Montréal, Québec – 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 27, 2021.
Highlights for the first quarter of 2021
- Consolidated revenue reached $104.9 million, down $4.5 million or 4.2%;
- Adjusted EBITDA (1)closed at $6.2 million, down $1.3 million;
- Cash flows from operating activities generated a solid $18.3 million;
- Total basic loss per share closed at $0.44
Results for the first quarter of 2021
During the first quarter of 2021, consolidated revenue totalled $104.9 million, a decrease of $4.5 million or 4.2% over the same period in 2020. Revenue from the marine services segment reached $82.4 million in 2021, down $7.9 million or 8.7% compared with $90.3 million for the comparative period. Revenue from the U.S. Gulf region continues to be impacted by the slowdown of the oil and gas industry. Revenue from the environmental services segment was $22.4 million, up $3.3 million or 17.4% in the first quarter of 2021. This is mainly due to an increase revenue from sale of goods. Our environmental services segment is backed by a large order book of projects in 2021.
The adjusted EBITDA (1) for the quarter closed at $6.2 million, a decrease of $1.3 million compared with $7.5 million recorded in the comparative period. The decline in adjusted EBITDA (1) stemmed mainly from the unrealized exchange loss incurred in 2021 compared with an unrealized exchange gain in 2020. Excluding foreign exchange, our adjusted EBITDA (1) would have been ahead of last year by $3.7 million.
Cash flows from operating activities generated a solid $18.3 million for the first quarter of 2021 which is more than sufficient to cover our usual investment and financing activities.
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 $5.7 million, slightly higher than last year’s loss of $5.4 million. The loss attributable to owners of the Company translated into a total basic and diluted loss per share of $0.44, of which $0.42 was attributable to Class A Common Shares and $0.47 to Class B Subordinate Voting Shares.
“Our outlook, although still volatile due to the pandemic, seems positive in both our segments. In cargo handling, our strategic network of 79 terminals in 53 ports allows us to handle a wide range of diversified cargoes for many global industries. The economy is set to recover well, and, other than uncertainty with respect to the Port of Montréal labour situation, we should be in a position to benefit from stable and increasing volumes throughout our network. Our environmental business is also off to a good start with an order book of over $180.0 million. Our ALTRA water main renewal contracts are strong in both Québec and Ontario, and we are getting some traction in new markets. Further, lead in water and per- and polyfluoroalkyl substances (“PFAS”) contamination continue to draw significant attention, especially in the USA, and we are well positioned to participate in these key markets over the coming years. We also see great opportunities for our field-proven expertise outside of Québec and are proactively expanding our environmental services across Canada, with particular emphasis on the western parts of the country”, indicated Madeleine Paquin, President and Chief Executive Officer of LOGISTEC Corporation.
Our Response to COVID-19
LOGISTEC continues to monitor developments related to the COVID-19 pandemic and takes all appropriate measures to protect the health and safety of its people, its customers, and its communities.
LOGISTEC continues to operate under its business continuity plan. To date, all our operations were deemed essential services by the government authorities in Canada and the United States. As such, the Company’s marine operations, including our terminal operations across our North American network, remain open and functional. Similarly, the Company’s environmental operations, including renewal of underground water mains, site remediation, soils and materials management, and manufacturing of woven hoses, are operational. Nonetheless, the economic slowdown due to COVID-19, as well as the strict distancing and sanitation protocols have increased the operating costs in our marine and environmental services segments.
On May 4, 2021, 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 $1.3 million. These dividends will be paid on July 5, 2021 to shareholders of record as of June 21, 2021.
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 53 ports and 79 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 industry where it provides services to industrial, municipal and other governmental customers for the renewal 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.
(1) 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. 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.
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 impact of the COVID-19 pandemic on the Company’s business and results of operations, 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.