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 third quarter ended September 28, 2019.
Highlights from the third quarter
– Consolidated revenue up $10.8 million (5.8%) to $195.3 million;
– Adjusted EBITDA (1) closed at $36.1 million;
– Total diluted profit per share of $1.33;
– On August 7, 2019, the Company’s Board of Directors elected to increase the dividend payment by 3.0%.
Highlights from the nine-month period
– Consolidated revenue up $50.0 million (12.0%) to $466.2 million;
– Adjusted EBITDA (1) closed at $59.0 million;
– Total diluted profit per share of $1.10.
Results of the period
The third quarter of 2019 closed with a consolidated profit attributable to owners of the Company of $17.4 million, compared to $22.3 million for the same quarter of 2018. The profit attributable to owners of the Company translated into a total diluted profit per share of $1.33, of which $1.27 was attributable to Class A Common Shares and $1.40 to Class B Subordinate Voting Shares.
The lower profit attributable to owners of the Company in the third quarter of 2019, when compared to the same period last year, stems mostly from a different distribution of the non-controlling interests, an overall effective tax rate which reflects our geographical distribution, increased business in more labour-intensive activities, and higher accretion costs based on the application of IFRS 16.
Year-to-date profit attributable to owners of the Company for the period are in line with 2018, despite the increased costs resulting from the application of IFRS 16. Essentially, comparative operating profit was $2.0 million higher than last year. As in all years, our services incurred highs and lows, and, in the end, they balanced each other out during the quarter. These fluctuations include better performance on bulk and break-bulk in our marine services segment, as well as soil management in Sanexen and Aqua-Pipe installation by FER-PAL. Offsetting these, we realized lower container volumes as well as reduced Aqua-Pipe in Québec and lower activity in our woven-hose manufacturing facility.
“We view the outlook for the remainder of the year with optimism. We expect our marine services to perform well and our environmental services will be very active as site remediations progress for the coming months. Our dedicated focus on the operations of FER-PAL should also help improve performance, as their results are better than last year.
On August 7, 2019, our Board of Directors elected to increase the dividend payment by 3.0%, which shows their confidence in our commitment to sustainable long-term growth,” indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation
(1) Adjusted EBITDA is a non-IFRS measure, please refer to the section entitled Non-IFRS measure
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 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 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.