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
"I am proud of the way the
Results From the Period
We delivered strong results for the second quarter of 2022. Consolidated revenue was
Marine Services Segment
Revenue from the marine services segment reached
(1) | 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
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
Although we were fortunate to start the season earlier with respect to our ALTRA water services in
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.
Outlook
As we look forward, we are optimistic for the remainder of 2022.
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
Dividends
On
About
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,
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 and the Company's impairment charge. 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 period to adjusted EBITDA:
(in thousands of Canadian dollars) | ||||
For the three months ended | For the six months ended | |||
June 25, 2022 | 2021 | 2022 $ | 2021 | |
Profit for the period | 13,150 | 10,287 | 7,252 | 4,666 |
PLUS: | ||||
Depreciation and amortization expense | 14,037 | 11,883 | 26,834 | 23,244 |
Net finance expense | 3,105 | 2,522 | 5,934 | 4,955 |
Income taxes | 2,049 | 2,542 | (361) | 616 |
Configuration and customization costs in a cloud | 1,881 | — | 2,364 | — |
Adjusted EBITDA | 34,222 | 27,234 | 42,023 | 33,481 |
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 2021 annual report and include (but are not limited to) the impact of the COVID-19 pandemic on the Company's business and results of operations, 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.
Q2 2022 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(unaudited)
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
(in thousands of Canadian dollars, except per share amounts and number of shares) | ||||
For the three months ended | For the six months ended | |||
2022 $ | 2021 $ | 2022 $ | 2021 $ | |
Revenue | 218,972 | 172,593 | 360,414 | 277,443 |
Employee benefits expense | (106,678) | (79,618) | (180,950) | (137,596) |
Equipment and supplies expense | (60,477) | (47,397) | (100,999) | (73,121) |
Operating expense | (15,263) | (10,524) | (27,355) | (20,146) |
Other expenses | (8,725) | (7,877) | (15,980) | (13,698) |
Depreciation and amortization expense | (14,037) | (11,883) | (26,834) | (23,244) |
Share of profit of equity accounted investments | 5,122 | 936 | 6,069 | 2,087 |
Other losses | (610) | (879) | (1,540) | (1,488) |
Operating profit | 18,304 | 15,351 | 12,825 | 10,237 |
Finance expense | (3,261) | (2,708) | (6,202) | (5,257) |
Finance income | 156 | 186 | 268 | 302 |
Profit before income taxes | 15,199 | 12,829 | 6,891 | 5,282 |
Income taxes | (2,049) | (2,542) | 361 | (616) |
Profit for the period | 13,150 | 10,287 | 7,252 | 4,666 |
Profit attributable to: | ||||
Owners of the Company | 13,024 | 10,241 | 7,006 | 4,517 |
Non-controlling interest | 126 | 46 | 246 | 149 |
Profit for the period | 13,150 | 10,287 | 7,252 | 4,666 |
Basic earnings per Class A Common Share (1) | 0.96 | 0.75 | 0.52 | 0.33 |
Basic earnings per Class B Subordinate Voting Share (2) | 1.06 | 0.84 | 0.57 | 0.37 |
Diluted earnings per Class A share | 0.95 | 0.75 | 0.51 | 0.33 |
Diluted earnings per Class B share | 1.06 | 0.83 | 0.57 | 0.36 |
Weighted average number of Class A Shares outstanding, basic and | 7,371,689 | 7,377,022 | 7,374,355 | 7,377,022 |
Weighted average number of Class | 5,522,156 | 5,625,162 | 5,601,413 | 5,590,708 |
Weighted average number of Class | 5,614,501 | 5,734,027 | 5,677,914 | 5,737,044 |
(1) | Class A Common Share ("Class A share") |
(2) | Class B Subordinate Voting Share ("Class B share") |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(in thousands of Canadian dollars) | ||||
For the three months ended | For the six months ended | |||
2022 $ | 2021 $ | 2022 $ | 2021 $ | |
Profit for the period | 13,150 | 10,287 | 7,252 | 4,666 |
Other comprehensive income (loss) | ||||
Items that are or may be reclassified to the consolidated | ||||
Currency translation differences arising on translation of foreign | 6,142 | (4,542) | 3,653 | (6,007) |
Unrealized (loss) gain on translating debt designated as | (2,069) | 3,546 | (1,224) | 4,488 |
Income taxes relating to translation of debt designated as | 274 | (235) | 162 | (360) |
Gain on derivatives designated as cash flow hedges | 1,137 | 26 | 1,613 | 90 |
Income taxes relating to derivatives designated as cash flow | (122) | (7) | (428) | (24) |
Total items that are or may be reclassified to the consolidated | 5,362 | (1,212) | 3,776 | (1,813) |
Items that will not be reclassified to the consolidated statements | ||||
Remeasurement gains on benefit obligation | 4,642 | — | 9,239 | 4,174 |
Return on retirement plan assets | (1,431) | 622 | (2,884) | 93 |
Income taxes on remeasurement of benefit obligation and | (850) | (165) | (1,684) | (1,131) |
Total items that will not be reclassified to the consolidated | 2,361 | 457 | 4,671 | 3,136 |
Other comprehensive income (loss) for the period, net of income taxes | 7,723 | (755) | 8,447 | 1,323 |
Total comprehensive income for the period | 20,873 | 9,532 | 15,699 | 5,989 |
Total comprehensive income attributable to: | ||||
Owners of the Company | 20,704 | 9,506 | 15,427 | 5,871 |
Non-controlling interest | 169 | 26 | 272 | 118 |
Total comprehensive income for the period | 20,873 | 9,532 | 15,699 | 5,989 |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(in thousands of Canadian dollars) | ||
As at | As at | |
Assets | ||
Current assets | ||
Cash and cash equivalents | 17,069 | 37,530 |
Trade and other receivables | 177,618 | 183,322 |
Contract assets | 28,311 | 7,517 |
Current income tax assets | 12,915 | 7,597 |
Inventories | 21,584 | 16,830 |
Prepaid expenses and other | 11,697 | 10,437 |
269,194 | 263,233 | |
Equity accounted investments | 46,705 | 46,311 |
Property, plant and equipment | 223,206 | 207,321 |
Right-of-use assets | 157,555 | 135,049 |
184,096 | 182,706 | |
Intangible assets | 38,645 | 41,043 |
Non-current assets | 2,428 | 2,448 |
Non-current financial assets | 6,332 | 5,902 |
Deferred income tax assets | 13,119 | 14,958 |
Total assets | 941,280 | 898,971 |
Liabilities | ||
Current liabilities | ||
Short-term bank loans | 4,202 | 8,600 |
Trade and other payables | 118,712 | 127,044 |
Contract liabilities | 12,837 | 14,801 |
Current income tax liabilities | 4,413 | 10,442 |
Dividends payable | 1,313 | 1,338 |
Current portion of lease liabilities | 16,890 | 15,775 |
Current portion of long-term debt | 5,404 | 3,427 |
163,771 | 181,427 | |
Lease liabilities | 148,327 | 125,249 |
Long-term debt | 231,090 | 191,927 |
Deferred income tax liabilities | 24,929 | 25,684 |
Post-employment benefit obligations | 10,341 | 16,212 |
Contract liabilities | 1,933 | 2,133 |
Non-current liabilities | 41,497 | 40,730 |
Total liabilities | 621,888 | 583,362 |
Equity | ||
Share capital | 49,505 | 50,889 |
Retained earnings | 255,766 | 254,621 |
Accumulated other comprehensive income | 12,801 | 9,051 |
Equity attributable to owners of the Company | 318,072 | 314,561 |
Non-controlling interest | 1,320 | 1,048 |
Total equity | 319,392 | 315,609 |
Total liabilities and equity | 941,280 | 898,971 |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
(in thousands of Canadian dollars) | ||||||
Attributable to owners of the Company | ||||||
Share capital | Retained | Accumulated | Total | Non- | Total equity | |
BalanceasatJanuary1, 2022 | 50,889 | 254,621 | 9,051 | 314,561 | 1,048 | 315,609 |
Profit for the period | — | 7,006 | — | 7,006 | 246 | 7,252 |
Other comprehensive income (loss) | ||||||
Currency translation differences arising on | — | — | 3,627 | 3,627 | 26 | 3,653 |
Unrealized loss on translating debt | — | — | (1,062) | (1,062) | — | (1,062) |
Remeasurement gains on benefit | — | 4,671 | — | 4,671 | — | 4,671 |
Cash flow hedges, net of income taxes | — | — | 1,185 | 1,185 | — | 1,185 |
Total comprehensive income for the period | — | 11,677 | 3,750 | 15,427 | 272 | 15,699 |
Net remeasurement of written put option | — | (124) | — | (124) | — | (124) |
Issuance and repurchase of Class B shares | (1,384) | (7,872) | — | (9,256) | — | (9,256) |
Class B shares to be issued under the | — | 241 | — | 241 | — | 241 |
Other dividend | — | (127) | — | (127) | — | (127) |
Dividends on Class A shares | — | (1,447) | — | (1,447) | — | (1,447) |
Dividends on Class B shares | — | (1,203) | — | (1,203) | — | (1,203) |
Balance as at | 49,505 | 255,766 | 12,801 | 318,072 | 1,320 | 319,392 |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONTINUED)
(in thousands of Canadian dollars) | |||||||
Attributable to owners of the Company | |||||||
Share | Share | Retained | Accumulated |
Total | Non- | Total | |
BalanceasatJanuary1, 2021 | 45,575 | 4,906 | 242,358 | 7,943 | 300,782 | 789 | 301,571 |
Profit for the year | — | — | 4,517 | — | 4,517 | 149 | 4,666 |
Other comprehensive (loss) income | |||||||
Currency translation differences arising on | — | — | — | (5,976) | (5,976) | (31) | (6,007) |
Unrealized gain on translating debt | — | — | — | 4,128 | 4,128 | — | 4,128 |
Remeasurement gains on benefit | — | — | 3,136 | — | 3,136 | — | 3,136 |
Cash flow hedges, net of income taxes | — | — | — | 66 | 66 | — | 66 |
Total comprehensive income (loss) for the | — | — | 7,653 | (1,782) | 5,871 | 118 | 5,989 |
Remeasurement of written put option liability | — | — | (593) | — | (593) | — | (593) |
Repurchase of Class B shares | (83) | — | (338) | — | (421) | — | (421) |
Issuance of Class B share capital to a | 4,906 | (4,906) | — | — | — | — | — |
Class B shares to be issued under the | — | — | 105 | — | 105 | — | 105 |
Dividends on Class A shares | — | — | (1,380) | — | (1,380) | — | (1,380) |
Dividends on Class B shares | — | — | (1,160) | — | (1,160) | — | (1,160) |
Balance as at | 50,398 | — | 246,645 | 6,161 | 303,204 | 907 | 304,111 |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars) | |||
For the six months ended | |||
|
| ||
Operating activities | |||
Income for the period | 7,252 | 4,666 | |
Items not affecting cash and cash equivalents | 27,952 | 28,875 | |
Cash generated from operations | 35,204 | 33,541 | |
Dividends received from equity accounted investments | 5,675 | 615 | |
Contributions to defined benefit retirement plans | (393) | (428) | |
Settlement of provisions | (351) | (271) | |
Changes in non-cash working capital items | (20,774) | 6,563 | |
Income taxes paid | (10,715) | (6,607) | |
8,646 | 33,413 | ||
Financing activities | |||
Net change in short-term bank loans | (4,361) | — | |
Issuance of long-term debt, net of transaction costs | 76,343 | 40,870 | |
Repayment of long-term debt | (37,367) | (2,667) | |
Repayment of other non-current liabilities | — | (2,432) | |
Repayment of lease liabilities | (7,678) | (6,584) | |
Interest paid | (6,056) | (6,253) | |
Issuance of Class B shares | 221 | — | |
Repurchase of Class B shares | (9,937) | (421) | |
Dividends paid on Class A shares | (1,449) | (1,380) | |
Dividends paid on Class B shares | (1,227) | (1,145) | |
8,489 | 19,988 | ||
Investing activities | |||
Dividends paid to a non-controlling interest | (8,826) | — | |
Acquisition of property, plant and equipment | (27,607) | (19,520) | |
Proceeds from disposal of property, plant and equipment | 798 | 316 | |
Business combinations | (3,264) | (50,000) | |
Acquisition of intangible assets | (211) | (16) | |
Interest received | 78 | 512 | |
Cash receipts from other non-current financial assets | 705 | 698 | |
Acquisition of other non-current assets | (362) | (104) | |
Proceeds from disposal of other non-current assets | 282 | 44 | |
(38,407) | (68,070) | ||
Net change in cash and cash equivalents | (21,272) | (14,669) | |
Cash and cash equivalents, beginning of year | 37,530 | 46,778 | |
Effect of exchange rate on balances held in foreign currencies of foreign operations | 811 | 288 | |
Cash and cash equivalents, end of period | 17,069 | 32,397 | |
Additional information | |||
Acquisition of property, plant and equipment included in trade and other payables | 2,906 | 3,384 | |
Issuance of Class B shares under the Employee Stock Purchase Plan for non-interest-bearing | 460 | — |
SOURCE
© Canada Newswire, source