LOGISTEC ANNOUNCES 2017 YEAR-END RESULTS
Montréal, Québec, March 20, 2018 – LOGISTEC Corporation [TSX: LGT.A and LGT.B], a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2017.
Consolidated revenue reached a record $475.7 million in 2017, an increase of $132.4 million or 38.6% over 2016.
The marine services segment posted revenue of $205.3 million in 2017, representing higher sales compared with $186.0 million in 2016. The increase was mostly due to bulk activity. The environmental services segment delivered a good performance in 2017, as revenue increased by $113.2 million or 71.4% over 2016 to reach $270.5 million. Revenue growth came primarily from the business acquisition of FER-PAL, and from increased activity in site remediation and Aqua-Pipe.
In 2017, LOGISTEC achieved a consolidated profit for the year of $27.4 million, of which $27.4 million was attributable to owners of the Company. This is higher than the 2016 consolidated profit of $18.5 million, of which $18.9 million was attributable to owners of the Company. The 2017 results were affected by a $15.8 million charge to amortize our intangible assets in FER-PAL, related to contracts that are of an annual nature and thus subject to amortization over the first year. This year, the EBITDA(1) reached a record $74.7 million, up $32.7 million over 2016. The 2017 profit attributable to owners of the Company computes to diluted earnings per share of $2.11, which corresponds to $2.02 attributable to Class A Common Shares and $2.22 attributable to Class B Subordinate Voting Shares. This compares to diluted earnings per share of $1.48 in 2016, of which $1.41 was attributable to Class A Common Shares and $1.56 was attributable to Class B Subordinate Voting Shares.
During the fourth quarter of 2017, consolidated revenue totalled $145.5 million, an increase of $49.7 million or 51.9% over 2016. This increase is mainly due to strong activity in the environmental services segment, and to the business acquisition of FER-PAL. The profit attributable to owners of the Company rose to $13.2 million ($8.9 million in 2016) for diluted earnings per share of $1.01, of which $0.97 was attributable to Class A Common Shares and $1.06 was attributable to Class B Subordinate Voting Shares. For the same period of 2016, diluted earnings per share totalled $0.71, of which $0.68 was attributable to Class A Common Shares and $0.74 was attributable to Class B Subordinate Voting Shares.
“The future is bright for the LOGISTEC family! Our service sectors hold leadership positions in each of their niche markets, and each of their development plans show positive outlooks. In cargo handling, we were pleased to announce the acquisition of Gulf Stream Marine, Inc. a few days ago. We are very excited about joining our teams together. This acquisition will add a growing customer base to our strong network of ports, and we are confident that the resulting synergies will benefit all stakeholders. Our other marine businesses also have positive outlooks.
In our environmental business, we have ambitions for growth in both the traditional environmental business as well as Aqua-Pipe. This growth will be generated through geographic expansion and an increase in the scope of specialized services attached to our service package. Here again, the collaboration of our talented teams drives us to believe in the future growth of Aqua-Pipe in North America as well as selected regions of the world,” indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
“Moreover, we are still very active in identifying, studying and evaluating other acquisition targets. Our objective remains focused on profitable, accretive growth, to optimize shareholder value,” concluded Madeleine Paquin.
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 35 ports and 58 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.
(1) EBITDA is a non-IFRS measure and is calculated as the sum of profit attributable to owners of the Company plus interest expense, income taxes, depreciation and amortization expense, customer repayment of investment in a service contract, and including impairment charge