FOR IMMEDIATE RELEASE
May 6, 2020
LOGISTEC ANNOUNCES ITS RESULTS FOR THE FIRST QUARTER OF 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 first quarter ended March 28, 2020.
Highlights for the first quarter of 2020
- Consolidated revenue down $5.3 million or 4.6% to $109.4 million;
- Adjusted EBITDA (1) up $6.3 million to $7.5 million;
- Cash flows from operating activities up $14.3 million to $23.9 million;
- Total loss per share improved from $0.70 to $0.42
Results for the first quarter of 2020
During the first quarter of 2020, consolidated revenue totalled $109.4 million, a decrease of $5.3 million or 4.6% over the same period in 2019. Revenue from the marine services segment was lower at $90.3 million compared to $91.1 million in the comparative period.
The adjusted EBITDA (1) for the quarter closed at $7.5 million, an increase of $6.3 million over the comparative period. This increase stemmed mainly from the unrealized exchange gains and lower professional fees incurred in 2020 compared to 2019, to support business integration and to analyze business development opportunities. The increase was partially offset by lower revenue as explained above.
Cash flows from operating activities totalled $23.9 million for the first quarter of 2020, up $14.3 million from $9.6 million for the same period in 2019. The increase stemmed mainly from a reduced loss for the period and a better monetization of working capital.
As in previous first quarters, our Company showed a loss in the first quarter. This is due to the high seasonality of its environmental services, as well as marine navigation to the Arctic, and the lack of cargo-handling activities in the Great Lakes, which are closed to navigation during this period. Loss attributable to the owners of the Company for the first quarter amounted to $5.4 million, substantially better than last year’s loss of $8.9 million. The improvement can largely be attributed to a gain in foreign exchange as mentioned above, but it is important to note that our non-seasonal operating activities also performed well. The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.42, of which $0.41 was attributable to Class A Common Shares and $0.45 to Class B Subordinate Voting Shares.
(1)Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.
During March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. The situation is constantly evolving, and the measures put in place have numerous economic repercussions on the global and national levels. These measures, which include travel bans, solitary confinement or quarantine, whether voluntary or not, and social distancing, have caused significant disruption in the United States and Canada, where the Company operates.
LOGISTEC has rolled out its business continuity plan for its operations that are deemed essential services by the government authorities in Canada and the United States. More precisely, the Company’s marine operations are considered essential services and, as such, our terminal operations across our North American network remain open and functional. In addition, our manufacturing of woven hoses, which is essential in providing communities with drinking water and fighting forest fires, remain operational.
On the environmental side, we are, as every year, affected by the seasonality of our operations and most activities cannot be performed in the winter season. This includes site remediation and rehabilitation of water mains. COVID-19 has nonetheless affected some of these activities, causing delays in certain projects. However, as we perform crucial services to maintain and upgrade critical infrastructure, we expect to move forward with a number of them in the weeks to come.
“We want to thank all of our people, both on the front lines and those working remotely, for their dedication and resilience in these trying times. Since we rolled out our business continuity plan for our operations that are deemed essential services by the government authorities in Canada and the United States, they have demonstrated resilience and agility to provide reliable services to our customers, our partners, and the communities in which we operate. Our business diversity and our essential services bring us some financial stability, which we believe will position us favourably in the coming months,” indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
On May 6, 2020, the Board of Directors declared a dividend of $0.09350 per Class A Common Share and $0.10285 per Class B Subordinate Voting Share, for a total consideration of $1.2 million. These dividends will be paid on July 3, 2020 to shareholders of record as of June 19, 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 59 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. Refer to Company’s management’s discussion and analysis 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.