Montréal, Québec, March 22, 2012 - Logistec Corporation [TSX: LGT.A and LGT.B], a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2011.
Consolidated revenue totalled $224.6 million in 2011, an increase of $18.6 million or 9.0% over 2010. The marine services segment posted revenue of $132.9 million in 2011, a very similar level of activity when compared to the $133.5 million reported for 2010. Higher volumes of bulk cargo and additional revenue from a new cargo-handling services contract with a major aluminum producer in Northern Québec were offset by a lower level of activity in the United States. The environmental services segment delivered a very strong performance in 2011, as revenue increased by $19.3 million or 26.6% over 2010 to reach $91.8 million. The increase is due mainly to a very high level of site remediation activity, which was partly offset by lower revenue from Niedner hoses and Aqua-Pipe® services due to municipal budget constraints, particularly in the United States.
In 2011, Logistec achieved a consolidated profit attributable to owners of the Company of $17.6 million compared to $14.4 million in 2010. The 2011 profit attributable to owners of the Company computes to total basic and diluted earnings per share of $2.69, which corresponds to basic and diluted earnings per share of $2.58 attributable to Class A Common Shares and of $2.84 attributable to Class B Subordinate Voting Shares. This increase in profit is partly attributable to the success of Sanexen in 2011, but also to a gain generated by the partial sale of the Company's interest in a subsidiary of a joint venture. The positive impact of the previous two items was partly offset by the recognition of an impairment loss on goodwill in 2011 and the non-recurring impact in 2011 of recording a retirement plan surplus in 2010. The marine services segment posted a profit before income taxes of $14.3 million, down by $0.6 million over $14.9 million in 2010. The environmental services segment recorded a profit before income taxes of $9.2 million, up by $3.5 million over $5.7 million in 2010.
During the fourth quarter of 2011, consolidated revenue totalled $66.2 million, up $5.1 million over the same period of 2010. This increase can be explained by strong activity in the environmental services segment, although that was partly offset by slower business in the United States. The consolidated profit attributable to owners of the Company amounted to $3.0 million, down $2.6 million from the fourth quarter of 2010. The negative variation came from an impairment loss on goodwill and higher equipment costs incurred in the fourth quarter of 2011. The profit attributable to owners of the Company computes to total basic and diluted earnings per share of $0.46, which corresponds to basic and diluted earnings per share of $0.44 attributable to Class A Common Shares and of $0.48 attributable to Class B Subordinate Voting Shares.
This is the first year in which the Company is presenting its consolidated financial statements under IFRS. The change in standards that had the most significant impact on the consolidated financial statements relates to its joint ventures. The Company has elected to use the equity method to account for its interests in joint ventures whereas previously, under CGAAP, the Company was using the proportionate consolidation method. For example, the exclusion of its proportionate share of revenue from joint ventures reduced its previously reported consolidated revenue for 2010 by $55.9 million. The effects of the transition to IFRS on the consolidated financial statements are presented in detail in Note 40 of the notes to 2011 consolidated financial statements.
"We expect the business environment to remain challenging in 2012, especially with respect to the more traditional cargoes handled. In 2012, we expect to focus on the development of two specific activities: biomass energy and Québec's Plan Nord. With respect to biomass, many plants are developing in North America to serve biomass energy needs in European countries. We continue to invest to serve this market and will complete the first phase of our terminal infrastructure in Brunswick (GA) in 2012, allowing us to increase throughput of this cargo. As for the Plan Nord, with our new port installation in Baie-Comeau (QC), together with our current activities in Sept-Îles (QC), we are well positioned in both our transportation and cargo-handling businesses to provide valuable services to new and growing mining companies as well as to the communities that need to be developed.
Sanexen should enjoy strong organic growth in the years to come. Although site remediation projects may vary significantly from year to year, Sanexen currently has a solid order backlog, which bodes well for 2012. Furthermore, we are well positioned in the Arctic by way of a partnership established with a key Inuit development firm. Despite a quiet year for Aqua-Pipe® and woven-hose manufacturing in 2011, we believe this market will be more active in 2012. We are confident that Aqua-Pipe® is gaining recognition in the United States. Once the U.S. economy performs better and government budgets allocate resources needed for infrastructure, revenue will start coming in more regularly. We also initiated environmental operations in France and are very positive about our outlook in this market as activity is picking up faster than we originally forecast,” indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.
"Overall, for both our business segments, we are confident we will continue to grow and perform well. We have a solid financial position, available banking credits, a competent, dedicated management and labour force, and we keep investing in equipment to maintain and enhance our operations. Finally, we also continuously seek business opportunities, by way of acquisitions, development projects or outsourcing, in order to grow our Company and shareholder value,” concluded Ms. Paquin.
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 23 ports in Eastern Canada, the Great Lakes and the U.S. East Coast. Logistec also offers marine transportation services geared primarily to the Arctic coastal trade, short-line rail transportation services, as well as marine agency services to foreign shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental sector where it provides services to industrial companies and municipalities for the trenchless structural rehabilitation of underground 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.
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 our Company can be found on SEDAR at www.sedar.com and on Logistec's website at www.logistec.com.
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Jean-Claude Dugas CA