News Column

Logistec Announces Financial Results for the Fourth Quarter and Year 2012

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MONTREAL, QUEBEC -- (Marketwire) -- 03/21/13 -- Logistec Corporation (TSX: LGT.A)(TSX: LGT.B), a marine and environmental services provider, today announced its financial results for the fourth quarter and the year ended December 31, 2012.

Consolidated revenue totalled $250.9 million in 2012, an increase of $26.2 million or 11.7% over 2011. The marine services segment posted revenue of $143.2 million in 2012, a higher level of activity when compared to the $132.9 million reported for 2011. Higher volumes of bulk cargo and increased activity in the USA, following the acquisition of CrossGlobe Transport, Ltd., contributed to this revenue growth. The environmental services segment delivered a very strong performance in 2012, as revenue increased by $15.9 million or 17.3% over 2011 to reach $107.6 million. The growth derives from a high overall level of activity, more specifically revenue from Niedner woven hoses and Aqua-Pipe® services.

In 2012, Logistec achieved a consolidated profit attributable to owners of the Company of $16.1 million compared to $17.6 million in 2011. The 2012 profit attributable to owners of the Company computes to total basic and diluted earnings per share of $2.47, which corresponds to basic and diluted earnings per share of $2.37 attributable to Class Common A shares and of $2.61 attributable to Class B Subordinate Voting shares. Although consolidated profit attributable to owners of the Company decreased from $17.6 million to $16.1 million, the 2011 figures included two non-operating items, which had a net after tax positive impact of $5.3 million. These included a gain on partial disposal of an investment, partly offset by an impairment loss on goodwill. If these items are excluded, profit increased by some $4 million or 31% in 2012. The marine services segment posted a profit before income taxes of $13.7 million, down by $0.6 million over $14.3 million in 2011. The environmental services segment recorded a profit before income taxes of $10.5 million, up by $1.3 million over $9.2 million in 2011.

During the fourth quarter of 2012, consolidated revenue totalled $67.7 million in the fourth quarter of 2012, up by $1.5 million over the same period of 2011. This increase can be explained by strong activity in the marine services segment in the fourth quarter, although it was partly offset by slower business in our environmental services segment. The consolidated profit attributable to owners of the Company amounted to $6.6 million, up by $3.6 million from the fourth quarter of 2011. The positive variation came from the impairment loss on goodwill and higher equipment costs incurred in the fourth quarter of 2011 combined with the strong activity in the marine services segment in the fourth quarter of 2012. The profit attributable to owners of the Company computes to total basic and diluted earnings per share of $1.04, which corresponds to basic and diluted earnings per share of $0.98 attributable to Class A Common Shares and of $1.07 attributable to Class B Subordinate Voting Shares.

Outlook

"We are optimistic we will be able to further develop our cargo-handling activities in 2013. In the USA, we are seeing some improvement in the building sector of the economy and this should bode well for construction materials, namely lumber and metals. We will further advance our development initiatives in the area of biomass and mining. To that effect, significant capital expenditures have been made to upgrade and specialize a portion of our Brunswick (GA) facility to handle biomass, namely wood pellets and woodchips. Customers have committed volumes to our facility and we feel strongly that the export market is growing quickly. With respect to mining, we are closely following the development of the mining sector in the Province of Quebec and the Arctic and, with our cargo-handling and transportation businesses, we are well positioned to serve this developing customer base. Although there has been a slowdown based on weaker growth in China and lower-priced commodities, the sector continues to develop selectively.

We are also optimistic about our environmental services segment. In 2013, we intend to build on our Aqua-Pipe® technology and grow our services both in Quebec, where we install our structural lining, and outside of the Province, where we work through a select group of licensees. Although municipalities are somewhat financially constrained, there remains a huge need to repair underground drinking water pipes in North America. It has been shown that 40% of North America's drinking water is lost through existing infrastructure and this statistic is getting worse every year. Traditional methods of excavation and rebuilding are far costlier repair methods and our technology thus bodes well for the future. Our site remediation services are also promising given the continued desire to clean up the environment. We have built a strong team of experts who can find solutions for virtually all types of environmental contaminants and are expanding our services geographically, with the Arctic and France showing new revenue in the last few years. Finally, our woven-hose manufacturing business, which was purchased to secure the growing needs of our aqueduct rehabilitation services, continues to diversify its customer base. In 2013, it successfully launched a new product for the shale gas industry, a market which is expected to undergo strong growth in the coming years," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

"All in all, we are confident we will continue to develop both our marine and environmental services segments, on the strength of our highly dynamic team of experts who are customer-oriented and consistently bring value to a growing customer base," concluded Ms. Paquin.

About Logistec

Logistec Corporation is based in Montreal (QC) and provides specialized services to the marine community and industrial companies in the areas of bulk, break-bulk and container cargo handling in 24 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, municipal and other governmental customers 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.

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 our Company can be found on SEDAR's website at www.sedar.com and on Logistec's website at www.logistec.com.

Consolidated Statements of Earningsyears ended December 31(in thousands of Canadian dollars, except for per share amounts)---------------------------------------------------------------------------- 2012 2011 $ $----------------------------------------------------------------------------Revenue 250,860 224,630----------------------------------------------------------------------------Employee benefits expense (120,317) (109,399)Equipment and supplies expense (69,792) (60,915)Rental expense (22,891) (20,247)Other expenses (10,467) (12,054)Depreciation and amortization expense (7,819) (8,220)Share of profit of equity accounted investments 5,224 5,582Share of gain on partial disposal of an investment - 6,171Impairment loss on goodwill - (1,300)Other gains and losses (241) (287)----------------------------------------------------------------------------Operating profit 24,557 23,961----------------------------------------------------------------------------Finance expense (808) (958)Finance income 461 558----------------------------------------------------------------------------Profit before income taxes 24,210 23,561Income taxes (5,925) (3,993)----------------------------------------------------------------------------Profit for the year 18,285 19,568--------------------------------------------------------------------------------------------------------------------------------------------------------Profit attributable to:----------------------------------------------------------------------------Owners of the Company 16,061 17,592----------------------------------------------------------------------------Non-controlling interests 2,224 1,976----------------------------------------------------------------------------Profit for the year 18,285 19,568--------------------------------------------------------------------------------------------------------------------------------------------------------Basic and diluted earnings per Class A Common Share (1) 2.37 2.58Basic and diluted earnings per Class B Subordinate Voting Share (2) 2.61 2.84----------------------------------------------------------------------------(1) Class A Common Share ("Class A share")(2) Class B Subordinate Voting Share ("Class B share")Consolidated Statements of Comprehensive Incomeyears ended December 31(in thousands of Canadian dollars)---------------------------------------------------------------------------- 2012 2011 $ $----------------------------------------------------------------------------Profit for the year 18,285 19,568----------------------------------------------------------------------------Other comprehensive income Currency translation differences arising on translation of foreign operations (200) 114 Actuarial losses on retirement benefits (2,159) (5,611) Income taxes on actuarial losses on retirement benefits 581 1,483 Gains (losses) on derivatives designated as cash flow hedges 40 (71) Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings 19 - Income taxes relating to derivatives designated as cash flow hedges (16) 19 Share of other comprehensive income of equity accounted investments Actuarial losses on retirement benefits (176) (272) Income taxes on actuarial losses on retirement benefits 48 73 Gains on derivatives designated as cash flow hedges - 205 Transfer of gains on derivatives designated as cash flow hedges to non-financial assets - (14) Transfer of gains on derivatives designated as cash flow hedges to profit or loss on partial disposal of an investment - (191)----------------------------------------------------------------------------Other comprehensive income for the year, net of income taxes (1,863) (4,265)----------------------------------------------------------------------------Total comprehensive income for the year 16,422 15,303--------------------------------------------------------------------------------------------------------------------------------------------------------Total comprehensive income attributable to:Owners of the Company 14,198 13,327Non-controlling interests 2,224 1,976----------------------------------------------------------------------------Total comprehensive income for the year 16,422 15,303--------------------------------------------------------------------------------------------------------------------------------------------------------Consolidated Statements of Financial Position(in thousands of Canadian dollars)---------------------------------------------------------------------------- As at As at December 31, December 31, 2012 2011 $ $----------------------------------------------------------------------------AssetsCurrent assets Cash and cash equivalents 7,519 8,888 Investments in service contracts 8,107 13,065 Trade and other receivables 55,795 45,007 Current income tax assets 1,915 2,559 Prepaid expenses 3,275 2,854 Inventories 4,492 3,922---------------------------------------------------------------------------- 81,103 76,295Equity accounted investments 31,019 32,726Property, plant and equipment 55,434 47,730Goodwill 14,847 10,686Other intangible assets 18,594 1,934Other non-current assets 2,097 1,927Post-employment benefit assets 441 779Non-current financial assets 5,255 5,265Deferred income tax assets 7,878 7,773----------------------------------------------------------------------------Total assets 216,668 185,115--------------------------------------------------------------------------------------------------------------------------------------------------------LiabilitiesCurrent liabilities Short-term bank loans 2,200 - Trade and other payables 28,391 27,020 Deferred revenue 1,589 819 Current income tax liabilities 562 1,907 Dividends payable 607 594 Current portion of long-term debt 2,179 2,499 Provisions 763 488---------------------------------------------------------------------------- 36,291 33,327Long-term debt 19,808 11,873Provisions 286 148Deferred income tax liabilities 9,435 3,440Post-employment benefit obligations 13,146 11,475Non-current financial liabilities 2,381 2,624----------------------------------------------------------------------------Total liabilities 81,347 62,887----------------------------------------------------------------------------Commitments, contingent liabilities and guaranteesEquityShare capital 15,139 15,149Retained earnings 112,032 100,996Accumulated other comprehensive loss (462) (305)----------------------------------------------------------------------------Equity attributable to owners of the Company 126,709 115,840Non-controlling interests 8,612 6,388----------------------------------------------------------------------------Total equity 135,321 122,228----------------------------------------------------------------------------Total liabilities and equity 216,668 185,115--------------------------------------------------------------------------------------------------------------------------------------------------------On behalf of the Board (signed) David M. Mann (signed) Madeleine Paquin Director DirectorConsolidated Statements of Changes in Equity(in thousands of Canadian dollars)---------------------------------------------------------------------------- Attributable to owners of the Company -------------------------------------------------- Accumulated other comprehensive income (loss) ---------------------- Foreign Share Cash flow currency Retained capital hedges translation earnings Total $ $ $ $ $----------------------------------------------------------------------------Balance as at January 1, 2012 15,149 (52) (253) 100,996 115,840----------------------------------------------------------------------------Profit for the year - - - 16,061 16,061Other comprehensive income Currency translation differences arising on translation of foreign operations - - (200) - (200) Actuarial losses on retirement benefits, net of income taxes - - - (1,578) (1,578) Cash flow hedges, net of income taxes - 43 - - 43 Share of other comprehensive income of equity accounted investments, net of income taxes - - - (128) (128)----------------------------------------------------------------------------Total comprehensive income for the year - 43 (200) 14,355 14,198----------------------------------------------------------------------------Repurchase of Class A shares (7) - - (121) (128)Issuance and repurchase of Class B shares (3) - - (794) (797)Dividends on Class A shares - - - (1,332) (1,332)Dividends on Class B shares - - - (1,072) (1,072)----------------------------------------------------------------------------Balance as at December 31, 2012 15,139 (9) (453) 112,032 126,709--------------------------------------------------------------------------------------------------------------------------------------------------------Consolidated Statements of Changes in Equity(in thousands of Canadian dollars)-------------------------------------------------------- Non-controlling interests Total equity $ $--------------------------------------------------------Balance as at January 1, 2012 6,388 122,228--------------------------------------------------------Profit for the year 2,224 18,285Other comprehensive income Currency translation differences arising on translation of foreign operations - (200) Actuarial losses on retirement benefits, net of income taxes - (1,578) Cash flow hedges, net of income taxes - 43 Share of other comprehensive income of equity accounted investments, net of income taxes - (128)--------------------------------------------------------Total comprehensive income for the year 2,224 16,422--------------------------------------------------------Repurchase of Class A shares - (128)Issuance and repurchase of Class B shares - (797)Dividends on Class A shares - (1,332)Dividends on Class B shares - (1,072)--------------------------------------------------------Balance as at December 31, 2012 8,612 135,321----------------------------------------------------------------------------------------------------------------



(in thousands of Canadian dollars)---------------------------------------------------------------------------- Attributable to owners of the Company -------------------------------------------------- Accumulated other comprehensive income (loss) ---------------------- Foreign Share Cash flow currency Retained capital hedges translation earnings Total $ $ $ $ $----------------------------------------------------------------------------Balance as at January 1, 2011 15,130 - (367) 90,702 105,465----------------------------------------------------------------------------Profit for the year - - - 17,592 17,592Other comprehensive income Currency translation differences arising on translation of foreign operations - - 114 - 114 Actuarial losses on retirement benefits, net of income taxes - - - (4,128) (4,128) Cash flow hedges, net of income taxes - (52) - - (52) Share of other comprehensive income of equity accounted investments, net of income taxes - - - (199) (199)----------------------------------------------------------------------------Total comprehensive income for the year - (52) 114 13,265 13,327----------------------------------------------------------------------------Repurchase and conversion of Class A shares (16) - - (117) (133)Issuance of share capital by a subsidiary - - - - -Issuance, repurchase and conversion of Class B shares 35 - - (504) (469)Dividends on Class A shares - - - (1,299) (1,299)Dividends on Class B shares - - - (1,051) (1,051)----------------------------------------------------------------------------Balance as at December 31, 2011 15,149 (52) (253) 100,996 115,840--------------------------------------------------------------------------------------------------------------------------------------------------------(in thousands of Canadian dollars)-------------------------------------------------------- Non-controlling interests Total equity $ $--------------------------------------------------------Balance as at January 1, 2011 4,392 109,857--------------------------------------------------------Profit for the year 1,976 19,568Other comprehensive income Currency translation differences arising on translation of foreign operations - 114 Actuarial losses on retirement benefits, net of income taxes - (4,128) Cash flow hedges, net of income taxes - (52) Share of other comprehensive income of equity accounted investments, net of income taxes - (199)--------------------------------------------------------Total comprehensive income for the year 1,976 15,303--------------------------------------------------------Repurchase and conversion of Class A shares - (133)Issuance of share capital by a subsidiary 20 20Issuance, repurchase and conversion of Class B shares - (469)Dividends on Class A shares - (1,299)Dividends on Class B shares - (1,051)--------------------------------------------------------Balance as at December 31, 2011 6,388 122,228----------------------------------------------------------------------------------------------------------------Consolidated Statements of Cash Flowsyears ended December 31(in thousands of Canadian dollars)---------------------------------------------------------------------------- 2012 2011 $ $----------------------------------------------------------------------------Operating activities Profit for the year 18,285 19,568 Items not affecting cash and cash equivalents 11,787 6,184---------------------------------------------------------------------------- Cash generated from operations 30,072 25,752 Dividends received from equity accounted investments 7,229 3,878 Contributions to defined benefit retirement plans (1,314) (1,103) Settlement of provisions (1,403) (472) Changes in non-cash working capital items (12,797) (7,508) Income taxes paid (6,296) (7,312)---------------------------------------------------------------------------- 15,491 13,235----------------------------------------------------------------------------Financing activities Net change in short-term bank loans 2,200 (2,278) Issuance of long-term debt, net of transaction costs 16,150 - Repayment of long-term debt (8,547) (3,882) Interest paid (805) (1,049) Issuance of Class B shares 6 4 Issuance of share capital by a subsidiary - 20 Repurchase of Class A shares (128) (125) Repurchase of Class B shares (956) (613) Dividends paid on Class A shares (1,324) (1,292) Dividends paid on Class B shares (1,067) (1,046)---------------------------------------------------------------------------- 5,529 (10,261)----------------------------------------------------------------------------Investing activities Customer repayment of investments in service contracts 4,958 4,540 Interest received 1,240 1,826 Business acquisition (15,810) - Acquisition of property, plant and equipment (12,950) (9,127) Proceeds from disposal of property, plant and equipment 390 321 Acquisition of intangible assets (89) (100) Disposal of other non-current assets 76 66 Acquisition of non-current financial assets (361) ----------------------------------------------------------------------------- (22,546) (2,474)----------------------------------------------------------------------------Net change in cash and cash equivalents (1,526) 500Cash and cash equivalents, beginning of year 8,888 8,382Effect of exchange rate on balances held in foreign currencies of foreign operations 157 6----------------------------------------------------------------------------Cash and cash equivalents, end of year 7,519 8,888--------------------------------------------------------------------------------------------------------------------------------------------------------





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



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