Logistec Announces Financial Results for the Fourth Quarter and Fiscal 2009

Consolidated revenue from continuing operations totalled $215.0 million in 2009, compared with $228.3 million in 2008, down by $13.3 million or 5.8%. This decrease came from the marine services segment. Low economic activity negatively affected the steel and forest products industries and many mining projects in which we were involved in 2008. This had a negative impact on bulk and break-bulk cargo volumes, as well as on our Arctic marine transportation services. This was partly offset by the increase in revenue from our environmental services segment, which mostly came from an improvement of the Aqua-Pipe^® business. Net income from continuing operations reached $8.1 million or $1.22 per share in 2009, down by $5.8 million from $13.9 million or $2.09 per share in 2008. Revenue from marine services fell 14.3% to $160.8 million in 2009 ($187.8 million in 2008), whereas net income from continuing operations in the marine services segment decreased by 55.0% to $5.6 million ($12.5 million in 2008). Revenue from environmental services rose 33.5% to $54.2 million in 2009 ($40.6 million in 2008), where net income from continuing operations in the environmental services segment grew by 71.7% to $2.5 million ($1.5 million in 2008).

“Given the difficult economic conditions, we are satisfied with the final results for 2009. Cargo-handling revenue dropped some 15.8% and affected virtually all of our cargo-handling markets. Our marine transportation business was also affected by lower revenue, primarily on the international market, in addition to being negatively impacted by an engine failure in the High Arctic. Fortunately, these lower results were somewhat offset by excellent results in our environmental business,” indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

Fourth-Quarter Results
Revenue from continuing operations reached $66.7 million in the fourth quarter of 2009, up by $2.9 million over the fourth quarter of 2008. Revenue from the environmental services segment was particularly strong in this quarter and revenue from acquired businesses accounted for $4.8 million.

Net income from continuing operations totalled $4.5 million or $0.68 per share for the fourth quarter of 2009, representing a 14.9% decrease from $5.3 million or $0.80 per share in 2008.

Acquisitions
We were pleased to conclude three investment projects in our cargo-handling business in 2009. Firstly, in May, we purchased a 55-acre parcel of land in Montréal-Est (QC). This parcel will be developed as a logistics centre and will support the growth of our terminal activities in the Port of Montréal (QC). Secondly, in October, the Company purchased Les Terminaux Rideau Bulk Terminals Inc., a company that handles primarily road salt and aggregates in four ports along the St. Lawrence Seaway as well as in two inland terminals in Ontario. Thirdly, we were successful in purchasing our partner’s 50% interest in BalTerm, L.L.P., a limited liability partnership that specializes in the handling of inbound forest products through several facilities in the Port of Baltimore (MD).

Sanexen successfully completed two acquisitions in 2009, PCB Disposal Inc., which strengthens its market reach in the disposal business, and Niedner, a leading woven-hose manufacturer and exclusive supplier to Sanexen of one crucial component of Aqua-Pipe^®, the structural lining developed by Sanexen used to rehabilitate water mains.

“These investments all have strategic long-term value for Logistec and, other than the land which will be developed over the longer term, are expected to be accretive to earnings starting in 2010,” commented Ms. Paquin.

Outlook
“We remain prudent about the near future. Although economic indicators and experts are saying that the recession is over, we have not detected clear and strong signs of recovery. Trade volumes are not expected to return to their 2008 highs within the next two years. Furthermore, some of our market segments will undergo more profound changes and it will be important for us to adjust and position ourselves accordingly. We must therefore be vigilant with our resources and remain focused on the pursuit of development opportunities. Consequently, we continue to closely monitor and control our costs and are working diligently at generating new business,” said Ms. Paquin.

“For the longer term, Logistec has a promising future, in both our marine services and environmental services segments. Each segment has its challenges, but we are confident that with our continued focus on the development of our personnel, we will address the challenges and develop opportunities, so that both segments keep growing according to their respective plans,” concluded Ms. Paquin.

About Logistec
Logistec Corporation is based in Montréal (QC) and provides specialized services to the marine community and industrial companies in the areas of container, break-bulk and bulk cargo handling in 23 ports in Eastern Canada, the Great Lakes and the U.S. East Coast, including a short-line railway linked to a coal-handling operation in Cape Breton (NS). Logistec also offers marine transportation services geared primarily to the Arctic coastal trade; as well as agency services to foreign shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental sector where it provides services for the trenchless structural rehabilitation of water mains, PCB management, site remediation, risk assessment, and woven-hose manufacturing. 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 at the Company’s website at www.logistec.com.

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 situation 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.

Additional information relating to the Company, including the Company’s Annual Information Form, is on SEDAR at www.sedar.com.

Please click here for a PDF version of the financial statements.

For further information:

Jean-Claude Dugas CA
Vice-President, Finance
Logistec Corporation
jdugas@logistec.com
(514) 985-2345