Montréal, Québec, March 15, 2019 – 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, 2018.
Consolidated revenue totalled $584.9 million in 2018, an increase of $109.1 million or 22.9% over 2017. The marine services segment posted revenue of $340.8 million in 2018, representing higher sales compared with $205.3 million in 2017. This increase stems from two factors: a general volume increase in our bulk and break-bulk terminals, which saw more activity this year than in 2017, and the business combinations of Gulf Stream Marine, Inc. (“GSM”) and Pate Stevedore Company, Inc. (“Pate”), which contributed an additional $102.4 million in sales during the year. Revenue from the environmental services segment totalled $244.1 million, compared with $270.5 million in 2017, a decrease of $26.3 million. This decrease is mainly due to lower revenue generated by FER-PAL Construction Ltd. (“FER-PAL”) and lower activity in our site remediation services compared to last year.
In 2018, LOGISTEC achieved a consolidated profit attributable to owners of the Company of $18.1 million, which is lower than the $27.4 million posted in 2017. The variation mainly stems from a decrease in our environmental services segment, due to a lower performance from FER-PAL as well as financial and transformational charges. In our marine services segment, we had good operating results, but were negatively affected by an impairment charge against our port logistics activities. Our EBITDA closed at $64.2 million, down from last year’s $74.7 million.
The 2018 profit attributable to owners of the Company computes to total diluted earnings per share of $1.38, which corresponds to $1.32 attributable to Class A shares and $1.45 attributable to Class B shares.
During the fourth quarter of 2018, consolidated revenue totalled $168.7 million, an increase of $23.2 million or 16.0% over 2017. This increase is mainly due to strong activity in the environmental services segment during the fourth quarter of 2018 and to the business combinations of GSM and Pate. The profit attributable to owners of the Company stood at $3.4 million ($13.2 million in 2017) for diluted earnings per share of $0.26, of which $0.25 was attributable to Class A Common Shares and $0.27 was attributable to Class B Subordinate Voting Shares. The quarterly results were negatively affected by the same elements as discussed above, mostly a lower performance from FER-PAL as well as transaction, integration, financial, transformational charges and an impairment charge. For the same period of 2017, basic and diluted earnings per share totalled $1.01, of which $0.97 was attributable to Class A Common Shares and $1.06 was attributable to Class B Subordinate Voting Shares.
“As we mark our 50th year as a public company, I am extremely proud of the resiliency of our organization. Over fifty years ago, we were a Québec company with 100% of our revenue generated in the marine industry in Québec. Today, we are a true North American player with an ideal mix of businesses and expanding markets. Exciting times lie ahead. With a clear strategic agenda, driven by a dynamic leadership team, I am confident that we will continue to solidify and build on our unique position,” indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
“In the marine services segment, the solid revenue performance of 2018 should continue in 2019, and we should benefit from a full year’s impact of our 2018 business combinations. We also intend to review our port logistics activities to streamline and improve their returns.
In our environmental services segment, we expect both our Aqua-Pipe operations and traditional environmental activities at Sanexen to maintain their level of activity. We are addressing FER-PAL’s poor performance in 2018 and expect better results in 2019 and beyond. The combined backlog for Sanexen and FER-PAL stands at some $100 million, which bodes well for 2019. We are also excited about our new exclusive Neofit technology for our drinking water infrastructure. This technology allows us to line lead drinking water pipes, thereby safeguarding residual drinking water. It has been estimated that over 500,000 lead service lines in the USA will need to be lined or replaced in the coming years.
Finally, with regard to business development, we remain very active in our research and analysis of investment opportunities in both our business segments, our objective being to maintain and improve our high quality of service and ensure the growth of our Company, for the benefit of our business partners and shareholders,” 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 37 ports and 61 terminals located in North America. LOGISTEC also offers marine transportation services geared primarily to the Arctic coastal trade 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.