March 17, 2020
Montréal, Québec – LOGISTEC Corporation [TSX: LGT.A and LGT.B] (the “Company”), a marine and environmental services provider, today announced its financial results for the year ended December 31, 2019.
– Consolidated revenue up $55.1 million or 9.4% to $639.9 million;
– Adjusted EBITDA (1) closed at a record $89.6 million;
– Profit attributable to owners of the Company up 45.0% to $26.2 million.
(1) Adjusted EBITDA is a non-IFRS measure, please refer to section entitled Non-IFRS measure.
Consolidated revenue totalled $639.9 million in 2019, an increase of $55.1 million or 9.4% over 2018. Consolidated revenue was positively affected by $4.2 million this year due to a strengthening of the U.S. dollar against the Canadian dollar.
The marine services segment posted revenue of $385.3 million in 2019, representing higher sales compared with $340.8 million in 2018. This increase stems from two factors: the business combinations of GSM and Pate, which contributed an additional $40.8 million in sales during the year and, to a lesser extent, a general volume increase in our bulk and break-bulk terminals, which saw more activity this year than in 2018.
Revenue from the environmental services segment totalled $254.6 million, compared with $244.1 million in 2018, an increase of $10.5 million. This is mainly due to higher revenue from the rehabilitation of underground water mains, site remediation and decontamination services than last year, which was partially offset by lower revenue from woven hose manufacturing.
In 2019, the Company reported a profit of $26.4 million, of which $0.2 million was attributable to non-controlling interest, amounting to a $26.2 million profit attributable to owners of the Company. This translated into total diluted earnings per share of $2.00 of which $1.92 per share was attributable to Class A Common Shares (“Class A share”) and $2.11 per share was attributable to Class B Subordinate Voting Shares (“Class B share”).
“We have and continue to benefit from our diversity of services offered, of customers we serve, and of our geographic network. This solid platform of services which focuses on customer needs is the base on which we will continue to grow.
In cargo handling, we will continue to expand our network of terminals and services, while maximizing cargo volumes in each facility. Through market intelligence, we always seek to position our services in line with the growth of imports and exports. Our growth will come from both organic and acquisition opportunities.
We also have ambitious plans for our environmental business. The rapid pace of development in urbanization, demographic shifts, climate changes and technology has required that we anticipate our customers’ future challenges and deliver creative solutions that bring value not only today, but more importantly for tomorrow. We have and are developing technologies to address many of these challenges. In our suite of water technologies, we can rehabilitate aqueducts with minimal excavation, and with our next generation of Aqua-Pipe, we further differentiate ourselves by safeguarding water resources in seismic and flood zones. We have also been pro-active to develop technologies for the removal of lead in drinking water, a challenge for many large municipalities today. Furthermore, we are developing technologies to deal with per- and polyfluoroalkyl substances (“PFAS”) and other emerging contaminants.
Our business development team is being strengthened to ensure increased penetration in not only the Canadian market, but also in the USA. We are also confident that our subsidiary FER-PAL is also well-positioned to grow in its markets, particularly Ontario, Western Canada and the U.S. Midwest.
In the end, with our new strategic plan, we are not breaking with our past commitments; we are simply kickstarting these efforts with renewed impetus and engaging new stakeholders to make them happen,” indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
On March 17, 2020, the Board of Directors declared a dividend of $0.09350 per Class A share and $0.10285 per Class B share, for a total consideration of $1.2 million. These dividends will be paid on April 17, 2020 to shareholders of record as of April 3, 2020.
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 34 ports and 60 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 rehabilitation of underground water mains, soils and 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.
In this press release, the Company uses a measure that is not in accordance with IFRS. Adjusted earnings before interest expense, income taxes, depreciation and amortization expense (“adjusted EBITDA”) is not defined by IFRS and cannot be formally presented in the consolidated financial statements. The definition of adjusted EBITDA used by the Company may differ from those used by other companies. Even though adjusted EBITDA is a non-IFRS measure, it is used by managers, analysts, investors and other financial stakeholders to analyze and assess the Company’s performance and management from a financial and operational standpoint. The 2019 adjusted EBITDA reflects the application of IFRS 16 Leases which had a favourable impact of $13.7 million and for which the comparative figures have not been restated. Refer to Company’s management’s discussion and analysis of the of the period for further information and its Non-IFRS Measure section for the definition of this indicator and the reconciliation to profit (loss) for the period.
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 position 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.