Montréal, Québec, November 1, 2016 – Logistec Corporation [TSX: LGT.A and LGT.B], a marine and environmental services provider, today announced its financial results for the third quarter and first nine months ended September 24, 2016.
During the third quarter of 2016, consolidated revenue totalled $103.1 million, a decrease of $12.8 million or 11.1% over the same period in 2015. Revenue from the marine services segment revenue was down by $7.6 million or 15.1% to $42.9 million for the third quarter of 2016, while revenue from the environmental services segment amounted to $60.2 million, down by $5.2 million or 8.0% from the third quarter of 2015. The revenue decrease in the marine services segment stems from reduced bulk and break-bulk cargo volumes, whereas the revenue decrease in the environmental services segment was due to lower Aqua-Pipe activity. The third quarter of 2016 closed with a consolidated profit attributable to owners of the Company of $9.2 million, down by $2.9 million over the same period in 2015. The profit attributable to owners of the Company translated into total diluted earnings per share of $0.71, of which $0.67 was attributable to Class A Common Shares and $0.75 was attributable to Class B Subordinate Voting Shares. The profit attributable to owners of the Company was positively affected by $0.5 million non-operating gains versus a gain of $3.7 million in 2015. The gain in 2015 came from foreign exchange as well as settlement on an operating contract where the customer-guaranteed tonnage never materialized.
For the nine-month period ended September 24, 2016, consolidated revenue totalled $247.6 million, down by $18.0 million over $265.6 million for the same period in 2015. The profit attributable to owners of the Company amounted to $10.0 million for total diluted earnings per share of $0.78, of which $0.73 was attributable to Class A Common Shares and $0.82 was attributable to Class B Subordinate Voting Shares. For the same period in 2015, basic and diluted earnings per share totalled $1.71, of which $1.64 was attributable to Class A Common Shares and $1.81 was attributable to Class B Subordinate Voting Shares. This profit attributable to owners of the Company of $10.0 million includes a non-operating loss of $1.3 million versus a
non-operating gain of $4.7 million last year.
“Year-to-date results remain below our expectations. In the marine services segment, we continue to experience a weak market for bulk cargo handling, particularly with respect to mining activity and biomass. In the environmental services segment, results are lower due to fewer aqueduct contracts in our local market this year, combined with higher costs as we invest and build our new marketplace in the USA. We are confident these short-term penetration costs will pay off in the long run. Our traditional environmental services had a good quarter,” 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