LOGISTEC Announces 2022 Year

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22 Mar, 2023, 14:07 ET

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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

"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)

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

12,477

Unrealized loss on translating debt designated as hedging item of the net investment in foreign operations, net of income taxes

—

(3,830)

—

(3,830)

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

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

(1)

848

Unrealized gain on translating debt designated as hedging item of the net investment in foreign operations, net of income taxes

—

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

234

—

234

Cash flow hedges, net of income taxes

—

(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

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

For further information: Carl Delisle, cpa auditor, Chief Financial Officer and Treasurer, Logistec Corporation, [email protected], (514) 985-2390

Logistec Corporation

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