Logistec reported record revenues for its third quarter ended September 29 of $78.5 million, up 16.8 per cent from the same period a year earlier. Net profits from operations of $7.1 were up slightly from the year-ago period, after excluding a one-time gain of $6.2 million gain recorded during the third quarter of 2011.
Revenues attributable to Marine Services rose by $2.8 million to $35.8 million, whereas revenues attributable to Environmental Services increased by $8.4 million to $42.6 million.
For the first nine months of the year, revenues rose by 15.6 per cent to $183.2 million, and net profits attributable to the owners rose 18.7 per cent to $9.5 million, excluding the $6.2 million one-time gain recorded in 2011.
For the first nine months of the year, profits before income taxes generated by Marine Services amounted to $5.6 million, whereas profits before income taxes generated by Environmental Services amounted to $9.6 million.
For the nine months ended September 29, 2012, cash generated from operations increased to $19.8 million from $13.7 million during the same period of 2011.
Effective July 31, 2012, Logistec acquired CrossGlobe Transport, Ltd. for US$15.8 million. CrossGlobe provides port logistics services for forest products, auto parts and other cargoes in three terminals in the port of Virginia, and also operates an off-dock facility. Services include container stuffing and destuffing, warehousing and distribution, and other services. The acquisition was made because CrossGlobe complements Logistec’s network of terminals and services to industry.
Logistec and its subsidiaries provide specialized cargo handling and other services to marine, industrial and municipal customers and, among others, has cargo-handling facilities in 24 ports in Eastern Canada and the Eastern U.S. Through its subsidiary Sanexen Environmental Services Inc., Logistec provides trenchless structural rehabilitation of underground water mains, management of PCBs, environmental risk assessment and woven hose manufacturing.
Outlook
Near term, management expects continued modest growth in Marine Services, based on stable container operations and promising bulk activities. Longer term, management expects to benefit from developing mining activities in Northern Quebec and Labrador, as well as the developing biomass market in North America. The management is optimistic about the company’s prospects, and continues to evaluate growth opportunities that are aligned with its growth plan.