Montréal, Québec, November 3, 2022 – LOGISTEC Corporation (“LOGISTEC”) [TSX: LGT.A and LGT.B] (the “Company”), a marine and environmental services provider, announced today its financial results for the three-month and nine-month periods ended September 24, 2022. LOGISTEC reports record results for a sixth consecutive quarter as it pursues its bold growth strategy in a continued positive momentum.
Highlights From the Third Quarter of 2022:
- Consolidated revenue totalled $284.2 million, up $48.0 million or 20.3%.
- Adjusted EBITDA (1) closed at $58.7 million, up $9.0 million.
- Total diluted earnings per share of $2.43, up $0.39.
Highlights From the Nine-Month Period Ended September 24, 2022
- Consolidated revenue totalled $644.6 million, up $131.0 million or 25.5%.
- Adjusted EBITDA (1) closed at $100.7 million, up $17.5 million.
- Total diluted earnings per share of $2.97, up $0.59.
“We can attribute our record third quarter results to the strength of our unique business model,” said Carl Delisle, Chief Financial Officer. “Again, the diverse nature of our two business segments, the breadth of our network, the expanding scope of our expertise continue to strengthen our resiliency. As pressure grows on the global supply chain, we leveraged our network of port terminals across North America and found innovative ways to counter the effect of congestion, allowing our customers to benefit from both our gateway access and operational expertise.”
“Our people have shown great agility in developing tailored solutions for our customers in markets that continue to evolve,” said Madeleine Paquin, President and Chief Executive Officer. “I would like to recognize the dedication and passion of our teams who succeeded in delivering in an efficient and safe manner. We handled record volumes of cargo across our network and delivered on key environmental projects this past quarter, creating value for our stakeholders and communities, and this is reflected in our solid performance.”
Results From the Period
LOGISTEC delivered very strong results for the third quarter of 2022. Consolidated revenue was $284.2 million for the period, an increase of $48.0 million or 20.3% over the same period in 2021. Our core markets remained strong in the USA and Canada. Our extensive network, the depth of our expertise and the diverse industries we served, enabled us to achieve another successful quarter in an ever-changing context.
Marine Services Segment
Revenue from the marine services segment reached $160.6 million in the third quarter of 2022, up $48.7 million or 43.6% compared with the same period in 2021. Our marine services segment delivered outstanding results due to strong demand, especially in the steel and wind energy industries. An important increase in cargo activities in the U.S. Gulf Coast was driven by strong activity in the energy sector.
We collaborated with our supply chain partners to increase capacity at our port terminals and facilities. With such high volumes of cargo, we further optimized terminal operations and leveraged safe and efficient handling methods to increase speed of delivery. To improve supply chain fluidity, we offer a customizable solution for just-in-time delivery to destination.
- Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.
In September, LOGISTEC was named 2022 Terminal Operator of the Year at the Heavy Lift Awards Ceremony held in Hamburg, Germany. The award comes at a time of global challenges in the supply chain and recognizes LOGISTEC’s ability to respond to and anticipate customers’ needs with innovative solutions. LOGISTEC was also highly commended for Excellence in Environmental Performance, as it is leading the drive to a sustainable supply chain through concrete Environmental, Social, and Governance (“ESG”) objectives, smart investments and continuous operational enhancements.
Environmental Services Segment
Revenue from the environmental services segment reached $123.6 million, slightly down by $0.7 million or 0.6% in the third quarter of 2022, which is consistent with last year’s results. Traditional environmental services delivered their entire backlog for the quarter. However, some delays and project changes led to lower than expected revenue and margins. Given the seasonal and project-based nature of our operations, our focus will remain on achieving our business objectives and completing our projects before the end of the year.
We are continuing to position our ALTRA PFAS solutions to address the real and present negative impacts of per- and polyfluoroalkyl (“PFAS”) in drinking water and soils, as public awareness and concerns grow regarding the health and environmental damage caused by these forever chemicals.
We are well positioned to deliver a strong financial performance for the remainder of the year particularly in our marine services segment and keep developing innovative solutions in our environmental and water activities. As the global economy is in transition, LOGISTEC remains focused on its long-term strategic plan. Our unique business model in two highly important sectors, positions us to adapt to shifting markets, providing solutions for a resilient global supply chain and implementing innovative technologies in support of a sustainable future.
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 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.
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 configuration and customization costs related to the implementation of an Enterprise Resource Planning (“ERP”) system and 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.
The following table provides a reconciliation of profit for the period to adjusted EBITDA:
|For the three months ended||For the nine months ended|
|Profit for the period||31,766||26,757||39,018||31,423|
|Depreciation and amortization expense||14,056||12,564||40,890||35,808|
|Net finance expense||4,052||2,551||9,986||7,506|
|Configuration and customization costs in a cloud computing arrangement||1,024||—||3,388||—|
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 2021 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.
For further information:
Carl Delisle, cpa
Chief Financial Officer
(514) 985 2390