Logistec announces its results for the third quarter of 2017

(in thousands of Canadian dollars, except for per share amounts and number of shares) 
(unaudited and not reviewed by the independent auditor)  

Logistec Corporation

Condensed Consolidated Interim Statements of Earnings

For the three months ended

For the nine months ended

September 30, 
2017

September 24,
2016

September 30,

2017

September 24,
2016

$

$

$

$

Revenue

168,314

103,093

330,246

247,568

Employee benefits expense

(83,326)

(45,860)

(163,558)

(115,987)

Equipment and supplies expense

(41,255)

(33,433)

(87,642)

(76,572)

Rental expense

(9,068)

(7,035)

(24,186)

(20,777)

Other expenses

(7,589)

(3,978)

(16,194)

(11,244)

Depreciation and amortization expense

(12,419)

(3,661)

(20,668)

(10,147)

Share of profit of equity accounted investments

4,137

2,473

5,371

2,764

Other gains and losses

(2,226)

488

(555)

(1,300)

Operating profit

16,568

12,087

22,814

14,305

Finance expense

(889)

(660)

(1,779)

(1,374)

Finance income

98

54

279

161

Profit before income taxes

15,777

11,481

21,314

13,092

Income taxes

(3,610)

(2,319)

(5,925)

(3,493)

Profit for the period

12,167

9,162

15,389

9,599

Profit attributable to:

Owners of the Company

10,955

9,153

14,214

9,966

Non-controlling interests

1,212

9

1,175

(367)

Profit for the period

12,167

9,162

15,389

9,599

Basic earnings per Class A Common Share ⁽¹⁾

0.84

0.72

1.12

0.78

Basic earnings per Class B Subordinate Voting Share ⁽²⁾

0.93

0.80

1.23

0.87

Diluted earnings per Class A share

0.80

0.67

1.05

0.73

Diluted earnings per Class B share

0.88

0.75

1.16

0.82

Weighted average number of Class A shares outstanding, basic and diluted

7,410,122

7,414,789

7,411,100

7,422,089

Weighted average number of Class B shares outstanding, basic

5,062,472

4,763,900

4,845,939

4,784,856

Weighted average number of Class B shares outstanding, diluted

5,720,654

5,517,915

5,565,206

5,295,910

(in thousands of Canadian dollars)
(unaudited and not reviewed by the independent auditor)

Logistec Corporation

Condensed Consolidated Interim Statements of Comprehensive Income

For the three months ended

For the nine months ended

September 30,

2017

September 24,
2016

September 30,
2017

September 24,
2016

$

$

$

$

Profit for the period

12,167

9,162

15,389

9,599

Other comprehensive income

Items that are or may be reclassified to the consolidated statements of earnings

Currency translation differences arising on translation of foreign operations

(2,281)

461

(2,810)

(1,836)

Gains on derivatives designated as cash flow hedges

87

(7)

87

2

Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings

–

18

–

49

Income taxes relating to derivatives designated as cash flow hedges

(24)

(4)

(24)

(14)

Total items that are or may be reclassified to the consolidated statements of earnings

(2,218)

468

(2,747)

(1,799)

Items that will not be reclassified to the consolidated statements of earnings

Remeasurement losses on benefit obligation

1,436

(1,014)

(1,075)

(3,028)

Return on retirement plan assets excluding amounts included in profit for the period

535

820

676

867

Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period

(530)

52

107

582

Total items that will not be reclassified to the consolidated statements of earnings

1,441

(142)

(292)

(1,579)

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

24

57

24

(49)

Total share of other comprehensive income of equity accounted investments, net of income taxes

24

57

24

(49)

Other comprehensive loss for the period, net of income taxes

(753)

383

(3,015)

(3,427)

Total comprehensive income (loss) for the period

11,414

9,545

12,374

6,172

Total comprehensive income (loss) attributable to:

Owners of the Company

10,202

9,536

11,199

6,539

Non-controlling interests

1,212

9

1,175

(367)

Total comprehensive income (loss) for the period

11,414

9,545

12,374

6,172

(in thousands of Canadian dollars)
(unaudited and not reviewed by the independent auditor)

Logistec Corporation

Condensed Consolidated Interim Statements of Changes in Equity

Share capital

Share
capital

to be
issued

Foreign currency translation

Retained earnings

Total

Non-
controlling interests

Total equity

$

$

$

$

$

$

$

$

Balance as at January 1, 2017

15,618

24,898

(4)

9,255

151,616

201,383

1,798

203,181

Profit for the period

–

–

–

–

14,214

14,214

1,175

15,389

Other comprehensive income (loss)

Currency translation differences arising on translation of foreign operations

–

–

–

(2,810)

–

(2,810)

–

(2,810)

Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

–

–

–

–

(292)

(292)

–

(292)

Cash flow hedges, net of income taxes

–

–

87

–

–

87

–

87

Total comprehensive gain (loss) for the period

–

–

87

(2,810)

13,922

11,199

1,175

12,374

Repurchase of Class A shares

(2)

–

–

–

(91)

(93)

–

(93)

Issue and repurchase of Class B shares

8,359

–

–

–

(697)

7,662

–

7,662

Non-controlling interests arising from business acquisitions

–

–

–

–

–

–

50,593

50,593

Long-term liability for the obligation to repurchase the non-controlling interests

–

–

–

–

–

–

(50,089)

(50,089)

Issuance of Class B share capital to a subsidiary shareholder upon the exercise of put options

5,078

(5,078)

–

–

–

–

–

–

Dividends on Class A shares

–

–

–

–

(1,723)

(1,723)

–

(1,723)

Dividends on Class B shares

–

–

–

–

(1,232)

(1,232)

–

(1,232)

Balance as at September 30, 2017

29,053

19,820

83

6,445

161,795

217,196

3,477

220,673

Balance as at January 1, 2016

14,985

–

(139)

10,413

164,154

189,413

20,232

209,645

Profit (loss) for the period

–

–

–

–

9,966

9,966

(367)

9,599

Other comprehensive income (loss)

Currency translation differences arising on translation of foreign operations

–

–

–

(1,836)

─

(1,836)

–

(1,836)

Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

–

–

–

–

(1,579)

(1,579)

–

(1,579)

Cash flow hedges, net of income taxes

–

–

37

–

–

37

–

37

Share of other comprehensive income of equity accounted investments, net of income taxes

–

–

(49)

–

–

(49)

–

(49)

Total comprehensive income (loss) for the period

–

–

(12)

(1,836)

8,387

6,539

(367)

6,172

Repurchase of Class A shares

(15)

–

–

–

(907)

(922)

–

(922)

Issuance and repurchase of Class B shares

697

–

–

–

(8,308)

(7,611)

–

(7,611)

Repurchase of non-controlling interests

–

24,898

–

–

(18,148)

6,750

(18,062)

(11,312)

Dividends on Class A shares

–

–

–

–

(1,671)

(1,671)

–

(1,671)

Dividends on Class B shares

–

–

–

–

(1,175)

(1,175)

–

(1,175)

Balance as at September 24, 2016

15,667

24,898

(151)

8,577

142,332

191,323

1,803

193,126

(in thousands of Canadian dollars)
(unaudited and not reviewed by the independent auditor)

Logistec Corporation

Condensed Consolidated Interim Statements of Cash Flows

For the nine months ended

September 30,
2017

September 24,
2016

$

$

Operating activities

Profit for the period

15,389

9,599

Items not affecting cash and cash equivalents

25,547

22,251

Cash generated from operations

40,936

31,850

Dividends received from equity accounted investments

3,600

2,143

Contributions to defined benefit retirement plans

(850)

(713)

Settlement of provisions

(92)

(134)

Changes in non-cash working capital items

(14,565)

(33,908)

Income taxes paid

(1,702)

(5,900)

27,327

(6,662)

Financing activities

Net change in short-term bank loans

498

–

Issuance of long-term debt

88,251

51,164

Repayment of long-term debt

(53,508)

(18,848)

Interest paid

(1,745)

(1,426)

Repurchase of Class A shares

(93)

(922)

Issuance of Class B shares

201

607

Repurchase of Class B shares

(751)

(8,781)

Dividends paid on Class A shares

(1,667)

(1,671)

Dividends paid on Class B shares

(1,173)

(1,194)

30,013

18,929

Investing activities

Customer repayment of an investment in a service contract

865

216

Interest received

297

161

Repurchase of a non-controlling interest

–

(2,393)

Business acquisitions

(48,037)

(4,562)

Cash acquired in business acquisitions

–

197

Acquisition of property, plant and equipment

(21,230)

(18,561)

Proceeds from disposal of property, plant and equipment

2,511

119

Cash paid to a minority interest

(2,214)

–

Acquisition of other non-current financial assets

–

(27)

Repayment of other non-current financial assets

142

–

Acquisition of intangible assets

(39)

(30)

Acquisition of other non-current assets

(692)

(761)

Repayment of other non-current assets

72

28

(68,325)

(25,613)

Net change in cash and cash equivalents

(10,985)

(13,346)

Cash and cash equivalents, beginning of period

15,971

23,811

Effect of exchange rate on balances held in foreign currencies of foreign operations

1,331

441

Cash and cash equivalents, end of period

6,317

10,906

Additional information

Acquisition of property, plant and equipment included in trade and other payables

1,914

3,153