Montréal, Québec, July 28, 2017 – Logistec Corporation [TSX: LGT.A and LGT.B], a marine and environmental services provider, today announced its financial results for the second quarter and first six months ended June 24, 2017.
During the second quarter of 2017, consolidated revenue reached a record level for a second quarter, totalling $101.9 million, an increase of $22.2 million or 27.9% compared with the same period in 2016. The increase in revenue came from both our marine and environmental services segments and more particularly from increases in our bulk-handling business from three new terminals, which were added to the network since the beginning of the year. Revenue from the marine services segment was up by $7.7 million or 14.5% to $53.0 million, while revenue from the environmental services segment amounted to $48.9 million, up by $14.5 million or 42.2% compared with the second quarter of 2016. The increase in revenue in the marine services segment stems primarily from bulk activity, while break-bulk cargo volumes were stable. The high revenue increase in the environmental services segment is due to higher levels of activity in both Aqua-Pipe and site remediation, partially offset by decreased activity in Europe, where we closed our asbestos removal activities. The second quarter of 2017 closed with a consolidated profit attributable to owners of the Company of $4.8 million, compared with a profit of $1.0 million for the second quarter of 2016. The profit attributable to owners of the Company translated into total diluted earnings per share of $0.37, of which $0.36 was attributable to Class A Common Shares and $0.39 was attributable to Class B Subordinate Voting Shares.
During the first six months of 2017, consolidated revenue increased to $161.9 million, compared with $144.5 million for the first half of 2016. The profit attributable to owners of the Company amounted to $3.3 million, which is substantially more than last year’s profit of $0.8 million. This translated into total diluted earnings per share of $0.25, of which $0.24 was attributable to Class A Common Shares and $0.27 was attributable to Class B Subordinate Voting Shares. For the same period in 2016, diluted earnings per share totalled $0.06, of which $0.06 was attributable to Class A Common Shares and $0.07 was attributable to Class B Subordinate Voting Shares.
“We view our outlook with optimism. We are very pleased with our results for the marine services segment. In particular, our bulk business has shown considerable improvement, especially with the addition of our two new bulk projects. Our container business has also shown double-digit growth and, with the completion of our new Viau container terminal, we are showing improved efficiencies. Results have been disappointing in our environmental services segment, and this can be linked to seasonality, lower-than-expected results for Aqua-Pipe services in the USA, but more particularly, extremely poor results in France. Despite the slow start, our backlog allows us to believe that the next six months will reach record levels. Furthermore, with the acquisition of 51% of FER-PAL Construction Ltd., we are optimistic about a strong finish to the year in both our marine and environmental services segments,” 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