LOGISTEC ANNOUNCES ITS RESULTS FOR THE FIRST QUARTER OF 2019
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 first quarter ended March 30, 2019.
First quarter financial highlights
• Consolidated revenue up $32.3 million or 39.2% to $114.7 million
• Adjusted EBITDA (1) closed at $1.2 million
• Loss attributable to owners of the Company reduced to $8.9 million
Results for the first quarter of 2019
During the first quarter of 2019, consolidated revenue totalled $114.7 million, an increase of $32.3 million or 39.2% over the same period in 2018. Revenue from the marine services segment rose by 44.0%, from $63.3 million to $91.1 million. Cargo handling activities were very strong in the first quarter. We also benefitted from two additional months of Gulf Stream Marine Inc. in 2019, our new Gulf terminals purchased in early March 2018, and, to a lesser extent, the results of Pate Stevedore Company, Inc., our new Florida terminals purchased in May 2018. Our teams have integrated well, and we are confident that we will achieve positive synergies going forward. Revenue from the environmental services segment amounted to $23.6 million, an increase of $4.4 million or 23.2% over the first quarter of 2018.
The first quarter of 2019 closed with a consolidated loss attributable to owners of the Company of $8.9 million, compared with a loss of $9.5 million in the first quarter of 2018. Loss from the marine services segment amounted to $1.0 million in the first quarter of 2019, $3.1 million less than the $2.1 million profit reported for the same quarter of 2018. However, cargo handling performance was in line with 2018 if we exclude higher professional fees, increased finance expense to support the business combinations, and the incremental expenses related to the transition to IFRS 16 that were recorded in Q1 2019. Loss from the environmental services segment amounted to $11.3 million in the first quarter of 2019, $0.9 million less than the $12.2 million loss reported for the same quarter of 2018. This segment is particularly affected by weather conditions in winter months since most of its operations, Aqua-Pipe or site remediation, require soil excavation and manipulation.
The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.70, of which $0.67 was attributable to Class A Common Shares and $0.74 to Class B Subordinate Voting Shares.
(1) Please refer to section entitled Non-IFRS measure
“We are cautiously optimistic about the outlook for the remainder of the year. We expect a good performance from our marine services, where we have recently added two break-bulk terminals in Cleveland (OH) to our network. We also expect a strong year with our Arctic transportation business, where we were successful in winning larger contracts from the government of Nunavut and have taken the opportunity to modernize our fleet. We replaced two vessels with younger, larger ships.
The outlook for our environmental services is also good. Although we foresee lower revenue for our Aqua-Pipe business in Québec, we are very excited about the increasing demand for the Neofit®+Plus technology, a water pipe liner that prevents lead from seeping into the drinking water. We are also focused on improving the performance of FER-PAL, our subsidiary based in Toronto (ON), that installs Aqua-Pipe in Canada and the Midwest.
As well as pursuing margin improvement, we also continue to seek new growth opportunities in both our marine and environmental services segments”, indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
On May 9, 2019, the Board of Directors declared dividends of $0.09075 per Class A Common Share and $0.099825 per Class B Subordinate Voting Share, for a total consideration of $1.2 million. These dividends will be paid on July 5, 2019, to shareholders of record as of June 21, 2019.
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 36 ports and 62 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.
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 unaudited condensed consolidated interim 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. Refer to Non-IFRS Measure of the Company’s management’s discussion and analysis of the period 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.