MONTRÉAL, March 22,
2023 /CNW/ - LOGISTEC Corporation ("LOGISTEC") (TSX:
LGT.A) (TSX: LGT.B) (the "Company"), a leading marine and
environmental services provider, today announced its financial
results for the year ended December 31,
2022. Pursuing its long-term sustainable growth strategy,
LOGISTEC was able to report historic results surpassing an all-time
high in an economic context favorable to our activities.
2022 Highlights
- Consolidated revenue reached $897.6
million, an increase of $153.9
million or 20.7%;
- Adjusted EBITDA (1) closed at $142.1 million, up $21.3
million;
- Total diluted earnings per share of $4.12, up 19.1%;
"The year of LOGISTEC's 70th anniversary was a
memorable one for its record results, outstanding performance and
remarkable innovations," said Madeleine
Paquin, President and CEO, LOGISTEC. "LOGISTEC is
well-positioned for sustainable growth with financial strength,
diversification, a unique business model, an extensive North
American terminal network and innovative environmental
technologies. I am grateful to all the members of our team, our
customers and our partners for their continuous support,
collaboration, trust and loyalty."
"Our 2022 financial performance once again exceeds our
expectations on key financial metrics for the year," added
Carl Delisle, Chief Financial
Officer and Treasurer of LOGISTEC. "Thanks to the ingenuity and
dedication of our people, thought-out diversifications, organic
growth and strategic acquisitions over the last few years, LOGISTEC
has continued to build a more resilient platform while expanding
our reach, scope and expertise to our customers."
2022 Results – Strong Financial Performance
Consolidated revenue totaled $897.6
million in 2022, an increase of $153.9 million or 20.7% over fiscal 2021.
More importantly, we achieved record adjusted earnings before
interest expense, income taxes, depreciation, and amortization
expense ("Adjusted EBITDA") (1) of $142.1 million and a profit attributable to
owners of the Company of $53.5 million, a first in our history. These
earnings also led us to achieve another milestone: earnings per
share ("EPS") above $4.00 per share,
with total diluted earnings per share computing at $4.12 per share.
The marine services segment handled record volumes in response
to high demand in the supply chain and delivered great results with
2022 revenue closing at $565.8
million, compared to $427.0 million, an increase of 32.5% over
2021. Operations expanded at Lemont (IL), a strategic gateway to the
greater Chicago area markets and
other Midwest states. We strengthened our partnerships with key
ports, signing long-term agreements across our network.
The environmental services segment produced revenue reaching
$331.7 million for 2022, up 4.7%
from $316.7 million from the
prior year. Revenue was driven by our recent acquisition of
American Process Group, which contributed to a full year of revenue
in 2022.
LOGISTEC reported a profit for the year
of $54.0 million, of which $53.5 million was attributable to owners of
the Company. This translated into total diluted earnings per share
of $4.12, of which $3.95 per share was attributable to Class A
Common Shares and $4.34 per
share was attributable to Class B Subordinate Voting Shares.
|
(1) Adjusted EBITDA is a
non-IFRS measure, please refer to the non-IFRS measure
section.
|
Outlook
In today's environment, as both our business segments evolve,
adapt and grow, we will leverage the strength of our network of
marine terminals to support reliable and sustainable supply chains
and help our customers solve their most complex environmental
challenges. Our 2022 results served as clear evidence of the
resiliency of our business and the benefits of our focused
strategy. Both segments offer solutions to capitalize on growth
opportunities in response to current market trends and key
environmental imperatives.
LOGISTEC has a history of continuous growth for over 70 years.
In the last 10 years, the marine services segment, a mature
industry, has grown revenue at an impressive 14.7% compound annual
growth rate ("CAGR"). LOGISTEC is a leader in handling dimensional
parts such as wind energy components. The safe handling of
over-dimensional cargoes is growing fast and our experts in the
field are recognized internationally as the best terminal
operators, by the International Heavy Lift Awards. We remain
confident that our customers, partners and communities will present
us with great opportunities to support resilient supply chains.
On the environmental front, our customers and communities are
facing unprecedented challenges. From extreme weather events, aging
drinking water infrastructure, water scarcity, our customers are
looking for unique solutions for an increasingly complex set of
issues. Our team has the expertise to play an important role in
accelerating solution delivery. We believe that our environmental
team is also in a great position to perform, with a strong order
book to start 2023 and new business opportunities.
In 2023, we enter a new strategic cycle with good momentum.
Fuelled by our successful achievements and our long-term vision, we
will keep building on our strong foundation. In this context, we
believe that we are well positioned to support a fluid and
resilient supply chain and make a significant impact on building
resilient and vibrant communities.
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 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.
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
configuration and customization costs related to the implementation
of an Enterprise Resource Planning ("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)
|
2022
$
|
2021
$
|
|
Profit for the year
|
54,002
|
45,624
|
|
PLUS:
|
|
|
|
Depreciation and amortization expense
|
56,196
|
49,100
|
|
Net finance expense
|
14,816
|
10,562
|
|
Income taxes
|
10,804
|
10,471
|
|
Configuration and
customization costs in a cloud computing arrangement
|
6,276
|
5,064
|
|
Adjusted EBITDA
|
142,094
|
120,821
|
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 2022 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
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
|
|
|
years ended December 31
(in thousands of dollars, except
per share amounts)
|
|
|
2022
$
|
2021
$
|
|
Revenue
|
|
897,565
|
743,703
|
|
Employee benefits expense
|
|
(429,458)
|
(363,331)
|
|
Equipment and supplies expense
|
|
(247,002)
|
(187,225)
|
|
Operating expense
|
|
(61,555)
|
(50,095)
|
|
Other expenses
|
|
(38,753)
|
(33,327)
|
|
Depreciation and amortization expense
|
|
(56,196)
|
(49,100)
|
|
Share of profit
of equity accounted investments
|
|
18,760
|
10,084
|
|
Other losses
|
|
(3,739)
|
(4,052)
|
|
Operating profit
|
|
79,622
|
66,657
|
|
Finance expense
|
|
(15,429)
|
(11,103)
|
|
Finance income
|
|
613
|
541
|
|
Profit before income taxes
|
|
64,806
|
56,095
|
|
Income taxes
|
|
(10,804)
|
(10,471)
|
|
Profit for the year
|
|
54,002
|
45,624
|
|
Profit attributable to:
|
|
|
|
|
Owners of the Company
|
|
53,543
|
45,364
|
|
Non-controlling interest
|
|
459
|
260
|
|
Profit for the year
|
|
54,002
|
45,624
|
|
Basic
earnings per Class A Common Share
(1)
|
|
3.98
|
3.34
|
|
Basic
earnings per Class
B Subordinate Voting Share
(2)
|
|
4.38
|
3.68
|
|
Diluted earnings per Class A share
|
|
3.95
|
3.31
|
|
Diluted earnings per Class B share
|
|
4.34
|
3.64
|
|
(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)
|
|
|
|
|
|
2022
|
2021
|
|
|
$
|
$
|
|
|
|
|
|
Profit for the
year
|
|
54,002
|
45,624
|
|
|
|
|
|
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
|
|
12,477
|
848
|
|
Unrealized (loss) gain
on translating debt designated as hedging item of the net
investment in foreign operations
|
|
(4,260)
|
521
|
|
Income taxes relating
to unrealized (loss) gain on translating debt designated as hedging
item of the net investment in foreign operations
|
|
430
|
(121)
|
|
Gain (loss) on
derivatives designated as cash flow hedges
|
|
2,101
|
(235)
|
|
Income taxes relating
to derivatives designated as cash flow hedges
|
|
(431)
|
62
|
|
Total items that are or
may be reclassified to the consolidated statements of
earnings
|
|
10,317
|
1,075
|
|
|
|
|
|
Items that will not be
reclassified to the consolidated statements of earnings
|
|
|
|
|
Remeasurement gains
(losses) on benefit obligations
|
|
8,733
|
5,178
|
|
Return on retirement
plan assets
|
|
(3,452)
|
1,034
|
|
Income taxes on
remeasurement gains (losses) on benefit obligation and return on
retirement plan assets
|
|
(1,420)
|
(1,646)
|
|
Total items that will
not be reclassified to the consolidated statements of
earnings
|
|
3,861
|
4,566
|
|
|
|
|
|
Share of other
comprehensive income of equity accounted investments, net of income
taxes
|
|
|
|
|
Items that are or may
be reclassified to the consolidated statements of
earnings
|
|
312
|
318
|
|
Items that will not be
reclassified to the consolidated statements of earnings
|
|
(83)
|
(84)
|
|
Total share of other
comprehensive income of equity accounted investments, net of income
taxes
|
|
229
|
234
|
|
Other comprehensive
income for the year, net of income taxes
|
|
14,407
|
5,875
|
|
Total comprehensive
income for the year
|
|
68,409
|
51,499
|
|
Total comprehensive
income attributable to:
|
|
|
|
|
Owners of the
Company
|
|
67,853
|
51,240
|
|
Non-controlling
interest
|
|
556
|
259
|
|
Total comprehensive
income for the year
|
|
68,409
|
51,499
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(in thousands of Canadian dollars)
|
|
|
|
|
As at
December 31,
2022
$
|
As at
December 31,
2021
$
|
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash and cash equivalents
|
36,043
|
37,530
|
|
Trade and other receivables
|
198,247
|
183,322
|
|
Contract assets
|
14,912
|
7,517
|
|
Current income tax assets
|
11,245
|
7,597
|
|
Inventories
|
20,000
|
16,830
|
|
Prepaid expenses and other
|
8,756
|
10,437
|
|
289,203
|
263,233
|
|
Equity accounted investments
|
46,140
|
46,311
|
|
Property, plant and equipment
|
234,602
|
207,321
|
|
Right-of-use assets
|
167,274
|
135,049
|
|
Goodwill
|
187,430
|
182,706
|
|
Intangible assets
|
36,807
|
41,043
|
|
Non-current assets
|
2,030
|
2,448
|
|
Post-employment benefit
assets
|
1,264
|
—
|
|
Non-current financial assets
|
6,114
|
5,902
|
|
Deferred income tax assets
|
12,808
|
14,958
|
|
Total assets
|
983,672
|
898,971
|
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Short-term bank
loans
|
—
|
8,600
|
|
Trade and other payables
|
128,019
|
127,044
|
|
Contract liabilities
|
11,107
|
14,801
|
|
Current income tax liabilities
|
5,095
|
10,442
|
|
Dividends payable
|
1,574
|
1,338
|
|
Current portion of lease liabilities
|
18,662
|
15,775
|
|
Current portion of long-term debt
|
10,925
|
3,427
|
|
175,382
|
181,427
|
|
Lease liabilities
|
157,500
|
125,249
|
|
Long-term debt
|
224,110
|
191,927
|
|
Deferred income tax liabilities
|
24,604
|
25,684
|
|
Post-employment benefit obligations
|
13,690
|
16,212
|
|
Contract liabilities
|
1,733
|
2,133
|
|
Non-current liabilities
|
25,562
|
40,730
|
|
Total liabilities
|
622,581
|
583,362
|
|
Equity
|
|
|
|
Share capital
|
49,443
|
50,889
|
|
Retained earnings
|
290,773
|
254,621
|
|
Accumulated other comprehensive income
|
19,271
|
9,051
|
|
Equity attributable to owners of the Company
|
359,487
|
314,561
|
|
Non-controlling interest
|
1,604
|
1,048
|
|
Total equity
|
361,091
|
315,609
|
|
Total liabilities and
equity
|
983,672
|
898,971
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
(in thousands of Canadian dollars)
|
|
|
Attributable to owners
of the Company
|
|
|
Share
capital issued
$
|
Retained earnings
$
|
Accumulated
other
comprehensive
income
$
|
Total
$
|
Non-controlling
interest
$
|
Total equity
$
|
|
|
Balance as
at January 1, 2022
|
50,889
|
254,621
|
9,051
|
314,561
|
1,048
|
315,609
|
|
|
Profit for the year
|
—
|
53,543
|
—
|
53,543
|
459
|
54,002
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Currency translation
differences arising on translation of foreign
operations
|
—
|
—
|
12,380
|
12,380
|
97
|
12,477
|
|
|
Unrealized loss on
translating debt designated as hedging item of the net investment
in foreign operations, net of income taxes
|
—
|
—
|
(3,830)
|
(3,830)
|
—
|
(3,830)
|
|
|
Remeasurement gains on
benefit obligation and return on retirement plan assets, net of
income taxes
|
—
|
3,861
|
—
|
3,861
|
—
|
3,861
|
|
|
Share of other
comprehensive income of equity accounted investments, net of income
taxes
|
—
|
229
|
—
|
229
|
—
|
229
|
|
|
Cash flow hedges, net
of income taxes
|
—
|
—
|
1,670
|
1,670
|
—
|
1,670
|
|
|
Total comprehensive
income for the year
|
—
|
57,633
|
10,220
|
67,853
|
556
|
68,409
|
|
|
Net
remeasurement of written put
option liability
|
—
|
(7,872)
|
—
|
(7,872)
|
—
|
(7,872)
|
|
|
Issuance of
Class B shares
|
683
|
—
|
—
|
683
|
—
|
683
|
|
|
Repurchase of
Class B shares
|
(2,129)
|
(8,101)
|
—
|
(10,230)
|
—
|
(10,230)
|
|
|
Class B shares to be
issued under the Executive Stock Option Plan
|
—
|
683
|
—
|
683
|
—
|
683
|
|
|
Other
dividend
|
—
|
(394)
|
—
|
(394)
|
—
|
(394)
|
|
|
Dividends on Class A
shares
|
—
|
(3,183)
|
—
|
(3,183)
|
—
|
(3,183)
|
|
|
Dividends on Class B
shares
|
—
|
(2,614)
|
—
|
(2,614)
|
—
|
(2,614)
|
|
|
Balance as at December 31, 2022
|
49,443
|
290,773
|
19,271
|
359,487
|
1,604
|
361,091
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY (CONTINUED)
|
|
|
Attributable to owners
of the Company
|
|
|
Share capital
issued
$
|
Share
capital to be issued
$
|
Retained
earnings
$
|
Accumulated
other
comprehensive
income
$
|
Total
$
|
Non-
controlling interest
$
|
Total equity
$
|
|
|
Balance as
at January 1, 2021
|
45,575
|
4,906
|
242,358
|
7,943
|
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 translation of foreign
operations
|
—
|
—
|
—
|
849
|
849
|
(1)
|
848
|
|
|
Unrealized gain on
translating debt designated as hedging item of the net investment
in foreign operations, net of income taxes
|
—
|
—
|
—
|
400
|
400
|
—
|
400
|
|
|
Remeasurement gains on
benefit obligation and return on retirement plan assets, net of
income taxes
|
—
|
—
|
4,566
|
—
|
4,566
|
—
|
4,566
|
|
|
Share of other
comprehensive income of equity accounted investments, net of income
taxes
|
—
|
—
|
202
|
32
|
234
|
—
|
234
|
|
|
Cash flow hedges, net
of income taxes
|
—
|
—
|
—
|
(173)
|
(173)
|
—
|
(173)
|
|
|
Total comprehensive
income for the year
|
—
|
—
|
50,132
|
1,108
|
51,240
|
259
|
51,499
|
|
|
Remeasurement of
written put option liability
|
—
|
—
|
(32,403)
|
—
|
(32,403)
|
—
|
(32,403)
|
|
|
Issuance of
Class B shares
|
515
|
—
|
—
|
—
|
515
|
—
|
515
|
|
|
Repurchase of
Class B shares
|
(107)
|
—
|
(444)
|
—
|
(551)
|
—
|
(551)
|
|
|
Issuance of Class B
share capital to a subsidiary shareholder
|
4,906
|
(4,906)
|
—
|
—
|
—
|
—
|
—
|
|
|
Class B shares to be
issued under the Executive Stock Option Plan
|
—
|
—
|
364
|
—
|
364
|
—
|
364
|
|
|
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
|
—
|
254,621
|
9,051
|
314,561
|
1,048
|
315,609
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
years ended December
31
(in thousands of
Canadian dollars)
|
|
|
|
|
2022
$
|
2021
$
|
|
Operating activities
|
|
|
|
Profit for the year
|
54,002
|
45,624
|
|
Items not affecting cash and cash equivalents
|
68,040
|
64,265
|
|
Cash generated from operations
|
122,042
|
109,889
|
|
Dividends received from equity accounted investments
|
19,160
|
8,859
|
|
Contributions to defined
benefit retirement plans
|
(675)
|
(1,022)
|
|
Settlement of provisions
|
(396)
|
(865)
|
|
Changes in non-cash
working capital items
|
(20,900)
|
(27,556)
|
|
Income taxes paid
|
(20,553)
|
(9,719)
|
|
98,678
|
79,586
|
|
Financing
activities
|
|
|
|
Net change in short-term bank loans
|
(8,565)
|
8,600
|
|
Issuance of long-term debt, net of transaction costs
|
139,661
|
91,681
|
|
Repayment of long-term debt
|
(108,130)
|
(63,601)
|
|
Repayment of other non-current liabilities
|
—
|
(2,635)
|
|
Repayment of lease liabilities
|
(15,685)
|
(13,384)
|
|
Repayment of due to a
non-controlling interest
|
(19,086)
|
—
|
|
Interest paid
|
(15,043)
|
(11,508)
|
|
Issuance of Class B shares
|
221
|
130
|
|
Repurchase of Class B shares
|
(10,230)
|
(551)
|
|
Dividends paid on Class A shares
|
(3,040)
|
(2,794)
|
|
Dividends paid on Class B shares
|
(2,521)
|
(2,343)
|
|
(42,418)
|
3,595
|
|
Investing
activities
|
|
|
|
Dividends paid to a
non-controlling interest
|
(10,060)
|
(170)
|
|
Acquisition of
property, plant and equipment
|
(52,146)
|
(44,306)
|
|
Acquisition of intangible assets
|
(347)
|
(117)
|
|
Proceeds from disposal
of property, plant and equipment
|
2,434
|
699
|
|
Business combinations, net of cash
acquired
|
(3,338)
|
(50,390)
|
|
Interest received
|
375
|
576
|
|
Acquisition of other non-current assets
|
(1,274)
|
(632)
|
|
Proceeds from disposal of other non-current assets
|
410
|
84
|
|
Cash received on other non-current financial assets
|
2,579
|
1,398
|
|
(61,367)
|
(92,858)
|
|
Net change in cash and cash equivalents
|
(5,107)
|
(9,677)
|
|
Cash and cash equivalents, beginning of year
|
37,530
|
46,778
|
|
Effect of exchange rate on balances held in foreign
currencies
|
|
|
|
of foreign operations
|
3,620
|
429
|
|
Cash and cash equivalents, end of year
|
36,043
|
37,530
|
SOURCE Logistec Corporation