------
                                                                            
Employee benefits expense                             (120,317)    (109,399)
Equipment and supplies expense                         (69,792)     (60,915)
Rental expense                                         (22,891)     (20,247)
Other expenses                                         (10,467)     (12,054)
Depreciation and amortization expense                   (7,819)      (8,220)
Share of profit of equity accounted investments          5,224        5,582 
Share of gain on partial disposal of an investment           -        6,171 
Impairment loss on goodwill                                  -       (1,300)
Other gains and losses                                    (241)        (287)
----------------------------------------------------------------------------
Operating profit                                        24,557       23,961 
----------------------------------------------------------------------------
                                                                            
Finance expense                                           (808)        (958)
Finance income                                             461          558 
----------------------------------------------------------------------------
Profit before income taxes                              24,210       23,561 
                                                                            
Income taxes                                            (5,925)      (3,993)
----------------------------------------------------------------------------
Profit for the year                                     18,285       19,568 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Profit attributable to:                                                     
                                                                            
----------------------------------------------------------------------------
Owners of the Company                                   16,061       17,592 
----------------------------------------------------------------------------
                                                                            
Non-controlling interests                                2,224        1,976 
----------------------------------------------------------------------------
Profit for the year                                     18,285       19,568 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Basic and diluted earnings per Class A Common                               
 Share (1)                                                2.37         2.58 
Basic and diluted earnings per Class B Subordinate                          
 Voting Share (2)                                         2.61         2.84 
----------------------------------------------------------------------------
(1)   Class A Common Share ("Class A share")                                
(2)   Class B Subordinate Voting Share ("Class B share")                    
                                                                            
                                                                            
                                                                            
Consolidated Statements of Comprehensive Income                             
                                                                            
years ended December 31                                                     
(in thousands of Canadian dollars)                                          
----------------------------------------------------------------------------
                                                          2012         2011 
                                                             $            $ 
----------------------------------------------------------------------------
                                                                            
Profit for the year                                     18,285       19,568 
----------------------------------------------------------------------------
                                                                            
Other comprehensive income                                                  
  Currency translation differences arising on                               
   translation of foreign operations                      (200)         114 
  Actuarial losses on retirement benefits               (2,159)      (5,611)
  Income taxes on actuarial losses on retirement                            
   benefits                                                581        1,483 
  Gains (losses) on derivatives designated as cash                          
   flow hedges                                              40          (71)
  Transfer of losses on derivatives designated as                           
   cash flow hedges to the consolidated statements                          
   of earnings                                              19            - 
  Income taxes relating to derivatives designated                           
   as cash flow hedges                                     (16)          19 
  Share of other comprehensive income of equity                             
   accounted investments                                                    
    Actuarial losses on retirement benefits               (176)        (272)
    Income taxes on actuarial losses on retirement                          
     benefits                                               48           73 
    Gains on derivatives designated as cash flow                            
     hedges                                                  -          205 
    Transfer of gains on derivatives designated as                          
     cash flow hedges to non-financial assets                -          (14)
    Transfer of gains on derivatives designated as                          
     cash flow hedges to profit or loss on partial                          
     disposal of an investment                               -         (191)
----------------------------------------------------------------------------
Other comprehensive income for the year, net of                             
 income taxes                                           (1,863)      (4,265)
                                                                            
----------------------------------------------------------------------------
Total comprehensive income for the year                 16,422       15,303 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Total comprehensive income attributable to:                                 
                                                                            
Owners of the Company                                   14,198       13,327 
Non-controlling interests                                2,224        1,976 
----------------------------------------------------------------------------
Total comprehensive income for the year                 16,422       15,303 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Consolidated Statements of Financial Position                               
                                                                            
(in thousands of Canadian dollars)                                          
----------------------------------------------------------------------------
                                                         As at        As at 
                                                  December 31, December 31, 
                                                          2012         2011 
                                                             $            $ 
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
Current assets                                                              
  Cash and cash equivalents                              7,519        8,888 
  Investments in service contracts                       8,107       13,065 
  Trade and other receivables                           55,795       45,007 
  Current income tax assets                              1,915        2,559 
  Prepaid expenses                                       3,275        2,854 
  Inventories                                            4,492        3,922 
----------------------------------------------------------------------------
                                                        81,103       76,295 
                                                                            
Equity accounted investments                            31,019       32,726 
Property, plant and equipment                           55,434       47,730 
Goodwill                                                14,847       10,686 
Other intangible assets                                 18,594        1,934 
Other non-current assets                                 2,097        1,927 
Post-employment benefit assets                             441          779 
Non-current financial assets                             5,255        5,265 
Deferred income tax assets                               7,878        7,773 
----------------------------------------------------------------------------
Total assets                                           216,668      185,115 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
Current liabilities                                                         
  Short-term bank loans                                  2,200            - 
  Trade and other payables                              28,391       27,020 
  Deferred revenue                                       1,589          819 
  Current income tax liabilities                           562        1,907 
  Dividends payable                                        607          594 
  Current portion of long-term debt                      2,179        2,499 
  Provisions                                               763          488 
----------------------------------------------------------------------------
                                                        36,291       33,327 
                                                                            
Long-term debt                                          19,808       11,873 
Provisions                                                 286          148 
Deferred income tax liabilities                          9,435        3,440 
Post-employment benefit obligations                     13,146       11,475 
Non-current financial liabilities                        2,381        2,624 
----------------------------------------------------------------------------
Total liabilities                                       81,347       62,887 
----------------------------------------------------------------------------
                                                                            
Commitments, contingent liabilities and guarantees                          
                                                                            
Equity                                                                      
Share capital                                           15,139       15,149 
                                                                            
Retained earnings                                      112,032      100,996 
Accumulated other comprehensive loss                      (462)        (305)
----------------------------------------------------------------------------
Equity attributable to owners of the Company           126,709      115,840 
                                                                            
Non-controlling interests                                8,612        6,388 
----------------------------------------------------------------------------
Total equity                                           135,321      122,228 
----------------------------------------------------------------------------
                                                                            
Total liabilities and equity                           216,668      185,115 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
On behalf of the Board                                                      
                                                                            
                          (signed) David M. Mann   (signed) Madeleine Paquin
                          Director                 Director                 
                                                                            
                                                                            
                                                                            
Consolidated Statements of Changes in Equity                                
                                                                            
(in thousands of Canadian dollars)                                          
----------------------------------------------------------------------------
                              Attributable to owners of the Company         
                          --------------------------------------------------
                                        Accumulated other                   
                                     comprehensive income                   
                                                   (loss)                   
                                    ----------------------                  
                                                  Foreign                   
                              Share Cash flow    currency  Retained         
                            capital    hedges translation  earnings   Total 
                                  $         $           $         $       $ 
----------------------------------------------------------------------------
                                                                            
Balance as at January 1,                                                    
 2012                        15,149       (52)       (253)  100,996 115,840 
----------------------------------------------------------------------------
                                                                            
Profit for the year               -         -           -    16,061  16,061 
                                                                            
Other comprehensive income                                                  
  Currency translation                                                      
   differences arising on                                                   
   translation of foreign                                                   
   operations                     -         -        (200)        -    (200)
  Actuarial losses on                                                       
   retirement benefits,                                                     
   net of income taxes            -         -           -    (1,578) (1,578)
  Cash flow hedges, net of                                                  
   income taxes                   -        43           -         -      43 
  Share of other                                                            
   comprehensive income of                                                  
   equity accounted                                                         
   investments, net of                                                      
   income taxes                   -         -           -      (128)   (128)
----------------------------------------------------------------------------
Total comprehensive income                                                  
 for the year                     -        43        (200)   14,355  14,198 
----------------------------------------------------------------------------
                                                                            
Repurchase of Class A                                                       
 shares                          (7)        -           -      (121)   (128)
Issuance and repurchase of                                                  
 Class B shares                  (3)        -           -      (794)   (797)
Dividends on Class A                                                        
 shares                           -         -           -    (1,332) (1,332)
Dividends on Class B                                                        
 shares                           -         -           -    (1,072) (1,072)
----------------------------------------------------------------------------
Balance as at December 31,                                                  
 2012                        15,139        (9)       (453)  112,032 126,709 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
Consolidated Statements of Changes in Equity            
                                                        
(in thousands of Canadian dollars)                      
--------------------------------------------------------
                                                        
                                                        
                                                        
                                                        
                          Non-controlling               
                                interests  Total equity 
                                        $             $ 
--------------------------------------------------------
                                                        
Balance as at January 1,                                
 2012                               6,388       122,228 
--------------------------------------------------------
                                                        
Profit for the year                 2,224        18,285 
                                                        
Other comprehensive income                              
  Currency translation                                  
   differences arising on                               
   translation of foreign                               
   operations                           -          (200)
  Actuarial losses on                                   
   retirement benefits,                                 
   net of income taxes                  -        (1,578)
  Cash flow hedges, net of                              
   income taxes                         -            43 
  Share of other                                        
   comprehensive income of                              
   equity accounted                                     
   investments, net of                                  
   income taxes                         -          (128)
--------------------------------------------------------
Total comprehensive income                              
 for the year                       2,224        16,422 
--------------------------------------------------------
                                                        
Repurchase of Class A                                   
 shares                                 -          (128)
Issuance and repurchase of                              
 Class B shares                         -          (797)
Dividends on Class A                                    
 shares                                 -        (1,332)
Dividends on Class B                                    
 shares                                 -        (1,072)
--------------------------------------------------------
Balance as at December 31,                              
 2012                               8,612       135,321 
--------------------------------------------------------
--------------------------------------------------------
 

 
                                                                            
                                                                            
(in thousands of Canadian                                                   
 dollars)                                                                   
----------------------------------------------------------------------------
                              Attributable to owners of the Company         
                          --------------------------------------------------
                                        Accumulated other                   
                                     comprehensive income                   
                                                   (loss)                   
                                    ----------------------                  
                                                  Foreign                   
                              Share Cash flow    currency  Retained         
                            capital    hedges translation  earnings   Total 
                                  $         $           $         $       $ 
----------------------------------------------------------------------------
                                                                            
Balance as at January 1,                                                    
 2011                        15,130         -        (367)   90,702 105,465 
----------------------------------------------------------------------------
                                                                            
Profit for the year               -         -           -    17,592  17,592 
                                                                            
Other comprehensive income                                                  
  Currency translation                                                      
   differences arising on                                                   
   translation of foreign                                                   
   operations                     -         -         114         -     114 
  Actuarial losses on                                                       
   retirement benefits,                                                     
   net of income taxes            -         -           -    (4,128) (4,128)
  Cash flow hedges, net of                                                  
   income taxes                   -       (52)          -         -     (52)
  Share of other                                                            
   comprehensive income of                                                  
   equity accounted                                                         
   investments, net of                                                      
   income taxes                   -         -           -      (199)   (199)
----------------------------------------------------------------------------
Total comprehensive income                                                  
 for the year                     -       (52)        114    13,265  13,327 
----------------------------------------------------------------------------
                                                                            
Repurchase and conversion                                                   
 of Class A shares              (16)        -           -      (117)   (133)
Issuance of share capital                                                   
 by a subsidiary                  -         -           -         -       - 
Issuance, repurchase and                                                    
 conversion of Class B                                                      
 shares                          35         -           -      (504)   (469)
Dividends on Class A                                                        
 shares                           -         -           -    (1,299) (1,299)
Dividends on Class B                                                        
 shares                           -         -           -    (1,051) (1,051)
----------------------------------------------------------------------------
Balance as at December 31,                                                  
 2011                        15,149       (52)       (253)  100,996 115,840 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
 
                                                        
                                                        
(in thousands of Canadian                               
 dollars)                                               
--------------------------------------------------------
                                                        
                                                        
                                                        
                                                        
                          Non-controlling               
                                interests  Total equity 
                                        $             $ 
--------------------------------------------------------
                                                        
Balance as at January 1,                                
 2011                               4,392       109,857 
--------------------------------------------------------
                                                        
Profit for the year                 1,976        19,568 
                                                        
Other comprehensive income                              
  Currency translation                                  
   differences arising on                               
   translation of foreign                               
   operations                           -           114 
  Actuarial losses on                                   
   retirement benefits,                                 
   net of income taxes                  -        (4,128)
  Cash flow hedges, net of                              
   income taxes                         -           (52)
  Share of other                                        
   comprehensive income of                              
   equity accounted                                     
   investments, net of                                  
   income taxes                         -          (199)
--------------------------------------------------------
Total comprehensive income                              
 for the year                       1,976        15,303 
--------------------------------------------------------
                                                        
Repurchase and conversion                               
 of Class A shares                      -          (133)
Issuance of share capital                               
 by a subsidiary                       20            20 
Issuance, repurchase and                                
 conversion of Class B                                  
 shares                                 -          (469)
Dividends on Class A                                    
 shares                                 -        (1,299)
Dividends on Class B                                    
 shares                                 -        (1,051)
--------------------------------------------------------
Balance as at December 31,                              
 2011                               6,388       122,228 
--------------------------------------------------------
--------------------------------------------------------
                                                        
                                                        
                                                        
Consolidated Statements of Cash Flows                                       
                                                                            
years ended December 31                                                     
(in thousands of Canadian dollars)                                          
----------------------------------------------------------------------------
                                                          2012         2011 
                                                             $            $ 
----------------------------------------------------------------------------
                                                                            
Operating activities                                                        
  Profit for the year                                   18,285       19,568 
  Items not affecting cash and cash equivalents         11,787        6,184 
----------------------------------------------------------------------------
  Cash generated from operations                        30,072       25,752 
  Dividends received from equity accounted                                  
   investments                                           7,229        3,878 
  Contributions to defined benefit retirement                               
   plans                                                (1,314)      (1,103)
  Settlement of provisions                              (1,403)        (472)
  Changes in non-cash working capital items            (12,797)      (7,508)
  Income taxes paid                                     (6,296)      (7,312)
----------------------------------------------------------------------------
                                                        15,491       13,235 
----------------------------------------------------------------------------
                                                                            
Financing activities                                                        
  Net change in short-term bank loans                    2,200       (2,278)
  Issuance of long-term debt, net of transaction                            
   costs                                                16,150            - 
  Repayment of long-term debt                           (8,547)      (3,882)
  Interest paid                                           (805)      (1,049)
  Issuance of Class B shares                                 6            4 
  Issuance of share capital by a subsidiary                  -           20 
  Repurchase of Class A shares                            (128)        (125)
  Repurchase of Class B shares                            (956)        (613)
  Dividends paid on Class A shares                      (1,324)      (1,292)
  Dividends paid on Class B shares                      (1,067)      (1,046)
----------------------------------------------------------------------------
                                                         5,529      (10,261)
----------------------------------------------------------------------------
                                                                            
Investing activities                                                        
  Customer repayment of investments in service                              
   contracts                                             4,958        4,540 
  Interest received                                      1,240        1,826 
  Business acquisition                                 (15,810)           - 
  Acquisition of property, plant and equipment         (12,950)      (9,127)
  Proceeds from disposal of property, plant and                             
   equipment                                               390          321 
  Acquisition of intangible assets                         (89)        (100)
  Disposal of other non-current assets                      76           66 
  Acquisition of non-current financial assets             (361)           - 
----------------------------------------------------------------------------
                                                       (22,546)      (2,474)
----------------------------------------------------------------------------
                                                                            
Net change in cash and cash equivalents                 (1,526)         500 
Cash and cash equivalents, beginning of year             8,888        8,382 
Effect of exchange rate on balances held in                                 
 foreign currencies of foreign operations                  157            6 
----------------------------------------------------------------------------
Cash and cash equivalents, end of year                   7,519        8,888 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
Jean-Claude Dugas CPA, CA
Vice-President, Finance
Logistec Corporation
jdugas@logistec.com
(514) 985-2345
 
 
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