Montréal, Québec, May 5, 2022 – LOGISTEC Corporation (“LOGISTEC”) [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 26, 2022. LOGISTEC pursues its long-term growth strategy and continues to perform in a strong market.
Highlights From the First Quarter of 2022
• Consolidated revenue reached $141.4 million, up $36.5 million or 34.9%.
• Adjusted EBITDA (1) reached $7.8 million, up $1.6 million.
• Total basic loss per share closed at $(0.46).
• Appointment of a new president for our environmental services business.
“We are pleased to report a solid performance for our first quarter due to significant activity in a robust marine services segment. Our dedicated teams continue to work diligently in the field to contribute to our customers’ success,” said Madeleine Paquin, President and CEO of LOGISTEC. “With respect to our environmental services segment, it is well positioned for the start of a busy season with a strong order book.”
Our marine services segment started the year with high volumes in our bulk, forest products and steel cargoes. In January, LOGISTEC USA Inc. formed a strategic alliance with Infrastructure and Energy Alternatives, a leading engineering company with renewable energy expertise, to support new utility-scale offshore wind developments along the U.S. east coast.
Also noteworthy, Rodney Corrigan, President of LOGISTEC Stevedoring Inc., received Signal Mutual’s Francis R. Sharp Executive Leadership Award for Safety, for his commitment to preventing workplace incidents through integrated safety initiatives.
Our environmental services segment performed as expected, given the seasonality of this segment. The order book is filling up and we forecast a positive outlook for the balance of the year. Jean-François Bolduc was appointed President of LOGISTEC Environmental Services Inc. and SANEXEN Environmental Services Inc. in January 2022. With an impressive track record, he will focus on business strategy and operational excellence, and lead our high-performing teams to accelerate growth for LOGISTEC across North America.
Results From the First Quarter of 2022
During the first quarter of 2022, consolidated revenue totalled $141.4 million, an increase of $36.5 million or 34.9% over the same period in 2021. Revenue from the marine services segment reached $111.7 million in 2022, up $29.3 million or 35.6% compared with $82.4 million for the comparative period. The U.S. Gulf Coast region continues to benefit from the booming energy sector. Revenue from the environmental services segment was $29.7 million, up $7.3 million or 32.5% in the first quarter of 2022. This growth is mainly attributable to the acquisition of American Process Group (“APG”) made in the second quarter of 2021.
Adjusted EBITDA (1) for the quarter reached $7.8 million, an increase of $1.6 million compared with $6.2 million recorded in the comparative period. The increase in adjusted EBITDA (1) stemmed mainly from higher revenue made during the period.
As in previous first quarters, our Company showed a loss in the first quarter. This is due to the high seasonality of our 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 owners of the Company for the first quarter amounted to $6.0 million, slightly higher than last year’s loss of $5.7 million. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $0.46, of which $0.44 was attributable to Class A Common Shares and $0.49 to Class B Subordinate Voting Shares.
(1) Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.
Outlook
“Our 2022 outlook is positive for both of our business segments. The current economic context will positively impact our marine services segment and we are well positioned to benefit from increasing volumes throughout our network of 80 terminals in 54 ports. Our environmental business is also off to a good start with an order book of over $200.0 million. ALTRA water main renewal contracts are strong, and we are targeting new markets to pursue our growth. With our latest acquisition, namely APG, we have great opportunities to expand our field-proven expertise in Western Canada and the USA,” indicated Madeleine Paquin.
Dividends
On May 5, 2022, the Board of Directors declared a dividend of $0.09818 per Class A Common Share and $0.10799 per Class B Subordinate Voting Share, for a total consideration of $1.3 million. These dividends will be paid on July 8, 2022, to shareholders of record as of June 23, 2022.
About LOGISTEC
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 54 ports and 80 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 shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental industry where it provides services to industrial, municipal and other governmental customers for the renewal of underground water mains, dredging, dewatering, contaminated soils and materials management, site remediation, risk assessment, and manufacturing of fluid transportation products.
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.
Non-IFRS Measure
Adjusted earnings before interest expense, income taxes, depreciation and amortization expense (“adjusted EBITDA”) is not defined by IFRS and cannot be formally presented in financial statements. The definition of adjusted EBITDA excludes the Company’s impairment charge, includes the customer repayment of an investment in a service contract and, since 2021, excludes configuration and customization costs related to the implementation of an Enterprise Resource Planning (“ERP”) system. 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 following table provides a reconciliation of profit for the year to adjusted EBITDA:
|
(in thousands of dollars) |
For the three months ended |
|
|
|
March 26, 2022 $ |
March 27, 2021 |
|
Loss for the period |
(5,898) |
(5,621) |
|
PLUS: |
|
|
|
Depreciation and amortization expense |
12,797 |
11,361 |
|
Net finance expense |
2,829 |
2,433 |
|
Income taxes |
(2,410) |
(1,926) |
|
Configuration and customization costs in a cloud computing arrangement |
483 |
— |
|
Adjusted EBITDA |
7,801 |
6,247 |
For further information:
Jean-Claude Dugas, CPA, CA
Chief Financial Officer
Logistec Corporation
jdugas@logistec.com
(514) 985-2345