LOGISTEC Corporation (“LOGISTEC”) [TSX: LGT.A and LGT.B] (the “Company”), a marine and environmental services provider, announced today its financial results for the three-month and six-month periods ended June 25, 2022. LOGISTEC reports record results for a fifth consecutive quarter as it pursues its bold growth strategy in strong markets.
Highlights From the Second Quarter of 2022:
- Consolidated revenue totalled $219.0 million, up $46.5 million or 26.9%.
- Adjusted EBITDA (1) closed at $34.2 million, up $6.9 million.
- Total diluted earnings per share of $1.00, up $0.22.
- Environmental services’ backlog stood at $168.0 million.
Highlights From the First Half of 2022:
- Consolidated revenue totalled $360.4 million, up $83.0 million or 29.9%.
- Adjusted EBITDA (1) closed at $42.0 million, up $8.5 million.
- Total diluted earnings per share of $0.54, up $0.20.
“The growth we achieved in both the second quarter and the first half of the year reflects our ability to capitalize on our sectors’ strong market fundamentals, which continue to be spurred by the pandemic recovery, the ongoing public infrastructure spending, and the increasing private investments,” said Carl Delisle, Chief Financial Officer. “We expect that this favorable backdrop will drive more growth as we are uniquely well positioned to take advantage of the long-term major trends, including the global infrastructure investments, the strengthening of our supply chain resilience, Environmental, Social and Governance (“ESG”) priorities, and the related energy transition”.
“I am proud of the way the LOGISTEC team, leaders in the field, managed the dynamic operating environment they faced in the second quarter of 2022 and once again we delivered a record performance,” reinforced Madeleine Paquin, President and CEO. “And I am very pleased that as we continue to improve on our sustainability footprint by increasing revenues aligned with the United Nation Sustainability Development Goals (“SDGs”). In our recently published Sustainable Development Report, we disclosed that 40% of our 2021 revenue relates to clean revenue, demonstrating our commitment to a sustainable future.”
Results From the Period
We delivered strong results for the second quarter of 2022. Consolidated revenue was $219.0 million for the period, an increase of $46.5 million or 26.9% over the same period in 2021. Our core markets are as robust as they have ever been, both in the U.S. and Canada. The diversification of LOGISTEC’s activities, our scale, our reach, our deep expertise in the field and solid execution capabilities are leading to our success in essential and evolving supply chains and complex environmental projects.
Marine Services Segment
Revenue from the marine services segment reached $138.8 million in the second quarter of 2022, up $34.3 million or 32.8% compared with the same period in 2021. Our marine services segment continued to deliver excellent performance due to booming trade volumes in our core markets. We seized opportunities in this buoyant market to leverage our network and bring new solutions to today’s supply chain challenges for the greater benefit of our customers.
- Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section.
Opportunities for growth also included the expansion of our operations into the heartland of the U.S., in Lemont (IL), a strategically located gateway to serve markets in the greater Chicago area. Our operations are already up and running at Lemont with the recent handling of steel pipes destined for the oil and gas market in southern U.S.
We strengthened our partnerships with strategic ports, signing productive long-term agreements across our network. We also made infrastructure improvements for our customers and communities through the purchase of new ecoefficient cranes. By investing in ecofriendly equipment, we are delivering on our ESG plan to reduce our carbon footprint and protect our environment for future generations.
Environmental Services Segment
Revenue from the environmental services segment was $80.1 million, up $12.1 million or 17.8% in the second quarter of 2022.
Although we were fortunate to start the season earlier with respect to our ALTRA water services in Toronto and Montréal, these benefits were somewhat offset by delays and project changes, particularly in American Process Group (“APG”), which led to lower than expected revenue and margins. However, we are now entering into our busy season and the overall book of business remains strong until the end of the year. Furthermore, we recently signed our first Construction, Renovation and Demolition (“CRD”) contract, to revalorize residual materials, taking another important step as an environmental leader in deploying new circular economy solutions. The results of our per- and polyfluoroalkyl (“PFAS”) pilots were excellent, as our proprietary solution was able to remove more than 99% of the PFAS compounds found in highly contaminated landfill sites.
During this quarter, our environmental team also received the prestigious “Distinction Award for Best Company and Organization” from Réseau Environnement, highlighting excellence in the development of technologies and recognizing the exceptional work of our team to preserve and renew natural resources.
As we look forward, we are optimistic for the remainder of 2022. LOGISTEC is well positioned to face the headwinds, thanks to its financial strength, diversification, unique business model, wide-reaching North American network of terminals, and innovative environmental technologies.
Investments in infrastructure and upcoming ambitious ESG initiatives will provide strong growth opportunities over the coming years. Increased cargo handling activities are driven by strong demand, particularly in the U.S. Gulf Coast for the energy sector. Our environmental business is also off to a good start with a solid backlog of over $168.0 million for the second half the year. We are confident that we will continue to deliver a strong financial performance.
On August 4, 2022, the Board of Directors elected to increase the dividend payment by 20.0% and declared a dividend of $0.11782 per Class A Common Share and $0.12959 per Class B Subordinate Voting Share, for a total consideration of $1.6 million. These dividends will be paid on October 7, 2022 to shareholders of record as of September 23, 2022.
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.