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 second quarter ended June 29, 2019.
Highlights from the second quarter
– Consolidated revenue up $7.0 million (4.7%) to $156.2 million;
– Adjusted EBITDA (1) closed at $21.7 million;
– Total basic profit per share up $0.32 to $0.46;
– LOGISTEC and Waterson Terminal Services join forces to support ProvPort, Rhode Island;
– Inauguration of two newer and larger vessels at our Arctic transportation business.
Highlights from the six-month period
– Consolidated revenue up $39.3 million (17.0%) to $270.9 million;
– Adjusted EBITDA (1) closed at $22.9 million;
– Total basic loss per share from ($0.60) to ($0.23).
Results of the period
The strong performance of the first half of 2019 stems from the two new business combinations made in the course of last year. In the second quarter of 2019, Pate Stevedore Company, Inc. (“Pate”), our new Florida terminals purchased on May 25, 2018 and Gulf Stream Marine, Inc. (“GSM”) which performs cargo handling operations in the U.S. Gulf Coast, acquired March 1, 2018, contributed a combined $5.4 million in additional sales when compared to Q2 2018. For the first half of 2019, the additional combined sales from these business combinations amount to $30.7 million, when compared to the same period last year.
The second quarter of 2019 closed with a consolidated profit attributable to owners of the Company of $5.9 million, compared with a profit of $1.9 million for the second quarter of 2018. The profit attributable to owners of the Company translated to a total basic profit per share of $0.46, of which $0.44 was attributable to Class A Common Shares and $0.49 was attributable to Class B Subordinate Voting Shares.
These higher results stem primarily from the good performance of Pate and GSM, and higher levels of activity throughout our network, partially offset by the unrealized exchange losses on translating net working capital denominated in U.S. dollars, given the weakened Canadian dollar.
“The outlook remains positive for the remainder of the year. We expect continued organic growth from our marine services, where we have entered into a cargo-handling operational agreement with Waterson Terminal Services at the Port of Providence’s ProvPort, New England’s premiere deepwater facility. Also, our Arctic transportation business has invested in modern Canadian flag vessels to enhance our cargo capacity and improve the overall customer sealift experience.
Our environmental services should also have a good year. Although Aqua-Pipe contracts in Québec will be lower this year, we are seeing increased activity for our lead removal services and we expect a stronger year for our traditional environmental services based on a firm order book.
We are proud of the above achievements, as they are in line with our goals to provide our customers with forward-thinking marine and environmental solutions. We strive to go beyond and connect with our partners and communities and seize the right opportunities. Our commitment and passion make the difference”, indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
On August 7, 2019, the Board of Directors elected to increase the dividend payment by 3.0% and declared dividends of $0.0935 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 October 11, 2019, to shareholders of record as of September 27, 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 some 37 ports and 63 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 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.