LOGISTEC Announces 2021 Year-End Results: A Record-Breaking Year Reaching Key Financial Milestones

- Advertisement -

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

Disclaimer: The above press release comes to you under an arrangement with PR Newswire. Agrigate Global takes no editorial responsibility for the same.