MONTRÉAL, March 18, 2022 /CNW Telbec/ - LOGISTEC
Corporation ("LOGISTEC") (TSX: LGT.A) and (TSX: LGT.B) (the
"Company"), a marine and environmental services provider, today
announced its financial results for the year ended December 31, 2021. Pursuing its long-term growth
strategy, LOGISTEC was able to report the most successful year of
its history, reaching key milestones on the financial, operational,
and environmental fronts.
2021 Highlights
- Consolidated revenue reached $743.7
million, an increase of $139.0
million or 23.0%;
- Adjusted EBITDA (1) closed at $120.8 million, up $20.2
million;
- Total diluted earnings per share of $3.46, up 39.0%;
- Acquisition of American Process Group ("APG"), an Alberta-based environmental industry leader,
specialized in dredging, dewatering and residuals management in
Western Canada and select urban
areas in the U.S.
"This record-breaking performance is the result of a clear
vision, a solid strategic plan, well-defined business objectives,
and great execution," said Madeleine
Paquin, President and CEO, LOGISTEC. "I am grateful to all
the members of our team who were ready to go beyond and adapt to
our customers' and partners' needs, providing reliable and creative
solutions in this buoyant market. We are at an exciting moment in
our history where we can drive change with our expertise and
technology, and continue to push boundaries for many years to
come."
2021 Results
Consolidated revenue totaled $743.7 million in 2020, an increase of
$139.0 million or 23.0% over
2020. The marine services segment delivered the best performance
ever with 2021 revenue closing at $427.0 million, compared to $344.6 million, an increase of 23.9%. Our
port terminal operations reported a record tonnage handled in 2021
due to strong demand throughout the year, which led to these
outstanding results. The environmental services segment also
achieved a remarkable performance with revenue reaching
$316.7 million for 2021, up from
$260.1 million or 21.8% from the
previous year. Revenue growth was especially robust in the drinking
water infrastructure renewal market. Our field-proven technologies
provide solutions to ensure safe and reliable water supply and
represents a significant driver for our growth in the Canadian and
U.S. markets.
LOGISTEC reported a profit for the year
of $45.6 million, of which $45.4 million was attributable to owners of
the Company. This translated into total diluted earnings per share
of $3.46 of which $3.31 per share was attributable to Class A
Common Shares and $3.64 per
share was attributable to Class B Subordinate Voting Shares.
Outlook
In 2021, the COVID-19 pandemic persisted with the emergence of
variants, but despite that, we benefited from a gradual economic
recovery. Our expertise combined with a proven strategy of
innovation and targeted diversification, allowed us to increase our
revenue and improve our profitability.
From a global perspective, the current situation between
Russia and Ukraine and the related sanctions being
brought forth by various countries may influence the flow of
industrial commodities. It is difficult to predict what the outcome
will be, as some cargoes could be negatively affected, whereas
alternative cargoes could be favoured.
Coming out of our best year ever, our marine services segment
remains strong, and we have the confidence and support of our
customers and our partners. Our environmental services segment is
also in a good position to perform, with a solid order book to
start 2022 and new business opportunities from our latest
acquisition, American Process Group.
(1)
|
Adjusted EBITDA is
a non-IFRS measure, please refer to the non-IFRS measure
section.
|
From an organizational standpoint, we are in the process of
redefining and deploying our data strategy and have built the
foundation for our Enterprise Resource Planning ("ERP") system that
will be deployed in the coming years. We believe in investing in
technologies to modernize our IT infrastructure to leverage data in
support of our decision-making process.
We are confident we can continue to deliver a strong financial
performance in the future, as we can count on our talented team,
our vision and values, a solid strategic plan and a sound financial
position. We will continue to seek growth opportunities, both
organic and through acquisitions, while creating value for all our
stakeholders.
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 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)
|
2021
$
|
2020
$
|
Profit for the year
|
45,624
|
32,788
|
PLUS:
|
|
|
Depreciation and amortization expense
|
49,100
|
45,390
|
Impairment charge
|
—
|
—
|
Net finance expense
|
10,562
|
11,818
|
Income taxes
|
10,471
|
10,662
|
Configuration and
customization costs in a cloud computing arrangement
|
5,064
|
—
|
Customer repayment of an investment in
a service contract
|
—
|
—
|
Adjusted EBITDA
|
120,821
|
100,658
|
Forward-looking statements
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.
CONSOLIDATED STATEMENTS OF EARNINGS
years ended December 31
(in thousands of dollars, except per share amounts)
|
|
|
2021
$
|
2020
$
|
Revenue
|
|
743,703
|
604,701
|
Employee benefits expense
|
|
(363,331)
|
(287,665)
|
Equipment and supplies expense
|
|
(187,225)
|
(155,611)
|
Operating expense
|
|
(50,095)
|
(41,864)
|
Other expenses
|
|
(33,327)
|
(27,509)
|
Depreciation and amortization expense
|
|
(49,100)
|
(45,390)
|
Share of profit of equity accounted investments
|
|
10,084
|
9,529
|
Other losses
|
|
(4,052)
|
(923)
|
Operating profit
|
|
66,657
|
55,268
|
Finance expense
|
|
(11,103)
|
(12,453)
|
Finance income
|
|
541
|
635
|
Profit before income taxes
|
|
56,095
|
43,450
|
Income taxes
|
|
(10,471)
|
(10,662)
|
Profit for the year
|
|
45,624
|
32,788
|
Profit attributable to:
|
|
|
|
Owners of the Company
|
|
45,364
|
32,614
|
Non-controlling interest
|
|
260
|
174
|
Profit for the year
|
|
45,624
|
32,788
|
Basic earnings per Class A Common Share
(1)
|
|
3.34
|
2.43
|
Basic earnings per Class B Subordinate Voting Share
(2)
|
|
3.68
|
2.67
|
Diluted earnings per Class A share
|
|
3.31
|
2.39
|
Diluted earnings per Class B share
|
|
3.64
|
2.63
|
(1) Class A Common
Share ("Class A share").
|
(2) Class B Subordinate
Voting Share ("Class B share").
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
years ended December 31
(in thousands of dollars)
|
|
|
|
|
|
2021
|
2020
|
|
|
$
|
$
|
|
|
|
|
Profit for the
year
|
|
45,624
|
32,788
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
Items that are or may
be reclassified to the consolidated statements of
|
|
|
|
earnings
|
Currency translation
differences arising on translation of foreign operations
|
|
848
|
(3,223)
|
Income taxes relating
to currency translation differences arising on
translation
|
|
—
|
302
|
of foreign
operations
|
Unrealized gain on
translating debt designated as hedging item of the net
|
|
521
|
2,306
|
investment in foreign
operations
|
Income taxes relating
to unrealized gain on translating debt designated as
|
|
(121)
|
(1,053)
|
hedging item of the
net investment in foreign operations
|
Loss on derivatives
designated as cash flow hedges
|
|
(235)
|
(92)
|
Income taxes relating
to derivatives designated as cash flow hedges
|
|
62
|
(11)
|
Total items that are
or may be reclassified to the consolidated statements of
|
|
1,075
|
(1,771)
|
earnings
|
|
|
|
|
Items that will not be
reclassified to the consolidated statements of earnings
|
|
|
|
Remeasurement gains
(losses) on benefit obligations
|
|
5,178
|
(2,732)
|
Return on retirement
plan assets
|
|
1,034
|
333
|
Income taxes on
remeasurement gains (losses) on benefit obligation and
|
|
(1,646)
|
636
|
return on retirement
plan assets
|
Total items that will
not be reclassified to the consolidated statements of
|
|
4,566
|
(1,763)
|
earnings
|
|
|
|
|
Share of other
comprehensive income (loss) of equity accounted
investments,
|
|
|
|
net of income
taxes
|
Items that are or may
be reclassified to the consolidated statements of
|
|
318
|
(199)
|
earnings
|
Items that will not be
reclassified to the consolidated statements of
|
|
(84)
|
53
|
earnings
|
Total share of other
comprehensive income (loss) of equity accounted
investments,
|
|
234
|
(146)
|
net of income
taxes
|
Other comprehensive
income (loss) for the year, net of income taxes
|
|
5,875
|
(3,680)
|
Total
comprehensive income for the year
|
|
51,499
|
29,108
|
Total comprehensive
income attributable to:
|
|
|
|
Owners of the
Company
|
|
51,240
|
28,962
|
Non-controlling
interest
|
|
259
|
146
|
Total comprehensive
income for the year
|
|
51,499
|
29,108
|
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
|
|
|
|
(in thousands of Canadian dollars)
|
|
|
|
|
|
As
at
December 31,
2021
$
|
As at
December 31,
2020
$
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash and cash equivalents
|
|
37,530
|
46,778
|
Trade and other receivables
|
|
183,322
|
138,649
|
Contract assets
|
|
7,517
|
7,617
|
Current income tax assets
|
|
7,597
|
9,171
|
Inventories
|
|
16,830
|
12,946
|
Prepaid expenses and other
|
|
10,437
|
9,056
|
|
|
263,233
|
224,217
|
Equity accounted investments
|
|
46,311
|
45,061
|
Property, plant and equipment
|
|
207,321
|
185,686
|
Right-of-use assets
|
|
135,049
|
132,779
|
Goodwill
|
|
182,706
|
149,311
|
Intangible assets
|
|
41,043
|
38,422
|
Non-current assets
|
|
2,448
|
2,381
|
Non-current financial assets
|
|
5,902
|
9,210
|
Deferred income tax assets
|
|
14,958
|
12,385
|
Total assets
|
|
898,971
|
799,452
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Short-term bank
loans
|
|
8,600
|
—
|
Trade and other payables
|
|
127,044
|
91,694
|
Contract liabilities
|
|
14,801
|
8,941
|
Current income tax liabilities
|
|
10,442
|
8,719
|
Dividends payable
|
|
1,338
|
1,259
|
Current portion of lease liabilities
|
|
15,775
|
18,251
|
Current portion of long-term debt
|
|
3,427
|
3,748
|
|
|
181,427
|
132,612
|
Lease liabilities
|
|
125,249
|
116,901
|
Long-term debt
|
|
191,927
|
163,962
|
Deferred income tax liabilities
|
|
25,684
|
21,418
|
Post-employment benefit obligations
|
|
16,212
|
22,055
|
Contract liabilities
|
|
2,133
|
2,533
|
Non-current liabilities
|
|
40,730
|
38,400
|
Total liabilities
|
|
583,362
|
497,881
|
Equity
|
|
|
|
Share capital
|
|
50,889
|
45,575
|
Share capital to be issued
|
|
—
|
4,906
|
Retained earnings
|
|
254,621
|
242,358
|
Accumulated other comprehensive income
|
|
9,051
|
7,943
|
Equity attributable to owners of the Company
|
|
314,561
|
300,782
|
Non-controlling interest
|
|
1,048
|
789
|
Total
equity
|
|
315,609
|
301,571
|
Total liabilities
and equity
|
|
898,971
|
799,452
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in thousands of Canadian dollars)
|
|
|
Attributable to
owners of the Company
|
|
|
Share
capital
issued
$
|
Share
capital to
be issued
$
|
Accumulated
other
comprehensive
income
$
|
Retained
earnings
$
|
Total
$
|
Non-
controlling
interest
$
|
Total
equity
$
|
Balance as at January 1, 2021
|
|
45,575
|
4,906
|
7,943
|
242,358
|
300,782
|
789
|
301,571
|
Profit for the year
|
|
—
|
—
|
—
|
45,364
|
45,364
|
260
|
45,624
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Currency translation
differences arising on
|
|
—
|
—
|
849
|
—
|
849
|
(1)
|
848
|
translation of foreign
operations
|
Unrealized gain on
translating debt designated
|
|
—
|
—
|
400
|
—
|
400
|
—
|
400
|
as hedging item of the
net investment in foreign
|
operations, net of
income taxes
|
Remeasurement gains on
benefit obligation
|
|
—
|
—
|
—
|
4,566
|
4,566
|
—
|
4,566
|
and return on
retirement plan assets, net of
|
income
taxes
|
Share of other
comprehensive income of
|
|
—
|
—
|
32
|
202
|
234
|
—
|
234
|
equity accounted
investments, net of income
|
taxes
|
Cash flow hedges, net
of income taxes
|
|
—
|
—
|
(173)
|
—
|
(173)
|
—
|
(173)
|
Total comprehensive
income for the year
|
|
—
|
—
|
1,108
|
50,132
|
51,240
|
259
|
51,499
|
Remeasurement of
written put option liability
|
|
—
|
—
|
—
|
(32,403)
|
(32,403)
|
—
|
(32,403)
|
Issuance and
repurchase of Class B shares
|
|
408
|
—
|
—
|
(444)
|
(36)
|
—
|
(36)
|
Issuance of Class B
share capital to a subsidiary
|
|
4,906
|
(4,906)
|
—
|
—
|
—
|
—
|
—
|
shareholder
|
Class B shares to be
issued under the Executive
|
|
—
|
—
|
—
|
364
|
364
|
—
|
364
|
Stock Option
Plan
|
Other
dividend
|
|
—
|
—
|
—
|
(170)
|
(170)
|
—
|
(170)
|
Dividends on Class A
shares
|
|
—
|
—
|
—
|
(2,828)
|
(2,828)
|
—
|
(2,828)
|
Dividends on Class B
shares
|
|
—
|
—
|
—
|
(2,388)
|
(2,388)
|
—
|
(2,388)
|
Balance as at
December 31, 2021
|
|
50,889
|
—
|
9,051
|
254,621
|
314,561
|
1,048
|
315,609
|
CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY (CONTINUED)
(in thousands of Canadian dollars)
|
|
|
Attributable to
owners of the Company
|
|
|
Share
capital
issued
$
|
Share
capital to
be issued
$
|
Accumulated
other
comprehensive
income
$
|
Retained
earnings
$
|
Total
$
|
Non-
controlling
interest
$
|
Total
equity
$
|
Balance as at January 1, 2020
|
|
40,222
|
9,811
|
9,697
|
220,641
|
280,371
|
643
|
281,014
|
Profit for the year
|
|
—
|
—
|
—
|
32,614
|
32,614
|
174
|
32,788
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
|
Currency translation
differences arising on
|
|
—
|
—
|
(2,893)
|
—
|
(2,893)
|
(28)
|
(2,921)
|
translation of foreign
operations
|
Unrealized gain on
translating debt designated
|
|
—
|
—
|
1,253
|
—
|
1,253
|
—
|
1,253
|
as hedging item of the
net investment in foreign
|
operations, net of
income taxes
|
Remeasurement losses
on benefit obligation
|
|
—
|
—
|
—
|
(1,763)
|
(1,763)
|
—
|
(1,763)
|
and return on
retirement plan assets, net of
|
income
taxes
|
Share of other
comprehensive loss of equity
|
|
—
|
—
|
(11)
|
(135)
|
(146)
|
—
|
(146)
|
accounted investments,
net of income taxes
|
Cash flow hedges, net
of income taxes
|
|
—
|
—
|
(103)
|
—
|
(103)
|
—
|
(103)
|
Total comprehensive
(loss) income for the year
|
|
—
|
—
|
(1,754)
|
30,716
|
28,962
|
146
|
29,108
|
Remeasurement of
written put option liability
|
|
—
|
—
|
—
|
(2,732)
|
(2,732)
|
—
|
(2,732)
|
Repurchase of Class A
shares
|
|
(4)
|
—
|
—
|
(182)
|
(186)
|
—
|
(186)
|
Issuance and
repurchase of Class B shares
|
|
452
|
—
|
—
|
(888)
|
(436)
|
—
|
(436)
|
Issuance of Class B
share capital to a subsidiary
|
|
4,905
|
(4,905)
|
—
|
—
|
—
|
—
|
—
|
shareholder
|
Class B shares to be
issued under the Executive
|
|
—
|
—
|
—
|
136
|
136
|
—
|
136
|
Stock Option
Plan
|
Other
dividend
|
|
—
|
—
|
—
|
(299)
|
(299)
|
—
|
(299)
|
Dividends on Class A
shares
|
|
—
|
—
|
—
|
(2,758)
|
(2,758)
|
—
|
(2,758)
|
Dividends on Class B
shares
|
|
—
|
—
|
—
|
(2,276)
|
(2,276)
|
—
|
(2,276)
|
Balance as at
December 31, 2020
|
|
45,575
|
4,906
|
7,943
|
242,358
|
300,782
|
789
|
301,571
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
years ended
December 31
(in thousands of
Canadian dollars)
|
|
|
|
|
|
2021
$
|
2020
$
|
Operating activities
|
|
|
|
Profit for the year
|
|
45,624
|
32,788
|
Items not affecting cash and cash equivalents
|
|
64,265
|
60,517
|
Cash generated from operations
|
|
109,889
|
93,305
|
Dividends received from equity accounted investments
|
|
8,859
|
6,600
|
Contributions to defined benefit retirement plans
|
|
(1,022)
|
(871)
|
Settlement of provisions
|
|
(865)
|
(481)
|
Changes in non-cash working capital items
|
|
(27,556)
|
15,066
|
Income taxes paid
|
|
(9,719)
|
(5,164)
|
|
|
79,586
|
108,455
|
Financing
activities
|
|
|
|
Net change in short-term bank loans
|
|
8,600
|
—
|
Issuance of long-term debt, net of transaction costs
|
|
91,681
|
76,518
|
Repayment of long-term debt
|
|
(63,601)
|
(83,962)
|
Repayment of other non-current liabilities
|
|
(2,635)
|
(2,557)
|
Repayment of lease liabilities
|
|
(13,384)
|
(14,049)
|
Interest paid
|
|
(11,508)
|
(10,755)
|
Issuance of Class B shares
|
|
130
|
190
|
Repurchase of Class A shares
|
|
—
|
(186)
|
Repurchase of Class B shares
|
|
(551)
|
(1,131)
|
Dividends paid on Class A shares
|
|
(2,794)
|
(2,760)
|
Dividends paid on Class B shares
|
|
(2,343)
|
(2,262)
|
|
|
3,595
|
(40,954)
|
Investing
activities
|
|
|
|
Cash acquired in a
business combination
|
|
—
|
1,280
|
Acquisition of property, plant and equipment
|
|
(44,306)
|
(23,375)
|
Acquisition of intangible assets
|
|
(117)
|
(248)
|
Proceeds from disposal of property, plant and equipment
|
|
699
|
634
|
Business combinations
|
|
(50,390)
|
(19,957)
|
Interest received
|
|
576
|
330
|
Acquisition of other non-current assets
|
|
(632)
|
(228)
|
Proceeds from disposal of other non-current assets
|
|
84
|
109
|
Cash paid to non-controlling interests
|
|
(170)
|
(2,056)
|
Cash received on other non-current financial assets
|
|
1,398
|
222
|
|
|
(92,858)
|
(43,289)
|
Net change in cash and cash equivalents
|
|
(9,677)
|
24,212
|
Cash and cash equivalents, beginning of year
|
|
46,778
|
22,608
|
Effect of exchange rate on balances held in foreign currencies
|
|
|
|
of foreign operations
|
|
429
|
(42)
|
Cash and cash equivalents, end of year
|
|
37,530
|
46,778
|
SOURCE Logistec Corporation