Montréal, Québec, May 9, 2017 – Logistec Corporation [TSX: LGT.A and LGT.B], a marine and environmental services provider, today announced its financial results for the first quarter ended March 25, 2017.
During the first quarter of 2017, consolidated revenue totalled $60.1 million, a decrease of $4.8 million or 7.4% over the same period in 2016. Revenue from the marine services segment was down $4.1 million or 9.1% to $41.3 million for the first quarter of 2017, while revenue from the environmental services segment amounted to $18.8 million, down by $0.7 million, or 3.4% from the first quarter of 2016.
The decline in revenue in the marine services segment stems primarily from the loss of the Saint John (NB) container terminal concession and, to a lesser degree, from reduced break-bulk cargo volumes. The slight revenue decrease in the environmental services segment was due to lower Aqua-Pipe activity, partially offset by an increase in site remediation revenue. The first quarter of 2017 closed with a consolidated loss attributable to owners of the Company of $1.5 million, compared to a loss of $0.1 million for the first quarter of 2016. The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.12, of which $0.12 was attributable to Class A Common Shares and $0.13 was attributable to Class B Subordinate Voting Shares.
“We are disappointed in our first quarter results, but are confident in the year ahead. In cargo handling, we have worked diligently to replace the revenue from our lost concession in Saint John (NB), and are pleased to have closed on two new projects during the quarter. These projects, along with a better outlook for bulk and container business, should help us resume our growth momentum in the cargo handling business. The start at Sanexen has been difficult, as we are preparing for a strong year in a season where there is little activity. Furthermore, this has been exacerbated by a challenging contract we are dealing with in Europe. Our backlog is strong for both Aqua-Pipe rehabilitation and site remediation, and we are optimistic about our financial performance in 2017,” indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.
Logistec Corporation is based in Montréal (QC) and provides specialized services to the marine community and industrial companies in the areas of bulk, break-bulk and container cargo handling in some 30 ports and 40 terminals located in eastern North America. Logistec also offers marine transportation services geared primarily to the Arctic coastal trade, short-line rail transportation services, as well as marine agency services to foreign shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental sector where it provides services to industrial, municipal and other governmental customers for the trenchless structural rehabilitation of underground water mains, regulated materials management, site remediation, risk assessment, and manufacturing of woven hoses.
The Company has been profitable and has paid regular dividends since becoming public and payments have grown steadily over the years. A public company since 1969, Logistec’s shares are listed on the Toronto Stock Exchange under the ticker symbols LGT.A and LGT.B. More information can be obtained on the Company’s website at www.logistec.com.
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.
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For further information:
Jean-Claude Dugas, CPA, CA