A SUSTAINABLE
FUTURE ON LAND
AND AT SEA
2 0 21 A N N U A L R E P O R T
OUR
PURPOSE
LOGISTEC’s strategy is guided by
our mission and purpose: We pride
ourselves on building and sharing
our expertise in order to contribute
to the success of our customers and
our communities. Our people are
dedicated to finding solutions that
support reliable and sustainable
supply chains and protect our
environment and our water resources.
OUR PURPOSE
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TABLE OF
CONTENTS
02 Our Business
04 Our Strategy
06 CEO’s Message
10 Strong Financial Performance
12 Purpose-Driven
16 Innovating for the Next Generations
18 2021 Financial Highlights
20 Management’s Discussion and Analysis
60 Consolidated Financial Statements
72 Notes to Consolidated Financial Statements
OUR BUSINESS
At a glance:
OUR
BUSINESS
For 70 years, LOGISTEC has built a business by contributing to
the success of our customers, our partners, our communities,
our shareholders, and our people. Our two business segments,
marine and environmental services, are diverse in scope and
geography, and develop solutions that support reliable and
sustainable supply chains, protect our environment and our
water resources.
TSX: LGT.A AND LGT.B
3,200 P
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TERMINALS IN
80
54
PORTS
OUR BUSINESS
2021 TOTAL REVENUE
$743.7M
REDUCTION
OF
58M M3
OF DRINKING WATER LEAKS
OVER 2,200 KM INSTALLED
10.3B
LITRES OF WATER
DECONTAMINATED OVER
THE LAST 37 YEARS
6,000
ENVIRONMENTAL PROJECTS
COMPLETED TO DATE
YEARS OF GROWTH70
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2021 ANNUAL REPORT OUR STRATEGY
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OUR
STRATEGY
Anchored by a proven track record of long-
term growth, LOGISTEC is driven through
innovation to provide our stakeholders with
a sustainable world for the next generations.
Our strategic vision is clear: to be the
provider of choice for safe, sustainable,
and creative solutions in our marine and
environmental services segments.
OUR STRATEGY
PURPOSE-DRIVEN
Our strategic decisions are
grounded in our purpose,
our values, and our commitment
to our customers, our communities
and to each other as colleagues.
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STABLE LONG-TERM GROWTH
We deliver consistent, profitable
growth that is stable and focused
on long-term outcomes.
INNOVATING FOR
THE NEXT GENERATIONS
We develop creative solutions
to help shape the future for our
customers and our communities.
CEO’S MESSAGE
CEO’S
MESSAGE
Building a sustainable
future is making decisions
based on the long term,
having a positive impact in
the communities where we
work, and creating a better
world for generations
to come.
MADELEINE PAQUIN
PRESIDENT AND CEO
One thing 2021 taught us was
to embrace the unexpected
and to remain bold in pursuing
our long-term growth strategy
through the uncertainty. With this
mindset, we were able to report
the most successful year of our
history, reaching key milestones
on the financial, operational, and
environmental fronts. We expanded
our market leadership, shared our
field-proven expertise, and achieved
a remarkable overall performance.
As an essential service in both
our marine and environmental
segments, LOGISTEC continued to
operate while maintaining rigorous
health protocols and ensuring a
safe working environment. Global
supply chain congestion and
disruption persisted and demand for
reliable marine services remained
very strong throughout the year.
Stringent environmental regulatory
frameworks, sustained infrastructure-
related investments, combined with
strong macroeconomic activity in our
key markets, were the main demand
drivers for our environmental services.
As always, our teams adapted to
customers’ needs, providing reliable
and unique solutions to contribute
to their success.
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CEO’S MESSAGE
Our cargo handling priorities are to
pursue the expansion of our network
in key markets, especially in the wind
and bulk sectors. We will focus on
building strong long-term customer
relationships to anticipate their
needs and respond quickly to market
shifts. Further, we will rely upon our
agile business model to deploy our
flying team and explore niche port
partnerships. We are also investing
in new systems to harmonize and
digitalize our operations, which will
improve the quality and process of
our customer experience across the
whole supply chain.
This historic performance
is the result of a clear
vision, a solid strategic
plan, well-defined
business objectives, and
great execution.
Our port terminal operations
reported record tonnage handled
in 2021 due to a buoyant market
and the strength and creativity of our
cargo handling expertise across our
network, which was able to overcome
congestion and labour shortages in
many of our ports. This more than
made up for the setbacks from the
wood pellet fire at our Brunswick (GA)
terminal and a strike at the Port
of Montréal (QC). The economic
rebound saw major investments in
infrastructure projects, which meant
an increase in demand for steel as
well as other bulk and break-bulk
materials, positively impacting
our business. Congestion at major
ports drove customers to explore
alternate routes and LOGISTEC
was ready to work with them to
find new ways to get their product
to destination. We also benefitted
from our recent acquisitions, which
performed well. In addition, we
purchased state-of-the-art electric-
powered equipment that is improving
efficiencies and supporting our
sustainability goals. As we renew our
equipment, we will continue to opt
for ecofriendly technologies.
RECORD FINANCIAL RESULTS
LOGISTEC had a record-breaking
year in 2021. For the first time in our
70-year history, our consolidated
revenue reached $743.7 million, an
increase of $139.0 million or 23.0%
over fiscal 2020. More importantly,
we achieved record adjusted earnings
before interest expense, income
taxes, depreciation, and amortization
expense (“Adjusted EBITDA (1)”) of
$120.8 million and we recorded our
best ever profit attributable to owners
of the Company at $45.4 million.
These earnings also led us to achieve
another landmark: earnings per
share (“EPS”) above $3.00 per share
for the first time, with total diluted
EPS computing at $3.46 per share.
We are particularly pleased that
both our business segments fueled
these amazing results with strong
contributions from each.
STRUCTURED TO DELIVER SUCCESS
LOGISTEC stayed laser-focused on
strategic initiatives and found new
opportunities and markets to create
long-term value for customers
and shareholders.
Our leaders in the field in each of our
segments are responsible for the
performance and development of our
business. We will continue to grow
both segments organically through
strong partnerships and through
smart acquisitions that complement
our network.
MARINE SERVICES –
A KEY SUPPLY CHAIN PARTNER
LOGISTEC’s marine services segment
delivered its best performance ever with
2021 revenue closing at $427.0 million,
an increase of 23.9% over 2020. Bulk,
break-bulk and container volumes
were up everywhere, which led to this
outstanding performance.
(1) Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section on page 53.
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2021 ANNUAL REPORT CEO’S MESSAGE
ENVIRONMENTAL SERVICES –
CONTRIBUTING TO A
SUSTAINABLE FUTURE
LOGISTEC’s environmental services
segment also delivered its best
performance ever, with revenue
reaching $316.7 million for 2021,
up from $260.1 million or 21.8%
from the previous year. Revenue
growth was especially robust in the
drinking water infrastructure renewal
market, through the deployment
of our ALTRA Proven Water
Technologies in North America.
In addition, the acquisition, in
June 2021, of Alberta-based American
Process Group (“APG”), a specialist
dredging, dewatering and residuals
management contractor, contributed
noticeably to our revenue growth.
The remainder of our core services
were accretive for our revenue
growth and performed in line with
our expectations.
ALTRA Proven Water Technologies
allows the renewal of water mains
through a specialized trenchless lining
technology designed for drinking
water applications. With the increased
frequency of extreme weather events
– flooding, earthquakes, hurricanes –
and aging water infrastructure, these
resilient and field-proven technologies
provide a cost-effective and robust
solution to ensure safe and reliable
water supply for impacted urban
areas. This represents a significant
driver for our growth in the Canadian
and U.S. markets.
In 2021, we invested considerably
to raise awareness for our newly
developed ALTRA PFAS Treatment
Solutions tailored for managing
persistent chemicals, namely
perfluoroalkyl and polyfluoroalkyl
substances (“PFAS”) that have adverse
toxicological effects on humans and
are widely present in our environment.
This technology is geared towards
highly contaminated fluids present in
landfills, airports as well as industrial
and military sites. We developed
key relationships during 2021 and
have entered several pilot projects,
which should drive new revenue in
the coming year throughout North
America.
We have also developed and
started the commercialization
of a technology to recycle and
revalorize the fine components
found in Construction, Renovation
and Demolition (“CRD”) residual
materials. It offers a sustainable
alternative based on circular economy
principles rather than sending
construction waste to landfill sites.
Our CRD fines technology transforms
waste into reusable by-products
such as compost, aggregates, and
wood chips.
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CEO’S MESSAGE
We are at an exciting
moment in our
history where we
can drive change
with our expertise
and technology.
THE STRENGTH OF OUR PEOPLE
Throughout this busy year, our
people were resilient, agile,
and always ready to go beyond.
Like many companies, we faced
labour challenges, which drove
us to further invest in our talent,
recruitment capabilities and
development programs. Our teams
were strengthened in both business
segments and within our corporate
services, building a high-performing
team with the right talent in key
positions. We also reinforced our
senior leadership team with the
addition of a new Chief Information
Officer, a new Treasurer, as well as a
new President for our environmental
business who started in early 2022.
From an organizational standpoint,
we are updating our internal
processes to continuously improve
operational excellence. In this
digital age, we are also investing in
technologies to modernize our IT
infrastructure and leverage data to
guide our business decisions. We
built the foundation for our Enterprise
Resource Planning (“ERP”) system that
will be deployed in the coming years.
We believe in making wise investment
decisions for the long term that will
translate into higher efficiencies,
talent retention and enhanced
customer service.
A major game-changer that rose to the
forefront in 2021 was the widespread
acknowledgment that climate change
is real. For us at LOGISTEC, protecting
the environment has always been part
of our DNA, through reducing our
carbon footprint and contributing to
a sustainable global economy and
supply chain. LOGISTEC ’s services
directly support 12 of the United
Nations’ 17 Sustainable Development
Goals and we are using these to guide
us in setting new environmental, social
and governance (“ESG”) targets to
support our vision. In 2022, we will
commit to improving how we measure
our ESG performance and to create
a path to reach the international goal
to reduce CO2 emissions by 40% by
2030. This drives our teams to find
solutions that will make a difference
and build a better future.
LOGISTEC won several prestigious
awards that recognize our leadership
in innovation and are a testament to
the talent, expertise and passion of
our people who are always seeking
to provide creative solutions for
our customers.
We are at an exciting moment in our
history where we can drive change
with our expertise and technology.
I want to express my admiration and
gratitude to every member of the
LOGISTEC family who contributed
to making 2021 such a successful
year. I appreciate their commitment
to excellence and their resilience,
all while keeping the customers’ well-
being top of mind every day. I would
also like to thank our customers and
our partners for their vision, trust and
continued support. Together, we will
continue to collaborate, innovate,
and push boundaries for many years
to come.
(signed) Madeleine Paquin, C.M.
President and Chief Executive Officer
LOGISTEC Corporation
9
2021 ANNUAL REPORT STRONG FINANCIAL PERFORMANCE
Reliability, imagination,
sustainability, and going
beyond are the four
values that guide our
business strategy.
Our 2021 financial
performance is a stellar
demonstration of
its strength.
JEAN-CLAUDE DUGAS, CPA, CA
CHIEF FINANCIAL OFFICER
STRONG
FINANCIAL
PERFORMANCE
LOGISTEC continues to lead with strong growth and
profitability that can be attributed to strategic financial
decisions and bold actions. A combination of our network
expansion, a key acquisition and implementing our
innovative solutions across North America have enabled
LOGISTEC to post record results for 2021.
Our 2021 financial performance set record-breaking
results in most financial aspects. Our consolidated
revenue surpassed $700M for the first time and our profit
attributable to owners of the Company reached a record
$45.4 million. Because of this, our EPS leapt above the
$3.00 mark for the first time, reaching a record total
diluted EPS of $3.46. These strong financial results also
drove the Adjusted EBITDA (1) to $120.8 million, a 20.0%
increase over 2020.
We remained focused on our long-term strategic plan
through the challenges brought on by the pandemic,
clearly demonstrating the dedication and resilience of
our experts in the field and the strength of our core values.
With this approach, we have further solidified a strong
financial foundation to build upon next year and beyond.
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• LOGISTEC is in a strong financial position at the
close of 2021, with a sound working capital ratio
and indebtedness and total assets approaching
the $1 billion milestone.
• The acquisition of APG is aligned with our long-term
growth plan for our environmental services and we
will continue to seek new opportunities in both our
business segments.
• Our solid marine services performance in 2021 can
be attributed to a combination of organic growth
and contributions from our acquisitions in recent years.
• Our ability to produce cash generated from operations
of more than $100 million in 2021 is a strong base for a
healthy balance sheet and will support future development.
(1) Adjusted EBITDA is a non-IFRS measure, please refer to
the non-IFRS measure section on page 53.
7
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Revenue M$
CAGR 12.7%
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Profit attributable to owners
of the Company M$
CAGR 9.9%
3
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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Adjusted EBITDA M$
CAGR 12.3%
(1)
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
STRONG FINANCIAL PERFORMANCE
TRIPLING REVENUE
IN 10 YEARS
3X
TRIPLING
ADJUSTED EBITDA (1)
IN 10 YEARS
3X
(1) Adjusted EBITDA is a
non-IFRS measure, please
refer to the non-IFRS
measure section on page 53.
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2021 ANNUAL REPORT
PURPOSE-DRIVEN
PURPOSE-
DRIVEN
Our business decisions and actions center around our purpose and shared values with the clear objective of creating
value for our customers, communities, people, shareholders, and all stakeholders. In 2021, we committed to creating
solutions for supply chain and environmental challenges, we gave back to the communities where we operate, we were
recognized for our innovation, and we expanded our network into new markets.
OUR VALUES
Our values define who we are and why. They guide our decisions and day-to-day actions. They shape the way we
serve our customers and engage with our communities.
Reliability
Going Beyond
Our people are recognized for their operational
excellence. Over the years, solid processes and
continuous learning have allowed us to establish
reliable supply chains for our customers and effective
remediation solutions for the environment. Whatever the
circumstances, our people have an uncanny ability to find
solid solutions.
Our people are ready to go beyond and challenge the
status quo. They strive to continuously push boundaries.
They seek new ways to improve their operations and cost
leadership. They go after new partnerships and business
opportunities.
Imagination
Sustainability
Our people are imaginative thinkers — people who
generate new and unique solutions — and have the
courage to take action to put these solutions in place.
They create environments in which others can take smart
risks and experiment. They foster the creative ideas of
others, using good instincts and agility to bring the right
solutions to our customers.
Our people are fully accountable for our performance
and are truly committed to long-term sustainable growth.
By empowering our people, acting with integrity, setting
clear goals, and measuring our progress, we deliver
innovative products and services to our customers and
create value for our shareholders.
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PURPOSE-DRIVEN
LEADING FOR THE ENVIRONMENT
ALTRA Proven Water Technologies
We have a long track record of
successful projects with our solutions
to address challenges linked to
aging water infrastructure. Using
the trenchless ALTRA technology,
we have renewed over 2,200 km
of underground infrastructure with
limited site disturbance and material
wastage, minimizing the disruption
and environmental impact of
each project.
Envirolys Award
SANEXEN won the prestigious
Envirolys Innovation and Environmental
Protection Award from the CETEQ
(Conseil des entreprises en
technologies environnementales
du Québec) for its recovery plant
dedicated to residual materials
issued from CRD fines, the first in
North America.
Clean50 Award
ALTRA Proven Water Technologies
was awarded Canada’s Clean50 Top
Project for 2021, which recognizes
the best sustainability-oriented
projects completed in Canada.
Projects are chosen based on the four
“I’s” criteria: Impactful, Innovative,
Inspiring and can readily be Imitated.
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2021 ANNUAL REPORT PURPOSE-DRIVEN
WINNING AWARDS
Canada’s EY Entrepreneur
of the Year 2021
President and CEO Madeleine
Paquin was one of the ten winners
of Canada’s EY Entrepreneur of
the Year® 2021 program, which
recognizes strong leaders developing
solutions that will shape the future
and investing in innovation to propel
meaningful progress.
International Heavy Lift Awards –
Terminal Operator of the Year
& Safety
LOGISTEC was named Operator of
the Year at the international Heavy
Lift Awards and our subsidiary
Gulf Stream Marine, Inc. (“GSM”)
won the Safety Award for its
exemplary commitment to a culture
of health and safety.
The Operator of the Year award is a
testament to the efforts and work of
our teams who focus every day on
offering reliable, innovative, and safe
solutions for our customers.
The Safety Award given to GSM
also shows our strong commitment
to safety, quality, and efficiency in
handling oversized cargo.
Signal Mutual’s Frank R. Sharp
Executive Leadership Award
for Safety
Rodney Corrigan, President of
LOGISTEC Stevedoring Inc.,
received the Frank R. Sharp Executive
Leadership Award for Safety from
Signal Mutual. The award recognizes
Mr. Corrigan’s ongoing promotion
of employee health and safety
through the implementation of a
Safety Management System, setting
high safety standards based on
personal values and commitment to
the prevention of workplace injuries
and illnesses.
Rodney Corrigan, President of LOGISTEC Stevedoring Inc. receives the award
in London, UK in November 2021
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PURPOSE-DRIVEN
LOGISTEC is leading the drive to
reduce its marine environmental
footprint and truly contributing to a
sustainable supply chain.
GIVING BACK TO OUR COMMUNITIES
LOGISTEC lends its support to
organizations active in communities
where our people live and work.
We seek to do so in sectors that are
attuned to our identity, our values,
and our strategic plan, namely
the development of our talent,
humanitarian endeavours, health and
safety, environmental protection,
and drinking water preservation.
This year, we have donated to local
and national non-profits across our
network through our corporate
donations program.
Green Marine
Green Marine is helping to reduce
the marine industry’s environmental
footprint through concrete actions.
At LOGISTEC, this program is an
integral part of our ESG roadmap and
our strategic sustainability objectives.
In 2021, LOGISTEC and GSM, on
the U.S. Gulf Coast, officially certified
five new terminals in Texas as part
of Green Marine’s Environmental
Certification Program, for a total of
18, the largest network of Green
Marine-certified port terminals in
North America.
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2021 ANNUAL REPORT INNOVATING FOR THE NEXT GENERATIONS
INNOVATING
FOR THE NEXT
GENERATIONS
Innovation is LOGISTEC’s
competitive advantage,
building better solutions and
services for our customers.
Our current and future
success lies in creating
solutions that keep us
relevant in the competitive
market, playing an important
role in our economic growth.
Our team is bold. We experiment,
we test our ideas and discover
unique ways to give life to new
solutions. We drive innovation from
a deep understanding and insight
of what our customers and our
communities value and involve them
in the development of products and
services. Our sense of purpose and
our agility compels us to challenge
conventional thinking and pursue
improvements that respond to both
immediate challenges and those
of tomorrow.
REDUCING LANDFILL WASTE BY
RECOVERING CONSTRUCTION,
RENOVATION AND DEMOLITION
(“CRD”) RESIDUAL MATERIALS
In 2021, LOGISTEC launched the first
processing facility of its kind in
North America, aimed at recovering
residual materials originating from
CRD activities. The technology at
the core of this facility transforms
the finer components of CRD residual
materials into valuable by-products
such as compost, aggregates, and
wood chips. This facility offers large-
scale processing of residual materials,
which can be recovered, recycled,
and reused instead of ending up in
solid waste landfills.
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INNOVATING FOR THE NEXT GENERATIONS
THE POWER OF ECOEFFICIENCY
TERMONT
TERMONT Montréal Inc. (“TERMONT”)
operates a container terminal at
the Port of Montréal and is a joint
venture between LOGISTEC and
other partners. TERMONT has
installed technology on trucks that
automatically stops the motor when
they are not moving, reducing idling
emissions again this year by 30%.
In 2021, TERMONT acquired an
electric-powered rail-mounted gantry
crane that can transload import and
export containers directly to and from
railcars or staging piles, increasing
efficiency and further cutting
gas emissions.
Montréal Bulk Terminal
This year marked the arrival of our
brand-new hybrid crane at the
Port of Montréal, reaffirming our
vision for a greener and sustainable
supply chain. This investment by
LOGISTEC will contribute to the
Port de Montréal’s goal to leverage
sustainable technologies and reduce
its environmental footprint.
LOGISTEC USA Inc.
Two new eco-efficient mobile harbour
cranes were purchased for the Port
Manatee terminal in Tampa Bay (FL),
and will begin operating in 2022.
These new additions to our fleet
of cargo handling equipment are
well aligned with our focus on
reducing our marine carbon footprint
in support of our Green Marine
initiatives. It is a long-term investment
not only for our customers, but for
our community in Port Manatee and
the environment.
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2021 ANNUAL REPORT 2021 FINANCIAL HIGHLIGHTS
2021
HIGHLIGHTS
For the year ended December 31 ($ except where otherwise indicated).
743.7M 3.46
EARNINGS
PER SHARE (2)
IN REVENUE
120.8M
ADJUSTED EBITDA (1)
12.7
PRICE/EARNINGS
RATIO (3)
45.4M
PROFIT ATTRIBUTABLE
TO OWNERS OF
THE COMPANY
39.1%
INCREASE IN PROFIT
ATTRIBUTABLE TO OWNERS
OF THE COMPANY OVER 2020
(1) Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section on page 53.
(2) Attributable to owners of the Company.
(3) Price/earnings ratio calculated with Class B Subordinate Voting Shares.
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2021 FINANCIAL HIGHLIGHTS
MARINE
SERVICES
ENVIRONMENTAL
SERVICES
427.0M
IN REVENUE
316.7M
IN REVENUE
PROFIT
BEFORE
INCOME
TAXES
30.5M
538.3M
TOTAL ASSETS
PROFIT
BEFORE
INCOME
TAXES
25.6M
360.7M
TOTAL ASSETS
19
2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
MANAGEMENT’S
DISCUSSION &
ANALYSIS
20
MANAGEMENT’S DISCUSSION & ANALYSIS
TABLE OF
CONTENTS
22 Forward-Looking Statements
23 Introduction
24 Our Business
26 Our Strategy
28 Marine Services
32 Environmental Services
36 Commitment to ESG
37 Outlook
38 Our Response to COVID-19
38 Business Combinations
39 Selected Annual Financial Information
41 Selected Quarterly Information
41 Seasonal Nature of Operations
42 Consolidated Financial Review
44 Segmented Results
45 Fire Incident at the Port of Brunswick (GA)
46 Dividends
47 Liquidity and Capital Resources
51 Equity in Joint Ventures
51 Post-Employment Benefits
52 Other Items in the Consolidated Statements of Financial Position
53 Non-IFRS Measures
54 Financial Risk Management
57 Business Risks
58 Related Party Transactions
58 Significant Judgments, Estimates and Assumptions
58 Tracking Performance
59 Internal Controls over Financial Reporting
21
2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
FORWARD-LOOKING
STATEMENTS
This management’s discussion and analysis (“MD&A”)
along with the annual report, audited annual consolidated
financial statements, the annual information form and
the information circular and compensation disclosure and
analysis are all filed on SEDAR’s website (www.sedar.com)
and some of these documents can also be consulted
on LOGISTEC’s website (www.logistec.com), in the
investors section.
The interim financial reports and financial press releases
can also be consulted on SEDAR and LOGISTEC’s website.
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 this document 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.
22
MANAGEMENT’S DISCUSSION & ANALYSIS
INTRODUCTION
This MD&A of operating results deals with LOGISTEC Corporation’s operations, results and financial position for the
fiscal years ended December 31, 2021 and 2020. All financial information contained in this MD&A and the attached
audited consolidated financial statements (“financial statements”) has been prepared in accordance with International
Financial Reporting Standards (“IFRS”).
In this report, unless indicated otherwise, all dollar amounts are expressed in Canadian dollars. This MD&A should be
read in conjunction with LOGISTEC’s financial statements and the notes (“2021 Notes”) thereon.
Variation
21-20
%
Variation
21-17
%
23.0
20.0
39.1
12.4
(10.7)
56.3
61.7
65.4
75.1
16.5
21.6
4.6
144.5
37.6
(in thousands of dollars,
except where indicated)
Financial Results
Revenue
Adjusted EBITDA (1)
Profit for the year (2)
Financial Position
Total assets
Working capital
Long-term debt
2021
2020
2019
2018 (5)
2017 (5)
743,703
604,701
639,942
584,878
475,743
120,821
100,658
45,364
32,614
89,611
26,194
64,177
18,060
74,741
27,426
898,971
799,452
734,738
637,103
513,539
81,806
91,634
97,996
82,099
70,196
(including the current portion
and short-term bank loans; if any)
203,954
167,710
177,900
163,297
83,404
Equity (2)
314,561
300,782
280,371
262,198
228,574
Per Share Information (3)
Profit for the year (2) ($)
Equity (2) ($)
Outstanding shares, diluted
3.46
23.98
2.49
23.00
2.00
21.40
1.38
19.96
2.11
17.56
(weighted average in thousands)
13,117
13,076
13,103
13,135
13,016
Share price as at December 31
Class A Common Shares ($)
Class B Subordinate Voting Shares ($)
Dividends declared per share
45.00
44.00
37.00
35.16
39.60
40.00
40.86
43.27
44.04
44.75
Class A Common Shares ($)
0.3834
0.3740
0.3685
0.3465
0.3150
Class B Subordinate Voting Shares ($)
0.4217
0.4114
0.4054
0.3812
0.3465
Financial Ratios
Return on average equity (2)
14.74%
11.22%
Profit for the year (2)/ revenue
Net indebtedness/capitalization (4)
6.10%
35%
5.39%
29%
9.66%
4.09%
36%
7.36%
3.09%
38%
12.76%
5.76%
28%
Price/earnings ratio
(Class B Subordinate Voting Shares)
12.70
14.12
20.00
31.36
21.24
(1) Adjusted EBITDA is a non-IFRS measure, please refer to the non-IFRS measure section on page 53.
(2) Attributable to owners of the Company.
(3) For earnings per share per class of share, please refer to the selected quarterly information table on page 41.
(4) Net indebtedness and capitalization are defined and reconciled in the liquidity and capital resources section of this MD&A on page 47.
(5) For all periods after January 1, 2019, figures reflect the application of IFRS 16, Leases (“IFRS 16”), for which the 2018 and 2017 comparative figures
have not been restated.
23
2021 ANNUAL REPORT
MANAGEMENT’S DISCUSSION & ANALYSIS
OUR
BUSINESS
The Company is incorporated in
the Province of Québec and its
shares are listed on the Toronto
Stock Exchange (“TSX”) under the
ticker symbols LGT.A and LGT.B.
The Company’s largest shareholder
is Sumanic Investments Inc. The
operations of LOGISTEC Corporation,
its subsidiaries and its joint ventures
(collectively “LOGISTEC”, the
“Company”, “we”, “us”, or “our”)
are divided into two segments:
marine and environmental services.
OUR MISSION AND PURPOSE
CORPORATE OVERVIEW
LOGISTEC’s strategy is guided by
our mission and purpose: We pride
ourselves on building and sharing
our expertise in order to contribute
to the success of our customers
and our communities. Our people
are dedicated to finding solutions
that support reliable and sustainable
supply chains and protect our
environment and our water resources.
LOGISTEC is a North American
provider of choice for safe,
sustainable and creative solutions in
the marine and environmental sectors.
The Company’s long-term strategy is
supported by a history of consistent,
profitable growth driven by innovation
and resiliency within its two distinct
business segments, complemented
by strategic acquisitions.
24
LOGISTEC’s people are key to the
success of its strategy, as they ensure
the delivery of the Company’s services
whether through its cargo handling
facilities or on its project sites.
LOGISTEC’s success is a direct reflection
of the skills and dedication of its
3,200 people across North America,
from the Arctic to the Gulf of Mexico,
including both union and non-union
workers. LOGISTEC has a proven track
record of creating mutually beneficial
outcomes when negotiating with
unions. The Company is party to
26 active collective agreements.
Three agreements were signed
in 2021, while five were still being
negotiated at the end of 2021 and
ten will expire in 2022.
IQALUIT
DECEPTION BAY
CHURCHILL
STONY PLAIN
REGINA
EMERALD PARK
CORNER BROOK
SEPT-ÎLES
PORT-CARTIER
MATANE
BAIE-COMEAU
POINTE-AU-PIC
QUÉBEC CITY
TROIS-RIVIÈRES
GROS CACOUNA
SAINT JOHN
BÉCANCOUR
MONTRÉAL
CONTRECO EUR
BAYSIDE
DALHOUSIE
SYDNEY
PORT HAWKESBURY
SHEET HARBOUR
HALIFAX
ROUYN-NORANDA
THUNDER BAY
SPRAGGE
STE-CATHERINE
BROSSARD
OTTAWA
COATICOOK
NORTH GOWER
MORRISBURG
ROGERS CITY
GREEN BAY
CHICAGO
TORONTO
WELLA ND CANAL
DETROIT
RIVER ROUGE
BUFFINGTON
HURON
BUFFALO
ERIE
CLEVELAND
JOHNSTOWN
OSWEGO
DAVISVILLE
PROVIDENCE
NEW BEDFORD
PHILADEL PHIA
BALTIMORE
KITIMAT
TACOMA
LOS ANGELES
LAKE CHARLES
PASCAGOULA
PENSA COLA
BRUNSWICK
HOUSTON
FREEPORT
NEW ORLEANS
CORPUS CHRISTI
BROWNSVILLE
TAMPA BAY
PORT MANATEE
PORT EVERGLADES
MANAGEMENT’S DISCUSSION & ANALYSIS
l l Marine services
l l Environmental services
l l Water services
IQALUIT
DECEPTION BAY
KITIMAT
TACOMA
LOS ANGELES
CHURCHILL
STONY PLAIN
REGINA
EMERALD PARK
ROUYN-NORANDA
SEPT-ÎLES
PORT-CARTIER
CORNER BROOK
BAIE-COMEAU
POINTE-AU-PIC
QUÉBEC CITY
TROIS-RIVIÈRES
MATANE
DALHOUSIE
SYDNEY
GROS CACOUNA
SAINT JOHN
BÉCANCOUR
PORT HAWKESBURY
SHEET HARBOUR
THUNDER BAY
SPRAGGE
ROGERS CITY
MONTRÉAL
STE-CATHERINE
OTTAWA
CONTRECO EUR
BROSSARD
COATICOOK
NORTH GOWER
MORRISBURG
BAYSIDE
HALIFAX
GREEN BAY
CHICAGO
TORONTO
WELLA ND CANAL
DETROIT
RIVER ROUGE
BUFFINGTON
HURON
JOHNSTOWN
OSWEGO
BUFFALO
PROVIDENCE
NEW BEDFORD
ERIE
CLEVELAND
DAVISVILLE
PHILADEL PHIA
BALTIMORE
LAKE CHARLES
PASCAGOULA
PENSA COLA
BRUNSWICK
HOUSTON
FREEPORT
NEW ORLEANS
CORPUS CHRISTI
BROWNSVILLE
TAMPA BAY
PORT MANATEE
PORT EVERGLADES
We are making significant investments
in technology to harness the power
of innovation for our people, and drive
value creation for our customers
and our communities.
MARTIN PONCE
CHIEF INFORMATION OFFICER
25
POUR IDENTIFICATION DE SECTION AU BESOIN2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
OUR STRATEGY
Anchored by a proven track record
of long-term growth, LOGISTEC is
driven through innovation to provide
our stakeholders with a sustainable
world for the next generations.
Our strategic vision is clear: to be
the provider of choice for safe,
sustainable, and creative solutions
in our marine and environmental
services segments.
Since becoming a public company in
1969, LOGISTEC has demonstrated
increasing profitability over
the years, creating value for all
stakeholders. The Company’s
strong financial discipline, solid
balance sheet and achievements
support long-term financial stability
and continued growth.
LOGISTEC leverages the breadth
of its geographic footprint, invests
in innovative solutions and centers
decisions around the Company’s
values to deliver unparalleled and
sustainable results. When it comes
to strategic expansion through
acquisitions, LOGISTEC pursues
opportunities that support and
contribute to maximizing shareholder
value, undertaking rigorous evaluations
based on defined financial and
strategic criteria. The evaluation
looks to whether the investment is
accretive, assesses if it provides the
proper return from future sustainable
cash flows, and determines whether
the financial position will minimally
be affected (if financing is needed)
and present an acceptable debt level
and debt/capitalization ratio.
26
MANAGEMENT’S DISCUSSION & ANALYSIS
DIVERSIFIED
REVENUE
57%
MARINE
SERVICES
43%
ENVIRONMENTAL
SERVICES
DIVERSIFIED
GEOGRAPHY
54%
CANADA
46%
USA
27
POUR IDENTIFICATION DE SECTION AU BESOIN2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
MARINE
SERVICES
$427.0M
REVENUE FOR 2021
Our teams went to work every
day with dedication, serving
our customers through this
extraordinary situation. I want
to acknowledge the passion,
reliability and hard work of all
our teams across our network
who contributed to another
successful year.
RODNEY CORRIGAN
PRESIDENT, LOGISTEC STEVEDORING INC.
28
MANAGEMENT’S DISCUSSION & ANALYSIS
A RECORD YEAR FOR
CARGO HANDLING
Once again in 2021, the global
supply chain faced its share of
challenges with the pandemic as a
backdrop. LOGISTEC continued to
support its customers through this
new reality. One of the first effects
of COVID-19 was the impact on the
global supply chain. The sudden
comeback of goods and projects and
the strong rebound in manufacturing
production, caught the world off
guard. As lockdowns lifted, demand
for products skyrocketed, creating
challenges and opportunities for
our network. As an essential service
and as a key supply chain partner,
LOGISTEC found innovative solutions
to help customers thrive in the
rebound and addressed supply chain
challenges by creating new service
offerings. We leveraged our extensive
North American ports network and
worked closely with our customers
to identify more efficient routes
to bypass congestion to get their
products delivered and save time.
As a result, LOGISTEC handled
record steel volumes, increased
break-bulk cargoes as tonnage
converted from containers to general
cargo vessels. We also received strong
wind cargoes and forest products
throughout the United States and
dealt with a robust oil and gas market,
which drove higher-than-anticipated
steel pipe volumes in the Houston
market, and overall strong bulk cargo
volumes. We were also very busy at
our container terminals with record
numbers of containers handled.
LOGISTEC was there at the very
beginning of the renewable energy
boom and developed specialized
expertise combined with leading-
edge safety and quality protocols.
We are an industry leader in handling
wind energy components, from
towers to blades to nacelles. Our
marine terminals are strategically
located in the U.S. Gulf Coast,
situated near existing, new and
proposed wind projects, allowing
our customers to benefit from both
our expertise and access to the
most efficient routes possible to
destination wind projects.
29
As a leading North American
marine services provider, LOGISTEC
specializes in cargo handling for a
wide variety of marine and industrial
customers and operates 80 terminals
in 54 ports. Our marine services
segment is focused on growth through
innovation, operational excellence,
and expanding its network to better
serve its customers. LOGISTEC leases
terminals, owns warehouses, and
invests in cargo handling equipment
and technologies to leverage
its operations.
Our competitive advantage is
positioned around three key areas:
• Strategically located near road
and rail infrastructure, offering
specialized cargo handling
capabilities, fast and efficient
services, and ease of transport to
final destinations, as well as fast
turnaround of cargo and vessels.
• Strong long-term relationships with
business stakeholders and partners
to support efficient and positive
decision-making outcomes.
• Wide variety of cargo types and
multiple industries served, resulting
in a diversified revenue base and
reducing LOGISTEC’s sensitivity to
economic swings in the short and
long term.
12.4%
COMPOUND ANNUAL
REVENUE GROWTH OVER
THE LAST 10 YEARS
2021 ANNUAL REPORT DRIVING INITIATIVES FOR
A SUSTAINABLE FUTURE
LOGISTEC continues to leverage
sustainable technologies to reduce
its environmental footprint, including
investing in hybrid and electric-powered
trucks, equipment, and cranes. As
the marine operator with the most
Green Marine-certified terminals
across North America, our teams
are continuously exploring ways to
optimize our operations. As we renew
our equipment, we will continue to
opt for sustainable technologies.
SAFETY
LOGISTEC is dedicated to continuously
improving its operations, equipment,
and facilities to better serve its
customers with a strong focus on
safety. Every operation, every lift,
every movement poses its own
unique challenges. Striving for
excellence in managing health and
safety is part of our culture and goes
beyond compliance.
MARINE TRANSPORTATION
AND AGENCIES
Other marine services include marine
transportation and marine agencies
where the Company is consistently
pursuing opportunities to deliver
value to its customers and enhance
long-term shareholder value.
The Company has a joint venture
to transport cargo to communities
in the Canadian Arctic through the
50%-owned joint venture Transport
Nanuk Inc. (“Nanuk”). Through this
venture, LOGISTEC serves over
40 communities in Nunavut
and Nunavik.
18
GREEN MARINE
CERTIFIED TERMINALS
23.9%
OF ANNUAL REVENUE
GROWTH OVER 2020
30
MANAGEMENT’S DISCUSSION & ANALYSIS
PRIORITIES
The marine services’ short-term
priorities are focused on accelerating
growth and embedding operational
excellence throughout our business,
implementing continuous improvement
programs across the network to
increase productivity and expand
margins. The Company invests in
training to expand labour skillsets,
and builds on technology to
reduce operating costs and create
value-added services. It leverages
stakeholder management initiatives
to secure competitive leases with
port authorities and labour contracts
with unions.
In the longer term, marine services
are strengthened through geographic
expansion, continued customer
growth and increased market share.
The Company expects to expand
its existing cargo handling business
through continued investment,
strategic acquisitions and partnerships
with ports and terminals, and targeted
solutions for new strategic customers.
OUR MARINE AGENCIES REINVENTED THE
SCOPE OF THEIR SERVICES TO SUPPORT
THE MARINE INDUSTRY
LOGISTEC’s Ramsey Greig & Co. Ltd. gave operational
support again this year to an ecofriendly and
time-saving River Shuttle service to 40,000 commuters,
that connects Montréal’s East End to the Old Port.
This represents a cost-effective and efficient
transportation solution allowing people to experience
the serenity of water transport while avoiding
the frustration of traffic jams.
ECOFRIENDLY AND
TIME-SAVING RIVER
SHUTTLE SERVICE TO
40,000
COMMUTERS
Our marine agency services leveraged their extensive industry expertise to connect communities in Québec,
signing a charter contract with the Société des traversiers du Québec to add the NM Svanoy to its operational
fleet. The agency’s operations team will be responsible for ensuring its proper functioning and its maintenance
as well as obtaining all the required certifications to navigate in Canadian waters.
31
2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
ENVIRONMENTAL
SERVICES
$316.7M
REVENUE FOR 2021
OVER THE YEARS, WE HAVE:
REDUCTION OF
469
KILOTONNES CO2
LANDFILL AVOIDANCE
3.5M
TONNES
SOIL CONSERVATION
18.9M
TONNES
REMOVED TRUCKS
FROM THE ROAD
1.5M
AVOIDED THE EMISSION OF
1,470
TONNES OF ATMOSPHERIC
POLLUTANTS
32
MANAGEMENT’S DISCUSSION & ANALYSIS
13.2%
COMPOUND ANNUAL
REVENUE GROWTH OVER
THE LAST 10 YEARS
33
Additionally, LOGISTEC manufactures
the structural lining product used
in our drinking water infrastructure
renewal projects in North America.
Our team has also developed
technologies to remove specific
persistent chemicals, namely
perfluoroalkyl and polyfluoroalkyl
substances (“PFAS”) or “forever
chemicals” widely present in our
environment, in particular soils
and groundwater. These persistent
chemicals commonly found in
landfills, airports, as well as industrial
and military sites have an adverse
toxicological effect on humans and a
negative impact on the environment.
ALTRA PFAS Treatment Solutions can
be adapted to each site’s conditions,
are cost-effective and safe, and
provide long-lasting results.
Preserving and protecting the
environment is a global trend that will
continue to grow in importance as
our society faces climate change and
biodiversity challenges, exacerbated
by urban development pressures
and population growth. For decades,
LOGISTEC has delivered creative and
customized solutions to industrial,
municipal, and governmental
customers and partners. Our
business units work to complement
one another and support different
areas of the business, from research
and development activities, to
manufacturing key components
linked to fluid transportation, to
managing our customers’ waste
management facilities and through
the execution of environmental
protection and remediation projects.
Our team of environmental experts,
engineers, scientists and field
personnel offers environmental
services, including the renewal
of drinking water infrastructure,
dredging and dewatering of residual
materials, environmental site
characterization and remediation,
contaminated soils and materials
management, risk assessment studies
as well as manufacturing of fluid
transportation products.
Our ALTRA Proven Solutions brand
combines a series of comprehensive
solutions and products, including:
ALTRA Proven Water Technologies,
which support the renewal of aging
drinking water infrastructure, and
ALTRA Proven Lead-Free Solutions,
which protects people from being
exposed to lead in their drinking water.
2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
LOGISTEC also provides turnkey
solutions for the environmental
assessment of properties and the
remediation of impacted soils,
groundwater and lagoons.
LOGISTEC offers services linked to
the proper handling of hazardous
materials in buildings and the
replacement of underground
hydrocarbon storage infrastructure,
including the characterization
and remediation of sites and risk
assessment, as well as contaminated
soils and materials management.
LOGISTEC’s environmental services’
competitive advantage is centered
around the following:
• A team of dedicated scientists,
engineers, project leaders and
experts in the field that develops
unique solutions for today’s
environmental challenges. Our
environmental services are built
upon a very pragmatic approach
to tackle current and anticipated
complex environmental conditions.
34
• Our team develops, manufactures,
and installs its drinking water
infrastructure renewal liner,
allowing for a better understanding
of the product’s full lifecycle and its
installation on site.
• Positioned as a leader in our
traditional markets, with strong
opportunities for increasing
market shares through geographic
expansion, as well as for further
commercialization of unique
water technologies across
North America.
In 2021, the NIEDNER team launched
a 4.0 manufacturing program, which
will allow them to optimize and
improve their operations, in response
to increasing demand for their
innovative products. NIEDNER saw its
sales increase by 53% in 2021.
EXPANDING OUR NETWORK REACH
American Process Group (“APG”)
In June 2021, LOGISTEC announced
the acquisition of APG, an Alberta-
based environmental industry leader,
specializing in dredging, dewatering
and residuals management in
Western Canada and select
urban areas in the USA. This is a
significant step toward our ambitious
strategic plan to expand innovative
services both geographically and
operationally, to continue to build
our role as a leader in environmental
services and to add new service
offerings to our growing portfolio.
21.8%
OF ANNUAL REVENUE
GROWTH OVER 2020
PRIORITIES
Our short-term focus is on deploying
core services and solutions in
additional select North American
regions as well as on continued
investment in research and
development, the realization of pilot
projects in the field, and the creation
and testing of customized solutions
in waste management, environmental
protection, and water resources
preservation. Additionnally, there is
accelerated urgency as businesses
and governments recognize the
necessity to serve communities
facing a growing number of critical
environmental challenges. As a
result, our field-proven innovative
solutions to resolve drinking water
infrastructure challenges are
expected to see increased demand.
In the longer term, our ambition
is to be recognized as an
industry leader with respect to
environmental protection, natural
resources preservation and circular
economy solutions across North
America. We will continue to grow
through geographic expansion of
our environmental services and
MANAGEMENT’S DISCUSSION & ANALYSIS
commercialization of our unique
water technologies across North
American markets. Strategic
acquisitions will continue to
complement our targeted growth.
We will continue to grow
through geographic expansion
of our environmental services
and commercialization of our
unique water technologies
across North American
markets.
JEAN-FRANÇOIS BOLDUC
PRESIDENT
LOGISTEC ENVIRONMENTAL SERVICES INC.
AND SANEXEN ENVIRONMENTAL
SERVICES INC.
35
2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
COMMITMENT
TO ESG
Delivering responsibly is at the
heart of how the LOGISTEC
family is building a sustainable
future for the next generations.
It means supporting reliable and
sustainable supply chains, creating
solutions and technologies for a
better environment, attracting and
developing the best and brightest
talent, investing in our communities
and leading with the highest
governance standards.
Through its three Environmental,
Social and Governance (“ESG”)
priorities, LOGISTEC is dedicated
to finding solutions that support
reliable supply chains and protect
the environment and water resources
and, in doing so, contribute directly
and indirectly to achieving 12 of
the United Nations’ 17 Sustainable
Development Goals.
PROTECT AND
RENEW OUR
ENVIRONMENT
GOAL 3:
Good Health
and Well-Being
Address lead in
drinking water and
emerging contaminants
GOAL 6:
Clean Water
Improve water quality
and infrastructure
GOAL 9:
Build Resilient
Infrastructure and
Foster Innovation
Facilitate sustainable and
resilient infrastructure
development. ALTRA’s
resiliency has been proven
GOAL 13:
Climate Action
Strengthen resilience
and adaptive capacity
to climate-related hazards
and natural disasters
BE SOCIALLY
RESPONSIBLE
GOAL 4:
Quality Education
Participate in programs
to help youth acquire
the knowledge and skills
needed to promote
sustainable development
GOAL 7:
Affordable and
Clean Energy
Support wind energy
supply chains
GOAL 11:
Sustainable
Cities and Communities
Prevent disasters including
water-related disasters
GOAL 14:
Life Under Water
As part of Green Marine,
support all best practices
of international shipping
LEAD WITH
STRONG
GOVERNANCE
GOAL 5:
Gender Equality
Help women have
equal rights to
economic resources
and natural resources
GOAL 8:
Decent Work and
Economic Growth
Protect labour rights and
promote safe and secure
working environments
for all workers
GOAL 12:
Responsible
Consumption
and Production
Contribute to circular
economy with our CRD
fines technology
GOAL 15:
Life on Land
Ensure the restoration
of our natural ecosystems
36
MANAGEMENT’S DISCUSSION & ANALYSIS
OUTLOOK
Last year, as we were looking ahead
at 2021, the outlook was uncertain.
We were navigating the pandemic,
the global supply chain was weakened,
yet an economic recovery was
underway.
In 2021, the COVID-19 pandemic
persisted with the emergence of
variants that kept changing the game.
The supply chain remained fragile
and disrupted in certain places;
inflation had an impact on the cost
of living, something we had not
seen in many years. Despite that,
we benefitted from a gradual
economic recovery.
We navigated these challenges and
delivered excellent results in 2021.
It took hard work and dedication,
but the entire LOGISTEC family
rallied and delivered. Once again,
our expertise combined with a
proven strategy of innovation and
targeted diversification prevailed
and allowed us to increase our
revenue and improve our profitability.
This bodes well for the Company and
our stakeholders.
The economy is still running full
steam ahead. Consumer demand
is not slowing down. Increased
discretionary spending is fuelling
this growth. We are no longer
experiencing a catch-up from the
2020 pandemic world halt, during
which consumer spending slowed
down and consumer savings
increased, improving household
balance sheets. Government stimulus
paid directly to taxpayers is another
factor that contributed to the positive
consumer financial situation. As
people started to spend again,
there was additional pressure on the
supply chain, and shortages became
more frequent. These shortages
delayed some of the spending,
which extended the demand for a
longer period. Economists are saying
this may last up to two more years
before it balances out. This is good
news for the Company, being part of
the supply chain that benefits from
high demand.
This context also leads to inflationary
pressures. Central banks are
announcing interest rate adjustments
to mitigate the inflationary trends.
This will help, but it might not be
enough to tackle inflation.
One big uncertainty ahead is the
growing scarcity of labour. It has become
challenging to attract and retain
talent at all levels of the organization,
and this is a widespread problem that
will impact all areas of the economy.
This may be one of our greatest
challenges yet.
The current situation between Russia
and Ukraine and the related sanctions
being brought forward by various
countries may influence the flow
of industrial commodities. It is very
difficult to predict what will be
the outcome on volumes handled,
as some cargoes could be negatively
affected, whereas alternative cargoes
could be favoured.
Coming out of our best year ever,
our marine services segment is
strong, and we have the confidence
and support of our customers and
our partners. Our environmental
services segment is also in a good
position to perform, with a solid
order book to start 2022 and new
business opportunities from our
latest acquisition, American
Process Group.
Internally, we are in the process
of redefining and deploying our
data strategy, in particular with our
ERP system. Such an undertaking
is always a challenge, but we are
progressing with a strong plan
and a clear vision. This will give
management access to more
information to support a faster and
better decision-making process, with
a continuous improvement mindset.
We are confident we can continue to
deliver strong financial performances
in the future, as we can count on the
great LOGISTEC family, our vision
and values, a focused strategic
plan and sound financial position.
We will continue to seek growth
opportunities, both organic and
through acquisitions, while creating
value for all our stakeholders.
37
2021 ANNUAL REPORT MANAGEMENT’S DISCUSSION & ANALYSIS
OUR RESPONSE TO COVID-19
Since March 2020, the COVID-19 pandemic has prompted governments and businesses to take unprecedented
measures. The situation is constantly evolving, and the measures put in place have numerous economic repercussions at
global and national levels. These measures, which include travel bans, solitary confinement or quarantine, whether
voluntary or not, and social distancing, have caused significant disruption in Canada and the United States, where the
Company operates.
In 2021, LOGISTEC continued to operate under its business continuity plan. All our operations were deemed essential
services by the government authorities in Canada and the United States. As such, the Company’s marine operations,
including our terminal operations across our North American network, remained open and functional. Similarly, the
Company’s environmental operations, including the renewal of underground water mains, dredging and dewatering, site
remediation, contaminated soils and materials management, and manufacturing of fluid transportation products,
remained operational. Nonetheless, the strict distancing and sanitation protocols have increased the operating costs in
our marine and environmental services segments.
As at December 31, 2021, the Company qualified for the Canada Emergency Wage Subsidy (“CEWS”) and there was
reasonable assurance that a subsidy would be received from the federal government in connection with the COVID-19
pandemic. For the year ended December 31, 2021, the Company recognized a wage subsidy of $2.9 million
($15.8 million in 2020) against the salary expense, under employee benefits expense in the consolidated statements of
earnings and all subsidies were received.
In light of the COVID-19 measures, management has reviewed its judgments, estimates and assumptions, which are fully
described in Note 3 of the 2021 Notes, related to the carrying amounts of assets and liabilities that are not readily
apparent from other sources. As at December 31, 2021, management has not found any triggering events that could
impair its long-lived assets, including goodwill, that could increase its expected credit losses on its trade receivables, or
that could limit its ability to draw on its credit facilities.
BUSINESS COMBINATIONS
2021 BUSINESS COMBINATIONS
AMERICAN PROCESS GROUP
On June 3, 2021, SANEXEN acquired 100% ownership of APG for a purchase price of $50.0 million, subject to
adjustments. On January 11, 2022, the Company settled the post-closing working capital adjustments for an additional
cash consideration of $3.0 million. APG is an Alberta-based environmental industry leader, specializing in dredging,
dewatering and residuals management. This strategic acquisition positions us in Western Canada and the United States,
markets with strong potential. In addition, APG's complementary expertise allows us to enhance our service offering to
our current and future clients.
Please refer to Note 4 of the 2021 Notes for further details.
38
MANAGEMENT’S DISCUSSION & ANALYSIS
2020 BUSINESS COMBINATIONS
CARE AND PASCAGOULA TERMINALS
On June 26, 2020, Gulf Stream Marine, Inc. (“GSM”) acquired the Care terminal at the Port of Houston in Texas, and on
July 15, 2020, acquired an additional terminal at the Port of Pascagoula in Mississippi for a total purchase price of
US$12.0 million ($16.5 million), subject to certain adjustments. These two strategically located marine terminals
complement LOGISTEC’s growing network throughout the U.S. Gulf, which is now operating in 12 terminals in three
Gulf Coast states.
CASTALOOP
On December 14, 2020, the Company acquired 100% ownership of Gestion Castaloop Inc. and its subsidiaries
(“CASTALOOP”) for a purchase price of $3.5 million, subject to certain adjustments. On May 19, 2021, the Company
settled the post-closing working capital adjustments for an additional cash consideration of $0.9 million. CASTALOOP
provides customized cargo handling services to clients along the Great Lakes and St. Lawrence Seaway as well as along
the St. Lawrence River and U.S. East Coast. This acquisition solidifies LOGISTEC’s position as a leading provider of
innovative cargo handling services at ports throughout North America.
SELECTED ANNUAL FINANCIAL
INFORMATION
years ended December 31
(in thousands of dollars, except earnings and dividends per share)
2021
$
2020
$
2019
$
Variation 21-20
$
Revenue
Profit attributable to owners of the
Company
Total basic earnings per share (1)
Total diluted earnings per share
(1)
Total assets
Total non-current liabilities
Cash dividends per share:
— Class A shares
(2)
— Class B shares
(3)
Total cash dividends
743,703
604,701
639,942
139,002
45,364
32,614
26,194
12,750
3.49
3.46
2.53
2.49
2.05
2.00
898,971
401,935
799,452
365,269
734,738
338,565
0.96
0.97
99,519
36,666
0.3787
0.4165
5,137
0.3740
0.4114
5,022
0.3658
0.4023
4,864
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
%
23.0
39.1
37.9
39.0
12.4
10.0
(1) Combined for both classes of shares.
(2) Class A Common Shares (“Class A shares”).
(3) Class B Subordinate Voting Shares (“Class B shares”).
2021 VERSUS 2020
Revenue reached $743.7 million in 2021, up by 23.0% or $139.0 million over 2020. Revenue in the marine services
segment totalled $427.0 million in 2021, up by $82.4 million from $344.6 million last year. The environmental services
segment delivered revenue totalling $316.7 million, an increase of $56.6 million or 21.8% over revenue of $260.1 million
in 2020.
Profit attributable to owners of the Company increased by $12.8 million or 39.1% in 2021. Overall, both segments
performed as expected and our results were positively impacted by volumes returning to pre-pandemic levels and
strategic acquisitions we have made over the years are contributing to LOGISTEC’s performance.
39
MANAGEMENT’S DISCUSSION & ANALYSIS
Total assets amounted to $899.0 million at the end of 2021, up by $99.5 million over 2020. This increase stems mainly
from the additional goodwill, property, plant and equipment and intangible assets following the business combination
with APG, as well as additional trade receivables related to the significant increase in revenue. Our cash position
decreased by $9.2 million: essentially due to $92.9 million cash outflows from investing activities offset by the
$79.6 million in positive cash flows from operating activities following the business combination with APG and our strong
investment in property, plant and equipment to support organic growth.
Total non-current liabilities increased to $36.7 million in 2021, compared with $365.3 million in 2020. This is due mainly
to the additional $28.0 million in long-term debt and $8.3 million in lease liabilities.
Cash dividends paid in 2021 increased by 2.3% to $5.1 million, compared with $5.0 million in 2020.
2020 VERSUS 2019
Revenue reached $604.7 million in 2020, down by 5.5% or $35.2 million over 2019. Revenue in the marine services
segment totalled $344.6 million in 2020, down by $40.7 million from $385.3 million in 2019. The environmental services
segment delivered revenue totalling $260.1 million, an increase of $5.5 million or 2.1% over revenue of $254.6 million
in 2019.
Profit attributable to owners of the Company increased by $6.4 million or 24.5% in 2020. Results were positively impacted
by an improved performance from FER-PAL Construction Ltd. (“FER-PAL”). Additionally, $15.8 million of CEWS were
recorded against our salary expense, which were instrumental in maintaining employment.
Total assets amounted to $799.5 million at the end of 2020, up by $64.7 million over 2019. This increase stems mainly
from the additional $43.2 million in right-of-use assets and our cash position that increased by $22.6 million. The
higher cash position was essentially due to $108.5 million of positive cash flows from operating activities, which more
than offset our $43.3 million cash outflows from investing activities and $41.0 million cash outflows from financing
activities.
Total non-current liabilities increased to $365.3 million in 2020, compared with $338.6 million in 2019. This is due mainly
to the additional $35.4 million in lease liabilities.
Cash dividends paid in 2020 was $5.0 million compared with $4.9 million in 2019.
40
MANAGEMENT’S DISCUSSION & ANALYSIS
SELECTED QUARTERLY INFORMATION
(in thousands of dollars, except earnings and dividends per share)
Q1
$
Q2
$
Q3
$
Q4
$
Year
$
2021
Revenue
104,850
172,593
236,171
230,089
743,703
Profit (loss) attributable to owners of the Company
(5,724)
10,241
26,739
14,108
45,364
Basic earnings (loss) per Class A share
Basic earnings (loss) per Class B Share
Total basic earnings (loss) per share
Diluted earnings (loss) per Class A share
Diluted earnings (loss) per Class B share
Total diluted earnings (loss) per share
2020
Revenue
(0.42)
(0.47)
(0.44)
(0.42)
(0.47)
(0.44)
0.75
0.84
0.79
0.75
0.83
0.78
1.98
2.17
2.05
1.95
2.15
2.04
1.03
1.14
1.09
1.03
1.13
1.09
3.34
3.68
3.49
3.31
3.64
3.46
109,431
123,595
191,847
179,828
604,701
Profit (loss) attributable to owners of the Company
(5,421)
4,590
20,465
12,980
32,614
Basic earnings (loss) per Class A share
Basic earnings (loss) per Class B share
Total basic earnings (loss) per share
Diluted earnings (loss) per Class A share
Diluted earnings (loss) per Class B share
Total diluted earnings (loss) per share
(0.41)
(0.45)
(0.42)
(0.41)
(0.45)
(0.42)
0.35
0.38
0.36
0.34
0.37
0.35
1.52
1.68
1.58
1.50
1.65
1.56
0.97
1.06
1.01
0.95
1.05
0.99
2.43
2.67
2.53
2.39
2.63
2.49
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
SEASONAL NATURE OF OPERATIONS
Marine services are affected by weather conditions and are therefore of a seasonal nature. During the winter months, the
St. Lawrence Seaway is closed. There is no activity on the Great Lakes, reduced activity on the St. Lawrence River, and no
activity in Arctic transportation due to ice conditions.
Environmental services are also affected by weather conditions, as most of the specialized services offered involve the
excavation of soils, which is more difficult during the winter.
Historically, the first quarter and, to a lesser extent, the second quarter have always presented a lower level of activity than
the other quarters. The third and fourth quarters are usually the most active.
41
MANAGEMENT’S DISCUSSION & ANALYSIS
CONSOLIDATED FINANCIAL REVIEW
(in thousands of dollars, except per share amounts)
For the three months ended
December 31,
2021
December 31,
2020
For the twelve months ended
December 31,
2021
December 31,
2020
$
$
$
$
Revenue
230,089
179,828
743,703
604,701
Employee benefits expense
(115,139)
Equipment and supplies expense
Operating expense
Other expenses
Depreciation and amortization expense
Share of profit of equity accounted investments
Other losses
Operating profit
Finance expense
Finance income
Profit before income taxes
Income taxes
Profit for the period
Profit attributable to:
(54,619)
(15,347)
(11,698)
(13,292)
3,977
(4,674)
19,297
(3,186)
130
16,241
(2,040)
14,201
(86,401)
(46,320)
(10,673)
(8,190)
(11,789)
5,458
(2,167)
19,746
(3,422)
200
16,524
(3,585)
12,939
(363,331)
(187,225)
(50,095)
(33,327)
(49,100)
10,084
(4,052)
66,657
(287,665)
(155,611)
(41,864)
(27,509)
(45,390)
9,529
(923)
55,268
(11,103)
(12,453)
541
56,095
(10,471)
45,624
635
43,450
(10,662)
32,788
Owners of the Company
14,108
12,980
45,364
32,614
Non-controlling interest
Profit for the period
Basic earnings per Class A share
Basic earnings per Class B share
Diluted earnings per Class A share
93
14,201
1.03
1.14
1.03
(41)
12,939
0.97
1.06
0.95
260
45,624
3.34
3.68
3.31
174
32,788
2.43
2.67
2.39
Diluted earnings per Class B share
Significant accounting policies applied in the 2021 financial statements are described in Note 2 of the 2021 Notes.
1.13
3.64
1.05
2.63
THREE MONTHS ENDED DECEMBER 31
Consolidated revenue totalled $230.1 million in the fourth quarter of 2021, an increase of $50.3 million or 27.9% over
2020. The strengthening of the Canadian dollar against the U.S. dollar negatively affected consolidated revenue by
$3.5 million this quarter. Please refer to the segmented results section for the revenue variance explanation of
each segment.
Employee benefits expense reached $115.1 million, an increase of $28.7 million or 33.3% over the $86.4 million recorded
for the same period last year. The ratio of employee benefits expense to revenue was 50.0%, slightly up from 48.1% for
the same period last year. The higher ratio is mainly attributable to two factors: higher revenue, as a portion of the
employee benefits expense related to our field operations are variable in nature, and no wage subsidy from the CEWS
was recognized in 2021 compared with $3.1 million received in 2020.
42
MANAGEMENT’S DISCUSSION & ANALYSIS
Equipment and supplies expense amounted to $54.6 million in the fourth quarter of 2021, an increase of $8.3 million
compared with the same period last year. The overall ratio of equipment and supplies expense to consolidated revenue
decreased to 23.7% for the fourth quarter of 2021 from 25.8% in the fourth quarter of 2020. The lower ratio is mainly
attributable to the environmental services segment and derived from the revenue mix, as revenue relating to site
remediation and contaminated soils and materials management services has a lower equipment and supplies expense
component.
Operating expense amounted to $15.3 million, an increase of $4.7 million or 43.8% compared with the same period of
2020. This increase was mainly revenue driven, as the overall ratio of operating expense to consolidated revenue was
stable at 6.7% in the fourth quarter of 2021 compared with 5.9% for the same period in 2020.
Other expense amounted to $11.7 million, an increase of $3.5 million or 42.8% compared with the same period of 2020.
This increase stemmed mainly from three factors: the recognition in 2021 of an expense to remove an asset at one
terminal; higher insurance premium; and incremental travel expenses since governments lifted some COVID-19
measures.
Other losses varied by $2.5 million, from a $2.2 million loss in the fourth quarter of 2020 to a $4.7 million loss this quarter.
The loss in the fourth quarter of 2021 comprised mainly of a $5.1 million write-off of configuration and customization
costs related to the implementation of an Enterprise Resource Planning (“ERP”) system following a decision from the
International Financial Reporting Interpretations Committee (“IFRIC”), which clarifies how to recognize these costs in a
cloud computing arrangement. Please refer to Note 2 of the 2021 Notes for further details.
In the fourth quarter of 2021, the Company reported a profit of $14.2 million, which was mainly attributable to owners of
the Company. This translated into total diluted earnings per share of $1.09, of which $1.03 per share was attributable to
Class A shares and $1.13 per share was attributable to Class B shares.
TWELVE MONTHS ENDED DECEMBER 31
Consolidated revenue totalled $743.7 million
increase of $139.0 million or 23.0% over 2020.
The strengthening of the Canadian dollar against the U.S. dollar negatively affected consolidated revenue by
$24.8 million this year. Please refer to the segmented results section for the revenue variance explanation of each
segment.
in 2021, an
For 2021, the employee benefits expense reached $363.3 million, an increase of $75.7 million or 26.3% over the
$287.7 million recorded for the same period last year. The ratio of employee benefits expense to revenue was 48.9%,
slightly up from 47.6% for the same period last year. This increase stemmed mainly from three factors: higher revenue,
as a portion of the employee benefits expense related to our field operations are variable in nature; a lower wage subsidy
from the CEWS recognized in 2021; and the $2.5 million reduction of the long-term incentive plan provision for
executives recognized in 2020.
Equipment and supplies expense amounted to $187.2 million, an increase of $31.6 million or 20.3% over the same period
in 2020. This increase was mainly revenue driven, as the overall ratio of equipment and supplies expense to consolidated
revenue was stable at 25.2% for 2021 compared with 25.7% in 2020.
Operating expense amounted to $50.1 million, an increase of $8.2 million or 19.7% compared with 2020. This increase
was mainly revenue driven, as the overall ratio of operating expense to consolidated revenue was stable at 6.7% in 2021
compared with 6.9% in 2020.
Other expenses stood at $33.3 million, up $5.8 million or 21.1% compared to the same period of 2020. This increase
stemmed mainly from three factors: the recognition in 2021 of an expense to remove an asset at one terminal; a higher
insurance premium; and incremental travel expenses since governments lifted some COVID-19 measures.
Depreciation and amortization expense amounted to $49.1 million in 2021, up $3.7 million from $45.4 million last year.
The increase results from our business combinations and property, plant and equipment investments made in 2020 and
2021, such as the amortization of intangible assets related to client relationships and backlog associated with the
investment in APG.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
43
MANAGEMENT’S DISCUSSION & ANALYSIS
Other losses varied by $3.2 million, from a $0.9 million loss in 2020 to a $4.1 million loss this year. The 2021 loss
comprised mainly of a $5.1 million write-off of configuration and customization costs related to the implementation of an
ERP system following a decision from IFRIC, which clarifies how to recognize these costs in a cloud computing
arrangement. Please refer to Note 2 of the 2021 Notes for further details.
Income taxes stood at $10.5 million for 2021. When the profit before income taxes is adjusted to exclude the effect of the
share of profit of equity accounted investments, the 2021 tax rate computes to 22.8% compared with 31.4% in 2020. This
variation is within normal parameters and relates to the recognition in 2021 of unused tax losses previously not
recognized and non-taxable items. Please refer to Note 10 of the 2021 Notes for a full reconciliation of the effective
income tax rate and other relevant income tax information.
In 2021, the Company reported a profit of $45.6 million, of which $0.2 million was attributable to a non-controlling
interest, amounting to a $45.4 million profit attributable to owners of the Company. This translated into total diluted
earnings per share of $3.46, of which $3.31 per share was attributable to Class A shares and $3.64 per share was
attributable to Class B shares.
SEGMENTED RESULTS
(in thousands of dollars)
For the three months ended
December 31, 2021
Environmental
services
Marine
services
$
$
Total
$
For the three months ended
December 31, 2020
Environmental
services
Marine
services
$
$
Total
$
Revenue
128,117
101,972
230,089
Profit before income taxes
2,388
13,853
16,241
93,607
11,201
86,221
179,828
5,323
16,524
(in thousands of dollars)
For the twelve months ended
December 31, 2021
Environmental
services
Marine
services
$
$
Total
$
For the twelve months ended
December 31, 2020
Environmental
services
Marine
services
$
$
Total
$
Revenue
Profit before income taxes
426,967
30,450
316,736
743,703
25,645
56,095
344,622
27,233
260,079
604,701
16,217
43,450
MARINE SERVICES
THREE MONTHS ENDED DECEMBER 31
Revenue from the marine services segment reached $128.1 million in 2021, up $34.5 million or 36.9% when compared
with $93.6 million in 2020. The rebound in manufacturing production had a favourable impact on global trade, which
translated into incremental cargo handled at most of LOGISTEC’s terminals. Furthermore, the traditional energy industry
and the wind energy sector continued to fuel the growth of our operations in the U.S. Gulf Coast.
The 2021 profit before income taxes from the marine services segment amounted to $2.4 million, down $8.8 million from
the $11.2 million profit in 2020. This decrease stemmed mainly from a nil wage subsidy from the CEWS recognized in
2021 compared to $3.1 million received in 2020, the $2.9 million write-off of configuration and customization costs
related to the implementation of an ERP system, and higher other expenses as explained above.
44
MANAGEMENT’S DISCUSSION & ANALYSIS
TWELVE MONTHS ENDED DECEMBER 31
Revenue in the marine services segment totalled $427.0 million in 2021, up $82.4 million from $344.6 million in 2020.
The increase stemmed mainly from a general volume increase in our general cargo terminals, which saw more activity in
2021 than in 2020 as explained above.
The 2021 profit before income taxes from the marine services segment amounted to $30.5 million, up $3.3 million from
the $27.2 million profit in 2020. These results reflect a higher level of activity than in the same period of 2020, partly offset
by a $1.3 million CEWS wage subsidy recognized in 2021 compared to $8.3 million received in 2020, the $2.9 million
write-off of configuration and customization costs related to the implementation of an ERP system, and higher other
expenses as explained above.
ENVIRONMENTAL SERVICES
THREE MONTHS ENDED DECEMBER 31
Revenue from the environmental services segment reached $102.0 million, up $15.8 million from the $86.2 million in
2020. The growth is mainly attributable to our ALTRA line of products, as revenue from services relating to the renewal
of underground water mains increased by $12.1 million quarter over quarter.
The 2021 profit before income taxes from the environmental services segment amounted to $13.9 million, up $8.6 million
over the $5.3 million profit incurred in 2020. This increase was mainly revenue driven as explained above, partly offset by
the 2.2 million write-off of configuration and customization costs related to the implementation of an ERP system.
TWELVE MONTHS ENDED DECEMBER 31
Revenue from the environmental services segment totalled $316.7 million, compared with $260.1 million in 2020, an
increase of $56.6 million. The increase stemmed mainly from higher revenue from services relating to the renewal of
underground water mains and the acquisition of APG. It is important to note that some of these operations in the province
of Québec were suspended in 2020, as they were not deemed essential services by the government authorities at
that time.
The 2021 profit before income taxes from the environmental services segment amounted to $25.6 million, a significant
improvement over the $16.2 million profit incurred in 2020. These results included a wage subsidy of $1.6 million
recognized under employee benefits expense in 2021 compared with $7.5 million recognized in the comparative period
of 2020. This increase was mainly revenue driven as explained above, partly offset by the $2.2 million write-off of
configuration and customization costs related to the implementation of an ERP system.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
All other items of the consolidated statements of earnings varied according to normal business parameters.
FIRE INCIDENT AT THE PORT OF
BRUNSWICK (GA)
On May 2, 2021, a fire destroyed a leased warehouse, a portion of a conveyor and certain terminal equipment assets at
our bulk facilities in Brunswick (GA).
The Company has insurance in place covering, among other things, property and equipment damage and general
liability up to specified amounts, subject to limited deductibles. The Company has notified its insurers of the incident and
the anticipated proceeds from the insurance coverage is expected to be sufficient to cover the cost of the assets
destroyed, as well as other costs incurred as a direct result of the fire.
During the year ended December 31, 2021, the Company received confirmation of an advance from the property
insurance carriers on its initial claim in the amount of US$5.0 million ($6.1 million) related to the incident. The Company
also recognized an impairment loss of US$5.3 million ($6.5 million) for the destroyed assets that were impacted by the
fire. Both the insurance recovery and the impairment loss related to the assets destroyed were recognized under other
gains (losses) in the consolidated statements of earnings for the year ended December 31, 2021.
45
MANAGEMENT’S DISCUSSION & ANALYSIS
Pursuant to the lease agreement with the Georgia Ports Authority, the Company is required to rebuild the warehouse
that was destroyed by the fire, unless agreed to otherwise. As at the date of these 2021 financial statements, discussions
are ongoing with the Georgia Ports Authority and other parties to determine if the warehouse will be rebuilt and if so, the
size and the type of warehouse to be constructed. In accordance with the lease agreement, this warehouse was insured
for US$21.9 million ($26.9 million). As at the date of this MD&A, the Company has not begun reconstruction of the
warehouse and is able to operate with reduced capacity at this facility. The Company will record the impact of final
discussions related to the warehouse, including any required obligations for rebuilding of the warehouse and a
corresponding insurance recovery, in the period when all information will be available.
This reflects management’s best estimates based on the information available as at the date of this MD&A and is subject
to change as new developments occur in the future in connection with the Company’s reconstruction of the warehouse
and finalization of the insurance claim.
DIVIDENDS
The Company’s Board of Directors determines the level of dividend payments. Although LOGISTEC does not have a
formal dividend policy, the practice to date has been to maintain regular quarterly dividends with modest increases over
the years.
On August 5, 2021, the Company’s Board of Directors elected to increase the dividend payment by 5%.
The following table describes the 2021 dividend payments schedule, which are all eligible dividends for Canada
Revenue Agency purposes.
(in millions of dollars, except per share amounts)
Declaration date
Record date
Payment date
Per Class A
share
$
Per Class B
share
$
December 10, 2020
January 4, 2021
January 18, 2021
March 16, 2021
May 4, 2021
April 1, 2021
June 21, 2021
April 15, 2021
July 5, 2021
0.09350
0.09350
0.09350
0.10285
0.10285
0.10285
August 5, 2021
September 24, 2021
October 8, 2021
0.09818
0.10799
December 9, 2021
January 4, 2022
January 18, 2022
0.09818
0.10799
March 18, 2022
March 31, 2022
April 14, 2022
0.09818
0.10799
Total
$
1.3
1.3
1.3
1.3
1.3
1.3
The Board of Directors has maintained the dividend payment for now, and will reassess the decision at the upcoming
Board meetings, depending on the evolution of the economic situation.
46
MANAGEMENT’S DISCUSSION & ANALYSIS
LIQUIDITY AND CAPITAL RESOURCES
CAPITAL MANAGEMENT
The Company’s primary objectives when managing capital are to:
• Maintain a capital structure that allows financing options to the Company in order to benefit from potential
opportunities as they arise;
• Provide an appropriate return on investment to its shareholders.
The Company includes the following in its capital:
• Cash and cash equivalents and short-term investments, if any;
• Long-term debt (including the current portion) and short-term bank loans if any;
• Equity attributable to owners of the Company.
The capital is calculated as follows:
(in thousands of dollars)
Short-term bank loans
Long-term debt, including the current portion
Less:
Cash and cash equivalents
Total net indebtedness
Equity attributable to owners of the Company
Capitalization
As at
December 31,
2021
$
As at
December 31,
2020
$
8,600
195,354
37,530
166,424
314,561
480,985
—
167,710
46,778
120,932
300,782
421,714
Ratio of net indebtedness/capitalization
The Company’s financial strategy is formulated and adapted according to market conditions to maintain a flexible capital
structure that is consistent with the objectives stated above and corresponds to the risk characteristics of the underlying
assets. To maintain or adjust its capital structure, the Company may refinance its existing debt, raise new debt, pay down
debt, repurchase shares for cancellation purposes pursuant to normal course issuer bids or issue new shares.
34.6%
28.7%
When looking at business investment opportunities, the Company uses discounted cash flow models to ensure that the
rate of return meets its objectives. Furthermore, investment opportunities must be accretive, therefore enhancing
shareholder value.
The decision to repay debt is based on an assessment of current levels of cash in relation to expected cash that will be
generated from operations. The Company has credit facilities with various financial institutions that can be utilized when
investment opportunities arise.
47
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MANAGEMENT’S DISCUSSION & ANALYSIS
BORROWING CAPACITY
LOGISTEC generates positive cash flows from operating activities. These reached $79.6 million and $108.5 million in
2021 and 2020, respectively, which was more than sufficient to cover our ongoing investing and financing activities.
At the end of 2021, our net indebtedness, defined as long-term debt (including the current portion) and short-term bank
loans, if any, net of cash and cash equivalents, was $166.4 million, whereas our equity attributable to owners of the
Company totalled $314.6 million, giving us a net indebtedness/capitalization ratio of 34.6%.
The Company has organized its banking facilities to segregate credits available to its wholly owned subsidiaries from
credits available to non-wholly owned subsidiaries and joint ventures.
In November 2021, to increase its financial flexibility, the Company and its wholly owned subsidiary, LOGISTEC USA Inc.,
renegotiated their credit agreement leading to an amendment to the existing credit agreement. The term of the
unsecured revolving credit facility was extended to October 2025.
LOGISTEC has a committed line of credit provided by a banking syndicate comprised of six major Canadian banks and
financial institutions. It allows LOGISTEC Corporation and LOGISTEC USA Inc. to borrow funds directly from this credit
facility to cover operating and general corporate expenses and to issue bank guarantees. Since the beginning of the
pandemic and the resulting financial crisis, we have made sure that our cash balance of immediately available funds
remained above $20.0 million, as a precautionary measure. In addition, the banking syndicate has assured us that our
facility is secure and that funds will be available, should the need arise.
The Company has a credit facility amounting to $300.0 million ($300.0 million in 2020). As at December 31, 2021, there
was an equivalent of $135.6 million drawn under the facility ($106.7 million in 2020), an additional $14.5 million was used
for letters of credit ($4.1 million in 2020) and the unused amount was $149.9 million ($189.2 million in 2020). The
applicable interest rate on this revolving credit facility is variable and depends on the form of borrowing, to which is
added a margin that varies according to the leverage ratio level achieved by the Company.
In addition to the line of credit described above, the Company also entered, in 2017, into a 10-year unsecured loan
agreement of $50.0 million with a Canadian financial institution, which is fully drawn. Please refer to Note 23 of the 2021
Notes for further details.
48
MANAGEMENT’S DISCUSSION & ANALYSIS
CAPITAL RESOURCES
Total assets amounted to $899.0 million as at December 31, 2021, up by $99.5 million over the closing balance of
$799.5 million as at December 31, 2020. The increase was mainly due to the additional goodwill, property, plant and
equipment and intangible assets following the business combination with APG, as well as additional trade and other
receivables that reflect the higher level of activity in the fourth quarter of 2021 compared with the same quarter of 2020.
Cash and cash equivalents totalled $37.5 million at the end of 2021, down by $9.3 million from $46.8 million as at
December 31, 2020. The main items behind this decrease were as follows:
(in thousands of dollars)
Sources:
Cash generated from operations
Issuance of long-term debt, net of repayment
Dividends received from equity accounted investments
Net change in short-term bank loans
Uses:
Business combinations, net of cash acquired
Acquisition of property, plant and equipment, net of proceeds from disposal
Changes in non-cash working capital items
Repayment of lease liabilities
Interest paid
Income taxes paid
Dividends paid on Class A and Class B shares
Repayment of other non-current liabilities
WORKING CAPITAL
109,889
28,080
8,859
8,600
155,428
(50,390)
(43,607)
(27,556)
(13,384)
(11,508)
(9,719)
(5,137)
(2,635)
(163,936)
As at December 31, 2021, current assets totalled $263.2 million and current liabilities totalled $181.4 million, computing
into working capital of $81.8 million for a current ratio of 1.45:1. This compares with working capital of $91.6 million and
a 1.69:1 ratio as at December 31, 2020. The decrease was due to higher trade and other payables recorded in 2021
compared with 2020, following the reclassification to current liabilities of $28.2 million due to a non-controlling interest.
LONG-TERM DEBT
Total net indebtedness amounted to $166.4 million as at December 31, 2021, up by $45.5 million when compared with
$120.9 million as at December 31, 2020. The increase stems mainly from the additional debt incurred to finance the
acquisition of APG and a lower level of cash and cash equivalents as explained above.
Under the terms of our various financing agreements, the Company must satisfy certain restrictive covenants with respect
to minimum financial ratios. As at December 31, 2021, LOGISTEC complied with such covenants. In some cases, financing
covenants may limit the ability of some subsidiaries or joint ventures to pay dividends to LOGISTEC. However,
LOGISTEC generates sufficient cash flows from its wholly owned subsidiaries to meet its financial obligations.
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MANAGEMENT’S DISCUSSION & ANALYSIS
PAYMENTS DUE BY PERIOD
The following table provides a summary of the Company’s long-term debt and contractual obligations:
Contractual Obligations
as at December 31, 2021
(in thousands of dollars)
Long-term debt
(1)
Lease liabilities
— Equipment
— Occupancy
Long-term liabilities due to non-controlling
interests
Non-current liabilities
(2)
Total contractual obligations
(1)
Includes capital and interest.
Total
$
Less than
1 year
$
1 – 3 years
$
4 – 5 years
$
More than
5 years
$
203,925
8,574
40,142
146,288
8,921
12,245
194,468
38,832
4,259
453,729
3,890
16,174
—
—
7,633
39,449
38,832
—
722
—
22,324
116,521
—
4,259
—
—
28,638
126,056
173,593
125,442
(2) Excludes long-term liabilities due to non-controlling interests.
The reader is referred to Notes 12, 18, 23, 24, 25, and 31 of the 2021 Notes for further details about financial risk
management, lease arrangements, indebtedness, post- employment benefit assets and obligations, non-current liabilities,
and contingent liabilities and guarantees.
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Equity attributable to owners of the Company amounted to $314.6 million as at December 31, 2021. Adding total net
indebtedness yields a capitalization of $481.0 million, which computes to a net indebtedness/capitalization ratio of
34.6%. This means that the Company has
leverage available should the need arise. The net
indebtedness/capitalization is reconciled above in the capital management section.
financial
As at March 18, 2022, 7,377,022 Class A shares and 5,680,936 Class B shares were issued and outstanding. Each Class A
share is convertible at any time by its holder into one Class B share. Please refer to Note 26 of the 2021 Notes for full
details on the Company’s share capital.
NORMAL COURSE ISSUER BID (“NCIB”)
Pursuant to the current NCIB, which was launched on October 28, 2021, and will terminate on October 27, 2022,
LOGISTEC intends to repurchase, for cancellation purposes, up to 368,851 Class A shares and 284,301 Class B shares,
representing 5% of the issued and outstanding shares of each class as at October 15, 2021.
Shareholders may obtain a free copy of the notice of intention regarding the NCIB filed with the TSX by contacting the
Company.
During 2021, under the NCIB programs, nil Class A shares and 14,100 Class B shares were repurchased at average prices
per share of nil and $39.07, respectively. Please refer to Note 26 of the 2021 Notes for further details.
50
MANAGEMENT’S DISCUSSION & ANALYSIS
EQUITY IN JOINT VENTURES
The Company’s results include its share of operations in joint ventures, which are accounted for in the share of profit of
equity accounted investments. The closing balance of $46.3 million at the end of 2021 is mainly the result of the 2020
closing balance of $45.1 million, plus the 2021 share of profit of equity accounted investments of $10.1 million, less
$8.9 million in dividends received.
As at December 31, 2021, the Company’s 50%-equity interest are in the following joint ventures: 9260-0873 Québec Inc.,
Flexiport Mobile Docking Structures Inc, Moorings (Trois-Rivières) Ltd., Québec Maritime Services Inc., Québec Mooring
Inc., TERMONT Terminal Inc., Transport Nanuk Inc. ("Nanuk"). The Company also owns 49%-equity interests in Qikiqtaaluk
Environmental Inc. and Avataani Environmental Services Inc.
None of the Company’s joint ventures are publicly listed entities and, consequently, do not have published price
quotations.
The Company has one significant joint venture, TERMONT Terminal Inc., whose subsidiary specializes in handling
containers, which is aligned with the Company’s core business. Please refer to Note 16 of the 2021 Notes.
POST-EMPLOYMENT BENEFITS
The Company offers either defined benefit retirement plans or defined contribution retirement plans to its employees.
The Company sponsors two defined benefit retirement plans. Considering that a majority of beneficiaries from the
defined benefit retirement plans were pensioners already, the Company elaborated a derisking strategy with regard to
these plans.
A summary of the fair value of plan assets, benefit obligation, funded status of the retirement plans, and significant
assumptions can be found in Note 24 of the 2021 Notes.
Calculations on the retirement plans’ funded statuses have been performed by the Company’s independent actuaries as
of December 31, 2021. They calculated a benefit obligation of $40.0 million, compared with a fair value of plan assets of
$23.9 million, which computed into a funded status deficit of $16.1 million. The Company offers supplemental retirement
plans to senior executives (“SERP”). These SERP are unfunded and the related obligation of $15.9 million is included in
the above numbers. Excluding the SERP obligation, the funded status deficit amounts to $0.2 million. The reader is
referred to the description of the Senior Management Pension Plan in our information circular.
Management’s assumption for the discount rate was 2.5% in 2020 and 3.0% in 2021. Actuarial calculations made for
actual funding and cash disbursements use different assumptions and therefore compute into different funded statuses.
The Company’s SERP are non-registered plans and, therefore, are not subject to actuarial valuations.
The most recent actuarial valuations for the Senior Management Pension Plan and the Employee Pension Plan of
LOGISTEC Corporation are dated December 31, 2019. Based on these valuations, the Company’s combined surplus
amounts to $1.6 million when calculated using the going concern method, and to a combined deficit of $2.6 million when
using the solvency method.
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MANAGEMENT’S DISCUSSION & ANALYSIS
OTHER ITEMS IN THE CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
Financial position as at
(in millions of dollars)
DEC 31,
2021
$
DEC 31,
2020
$
Var.
$
Var.
%
Trade and other
receivables
183.3
138.6
44.7
32.2
Inventories
16.8
12.9
3.9
30.0
Explanation of variation
The variation is due to two factors: a
greater level of activity in the fourth quarter
of 2021 compared with the same quarter of
2020, and the acquisition of APG, as
discussed in the business combinations
section of this MD&A.
The increase is due to two factors: a higher
level of inventory held in 2021 to hedge
against supply chain disruption and APG’s
$1.0 million year-end inventories added to
the total in 2021, compared with 2020.
Property, plant and equipment
207.3
185.7
21.6
11.7
Goodwill
182.7
149.3
33.4
22.4
Trade and other payables
127.0
91.7
35.3
38.5
Contract liabilities
14.8
8.9
5.9
65.5
Current portion of lease
liabilities
15.8
18.3
(2.5)
(13.6)
Non-current lease liabilities
125.2
116.9
8.3
7.1
Share capital
50.9
45.6
5.3
11.7
Share capital to be issued
—
4.9
(4.9)
(100)
impairment
The increase stems mainly from the capital
expenditures of $44.7 million, the fixed
assets acquired as part of the business
combinations of $11.6 million, offset by the
depreciation expense of $27.6 million and
the
for $6.5 million
loss
following the fire at the Port of Brunswick.
The increase stems from the acquisition of
APG, as discussed
the business
combinations section of this MD&A.
As at December 31, 2021, the Company
remeasured a written put option held by
the non-controlling interest in FER-PAL,
the recognition of an
which
additional $32.4 million
liability and a
reclassification to current liabilities of an
amount due of $28.7 million.
led
to
in
liabilities
is performed
increase stems mainly
Contract
represent advance
consideration received from customers, for
which revenue will be recognized when
contract work
in our
environmental services segment. Greater
level of activity in the fourth quarter of 2021
compared with the same quarter of 2020
led to higher deferred revenue at the end
of 2021.
The
the
addition of $19.4 million, partly offset by
the repayment of lease liabilities in the
the
amount
remeasurement
liabilities
of
denominated in foreign currency in the
amount of $0.2 million.
The variation is mainly due to the issuance of
Class B shares in accordance with the terms
of the 2016 acquisition of the non-controlling
interest in SANEXEN.
$13.4 million
lease
from
and
of
Other items in the consolidated statements of financial position varied according to normal business parameters.
52
MANAGEMENT’S DISCUSSION & ANALYSIS
NON-IFRS MEASURE
In this MD&A, the Company uses a measure that is not in accordance with IFRS. 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 Company’s impairment
charge, includes the customer repayment of an investment in a service contract and, since 2021, excludes configuration
and customization costs related to the implementation of an ERP system. 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 year to adjusted EBITDA:
(in thousands of dollars)
2021
$
2020
$
2019
$
2018
(1)
$
(1)
2017
$
Profit for the year
45,624
32,788
26,437
17,994
27,356
PLUS:
Depreciation and amortization expense
49,100
45,390
42,122
28,580
33,859
Impairment charge
Net finance expense
Income taxes
Configuration and customization costs in a cloud
computing arrangement
Customer repayment of an investment in a
service contract
Adjusted EBITDA
—
10,562
10,471
5,064
—
—
11,818
10,662
—
—
—
12,353
8,699
—
—
6,821
7,474
3,308
—
—
2,917
3,533
6,211
—
865
120,821
100,658
89,611
64,177
74,741
(1) For all periods after January 1, 2019, figures reflect the application of IFRS 16, Leases (“IFRS 16”), for which the comparative figure has not been
restated.
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MANAGEMENT’S DISCUSSION & ANALYSIS
(in thousands of dollars)
2016
(1)
(1)
2015
(1)
2014
(1)
2013
(1)
2012
(1)
2011
$
$
$
$
$
$
Profit for the year
18,486
32,873
34,517
30,827
18,285
19,568
PLUS:
Depreciation and amortization expense
Impairment charge
Net finance expense
Income taxes
Customer repayment of an investment in a
service contract
Adjusted EBITDA
14,288
—
1,700
7,268
12,328
—
623
10,288
10,246
—
225
9,870
9,413
—
166
9,948
7,819
—
347
5,925
8,220
1,300
400
3,993
292
209
231
6,510
4,958
4,540
42,034
56,321
55,089
56,864
37,334
38,021
(1) For all periods after January 1, 2019, figures reflect the application of IFRS 16, Leases (“IFRS 16”), for which the comparative figure has not been
restated.
FINANCIAL RISK MANAGEMENT
Due to the nature of the activities carried out and as a result of holding financial instruments, the Company is exposed to
credit risk, liquidity risk and market risk, especially interest rate risk and foreign exchange risk.
CREDIT RISK
Credit risk arises from the possibility that a counterpart will fail to perform its obligations. The Company’s exposure to
credit risk is primarily attributable to its cash and cash equivalents, trade and other receivables, and non-current financial
assets. Management believes the credit risk is limited for its cash and cash equivalents, as the Company deals with major
North American financial institutions.
The Company conducts a thorough assessment of credit issues prior to committing to the investment and actively
monitors the financial health of its investees on an ongoing basis. In addition, the Company is exposed to credit risk from
customers. On the one hand, the Company does business mostly with large industrial, municipal, and well-established
customers, thus reducing its credit risk. On the other hand, the number of customers served by the Company is limited,
which increases the risk of business concentration and economic dependency.
Overall, the Company serves some 2,350 customers. In 2021, the 20 largest customers accounted for 45.0% (40.0% in
2020) of consolidated revenue, and not a single customer accounted for more than 10% of consolidated revenue and
trade receivables in 2021 and 2020.
Allowance for doubtful accounts and past due receivables are reviewed by management on a monthly basis. Trade and
other receivables are written off once determined not to be collectable.
54
Pursuant to their respective terms, net trade receivables are aged as follows:
(in thousands of dollars)
0-30 days
31-60 days
61-90 days
Over 90 days
(1)
Allowance for doubtful accounts
(1) Includes contract holdbacks amounting to $10,893 ($6,360 in 2020).
The movements in the allowance for doubtful accounts were as follows:
(in thousands of dollars)
Balance, beginning of year
Bad debt expense
Write offs
MANAGEMENT’S DISCUSSION & ANALYSIS
As at
December 31,
2021
$
As at
December 31,
2020
$
73,798
40,457
11,181
30,546
(3,584)
152,398
2021
$
3,359
1,473
(1,248)
45,251
26,903
13,944
29,982
(3,359)
112,721
2020
$
3,053
873
(567)
Balance, end of year
The Company’s maximum exposure to credit risk with respect to each of its financial assets (cash and cash equivalents,
trade and other receivables, and non-current financial assets) corresponds to its carrying amount.
3,584
3,359
LIQUIDITY RISK
Liquidity risk is the Company’s exposure to the risk of not being able to meet its financial obligations when they become
due. The Company monitors its levels of cash and debt and takes appropriate actions to ensure it has sufficient cash to
meet operational needs while ensuring compliance with covenants.
The following are the contractual maturities of financial obligations:
As at December 31, 2021
(in thousands of dollars)
Short-term bank loans
Trade and other payables
Dividends payable
Lease liabilities
Long-term debt
Non-current liabilities
(1) Includes principal and interest.
Carrying
amount
$
8,600
127,044
1,338
141,024
195,354
40,730
514,090
Contractual
(1)
cash flows
$
8,600
127,044
1,338
206,713
203,925
43,091
590,711
Less than
1 year
$
8,600
127,044
1,338
20,064
8,574
—
1 - 3
years
$
—
—
—
47,082
40,142
38,832
165,620
126,056
More than
3 Years
$
—
—
—
139,567
155,209
4,259
299,035
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MANAGEMENT’S DISCUSSION & ANALYSIS
As at December 31, 2020
(in thousands of dollars)
Trade and other payables
Dividends payable
Lease liabilities
Long-term debt
Non-current liabilities
(1) Includes principal and interest.
Carrying
amount
$
91,694
1,259
135,152
167,710
38,400
434,215
Contractual
(1)
cash flows
$
Less than
1 year
$
91,694
1,259
179,108
180,065
40,787
492,913
91,694
1,259
18,148
6,622
—
117,723
1 - 3
years
$
—
—
29,137
130,027
39,323
198,487
More than
3 Years
$
—
—
131,823
43,416
1,464
176,703
Given the actual liquidity level combined with future cash flows that will be generated by operations, the Company
believes that its liquidity risk is low to moderate.
MARKET RISK
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the
Company’s results or the value of its financial instruments. The Company is mainly exposed to interest rate risk and
foreign exchange risk.
INTEREST RATE RISK
The Company is exposed to market risk related to interest rate fluctuations because a portion of its long-term debt bears
interest at floating rates. The Company manages this risk by maintaining a mix of fixed and floating rate borrowings in
accordance with the Company’s policies. In addition, the Company holds interest rate swap contracts with the Company’s
main banks for an amount of $40.0 million. The interest rate swap contracts are designated as a cash flow hedge to swap
the floating rate of its debts to a fixed rate, thus decreasing the Company's sensitivity to interest rate fluctuations. The
floating interest rates on the interest rate swap are CDOR and the weighted average fixed interest rate is 1.51%. The
interest rate swap contracts settle on a monthly basis and will mature in June 2023 and September 2027, respectively.
The Company continues to monitor opportunities to reduce interest rate risk.
SENSITIVITY ANALYSIS
As at December 31, 2021, the floating rate portion of the Company’s long-term debt was 66.4% (60.4% in 2020). All
else being equal, a hypothetical variation of +1.0% in the prime interest rate on the floating rate portion of the
Company’s long-term debt held as at December 31, 2021 would have had a negative impact of $1.3 million
($1.0 million in 2020) on profit for the year. A hypothetical variation of –1.0% in the prime interest rate would have
had the opposite impact on profit for the year.
FOREIGN EXCHANGE RISK
The Company provides services invoiced in U.S. dollars and purchases equipment denominated in U.S. dollars. In
addition, a portion of the Company's long-term debt is denominated in U.S. dollars. Consequently, it is exposed to risks
arising from foreign currency rate fluctuations. The Company considers the remaining risk to be limited and, therefore,
does not use derivative financial instruments to reduce its exposure.
During 2021, all else being equal, a hypothetical strengthening of 5.0% of the U.S. dollar against the Canadian dollar
would have had a positive impact of $0.8 million ($0.9 million in 2020) on profit for the year and a positive impact of
$9.5 million ($12.5 million in 2020) on total comprehensive income. A hypothetical weakening of 5.0% of the U.S. dollar
against the Canadian dollar would have had the opposite impact on profit for the year and total comprehensive income.
As at December 31, 2021, a total of $14.6 million or US$11.6 million ($25.3 million or US$19.9 million in 2020) of cash
and cash equivalents and trade and other receivables is denominated in foreign currencies. As at December 31, 2021, a
total of $5.2 million or US$4.1 million ($1.6 million or US$1.2 million in 2020) of trade and other payables is denominated
in foreign currencies.
56
MANAGEMENT’S DISCUSSION & ANALYSIS
FAIR VALUE OF FINANCIAL INSTRUMENTS
As at December 31, 2021, and 2020, the estimated fair values of cash and cash equivalents, trade and other receivables,
short-term bank loans, trade and other payables, and dividends payable approximated their respective carrying values
due to their short-term nature.
The estimated fair value of long-term notes receivable, included in non-current financial assets, was not significantly
different from their carrying value as at December 31, 2021 and 2020, based on the Company’s estimated rate for long-
term notes receivable with similar terms and conditions.
The estimated fair value of long-term debt was $0.3 million higher than its carrying value as at December 31, 2021
($3.3 million higher in 2020), as a result of a change in financial conditions of similar instruments available to the
Company. The fair value of long-term debt is determined using the discounted future cash flows method and
management's estimates for market interest rates for identical or similar issuances.
Please refer to Note 2 of the 2021 Notes for further information related to the Company's fair value hierarchy.
BUSINESS RISKS
The business risks to which we are exposed have been fairly consistent over the last few years. The following is a summary
of these major risks:
MARKET RISK — The Company handles a wide variety of commodities and, although our geographical and product
diversification strategy should protect us from significant impacts, major fluctuations in specific commodities or in specific
regions may affect our performance. The current situation between Russia and Ukraine and the related sanctions being
brought forward by various countries may influence the flow of industrial commodities. It is very difficult to predict what
will be the outcome on volumes handled as some cargoes could be negatively affected, whereas alternative cargoes
could be favored.
PORT TERMINAL RELATED RISKS — Access to strategic terminals is critical to a successful cargo handling operation.
Our facilities are generally leased on a long-term basis. Such leases give us operating rights in exchange for rent that is,
to a large extent, fixed for the Company. Consequently, we would quickly feel the financial impact of a major decline
in cargo volumes.
GOVERNMENT POLICIES — Government investment in port infrastructure, legislation, tariffs or taxation powers can have
a direct impact on profitability.
CURRENCY FLUCTUATIONS — Fluctuations in the Canadian/U.S. dollar conversion rate may affect Canadian companies.
This situation, although it may affect our customers, does not affect us directly. Indeed, we usually provide services locally
and are paid in the same currency in which we incur costs. Hence, fluctuations in the U.S. dollar do not usually have a
significant impact on our results, as our U.S. subsidiaries are financially self-sustaining. As discussed in the previous
section entitled financial risk management, the Company is mainly exposed to fluctuations in the U.S. dollar versus the
Canadian dollar, particularly for its consolidated statements of financial position items held in U.S. dollars. However, the
Company considers this risk to be relatively limited.
PERSONNEL AND LABOUR RELATED RISKS — Some of our facilities are located near small urban centres where it can be
difficult to find qualified labour. In addition, the industry in our marine services segment is strongly unionized and there
is always a risk of labour disturbance when negotiating collective agreements.
OTHER EXTERNAL FACTORS — Our marine services segment may be influenced by factors touching global trade and the
movement of goods such as: extreme weather conditions, climate changes, political instability, or pandemic outbreaks.
Such factors could impact supply and demand of goods, affect the availability of labour, reduce volumes, and change or
create new customer trends, which could impact our performance.
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57
MANAGEMENT’S DISCUSSION & ANALYSIS
RELATED PARTY TRANSACTIONS
In addition to compensation to key management personnel and dividends to shareholders that occur in the normal
course of business and which are quantified in Note 29 of the 2021 Notes, services rendered to or by related parties are
essentially professional services, rent, management fees, and operational costs charged to or by joint ventures. These
transactions are also in the normal course of business, and their consideration is established and agreed to by the related
parties. Included in the amounts owed from joint ventures is Nanuk’s share of the post-employment benefit obligation of
one of the Company’s sponsored retirement plans.
SIGNIFICANT JUDGMENTS, ESTIMATES AND
ASSUMPTIONS
In the application of the Company’s significant accounting policies, management is required to make judgments,
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors considered to
be relevant.
Actual results may differ from those estimates. The measurement of some assets and liabilities in the preparation of the
financial statements includes assumptions made by management that are described in Note 3 of the 2021 Notes. Further
details on judgments, estimates and assumptions can be found in the 2021 Notes, particularly regarding trade
receivables (Notes 12 and 14), equity accounted investments (Note 16), lease arrangements (Note 18), goodwill
(Note 19), finite-life intangible assets (Note 20), impairment of long-lived assets including goodwill (Note 19), deferred
income taxes (Note 10), post-employment benefits (Note 24), and non-current liabilities (Note 25). The Company’s
significant accounting policies are applied consistently to all its reportable industry segments (Note 30).
TRACKING PERFORMANCE
In addition to a sophisticated accounting system that enables us to rigorously analyze the performance of each of our
facilities and business units, we use a costing system that allows us to monitor our operations. We have developed a
multitude of automated reporting and tracking tools that provide our managers with accurate and timely information,
helping to optimize our operations.
Our senior management team meets once a month to discuss results, forecasts, and development projects. This practice
enables management to accurately assess results and development, and to allocate necessary resources as required in
a timely manner.
In addition to these monthly meetings, senior management provides our Board of Directors and our Audit Committee
with quarterly performance reports. The Audit Committee’s members question management and hold regular in camera
discussions with the independent auditor to ensure that publicly disclosed financial reports are accurate.
Finally, before any financial or regulatory information is issued to the public, it is reviewed by a Disclosure Committee
composed of members of the Company’s senior management, the President and Chief Executive Officer, the Chairman
of the Board, and the Chairman of the Audit Committee.
58
MANAGEMENT’S DISCUSSION & ANALYSIS
INTERNAL CONTROLS OVER FINANCIAL
REPORTING
LOGISTEC has implemented high standards of corporate governance. LOGISTEC has in place corporate governance
practices that are consistent with the requirements of National Policy 58-201 “Corporate Governance Guidelines” and
National Instrument 58-101 “Disclosure of Corporate Governance Practices”. Of LOGISTEC’s 10 directors, seven are
independent, four are women, and the roles of Chairman and Chief Executive Officer are separate. The Governance and
independent directors. The
Human Resources Committee and the Audit Committee consist exclusively of
Audit Committee, which is involved in the review of interim and annual reports and financial statements prior to their
submission to the Board of Directors for approval, meets separately with the Company’s independent auditor. The Board
of Directors recommends the appointment of the independent auditor to shareholders after the Audit Committee has
made a proper assessment.
Pursuant to the requirements of National Instrument 52-109 “Certification of Disclosure in Issuers’ Annual and Interim
Filings”, the President and Chief Executive Officer and the Chief Financial Officer are responsible for the establishment
and maintenance of disclosure controls and procedures (“DC&P”) and internal control over financial reporting (“ICFR”).
They are assisted in these tasks by a Certification Steering Committee, which comprises of members of the Company’s
senior management including the two previously mentioned executives.
They have reviewed this MD&A, the annual financial statements, the annual information form, and the information
circular, which includes a compensation disclosure and analysis (the “Annual Filings”). Based on their knowledge, the
Annual Filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated
or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the
period covered by the Annual Filings. Based on their knowledge, the annual financial statements, together with the other
financial information included in the Annual Filings, fairly present in all material respects the financial condition, financial
performance and cash flows of the Company, as of the date and for the periods presented in the Annual Filings.
Under the supervision of the Certification Steering Committee, the effectiveness of DC&P was evaluated. Based upon
this evaluation, the President and Chief Executive Officer and the Chief Financial Officer concluded that the DC&P were
effective as at the end of the fiscal period ended December 31, 2021, and that the design of these DC&P provided
reasonable assurance that material information relating to the Company, including its consolidated subsidiaries, was
communicated to them in a timely manner for the preparation of the Annual Filings, and that information required to be
disclosed in its Annual Filings was recorded, processed, summarized and reported within the required time periods.
The President and Chief Executive Officer and the Chief Financial Officer have also designed such ICFR, or caused it to
be designed under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements in accordance with IFRS. The management’s evaluation of the Company’s DC&P
and ICFR excluded controls, conventions and procedures regarding APG, acquired on June 3, 2021. The Company has
a period of one year from the acquisition date to conduct this analysis and to implement internal controls deemed
necessary. Please refer to the business combinations section for further financial information. Despite the COVID-19
outbreak and the necessity of physical distancing, there has been no change in the Company’s ICFR that occurred in 2021
that has materially affected, or is reasonably likely to materially affect, the Company’s ICFR. Under the supervision of the
Certification Steering Committee, the effectiveness of ICFR was evaluated. Based upon this evaluation, the President and
Chief Executive Officer and the Chief Financial Officer concluded that the ICFR are adequate and effective to provide
such assurance as at December 31, 2021.
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March 18, 2022
(signed) Jean-Claude Dugas
Jean-Claude Dugas, CPA, CA
Chief Financial Officer
59
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED
FINANCIAL
STATEMENTS
60
CONSOLIDATED FINANCIAL STATEMENTS
TABLE OF
CONTENTS
62 Independent Auditors’ Report
97 14. Trade and Other Receivables
66 Consolidated Financial Statements
98 15. Inventories
66 Consolidated Statements
98 16. Equity Accounted Investments
of Earnings
67 Consolidated Statements
of Comprehensive Income
68 Consolidated Statements
of Financial Position
69 Consolidated Statements
of Changes In Equity
71 Consolidated Statements
of Cash Flows
72 Notes to Consolidated
Financial Statements
72 1. General Information
72 2. Summary of Significant
Accounting Policies
84 3. Critical Accounting Judgments
and Key Sources of
Estimation Uncertainty
86 4. Business Combinations
88 5. Revenue
89 6. Employee Benefits Expense
89 7. Government Assistance
89 8. Other Losses
90 9. Finance Expense
90 10. Income Taxes
93 11. Earnings Per Share
93 12. Financial Risk Management
97 13. Financial Instruments
100 17. Property, Plant and Equipment
101 18. Lease Arrangements
103 19. Goodwill
104 20. Intangible Assets
105 21. Non-Current Financial Assets
105 22. Trade and Other Payables
105 23. Indebtedness
107 24. Post-Employment Benefit
Assets and Obligations
110 25. Non-Current Liabilities
111 26. Share Capital
114 27. Accumulated Other
Comprehensive Income,
Net of Taxes
115 28. Consolidated Statements
of Cash Flows
117 29. Related Party Transactions
118 30. Segmented Information
119 31. Contingent Liabilities
and Guarantees
120 Board of Directors
121 Officers of the Company
122 Shareholder and Investor Information
61
2021 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITORS’ REPORT
To the Shareholders of LOGISTEC Corporation
OPINION
We have audited the consolidated financial statements of Logistec Corporation (the "Entity"), which comprise:
•
•
•
•
•
•
the consolidated statements of financial position as at December 31, 2021, and 2020
the consolidated statements of earnings for the years then ended
the consolidated statements of comprehensive income for the years then ended
the consolidated statements of changes in equity for the years then ended
the consolidated statements of cash flows for the years then ended
and notes to the consolidated financial statements, including a summary of significant accounting policies
(Hereinafter referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial
position of the Entity as at December 31, 2021, and 2020, and its consolidated financial performance and its consolidated
cash flows for the years then ended in accordance with International Financial Reporting Standards (“IFRS”).
BASIS FOR OPINION
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under
those standards are further described in the "Auditors’ Responsibilities for the Audit of the Financial Statements" section
of our auditors’ report.
We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Canada and we have fulfilled our other responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. We have determined the matters described below to be the key audit matters to be communicated in our
auditors’ report.
EVALUATION OF THE GOODWILL IMPAIRMENT ASSESSMENT
Description of the matter
We draw attention to Notes 2, 3 and 19 to the financial statements. The goodwill balance as of December 31, 2021, is
$182,706. Cash generated units (“CGUs”) to which goodwill has been allocated are tested for impairment annually by the
Entity, except when certain criteria are met, or more frequently when there is an indication that the unit may be impaired.
If the recoverable amount of the CGU is less than its the carrying amount, an impairment loss is allocated first to reduce
the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU prorated on the basis
of the carrying amount of each asset in the CGU.
Recoverable amount of a CGU is the higher of fair value less cost of disposal and value in use. The Entity’s key assumptions
used in establishing the recoverable amount of the CGUs, which is calculated by discounting five-year cash flow
projections are as follows:
62
CONSOLIDATED FINANCIAL STATEMENTS
• Budgeted cash flow projections covering a one-year period
•
Forecasted cash flow projections growth rate beyond that one-year period
• Discount rate.
Why the matter is a key audit matter
We identified the evaluation of the goodwill impairment assessment as a key audit matter. This matter represented an
area of significant risk of material misstatement given the magnitude of the goodwill and the high degree of estimation
uncertainty in determining the recoverable amount. In addition, significant auditor judgment and specialized skills and
knowledge were required in evaluating the results of our audit procedures due to the sensitivity of the determination of
the recoverable amount of the CGUs to minor changes to significant assumptions.
How the matter was addressed in the audit
The following are the primary procedures we performed to address this key audit matter:
We evaluated the appropriateness of the Entity’s one-year period budgeted cash flow projections assumption used in
establishing the recoverable amount of the CGUs by comparing it to the Entity’s actual historical cash flows. We took into
account changes in conditions and events affecting the Entity to assess the adjustments or lack of adjustments made by
the Entity in arriving at the one-year period budgeted cash flow projections assumption.
We compared the Entity’s historical forecasts to actual results to assess the Entity’s ability to accurately predict the
forecasted cash flow projections growth rate assumption beyond the one-year period.
We involved valuation professionals with specialized skills and knowledge, who assisted in:
•
•
Evaluating the appropriateness of the Entity’s discount rate assumption used in establishing the recoverable
amount, by comparing inputs into the discount to publicly available data for comparable entities;
Evaluating the appropriateness of the discounted cash flow model used by the Entity to calculate the
recoverable amount of the CGUs based on the knowledge of the valuation professionals;
• Assessing the reasonableness of the Entity’s estimate of the recoverable amount of the CGUs by comparing
the Entity’s estimated earnings before interest, tax, depreciation, and amortization (“EBITDA”) multiple to
publicly available EBITDA multiples for comparable entities.
OTHER INFORMATION
Management is responsible for the other information. Other information comprises:
•
•
the information included in Management’s Discussion and Analysis filed with the relevant Canadian
Securities Commissions;
the information, other than the financial statements and the auditors’ report thereon, included in the
"Annual report 2021".
Our opinion on the financial statements does not cover the other information and we do not and will not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
We obtained the information included in Management's Discussion and Analysis filed with the relevant Canadian
Securities Commissions and the information, other than the financial statements and the auditors' report thereon,
included in the Annual report 2021 as at the date of this auditors' report. If, based on the work we have performed on this
other information, we conclude that there is a material misstatement of this other information, we are required to report
that fact in the auditors' report.
We have nothing to report in this regard.
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CONSOLIDATED FINANCIAL STATEMENTS
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE
FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
International Financial Reporting Standards (IFRS), and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going
concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do
so.
Those charged with governance are responsible for overseeing the Entity’s financial reporting process.
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
Canadian generally accepted auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional
judgment and maintain professional skepticism throughout the audit.
We also:
•
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Entity's internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors’ report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However,
future events or conditions may cause the Entity to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
64
CONSOLIDATED FINANCIAL STATEMENTS
•
Provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group Entity to express an opinion on the financial statements. We are responsible for
the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
The engagement partner on the audit resulting in this auditors’ report is Yvon Dupuis.
Montréal, Canada
March 18, 2022
*CPA auditor, CA, public accountancy permit No. A114306
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65
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF EARNINGS
9
(11,103)
Notes
5
6
17, 18, 20
16
8
10
11
11
11
11
2021
$
2020
$
743,703
604,701
(363,331)
(187,225)
(50,095)
(33,327)
(49,100)
10,084
(4,052)
66,657
541
56,095
(10,471)
45,624
(287,665)
(155,611)
(41,864)
(27,509)
(45,390)
9,529
(923)
55,268
(12,453)
635
43,450
(10,662)
32,788
45,364
32,614
260
45,624
3.34
3.68
3.31
3.64
174
32,788
2.43
2.67
2.39
2.63
years ended December 31
(in thousands of dollars, except per share amounts)
Revenue
Employee benefits expense
Equipment and supplies expense
Operating expense
Other expenses
Depreciation and amortization expense
Share of profit of equity accounted investments
Other losses
Operating profit
Finance expense
Finance income
Profit before income taxes
Income taxes
Profit for the year
Profit attributable to:
Owners of the Company
Non-controlling interest
Profit for the year
Basic earnings per Class A Common Share
(1)
Basic earnings per Class B Subordinate Voting Share
(2)
Diluted earnings per Class A share
Diluted earnings per Class B share
(1)
Class A Common Share (“Class A share”)
(2) Class B Subordinate Voting Share (“Class B share”)
See accompanying notes to the consolidated financial statements.
66
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
years ended December 31
(in thousands of dollars)
Profit for the year
45,624
32,788
Notes
2021
$
2020
$
Other comprehensive income (loss)
Items that are or may be reclassified to the consolidated statements of
earnings
Currency translation differences arising on translation of foreign
operations
Income taxes relating to currency translation differences arising on
translation of foreign operations
Unrealized gain on translating debt designated as hedging item of the
net investment in foreign operations
Income taxes relating to unrealized gain on translating debt designated
as hedging item of the net investment in foreign operations
Loss on derivatives designated as cash flow hedges
Income taxes relating to derivatives designated as cash flow hedges
Total items that are or may be reclassified to the consolidated statements of
earnings
Items that will not be reclassified to the consolidated statements of
earnings
Remeasurement gains (losses) on benefit obligations
Return on retirement plan assets
Income taxes on remeasurement gains (losses) on benefit obligation and
return on retirement plan assets
Total items that will not be reclassified to the consolidated statements of
earnings
Share of other comprehensive income (loss) of equity accounted
investments, net of income taxes
Items that are or may be reclassified to the consolidated statements of
earnings
Items that will not be reclassified to the consolidated statements of
earnings
Total share of other comprehensive income (loss) of equity accounted
investments, net of income taxes
Other comprehensive income (loss) for the year, net of income taxes
Total comprehensive income for the year
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interest
Total comprehensive income for the year
See accompanying notes to the consolidated financial statements.
848
—
521
(121)
(235)
62
(3,223)
302
2,306
(1,053)
(92)
(11)
1,075
(1,771)
24
24
10
5,178
1,034
(1,646)
(2,732)
333
636
4,566
(1,763)
2
0
2
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R
E
P
O
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T
318
(84)
234
5,875
51,499
51,240
259
51,499
(199)
53
(146)
(3,680)
29,108
28,962
146
29,108
67
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
(in thousands of Canadian dollars)
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Current income tax assets
Inventories
Prepaid expenses and other
Equity accounted investments
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Non-current assets
Non-current financial assets
Deferred income tax assets
Total assets
Liabilities
Current liabilities
Short-term bank loans
Trade and other payables
Contract liabilities
Current income tax liabilities
Dividends payable
Current portion of lease liabilities
Current portion of long-term debt
Lease liabilities
Long-term debt
Deferred income tax liabilities
Post-employment benefit obligations
Contract liabilities
Non-current liabilities
Total liabilities
Equity
Share capital
Share capital to be issued
Retained earnings
Accumulated other comprehensive income
Equity attributable to owners of the Company
Non-controlling interest
Total equity
Total liabilities and equity
Commitments, contingent liabilities and guarantees
As at
December 31,
2021
$
As at
December 31,
2020
$
Notes
37,530
183,322
7,517
7,597
16,830
10,437
263,233
46,311
207,321
135,049
182,706
41,043
2,448
5,902
14,958
898,971
8,600
127,044
14,801
10,442
1,338
15,775
3,427
181,427
125,249
191,927
25,684
16,212
2,133
40,730
583,362
50,889
—
254,621
9,051
314,561
1,048
315,609
898,971
46,778
138,649
7,617
9,171
12,946
9,056
224,217
45,061
185,686
132,779
149,311
38,422
2,381
9,210
12,385
799,452
—
91,694
8,941
8,719
1,259
18,251
3,748
132,612
116,901
163,962
21,418
22,055
2,533
38,400
497,881
45,575
4,906
242,358
7,943
300,782
789
301,571
799,452
14
10
15
16
17
18
4, 19
20
21
10
22
10
26
18
23
18
23
10
24
25
26
26
27
31
See accompanying notes to the consolidated financial statements.
On behalf of the Board
(signed) Curtis J. Foltz
Curtis J. Foltz
Chairman of the Board
(signed) Madeleine Paquin
Madeleine Paquin, C.M.
Director
68
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF CHANGES
IN EQUITY
(in thousands of Canadian dollars)
Attributable to owners of the Company
Share
capital
issued
$
Share
capital to
be issued
$
Notes
Accumulated
other
comprehensive
income
(Note 27)
$
Retained
earnings
$
Non-
controlling
interest
$
Total
$
Total
equity
$
Balance as at January 1, 2021
45,575
4,906
7,943
242,358
300,782
789
301,571
Profit for the year
—
—
—
45,364
45,364
260
45,624
—
—
849
—
849
(1)
848
Other comprehensive income
(loss)
Currency translation
differences arising on
translation of foreign
operations
Unrealized gain on translating
debt designated as hedging
item of the net investment in
foreign operations, net of
income taxes
Remeasurement gains on
benefit obligation and return
on retirement plan assets, net
of income taxes
Share of other comprehensive
income of equity accounted
investments, net of income
taxes
Cash flow hedges, net of
income taxes
Total comprehensive income for
the year
Remeasurement of written put
option liability
Issuance and repurchase of
Class B shares
Issuance of Class B share capital
to a subsidiary shareholder
Class B shares to be issued under
the Executive Stock Option Plan
Other dividend
Dividends on Class A shares
Dividends on Class B shares
24
25
26
26
26
26
26
—
—
—
—
—
—
408
—
—
—
—
—
—
—
4,906
(4,906)
—
—
—
—
—
—
—
—
—
Balance as at December 31, 2021
50,889
See accompanying notes to the consolidated financial statements.
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E
P
O
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T
400
—
400
—
400
—
4,566
4,566
—
4,566
32
202
234
(173)
—
(173)
—
—
234
(173)
1,108
50,132
51,240
259
51,499
—
—
—
—
—
—
—
(32,403)
(32,403)
(444)
(36)
—
—
364
(170)
364
(170)
(2,828)
(2,828)
(2,388)
(2,388)
—
—
—
—
—
—
—
(32,403)
(36)
—
364
(170)
(2,828)
(2,388)
9,051
254,621
314,561
1,048
315,609
69
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF CHANGES
IN EQUITY (CONTINUED)
(in thousands of Canadian dollars)
Attributable to owners of the Company
Share
capital
issued
$
40,222
—
Share
capital to
be issued
$
9,811
—
Accumulated
other
comprehensive
income
(Note 27)
$
9,697
—
Notes
Retained
earnings
$
220,641
32,614
Total
$
280,371
32,614
Non-
controlling
interest
$
Total
equity
$
643
174
281,014
32,788
—
—
(2,893)
—
(2,893)
(28)
(2,921)
—
—
—
—
—
—
(4)
452
—
—
—
—
—
—
—
—
4,905
(4,905)
—
—
—
—
45,575
—
—
—
—
4,906
24
25
26
26
26
26
26
26
1,253
—
1,253
—
1,253
—
(1,763)
(1,763)
—
(1,763)
(11)
(135)
(146)
(103)
—
(103)
—
—
(146)
(103)
(1,754)
30,716
28,962
146
29,108
—
—
—
—
(2,732)
(182)
(2,732)
(186)
(888)
(436)
—
—
—
—
—
—
(2,732)
(186)
(436)
—
—
—
—
—
7,943
136
(299)
(2,758)
(2,276)
242,358
136
(299)
(2,758)
(2,276)
300,782
—
—
—
—
789
136
(299)
(2,758)
(2,276)
301,571
Balance as at January 1, 2020
Profit for the year
Other comprehensive (loss)
income
Currency translation
differences arising on
translation of foreign
operations
Unrealized gain on translating
debt designated as hedging
item of the net investment in
foreign operations, net of
income taxes
Remeasurement losses on
benefit obligation and return
on retirement plan assets, net
of income taxes
Share of other comprehensive
loss of equity accounted
investments, net of income
taxes
Cash flow hedges, net of
income taxes
Total comprehensive (loss)
income for the year
Remeasurement of written put
option liability
Repurchase of Class A shares
Issuance and repurchase of
Class B shares
Issuance of Class B share capital
to a subsidiary shareholder
Class B shares to be issued under
the Executive Stock Option Plan
Other dividend
Dividends on Class A shares
Dividends on Class B shares
Balance as at December 31, 2020
See accompanying notes to the consolidated financial statements.
70
CONSOLIDATED STATEMENTS OF CASH
FLOWS
CONSOLIDATED FINANCIAL STATEMENTS
years ended December 31
(in thousands of Canadian dollars)
Operating activities
Profit for the year
Items not affecting cash and cash equivalents
Cash generated from operations
Dividends received from equity accounted investments
Contributions to defined benefit retirement plans
Settlement of provisions
Changes in non-cash working capital items
Income taxes paid
Financing activities
Net change in short-term bank loans
Issuance of long-term debt, net of transaction costs
Repayment of long-term debt
Repayment of other non-current liabilities
Repayment of lease liabilities
Interest paid
Issuance of Class B shares
Repurchase of Class A shares
Repurchase of Class B shares
Dividends paid on Class A shares
Dividends paid on Class B shares
Investing activities
Acquisition of property, plant and equipment
Acquisition of intangible assets
Proceeds from disposal of property, plant and equipment
Business combinations, net of cash acquired
Interest received
Acquisition of other non-current assets
Proceeds from disposal of other non-current assets
Cash paid to non-controlling interests
Cash received on other non-current financial assets
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of year
Effect of exchange rate on balances held in foreign currencies
of foreign operations
Cash and cash equivalents, end of year
Notes
28
16
24
25
28
23, 28
23, 28
26
26
26
26
26
17
20
17
4
Non-cash transactions and supplemental information
28
See accompanying notes to the consolidated financial statements.
2021
$
45,624
64,265
109,889
8,859
(1,022)
(865)
(27,556)
(9,719)
79,586
8,600
91,681
(63,601)
(2,635)
(13,384)
(11,508)
130
—
(551)
(2,794)
(2,343)
3,595
2020
$
32,788
60,517
93,305
6,600
(871)
(481)
15,066
(5,164)
108,455
—
76,518
(83,962)
(2,557)
(14,049)
(10,755)
190
(186)
(1,131)
(2,760)
(2,262)
(40,954)
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
(44,306)
(23,375)
(117)
699
(248)
634
(50,390)
(18,677)
576
(632)
84
(170)
1,398
(92,858)
(9,677)
46,778
429
37,530
330
(228)
109
(2,056)
222
(43,289)
24,212
22,608
(42)
46,778
71
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
1. GENERAL INFORMATION
LOGISTEC Corporation (the “Company”) provides specialized cargo handling and other services to a wide variety of
marine, industrial and municipal customers. The Company has cargo handling facilities in 54 ports across North America,
and offers marine agency services to foreign shipowners and operators serving the Canadian market. The Company is
widely diversified in terms of cargo type and port location with a balance between import and export activities.
Furthermore, the Company, operates in the environmental services segment where it provides services for the renewal
of underground water mains, dredging, dewatering, contaminated soils and materials management, site remediation,
risk assessment and manufacturing of fluid transportation products.
The Company is incorporated in the Province of Québec and is governed by the Québec Business Corporations Act. Its
shares are listed on the Toronto Stock Exchange (“TSX”) under the ticker symbols LGT.A and LGT.B. The address of its
registered office is 600 De la Gauchetière Street West, 14th Floor, Montréal, Québec H3B 4L2, Canada.
The Company’s largest shareholder is Sumanic Investments Inc.
These audited consolidated financial statements were approved by the Company’s Board of Directors on March 18, 2022.
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Significant accounting policies used in the preparation of these consolidated financial statements are set out below.
STATEMENT OF COMPLIANCE
These consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board.
ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED AND ADOPTED
CONFIGURATION OR CUSTOMIZATION COSTS IN A CLOUD COMPUTING ARRANGEMENT (“IAS 38 INTANGIBLE
ASSETS”)
In March 2021, the International Financial Reporting Interpretations Committee (“IFRIC”) published an agenda decision
that clarified how to recognize certain configuration and customization costs in a cloud computing arrangement. As a
result of this decision, LOGISTEC changed its accounting policy for costs incurred on cloud computing arrangements.
Consequently, LOGISTEC will now expense configuration and customization costs related to certain cloud computing
arrangements. The impact of changing this accounting policy to LOGISTEC’s consolidated statements of earnings is a
recognition of an expense of $5,064 under other losses for the year ended December 31, 2021 (refer to Note 8).
ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET APPLIED
CLASSIFICATION OF LIABILITIES AS CURRENT OR NON-CURRENT (AMENDMENTS TO IAS 1)
On January 23, 2020, the IASB issued amendments to IAS 1 Presentation of Financial Statements, to clarify the
classification of liabilities as current or non-current (the “2020 amendments”). For the purposes of non- current
classification, the amendment removed the requirement for a right to defer settlement or roll over of a liability for at least
twelve months to be unconditional. Instead, such a right must have substance and exist at the end of the reporting period.
The 2020 amendment is effective for annual periods beginning on or after January 1, 2023. The 2020 amendments are
subject to future developments and in November 2021 the IASB proposed to defer the effective date to no earlier than
January 2024. It is not expected that this amendment will have a significant impact on the Company’s financial statements.
72
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
PREPARATION
The consolidated financial statements have been prepared on a historical cost basis, with the exception of certain financial
instruments that are measured at fair value, including derivative financial instruments, post-employment benefit assets,
post-employment benefit obligations, and provisions for asset retirement obligations. Historical cost is generally based
on the fair value of the consideration given in exchange for services. Fair value is defined as the price that would be
received for the sale of an asset or paid for the transfer of a liability in a normal transaction between market participants
on the valuation date.
BASIS OF CONSOLIDATION
The consolidated financial statements include the accounts of the Company and its subsidiaries.
SUBSIDIARIES
Subsidiaries are all entities controlled by the Company. Control is achieved where the Company has power over the
investee, exposure or rights to variable returns from its involvement with the investee, and the ability to use its power over
the investee to affect the amount of these returns. The subsidiaries continue to be consolidated until the date that such
control ceases.
Revenue and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated
statements of earnings and of comprehensive income from the effective date of acquisition of control and up to the
effective date of loss of control, as appropriate. Total comprehensive income of subsidiaries is attributed to owners of the
Company and to non-controlling interests.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in
line with those used by the Company.
All intra-group transactions, balances, revenue, expenses, and cash flows are eliminated on consolidation until they are
realized with a third party. Exchange differences on monetary items are recognized in profit or loss in the period in which
they arise except for exchange differences on monetary items receivable from or payable to a foreign operation for which
settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation)
and which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on
repayment of the monetary items.
The following subsidiaries are wholly owned by the Company:
American Process Equipment Ltd., American Process Group LLC, American Process Group (Canada) Ltd., BalTerm, LLC,
CASTALOOP Inc., CASTALOOP USA Inc., CrossGlobe Transport, Ltd., GSM Intermediate Holdings, Inc., GSM Maritime
Holdings, LLC, Gulf Stream Marine, Inc. (“GSM”), Les Terminaux Rideau Bulk Terminals Inc., LOGISTEC Environmental
Services Inc., LOGISTEC Marine Agencies Inc., LOGISTEC Marine Services Inc., LOGISTEC Stevedoring Inc., LOGISTEC
Stevedoring (New Brunswick) Inc., LOGISTEC Stevedoring (Nova Scotia) Inc., LOGISTEC Stevedoring (Ontario) Inc.,
LOGISTEC Stevedoring U.S.A. Inc., LOGISTEC USA Inc., MtlLINK Multimodal Solutions Inc., NIEDNER Inc., Pate Stevedore
Company, Inc., Ramsey Greig & Co. Ltd., SANEXEN Environmental Services Inc., SANEXEN Water, LLC., SETL Real Estate
Management Inc., Sorel Maritime Agencies Inc., and Tartan Terminals, Inc.
The Company also holds a 51.03% investment in FER-PAL Construction Ltd. (“FER-PAL”), a 60.00% investment in
LOGISTEC Everglades LLC and a 82.71% investment in LOGISTEC Gulf Coast LLC (“LGC”) (77.91% in 2020). Refer to
Note 25 for further details.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
73
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
BUSINESS COMBINATIONS
The Company uses the acquisition method of accounting to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair value of assets transferred, liabilities incurred and equity interests
issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired,
and liabilities and contingent liabilities assumed in a business combination are initially measured at their fair values at the
acquisition date. On an acquisition-by-acquisition basis, the Company recognizes any non-controlling interest in the
acquiree either at fair value or at the non-controlling interest’s proportionate share in the recognized amounts of the
acquiree’s net assets.
Changes in the parent company’s ownership interest in subsidiaries that do not result in a loss of control are accounted
for as equity transactions.
NON-CONTROLLING INTERESTS
Non-controlling interests represent equity interests in subsidiaries owned by outside parties. The share of net assets of
subsidiaries attributable to non-controlling interests is presented as a component of equity.
EQUITY ACCOUNTED INVESTMENTS
Equity accounted investments consist of investments in joint ventures and associates of the Company.
JOINT VENTURES
A joint venture is a contractual arrangement whereby the Company and other parties undertake to have joint control
over an arrangement, which exists only when decisions about the activities that significantly affect the returns of the
arrangement require the unanimous consent of the parties sharing control. It involves the establishment of a
corporation or a partnership and the parties having joint control have rights to the net assets of the arrangement.
ASSOCIATES
An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an
interest in a joint venture. Significant influence is the power to participate in the financial and operating policy
decisions of the investee, but is not control or joint control over those policies.
The profit or loss, assets and liabilities of equity accounted investments are incorporated in these consolidated
financial statements using the equity method of accounting. Under the equity method, an investment in a joint
venture or associate is initially recognized in the consolidated statements of financial position at cost, and adjusted
thereafter to recognize the Company’s share of profit or loss and of other comprehensive income or loss of the joint
venture or associate. When the Company’s share of loss of a joint venture or associate exceeds the Company’s interest
in that joint venture or associate (which includes any long-term interests that, in substance, form part of the
Company’s net investment in the joint venture or associate), the Company discontinues recognizing its share of
further losses unless the Company has incurred legal or constructive obligations or made payments on behalf of the
joint venture or associate.
Any excess of the acquisition cost over the Company’s share of the net fair value of the identifiable assets, liabilities
and contingent liabilities of a joint venture or associate recognized at the acquisition date is recognized as goodwill,
which is included within the carrying amount of the investment. Any excess of the Company’s share of the net fair
value of the identifiable assets, liabilities and contingent liabilities over the acquisition cost, after reassessment, is
recognized immediately in the consolidated statements of earnings.
When the Company transacts with its joint venture or associate, profit or loss resulting from transactions with the joint
venture or associate is recognized in the Company’s consolidated financial statements only to the extent of interests
in the joint venture or associate that are not related to the Company.
74
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
REVENUE RECOGNITION
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected
on behalf of third parties. The Company recognizes revenue when it transfers control of a service or product to a customer.
Determining the timing of the transfer of control (“at a point in time” or “over time”) requires judgment. The Company
recognizes revenue from the following major sources:
MARINE SERVICES
The Company earns revenue from stevedoring, cargo loading and unloading, container stuffing and destuffing, ship
dockage, road transportation, storage and tailgating (truck loading and discharging). Revenue from these services is
recognized over time, as the services are performed during the period between the arrival and departure of the cargo to
or from the terminal.
Fees for storage are recognized over time for material stored by customers under short-term arrangements at the
Company’s facilities based on a time-proportion basis.
For arrangements that involve multiple performance obligations, the total consideration in the contract is allocated to the
separate performance obligations based on their stand-alone selling prices, and revenue is recognized when, or as,
performance obligations in the contract are satisfied. The stand-alone selling price is determined based on the list prices
at which the Company sells the services in separate transactions.
ENVIRONMENTAL SERVICES
The Company earns revenue in the environmental services segment, where it provides services to industrial, municipal and
other governmental customers for the renewal of underground water mains, dredging, dewatering, site remediation,
contaminated soils and materials management and risk assessment.
Contracts with customers for these services generally comprise multiple performance obligations. There is significant
integration of services performed by the Company and, as such, they are considered to represent a single distinct
performance obligation. Revenue from these services is recognized over time based on the stage of completion of work,
which is determined on the basis of costs incurred.
Under the cost method, the stage of completion at any given time is measured by dividing the cumulative costs incurred
at the period end date by the sum of incurred costs and anticipated costs for completing a contract. The cumulative effect
of changes to anticipated costs and revenue for completing a contract are recognized in the period in which the revisions
are identified. In the event that the total anticipated costs exceed the total anticipated revenue on a contract, such loss
is recognized in its entirety in the period in which it becomes known. Estimates are required to determine the appropriate
anticipated costs and revenue.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
ENVIRONMENTAL GOODS
Revenue from the manufacturing of fluid transportation products is recognized at a point in time when control of the asset
is transferred to the customer, generally when a customer takes possession of the goods. In contracts under which the
Company provides custom products or services and for which it has an enforceable right to payment for performance
completed, the criteria for revenue recognition over time are met and, consequently, revenue is recognized under that
method.
FOREIGN CURRENCIES
FUNCTIONAL AND PRESENTATION CURRENCY
Items included in the financial statements of each of the Company’s foreign operations are measured using the
currency of the primary economic environment in which the entity operates (the “functional currency”). The Company’s
functional and presentation currency is the Canadian dollar.
75
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
The financial statements of foreign operations that have a functional currency different from that of the Company’s
presentation currency are translated into Canadian dollars. Assets and liabilities are translated at the rates in effect at the
end of the reporting period; revenue and expense items are translated at the rates in effect on transaction dates. Gains
or losses arising from translation are recorded in equity under the accumulated other comprehensive income —
Currency translation differences arising on translation of foreign operations.
TRANSACTIONS AND BALANCES
Revenue and expense items arising from transactions in foreign currencies are converted into the functional currency at
the rates in effect on transaction dates. Monetary asset and liability items on the consolidated statements of financial
position are translated into the functional currency at the rates in effect at the end of the reporting period; non-monetary
items are translated at the rates in effect on transaction dates. Exchange gains or losses arising from translation are
recognized in the consolidated statements of earnings under other losses, except where hedge accounting is applied, as
described under hedge of a net investment in foreign operations.
INCOME TAXES
Income tax expense comprises current and deferred income taxes. The income tax expense is recognized in the
consolidated statements of earnings except to the extent that it relates to items recognized directly in equity or in other
comprehensive income, in which case it is recognized in equity or other comprehensive income.
CURRENT INCOME TAXES
Current income taxes are the expected taxes payable on the taxable profit for the year, using tax rates enacted or
substantively enacted by the end of the reporting period, and any adjustment to tax payable with respect to
previous years.
DEFERRED INCOME TAXES
Deferred income taxes are recognized on temporary differences between the carrying amounts of assets and liabilities in
the consolidated financial statements and the corresponding tax basis used in the computation of taxable profit. Deferred
income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realized, based on tax rates that have been enacted or substantively enacted by the end of the
reporting period. The measurement of deferred income tax assets and liabilities reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
DEFERRED INCOME TAX ASSETS
Deferred income tax assets are generally recognized for all deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences can be utilized. Such
deferred income tax assets are not recognized if the temporary difference arises from the initial recognition (other
than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit
nor the accounting profit.
Deferred income tax assets are recognized for the carry forward of unused tax losses and unused tax credits to the
extent that it is probable that future taxable profit will be available against which the unused tax losses and unused
tax credits can be utilized.
Deferred income tax assets arising from deductible temporary differences associated with investments in subsidiaries
and associates, and interests in joint ventures are only recognized to the extent that it is probable that there will be
sufficient taxable profit against which the benefits of the temporary differences can be utilized and they are expected
to reverse in the foreseeable future.
The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset
to be recovered.
76
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
DEFERRED INCOME TAX LIABILITIES
Deferred income tax liabilities are generally recognized for all taxable temporary differences. Such deferred income
tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill or from
the initial recognition of other assets and liabilities in a transaction (other than in a business combination) that affects
neither the taxable profit nor the accounting profit.
Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal
of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand and in banks, highly liquid investments with maturity dates less than
three months from the acquisition date, and highly liquid investments redeemable at all times without penalty.
TRADE AND OTHER RECEIVABLES
Trade receivables are amounts due from customers for the rendering of services or sale of goods in the normal course of
business. Invoices are issued according to contractual terms and are usually payable upon receipt. The period between
performance and payments for the performance is generally less than one year. Amounts not invoiced are presented as
contract assets. Trade and other receivables are classified as current assets if payment is due within one year or less. Trade
and other receivables are initially recognized at fair value and subsequently measured at amortized cost, less impairment.
The Company maintains an allowance for doubtful accounts to provide for impairment of trade receivables. The expense
relating to doubtful accounts is included within other expenses in the consolidated statements of earnings.
CONTRACT ASSETS OR CONTRACT LIABILITIES
Contract assets primarily relate to the gross unbilled amount for a given project that is expected to be collected from
customers for contract work performed to date. It is measured at cost plus profit recognized by the Company to date less
progress billings. The contract assets are transferred to trade and other receivables when the rights become
unconditional. This usually occurs when the Company issues an invoice to the customer. If progress billings for a given
project exceed costs incurred plus recognized profit, then the difference is presented as contract liabilities.
Contract liabilities also relate to the advance consideration received from customers, for which revenue is usually
recognized when the service is rendered or upon delivery of the goods. The contract liabilities are presented as either
current or non-current based on the timing of when the Company expects to recognize revenue.
The Company used the practical expedient exemptions, as allowed by IFRS 15, Revenue from Contracts with Customers,
therefore, no information is provided about the remaining performance obligations as at December 31, 2021, and 2020
that have an original expected duration of one year or less.
INVENTORIES
Inventories are measured at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis.
Cost of work in progress and finished goods includes raw material cost, labour cost and appropriate overhead cost. Net
realizable value represents the estimated sale price for inventories less all estimated costs of completion and costs
necessary to make the sale.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
77
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost, net of government grants, less accumulated depreciation and
accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Company and the cost can be
measured reliably. The carrying amount of a replaced asset is derecognized when replaced. Repairs and maintenance
costs are recorded in the consolidated statements of earnings during the period in which they are incurred.
Property, plant and equipment, less their residual value, are depreciated using the straight-line method over their
estimated useful lives. The estimated useful lives are as follows:
Buildings
Machinery and automotive equipment
Computer equipment
Furniture and fixtures
Leasehold improvements
5 to 25 years
3 to 20 years
3 to 7 years
3 to 10 years
4 to 16 years
The estimated useful lives, residual values and method of depreciation are reviewed annually, with the effect of any
changes in estimates accounted for on a prospective basis.
The gain or loss on disposal of property, plant and equipment is determined by comparing the sales proceeds with the
carrying amount of the asset and is included in the consolidated statements of earnings.
LEASES
At inception of a lease arrangement, the Company assesses whether a contract is or contains a lease, based on whether
the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
SHORT-TERM OR LOW-VALUE LEASES
The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease
term of 12 months or less, and leases of low-value assets. The Company recognizes the lease payment associated with
these leases as an expense on a straight-line basis over the lease term in the consolidated statements of earnings under
operating expense.
ALL OTHER LEASES
The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or site on which it is located, less any lease incentives received. The
assets are depreciated using the straight-line method over the earlier of the end of their estimated useful lives or the
lease term. The lease term includes periods covered by an option to extend if the Company is reasonably certain to
exercise that option.
The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally,
the Company uses its incremental borrowing rate as the discount rate.
The lease liability is measured at amortized cost using the effective interest method. Lease payments are apportioned
between finance expense and reduction of the lease liability using the effective interest method to achieve a constant rate
of interest on the remaining balance of the liability. A finance expense is charged directly to the consolidated statements
of earnings.
78
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or
rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value
guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination
option. When it is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset.
GOVERNMENT GRANTS
Government grants related to the acquisition of capital expenditures are reflected as a reduction of the cost of the related
assets. Accordingly, they are recognized in the consolidated statements of earnings over the life of the depreciable asset
as a reduced depreciation expense. Government grants for expenses are recognized as a reduction of the related
expenses. The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured
as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.
GOODWILL
Goodwill is measured as the excess of the acquisition cost over the Company’s share in the fair value of all identified
assets and liabilities. Goodwill is initially recognized as an asset at fair value and is subsequently measured at cost less
any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the Company’s cash-generating units (“CGU”) (or
groups of CGUs) expected to benefit from the synergies of the combination, and which represent the lowest level within
the Company at which goodwill is monitored for internal purposes.
CGUs to which goodwill has been allocated are tested for impairment annually, except when certain criteria are met, or
more frequently when there is an indication that the CGU may be impaired. Recoverable amount of a CGU is the higher
of fair value less cost of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the CGU for which the estimates of future cash flows have not been adjusted. If the recoverable
amount of the CGU is less than its carrying amount, an impairment loss is allocated first to reduce the carrying amount of
any goodwill allocated to the CGU and then to the other assets of the CGU prorated on the basis of the carrying amount
of each asset in the CGU. An impairment loss recognized on goodwill is not reversed in subsequent periods.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the gain or loss
on disposal.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
INTANGIBLE ASSETS
Intangible assets consist primarily of lease rights and location, and client relationships. Intangible assets have finite useful
lives and are stated at cost less accumulated amortization and impairment losses.
Intangible assets are amortized using the straight-line method over their estimated useful lives. The estimated useful lives
are as follows:
Client relationships
Computer software
Lease rights and location
2 to 15 years
3 to 5 years
5 to 21 years
79
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Research expenditures are recognized as an expense as incurred. Development expenditures are recognized as an
intangible asset when all the following criteria can be demonstrated:
•
•
•
The technical feasibility of completing the intangible asset so that it will be available for use or sale;
The intention to complete the intangible asset and use or sell it;
The ability to use or sell the intangible asset;
• How the intangible asset will generate probable future economic benefits;
•
•
The availability of adequate technical, financial and other resources to complete the development and to
use or sell the intangible asset; and
The ability to measure reliably the expenditure attributable to the intangible asset during its development.
Development expenditures that do not meet these criteria are recognized as an expense as incurred. Development
expenditures previously recognized as an expense are not recognized as an intangible asset in a subsequent year.
IMPAIRMENT OF NON- FINANCIAL ASSETS OTHER THAN GOODWILL
At the end of each reporting date, the Company reviews the carrying amount of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount is estimated in order to determine the extent of the impairment loss (if any). Where it is not
possible to estimate the recoverable amount for an individual asset, the Company estimates the recoverable amount of
the CGU to which the asset belongs.
If the carrying amount of an asset (or CGU) exceeds its recoverable amount, the carrying amount of the asset (or CGU) is
reduced to its recoverable amount. An impairment loss is immediately recognized in the consolidated statements of
earnings. Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years.
A reversal of an impairment loss is recognized immediately in the consolidated statements of earnings.
PROVISIONS
Provisions include provisions for warranty, claims and litigation, provisions to further recognize the Company’s share of
losses of certain joint ventures for which it has incurred constructive obligations, and asset retirement obligations.
Provisions are recognized when the Company has a legal or constructive obligation as a result of a past event, when it is
probable that the Company will be required to settle the obligation, and when a reliable estimate can be made of the
amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a
provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows (where the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
a receivable is recognized as an asset if it is virtually certain that payment will be received, and the amount of the
receivable can be measured reliably.
WARRANTY
A subsidiary of the Company provides a limited warranty on its products to be free of defects in material and workmanship
for a period of five years from the date goods are sold. The provision is based on management’s best estimate of the
amount required to settle the obligation.
80
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
CLAIMS AND LITIGATION
A provision for claims and litigation is recognized when it is probable that the Company will be held responsible. The
provision is based on management’s best estimate of the amount required to settle the obligation.
ASSET RETIREMENT OBLIGATIONS
The Company’s asset retirement obligations essentially derive from its obligations to remove assets and to restore its sites
under lease arrangements. The fair value of a liability for an asset retirement obligation is recorded in the year in which it
is incurred and when a reasonable estimate of fair value can be made. The fair value of a liability for an asset retirement
obligation is the amount at which that liability could be settled in a current transaction between independent parties other
than in a forced or liquidation transaction. The asset retirement cost is capitalized as part of the related asset and is
amortized using a systematic and rational method over the asset’s useful life.
POST-EMPLOYMENT BENEFITS
Certain employees have entitlements under the Company’s retirement plans, which are either defined contribution or
defined benefit retirement plans. These plans take different forms depending on the legal, financial and tax regime of
each country.
For defined benefit retirement plans, the level of benefit provided is based on the length of service and earnings of the
person entitled. Also, the cost of retirement is actuarially determined using the projected unit credit method prorated on
service and management’s best estimate of expected plan investment performance, salary escalation and retirement ages
of employees.
The retirement liability recognized in the consolidated statements of financial position represents the present value of
the defined benefit obligation as reduced by the fair value of plan assets. Any asset resulting from this calculation is
limited to the present value of available refunds and reductions in future contributions to the plan.
The net interest expense is calculated on the net defined benefit liability (asset) by applying the discount rate used to
calculate the defined benefit obligation at the beginning of the year.
Remeasurements are included in other comprehensive income, namely actuarial gains and losses on benefit obligations
and variation on plan assets excluding amounts included in profit for the year. Actuarial gains and losses are recognized
in full in the period in which they occur, in other comprehensive income, without recycling to the consolidated statements
of earnings in subsequent periods.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
Past service cost is recognized at the earlier of the following two dates:
• When the plan amendment or curtailment occurs; or
• When the entity recognizes related restructuring costs or termination benefits.
Contributions for defined contribution retirement plans are recognized as an expense when employees have rendered
service entitling them to the contributions.
FINANCIAL INSTRUMENTS
Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets
and liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instruments.
Financial assets, unless it is a trade receivable without a significant financing component, and financial liabilities are initially
recorded at fair value. A trade receivable without a significant financing component is initially measured at the transaction
price.
Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities
(other than financial assets and financial liabilities measured at fair value through profit or loss (“FVTPL”)) are added to or
deducted from the fair value of the financial assets or liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets or financial liabilities measured at FVTPL are recognized
immediately in profit or loss.
81
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
FINANCIAL ASSETS
CLASSIFICATION
All financial assets that do not meet a “solely payment of principal and interest” condition shall be classified at FVTPL.
For those that meet this condition, classification at initial recognition will be determined based on the business
model under which these assets are managed. Financial assets that are being managed on a “held for trading” or
fair value basis are classified at FVTPL. Financial assets that are being managed on a “hold to collect and for sale”
basis are classified at fair value through other comprehensive income. Finally, financial assets that are being managed
on a “hold to collect” basis are classified at amortized cost.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to
present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on
an investment-by-investment basis.
Cash and cash equivalents, trade and other receivables, and non-current financial assets are classified at
amortized cost.
Interest income is recognized by applying the effective interest rate. The effective interest method is a method of
calculating the amortized cost of a financial asset and of allocating interest income over the corresponding period.
The effective interest rate is the rate that discounts estimated future cash receipts over the expected life of the
financial asset, or, where appropriate, a shorter period.
IMPAIRMENT OF FINANCIAL ASSETS
The Company recognizes a loss allowance for expected credit losses (“ECL”) on financial assets that are measured at
amortized cost.
The Company elected to apply the simplified impairment approach. Therefore, the Company recognizes lifetime ECL
for financial assets that are measured at amortized cost. Lifetime ECL represents the expected credit losses that will
result from all possible default events over the expected life of a financial instrument. ECL are estimated using a
provision matrix based on the Company’s historical credit loss experience, general economic conditions and an
assessment of both the current as well as the forecast direction of conditions at the reporting date, including time
value of money when appropriate.
The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligation in
full.
DERECOGNITION OF FINANCIAL ASSETS
The Company derecognizes a financial asset only when the contractual rights to the cash flow from the asset expire
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another party.
FINANCIAL LIABILITIES
Financial liabilities are classified either at FVTPL or at amortized cost.
CLASSIFICATION
Trade and other payables, dividends payable, long-term debt, and liabilities due to non-controlling interests are
classified at amortized cost using the effective interest method, with interest expense recognized on an effective yield
basis. The effective interest method is a method of calculating the amortized cost of a financial liability and of
allocating interest expenses over the corresponding period. The effective interest rate is the rate that discounts
estimated future cash payments over the expected life of the financial liability, or, where appropriate, a
shorter period.
82
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Long-term liabilities due to non-controlling interests included in non-current liabilities in the consolidated statements
of financial position include a written put option that is recognized at the present value of its exercise price. The
Company has chosen to account for the remeasurement of the written put option liability at each reporting period
within retained earnings.
DERECOGNITION OF FINANCIAL LIABILITIES
The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged,
cancelled or expired.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial instruments recognized at fair value are classified using a hierarchy that reflects the significance of the inputs
used to measure the fair value.
The fair value hierarchy requires that observable market inputs be used whenever such inputs exist. A financial instrument
is classified in the lowest level of the hierarchy for which a significant input has been used to measure fair value.
An entity’s own credit risk and the credit risk of the counterparty, in addition to the credit risk of the financial instrument,
were factored into the fair value determination of the financial liabilities, including derivative instruments.
The Company presents a fair value hierarchy with three levels that reflects the significance of inputs used in determining
the fair value assessments. The fair value of financial assets and liabilities classified in these three levels is evaluated as
follows:
•
•
•
Level 1: valuation based on quoted prices (unadjusted) observed in active markets for identical assets or
liabilities;
Level 2: valuation techniques based on inputs that are quoted prices of similar instruments in active markets,
quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted
prices used in a valuation model that are observable for the instrument being valued, and inputs that are
derived mainly from or corroborated by observable market data using correlation or other forms of
relationship;
Level 3: valuation techniques based significantly on inputs that are not observable in the market.
HEDGE OF A NET INVESTMENT IN FOREIGN OPERATIONS
The Company designated a debt denominated in U.S. dollars as a hedging item of a portion equivalent to its net
investment in foreign operations, which uses the U.S. dollar as its functional currency. Hence, the effective portion of
unrealized exchange gains or losses on translating debts denominated in U.S. dollars and designated as hedging items,
net of related income taxes, is recognized in other comprehensive income (loss) and the ineffective portion is recognized
in profit or loss. Unrealized exchange gains or losses on translating debts denominated in U.S. dollars and designated as
hedging items of the net investment in foreign operations and which are recognized in other comprehensive income
(loss) are reclassified to profit or loss when they are subject to a total or partial disposal.
EARNINGS PER SHARE (“EPS”)
Basic EPS are calculated by dividing the profit (loss) for the year attributable to owners of the Company by the weighted
average number of Class A and Class B shares outstanding during the year.
Diluted EPS are calculated by adjusting the weighted average number of Class A and Class B shares outstanding for
dilutive instruments. Diluted EPS are calculated using the treasury stock method.
SHARE CAPITAL
Class A and Class B shares are classified as equity. Incremental costs directly attributable to the issuance of shares are
recognized as a deduction from equity.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
83
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
SHARE-BASED PAYMENT
EQUITY-SETTLED SHARE-BASED PAYMENT
Equity-settled share-based payment to employees is measured at the fair value of the equity instruments at the grant date.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line
basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a
corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number
of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized
prospectively in the consolidated statements of earnings such that the cumulative expense reflects the revised estimate,
with a corresponding adjustment to the equity-settled employee benefits reserve.
CASH-SETTLED SHARE- BASED PAYMENT
A liability is recognized for the fair value of cash-settled share-based payment to employees and directors. The fair value
is determined at the grant date and at the end of each reporting period with changes in fair value recognized in the
consolidated statements of earnings under employee benefits expense. The fair value is expensed on a straight-line basis
over the vesting period with recognition of a corresponding liability. The fair value is determined by reference to the
closing trading price of the Class B shares on the TSX at the end of each reporting period. The approach used to account
for vesting conditions when measuring equity-settled transactions also applies to cash-settled transactions.
3. CRITICAL ACCOUNTING JUDGMENTS AND
KEY SOURCES OF ESTIMATION
UNCERTAINTY
In the application of the Company’s significant accounting policies, which are described in Note 2, management is
required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
The measurement of some assets and liabilities in the preparation of these consolidated financial statements includes
assumptions made by management, in particular regarding the following items:
COVID-19 MEASURES
Since March 2020, the COVID-19 pandemic has prompted governments and businesses to take unprecedented
measures. The situation is constantly evolving, and the measures put in place have numerous economic repercussions at
global and national levels. These measures, which include travel bans, solitary confinement or quarantine, whether
voluntary or not, and social distancing, have caused significant disruption in Canada and the United States, where the
Company operates.
In 2021, LOGISTEC continued to operate under its business continuity plan. Our operations were deemed essential
services by the government authorities in Canada and the United States. As such, the Company’s marine operations,
including our terminal operations across our North American network, remained open and functional. Similarly, the
Company’s environmental operations, including the renewal of underground water mains, dredging and dewatering, site
remediation, contaminated soils and materials management, and manufacturing of fluid transportation products,
remained operational. Nonetheless, the strict distancing and sanitation protocols have increased the operating costs in
our marine and environmental services segments.
84
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
In light of the COVID-19 measures, management has reviewed its judgments, estimates and assumptions related to the
carrying amounts of assets and liabilities that are not readily apparent from other sources. As at December 31, 2021,
management has not found any triggering events that could impair its long-lived assets, including goodwill, that could
increase its expected credit losses on its trade receivables, or that could limit its ability to draw on its credit facilities.
LEASE TERM AND INCREMENTAL BORROWING RATE
The measurement of lease liabilities requires management to make assumptions about the lease term. The lease term
includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition,
the lease liability is remeasured if the Company changes its assessment of whether it will exercise a purchase, extension
or termination option.
Lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate.
Significant changes to the assumptions used in the determination of the lease term or the incremental borrowing rate
could significantly change the lease liabilities, and consequently the carrying amount of the right-of-use asset, which
would impact the interest and amortization expenses.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
BUSINESS COMBINATIONS
The determination of fair value associated with identifiable property, plant and equipment and intangible assets following
a business combination requires management to make assumptions. More specifically, this is the case when the Company
calculates fair values using appropriate valuation techniques, which are generally based on a forecast of expected future
cash flows for intangible assets, and on a replacement cost approach, an income-based approach and/or a market-based
approach for property, plant and equipment. These valuations are closely related to the assumptions made by
management about the future return on the related assets and the discount rate applied. Significant changes to these
assumptions could significantly change the fair values associated with identifiable intangible assets following a business
combination, which would impact the amortization expense.
IMPAIRMENT OF LONG-LIVED ASSETS, INCLUDING GOODWILL
At each reporting date, if any indication of impairment exists for long-lived assets, including goodwill, and at least
annually for the goodwill, the Company performs an impairment test to determine if the carrying amounts are
recoverable. The impairment review process is subjective and requires significant estimates throughout the analysis. Refer
to Note 19 for a discussion on the Company’s goodwill impairment test.
INCOME TAXES
The Company determines its income tax expense and its income tax assets and liabilities based on its interpretation of
applicable tax legislation, including tax treaties between Canada and the United States, as well as underlying rules and
regulations. Such interpretations involve judgments and estimates that may be challenged in government tax audits, to
which the Company is regularly subject. New information may also become available, which would cause the Company
to change its judgment regarding the adequacy of existing income tax assets and liabilities. Any such changes will have
an impact on net earnings for the period in which they occur.
In the calculation of income taxes and deferred tax assets and liabilities, estimates must be used to determine the
appropriate rates and amounts, and to take into account the probability of realization of tax assets. Deferred tax assets
also reflect the benefit of unused tax losses and deductions that can be carried forward to reduce current income taxes
in future years. This assessment requires the Company to make significant estimates in determining whether or not it is
probable that the deferred tax assets can be recovered from future taxable income and therefore, that they can be
recognized in the Company's consolidated financial statements. The Company relies, among other things, on its past
experience to make this assessment.
85
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
CONTRACT ASSETS
Contract assets are being measured at cost plus profit recorded by the Company to date, from which progress billings
are subtracted. The Company must assess the profit to be accounted for on a given contract, which is based under the
anticipated profit on the contract and the history for that type of contract.
LONG-TERM LIABILITIES DUE TO NON-CONTROLLING INTERESTS
The determination of the liability resulting from the written put options granted to FER-PAL’s non-controlling interest
shareholders and the liability related to LGC’s non-controlling interest shareholders require the use of estimates and
assumptions regarding the future performance of the entities. The actual amounts payable may be materially different
from those estimates at the reporting date as a result of unforeseen events, changes in circumstances and other matters
outside of the Company’s control. Refer to Note 25 for further details.
LONG-TERM INCENTIVE PLANS
To determine the expense relating to long-term incentive plans, the Company must assess the probability of attaining
each threshold creating a right to the long-term bonus, which depends on the expected results to be achieved.
4. BUSINESS COMBINATIONS
2021 BUSINESS COMBINATIONS
AMERICAN PROCESS GROUP
On June 3, 2021, SANEXEN acquired 100% ownership of American Process Group (”APG”) for a purchase price of
$50,000, subject to adjustments. On January 11, 2022, the Company settled the post-closing working capital adjustments
for an additional cash consideration of $2,964. APG is an Alberta-based environmental industry leader, specializing in
dredging, dewatering and residuals management. This strategic acquisition positions the Company in Western Canada
and the United States, markets with strong potential. In addition, APG's complementary expertise allows us to enhance
our service offering to our current and future clients in our environmental services segment.
At the acquisition date, fair values of the identifiable underlying assets acquired and liabilities assumed were as follows:
Current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Deferred income tax asset
Current liabilities
Lease liabilities
Deferred income tax liabilities
Cash consideration paid
Undisbursed consideration included in trade and other payables
Purchase price consideration
86
American
Process Group
$
6,293
11,629
1,429
32,478
8,250
203
(2,336)
(1,429)
(3,553)
52,964
49,500
3,464
52,964
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
The fair value of receivables acquired of $4,431, which includes a negligible amount deemed uncollectible as at the
acquisition date, is included in current assets. The acquisition transaction costs for these assets, included under other
expenses, amounted to $564. The purchase price allocation is final.
IMPACT OF THE BUSINESS COMBINATION ON THE RESULTS OF THE COMPANY
The Company’s results for the year ended December 31, 2021, include $18,393 in revenue, and a profit before income
taxes of $1,789 generated by the business combination. Those results include a depreciation and amortization expense
of $2,879, mainly related to the amortization of intangible assets related to client relationships and backlog. If the business
combination had been completed on January 1, 2021, in the Company’s best estimate, revenue and profit before income
taxes for the year ended December 31, 2021, would have been $32,051 and $2,395, respectively.
In determining these estimated amounts, the Company assumes that the fair value adjustments that arose on the acquisition
dates would have been the same had the acquisitions occurred on January 1, 2021.
2020 BUSINESS COMBINATIONS
CARE AND PASCAGOULA TERMINALS
On June 26, 2020, GSM acquired the Care terminal at the Port of Houston in Texas, and on July 15, 2020, acquired an
additional terminal at the Port of Pascagoula in Mississippi for a total purchase price of US$12,033 ($16,457). These two
strategically located marine terminals complement LOGISTEC’s growing network throughout the U.S. Gulf, which is now
operating in 12 terminals in three Gulf Coast states.
CASTALOOP
On December 14, 2020, the Company acquired 100% ownership of Gestion Castaloop Inc. and its subsidiaries
(“CASTALOOP”) for a purchase price of $3,500, subject to certain adjustments. On May 19, 2021, the Company settled
the post-closing working capital adjustments for an additional cash consideration of $890. In 2021, the Company finalized
estimates of the fair value of assets acquired and liability assumed. Consequently, the comparative figures of the
consolidated statements of financial position have been changed accordingly.
CASTALOOP provides customized cargo handling services to clients along the Great Lakes and St. Lawrence Seaway as
well as along the St. Lawrence River and U.S. East Coast. This acquisition solidifies LOGISTEC’s position as a leading
provider of innovative cargo handling services at ports throughout North America.
At the acquisition date, the fair value of the underlying identifiable assets acquired and liabilities assumed was as follows:
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
Cash and cash equivalents
Current assets
Property, plant and equipment
Non-current financial assets
Right-of-use assets
(1)
Goodwill
Intangible assets
Current liabilities
Lease liabilities
Purchase price consideration
Care and
Pascagoula
Terminals
$
CASTALOOP
$
—
134
7,317
—
32,706
7,042
2,051
(87)
(32,706)
16,457
1,280
789
505
50
111
2,963
—
(1,197)
(111)
4,390
(1)
The goodwill related to the acquisition of Care and Pascagoula terminals is deductible for tax purposes.
Total
$
1,280
923
7,822
50
32,817
10,005
2,051
(1,284)
(32,817)
20,847
87
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
The fair value of receivables acquired of $738, which includes a negligible amount deemed uncollectible as at the
acquisition date, is included in current assets. The acquisition transition costs for these assets, included under other
expenses, amounted to $89.
IMPACT OF THE BUSINESS COMBINATIONS ON THE RESULTS OF THE COMPANY
The Company’s results for the year ended December 31, 2020, include $4,743 in revenue, and a loss before income taxes
of $2,070 generated by these business combinations. If these business combinations had been completed on
January 1, 2020, in the Company’s best estimate, revenue and loss before income taxes for the year ended
December 31, 2020, would have been $13,206 and $240, respectively.
In determining these estimated amounts, the Company assumes that the fair value adjustments that arose on the
acquisition dates would have been the same had the acquisitions occurred on January 1, 2020.
GOODWILL
Goodwill mainly arose in the acquisition, as a result of synergies attributable to the expected future growth potential from
the expanded locations and intangible assets not qualifying for separate recognition. Goodwill related to the acquisitions
of APG and CASTALOOP is not deductible for tax purposes.
5. REVENUE
Revenue from cargo handling services
Revenue from services relating to the renewal of underground water mains
Revenue from site remediation and contaminated soils and materials management services
Revenue from the sale of goods
2021
$
425,937
184,555
106,196
27,015
743,703
2020
$
343,538
152,252
82,989
25,922
604,701
CONTRACT IN THE SCOPE OF IFRIC 12 SERVICE CONCESSION ARRANGEMENTS
In 2015, the Company entered into a service contract with a federal Crown corporation and a department of the Québec
government whereby the Company was required to design, construct and operate a groundwater pumping and
treatment system (the “System”) to better control migration of groundwater and to prevent it from flowing into the
St. Lawrence River. The federal Crown corporation and the department of the Québec government jointly assume the
management of the land bordering the St. Lawrence River.
The contract is for a period of 15 years and the construction of the System was completed in 2016.
Management, maintenance and operating services are spread over a 15-year period and revenue is recognized over that
period. It is subject to annual indexation, which will be based on the Consumer Price Index. These services are payable
quarterly. In connection with the management, maintenance and operating services, the Company recorded revenue of
$421 ($617 in 2020).
An amount of $490 ($202 in 2020) is recorded in trade and other receivables and an amount of $244 ($233 in 2020) is
recorded in other financial assets. In addition, an amount of $2,848 ($3,093 in 2020), which bears interest at a rate of
5.00%, is included in non-current financial assets.
88
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
6. EMPLOYEE BENEFITS EXPENSE
The aggregate compensation of the Company’s employees, including that of members of key management personnel, is
as follows:
Wages, salaries and fringe benefits
Defined benefit retirement plans (Note 24)
Defined contribution retirement plans (Note 24)
Government pension plans
Other long-term expense (recovery)
(1)
2021
$
2020
$
352,805
281,309
1,864
3,486
4,465
711
363,331
1,906
3,423
3,568
(2,541)
287,665
(1) In 2020, in light of the economic slowdown caused by COVID-19, the Company reassessed the probability to attain the threshold creating the right to the long-
term bonus, which resulted in the reversal of $2,541 of employee benefits expense in 2020.
The compensation of key management personnel is further disclosed in Note 29.
7. GOVERNMENT ASSISTANCE
As at December 31, 2021, the Company qualified for the Canada Emergency Wage Subsidy and there was reasonable
assurance that the amount would be received from the federal government in connection with the COVID-19 pandemic.
For the year ended December 31, 2021, the Company recognized a wage subsidy of $2,921 ($15,802 in 2020) against
the salary expense qualifying for that subsidy under employee benefits expense in the consolidated statements of
earnings. As at December 31, 2021, nil was included in trade and other receivables ($4,776 in 2020).
As at December 31, 2021, the Company qualified for the Texas Emissions Reduction Plan related to the acquisition of new
and upgraded equipment to reduce pollution and improve air quality in Texas. The Company recognized a grant of
US$1,600 ($2,029) as a reduction of the US$3,500 ($4,438) cost of the related assets.
As at December 31, 2021, the Company qualified for various subsidies offered by provincial agencies to support
innovation and to develop new technologies. For the year ended December 31, 2021, the Company recognized $303
($836 in 2020) against research expenditures qualifying for these subsidies under other expenses in the consolidated
statements of earnings and recognized $212 ($536 in 2020) as a reduction of the cost of the related property, plant, and
equipment. As at December 31, 2021, $395 was included in trade and other receivables ($693 in 2020).
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
8. OTHER LOSSES
Configuration and customization costs in a cloud computing arrangement (Note 2)
Net foreign exchange losses
Gain on remeasurement of a long-term liability due to a non-controlling interest (Note 25)
Gain (loss) on disposal of property, plant and equipment
Gain on refinancing of a long-term debt (Note 23)
2021
$
(5,064)
(108)
515
361
244
(4,052)
2020
$
—
(756)
309
(476)
—
(923)
89
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
9. FINANCE EXPENSE
Interest on long-term debt
Interest on lease liabilities (Note 18)
Other interest expense
10. INCOME TAXES
2021
$
5,758
5,222
123
11,103
2020
$
7,163
5,239
51
12,453
The reconciliation of income taxes calculated at the statutory income tax rate to the income tax expense is as follows:
Profit before income taxes
Less: share of profit of equity accounted investments
Parent company’s and subsidiaries’ profit before income taxes
Income tax expense calculated at the statutory income tax rate of 26.5% (26.5% in 2020)
Non-deductible items and other
Change in deferred tax assets or tax losses not previously recognized
Effect of foreign tax differences
Adjustments in respect of the prior year
2021
$
56,095
(10,084)
46,011
12,193
(1,045)
(924)
75
172
2020
$
43,450
(9,529)
33,921
8,989
1,009
(302)
393
573
Income tax expense recognized in consolidated statements of earnings
10,471
10,662
Effective income tax rate
22.76%
31.43%
Components of the income tax expense are as follows:
Current income taxes
Current income tax expense in respect of the current year
Adjustments in respect of the prior year
Deferred income taxes
Deferred income tax expense recognized in the year
Adjustments in respect of the prior year
Income tax expense recognized in consolidated statements of earnings
2021
$
13,281
543
(2,982)
(371)
10,471
2020
$
9,735
237
373
317
10,662
90
DEFERRED INCOME TAX BALANCES
The amounts recognized in the consolidated statements of financial position are as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Deferred income tax assets
Deferred income tax liabilities
Net deferred income tax liability
As at
December 31,
2021
$
As at
December 31,
2020
$
14,958
(25,684)
(10,726)
12,385
(21,418)
(9,033)
Deferred income tax balances for which a right of offset exists within the same entity and jurisdiction are presented
net in the consolidated statements of financial position as permitted by IAS 12, Income Taxes.
The movements in deferred income tax assets and liabilities, prior to this offsetting of balances, are shown below:
Deferred income tax assets
Property,
plant and
equipment
$
Unused tax
losses
$
Post-
employment
benefits (1)
$
Lease
liabilities
$
Other
$
Total
$
As at January 1, 2020
Benefit (expense) to statement of earnings
1,002
(531)
8,251
(447)
4,567
19,841
5,328
38,989
145
3,317
361
2,845
Benefit (expense) to statement of
comprehensive income
Effect of foreign currency exchange differences
—
—
(240)
(33)
636
—
—
(266)
(11)
(42)
385
(341)
As at December 31, 2020
Acquisition through business combination
(Note 4)
Benefit (expense) to statement of earnings
(Expense) benefit to statement of
comprehensive income
Effect of foreign currency exchange differences
471
7,531
5,348
22,892
5,636
41,878
—
(135)
203
2,531
—
—
—
203
(182)
9,990
1,178
13,382
—
—
—
(3)
(1,646)
—
—
(38)
62
13
(1,584)
(28)
As at December 31, 2021
336
10,262
3,520
32,844
6,889
53,851
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
91
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Deferred income tax liabilities
Property,
plant and
equipment
$
Right-of-use
assets
$
Contract
holdbacks
and
backlog
$
Intangible
assets
$
Other
$
Total
$
As at January 1, 2020
(16,039)
(19,395)
(2,711)
(6,612)
(2,637)
(47,394)
(Benefit) expense to statement of earnings
1,122
(2,793)
(2,728)
(752)
1,616
(3,535)
(Benefit) to statement of comprehensive income
Effect of foreign currency exchange differences
—
162
—
253
—
—
—
103
(511)
11
(511)
529
As at December 31, 2020
Acquisition through business combination
(Note 4)
(Benefit) expense to statement of earnings
(Benefit) to statement of comprehensive income
Effect of foreign currency exchange differences
(14,755)
(21,935)
(5,439)
(7,261)
(1,521)
(50,911)
(3,553)
(2,382)
—
19
—
—
(8,885)
(397)
—
36
—
—
—
627
—
9
—
(3,553)
1,008
(10,029)
(121)
(27)
(121)
37
As at December 31, 2021
(20,671)
(30,784)
(5,836)
(6,625)
(661)
(64,577)
UNUSED TAX LOSSES
The Company has unused non-capital tax losses in the amount of $40,665 ($32,057 in 2020) of which nil has not been
recognized ($2,990 in 2020). These losses will be expiring as follows:
2026 to 2033
2034
2035
2036
2037
2038
2039
2040
2041
Indefinite
As at
December 31,
2021
$
As at
December 31,
2020
$
1,240
1,982
3,097
1,711
6,808
397
1,665
4
9,932
13,829
1,219
1,823
2,570
1,282
5,097
3,714
1,679
28
14,645
—
Tax benefits of $10,262 ($7,531 in 2020) have been recorded related to unused non-capital tax losses, including $5,220
($4,856 in 2020) from foreign subsidiaries. The Company also has $1,008 ($1,216 in 2020) of unrecognized capital losses
and deductible temporary differences that may be carried forward indefinitely. As at December 31, 2021, no deferred tax
liability was recognized for temporary differences arising from investments in subsidiaries and joint ventures because the
Company controls the decisions affecting the realization of such liabilities and it is probable that the temporary differences
will not reverse in the foreseeable future.
92
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
11. EARNINGS PER SHARE
The earnings and weighted average number of Class A shares and Class B shares used in the calculation of basic and
diluted earnings per share are as follows:
Profit attributable to owners of Class A shares, basic ($)
Profit attributable to owners of Class B shares, basic ($)
Weighted average number of Class A shares outstanding, basic
Weighted average number of Class B shares outstanding, basic
Basic earnings per Class A share
Basic earnings per Class B share
Profit attributable to owners of Class A shares, diluted ($)
Profit attributable to owners of Class B shares, diluted ($)
Weighted average number of Class A shares outstanding, diluted
Weighted average number of Class B shares outstanding, diluted
Diluted earnings per Class A share
Diluted earnings per Class B share
2021
2020
24,649
20,715
45,364
17,901
14,713
32,614
7,377,022
5,635,989
7,378,964
5,513,258
13,013,011
12,892,222
3.34
3.68
24,444
20,920
45,364
2.43
2.67
17,637
14,977
32,614
7,377,022
5,739,486
7,378,964
5,696,621
13,116,508
13,075,585
3.31
3.64
2.39
2.63
12. FINANCIAL RISK MANAGEMENT
CAPITAL MANAGEMENT
The Company’s primary objectives when managing capital are to:
• Maintain a capital structure that allows financing options to the Company in order to benefit from potential
opportunities as they arise;
•
Provide an appropriate return on investment to its shareholders.
The Company includes the following in its capital:
• Cash and cash equivalents and short-term investments, if any;
•
•
Long-term debt (including the current portion) and short-term bank loans, if any;
Equity attributable to owners of the Company.
The Company’s financial strategy is formulated and adapted according to market conditions to maintain a flexible capital
structure that is consistent with the objectives stated above and corresponds to the risk characteristics of the underlying
assets. To maintain or adjust its capital structure, the Company may refinance its existing debt, raise new debt, pay down
debt, repurchase shares for cancellation purposes pursuant to normal course issuer bids or issue new shares.
The Company’s Board of Directors determines the level of dividend payments. To date, the practice has been to maintain
regular quarterly dividend payments with increases over the years.
93
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
The capital is calculated as follows:
Short-term bank loans
Long-term debt, including the current portion
Less:
Cash and cash equivalents
Total net indebtedness
Equity attributable to owners of the Company
Capitalization
As at
December 31,
2021
$
As at
December 31,
2020
$
8,600
195,354
37,530
166,424
314,561
480,985
—
167,710
46,778
120,932
300,782
421,714
Ratio of net indebtedness/capitalization
34.6%
28.7%
As at December 31, 2021, the Company was in compliance with all of its obligations under the terms of its
banking agreements.
FINANCIAL RISK MANAGEMENT
Due to the nature of the activities carried out and as a result of holding financial instruments, the Company is exposed to
credit risk, liquidity risk and market risk, especially interest rate risk and foreign exchange risk.
CREDIT RISK
Credit risk arises from the possibility that a counterpart will fail to perform its obligations. The Company’s exposure to
credit risk is primarily attributable to its cash and cash equivalents, trade and other receivables, and non-current financial
assets. Management believes the credit risk is limited for its cash and cash equivalents, as the Company deals with major
North American financial institutions.
The Company conducts a thorough assessment of credit issues prior to committing to the investment and actively
monitors the financial health of its investees on an ongoing basis. In addition, the Company is exposed to credit risk
from customers. On the one hand, the Company does business mostly with large industrial, municipal and well-
established customers, thus reducing its credit risk. On the other hand, the number of customers served by the Company
is limited, which increases the risk of business concentration and economic dependency.
Overall, the Company serves some 2,350 customers. In 2021, the 20 largest customers accounted for 45.0% (40.0% in
2020) of consolidated revenue, and not a single customer accounted for more than 10% of consolidated revenue and
trade receivables in 2021 and 2020.
Allowance for doubtful accounts and past due receivables are reviewed by management on a monthly basis. Refer to
Note 14 for further details.
The Company’s maximum exposure to credit risk with respect to each of its financial assets corresponds to its
carrying amount.
LIQUIDITY RISK
Liquidity risk is the Company’s exposure to the risk of not being able to meet its financial obligations when they become
due. The Company monitors its levels of cash and debt and takes appropriate actions to ensure it has sufficient cash to
meet operational needs while ensuring compliance with covenants.
94
The following are the contractual maturities of financial obligations:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
As at December 31, 2021
Short-term bank loans
Trade and other payables
Dividends payable
Lease liabilities
Long-term debt
Non-current liabilities
As at December 31, 2020
Trade and other payables
Dividends payable
Lease liabilities
Long-term debt
Non-current liabilities
(1) Includes principal and interest.
Carrying
amount
$
8,600
127,044
1,338
141,024
195,354
40,730
514,090
Carrying
amount
$
91,694
1,259
135,152
167,710
38,400
434,215
Contractual
cash flows (1)
$
8,600
127,044
1,338
206,713
203,925
43,091
590,711
Contractual
(1)
cash flows
$
91,694
1,259
179,108
180,065
40,787
492,913
Less than
1 year
$
8,600
127,044
1,338
20,064
8,574
—
1-3 years
$
—
—
—
47,082
40,142
38,832
165,620
126,056
Less than
1 year
$
91,694
1,259
18,148
6,622
—
117,723
1-3 years
$
—
—
29,137
130,027
39,323
198,487
More than
3 years
$
—
—
—
139,567
155,209
4,259
299,035
More than
3 years
$
—
—
131,823
43,416
1,464
176,703
Given the actual liquidity level combined with future cash flows that will be generated by operations, the Company
believes that its liquidity risk is low to moderate.
MARKET RISK
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the
Company’s results or the value of its financial instruments. The Company is mainly exposed to interest rate risk and
foreign exchange risk.
INTEREST RATE RISK
The Company is exposed to market risk related to interest rate fluctuations because a portion of its long-term debt bears
interest at floating rates. The Company manages this risk by maintaining a mix of fixed and floating rate borrowings in
accordance with the Company’s policies. In addition, the Company holds interest rate swap contracts with the Company’s
main banks for an amount of $40,000. The interest rate swap contracts are designated as a cash flow hedge to swap the
floating rate of its debts to a fixed rate, thus decreasing the Company's sensitivity to interest rate fluctuations. The floating
interest rates on the interest rate swap are CDOR and the weighted average fixed interest rate is 1.51%. The interest rate
swap contracts settle on a monthly basis and will mature in June 2023 and September 2027 respectively. The Company
continues to monitor opportunities to reduce interest rate risk.
SENSITIVITY ANALYSIS
As at December 31, 2021, the floating rate portion of the Company’s long-term debt is 66.4% (60.4% in 2020). All
else being equal, a hypothetical variation of +1.0% in the prime interest rate on the floating rate portion of the
Company’s long-term debt held as at December 31, 2021, would have had a negative impact of $1,297 ($1,014 in
2020) on profit for the year. A hypothetical variation of –1.0% in the prime interest rate would have had the opposite
impact on profit for the year.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
95
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
FOREIGN EXCHANGE RISK
The Company provides services invoiced in U.S. dollars and purchases equipment denominated in U.S. dollars. In
addition, a portion of the Company's long-term debt is denominated in U.S. dollars. Consequently, it is exposed to
risks arising from foreign currency rate fluctuations. The Company considers the remaining risk to be limited and,
therefore, does not use derivative financial instruments to reduce its exposure.
During 2021, all else being equal, a hypothetical strengthening of 5.0% of the U.S. dollar against the Canadian dollar
would have had a positive impact of $827 ($947 in 2020) on profit for the year and a positive impact of $9,478 ($12,474
in 2020) on total comprehensive income. A hypothetical weakening of 5.0% of the U.S. dollar against the Canadian dollar
would have had the opposite impact on profit for the year and total comprehensive income.
As at December 31, 2021, a total of $14,644 or US$11,551 ($25,302 or US$19,873 in 2020) of cash and cash equivalents
and trade and other receivables was denominated in foreign currencies. As at December 31, 2021, a total of $5,200 or
US$4,102 ($1,568 or US$1,231 in 2020) of trade and other payables was denominated in foreign currencies.
FAIR VALUE OF FINANCIAL INSTRUMENTS
As at December 31, 2021, and 2020, the estimated fair values of cash and cash equivalents, trade and other receivables,
short-term bank loans, trade and other payables, and dividends payable approximated their respective carrying values
due to their short-term nature.
The estimated fair value of long-term notes receivable, included in non-current financial assets, was not significantly
different from their carrying value as at December 31, 2021, and 2020, based on the Company’s estimated rate for long-
term notes receivable with similar terms and conditions.
The estimated fair value of long-term debt was $288 higher than its carrying value as at December 31, 2021 ($3,349
higher in 2020), as a result of a change in financial conditions of similar instruments available to the Company. The fair
value of long-term debt is determined using the discounted future cash flows method and management's estimates for
market interest rates for identical or similar issuances.
For the year ended December 31, 2021, no financial instruments were recorded at fair value and transferred between
levels 1, 2 and 3.
SENSITIVITY ANALYSIS
On December 31, 2021, all other things being equal, a 10.0% increase of pre-established financial performance threshold
of acquired businesses related to the written put option would have resulted in a decrease of $3,657 ($3,196 in 2020) in
retained earnings for the year ended December 31, 2021, and an increase of the same amount in total liabilities. A
10.0% decrease of pre-established financial performance threshold would have had the opposite estimated impact.
96
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
13. FINANCIAL INSTRUMENTS
Financial assets and financial liabilities in the consolidated statements of financial position are as follows:
Carrying amount
Financial assets classified at amortized cost
Cash and cash equivalents
Trade and other receivables
Non-current financial assets
Financial liabilities classified at amortized cost
Short-term bank loans
Trade and other payables
Dividends payable
Long-term debt, including current portion
Non-current liabilities
As at
December 31,
2021
$
As at
December 31,
2020
$
37,530
183,322
5,902
226,754
8,600
127,044
1,338
195,354
40,730
373,066
46,778
138,649
9,210
194,637
—
91,694
1,259
167,710
38,400
299,063
The fair value of the Company’s financial instruments is disclosed in Note 12.
14. TRADE AND OTHER RECEIVABLES
Carrying amount
Trade receivables
Allowance for doubtful accounts
Contract holdbacks
Net trade receivables
Government subsidies receivables
Accrued revenue
Commodity taxes
Insurance benefit receivable related to claims
Other
As at
December 31,
2021
$
As at
December 31,
2020
$
137,362
(3,584)
18,620
101,625
(3,359)
14,455
152,398
112,721
395
25,129
3,626
388
1,386
5,469
12,868
3,637
509
3,445
183,322
138,649
97
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Pursuant to their respective terms, net trade receivables are aged as follows since issuance of the invoice:
0-30 days
31-60 days
61-90 days
Over 90 days
(1)
Allowance for doubtful accounts
(1) Includes contract holdbacks amounting to $10,893 ($6,360 in 2020).
The movement in the allowance for doubtful accounts were as follows:
Balance, beginning of year
Bad debt expense
Write-offs
Balance, end of year
Credit risk exposure and mitigation are further discussed in Note 12.
15. INVENTORIES
Consumables
Raw materials
Work in progress
Finished goods
As at
December 31,
2021
$
As at
December 31,
2020
$
73,798
40,457
11,181
30,546
(3,584)
152,398
2021
$
3,359
1,473
(1,248)
3,584
45,251
26,903
13,944
29,982
(3,359)
112,721
2020
$
3,053
873
(567)
3,359
As at
December 31,
2021
$
As at
December 31,
2020
$
11,597
2,199
2,654
380
7,598
2,201
2,656
491
16,830
12,946
The cost of inventories recognized as an expense during the year was $46,889 ($44,212 in 2020) and was recorded in
equipment and supplies expense in the consolidated statements of earnings.
16. EQUITY ACCOUNTED INVESTMENTS
INVESTMENTS IN JOINT VENTURES
The Company’s results include its share of operations in joint ventures, which are accounted for using the equity method.
The Company’s 50%-equity interests are in the following joint ventures: 9260-0873 Québec Inc., Flexiport Mobile Docking
Structures Inc, Moorings (Trois-Rivières) Ltd., Québec Maritime Services Inc., Québec Mooring Inc., TERMONT Terminal
Inc., Transport Nanuk Inc.. The Company also owns 49%-equity interests in Qikiqtaaluk Environmental Inc. and Avataani
Environmental Services Inc.
98
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
None of the Company’s joint ventures are publicly listed entities and, consequently, do not have published price
quotations.
The Company has one significant joint venture, TERMONT Terminal Inc., specialized in handling containers, which is
aligned with the Company’s core marine services segment. The address of TERMONT Terminal Inc.’s head office
600 De la Gauchetière Street West, 14th Floor, Montréal, Québec H3B 4L2, Canada.
The following tables summarize the financial information of TERMONT Terminal Inc.:
Statement of financial position
Current assets (including cash and cash equivalents of $2,440 ($1,431 in 2020))
Non-current assets
Current liabilities
Non-current liabilities
Net assets
2021
$
2020
$
4,696
94,722
(1,419)
(42,120)
55,879
3,197
92,119
(1,129)
(38,613)
55,574
The Company’s share of net assets presented as an equity accounted investment
27,949
27,795
Results
Revenue
Share of profit of an equity accounted investment
Interest expense
Interest income
Income taxes
Profit and total comprehensive income for the year
The Company’s share of profit and total comprehensive income for the year
Dividend received by the Company
4,632
11,596
(1,998)
1,999
(797)
13,810
6,905
6,750
4,112
12,713
(1,834)
1,844
(717)
14,702
7,351
5,250
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
The Company also has interests in individually immaterial joint ventures. The following table provides, in aggregate, the
financial information for those joint ventures:
Carrying amount of interests in individually immaterial joint ventures
Profit for the year
Other comprehensive income (loss)
Total comprehensive income for the year
Dividends received by the Company
2021
$
18,362
3,179
234
3,381
2,109
2020
$
17,266
2,178
(146)
2,032
1,350
99
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
17. PROPERTY, PLANT AND EQUIPMENT
Cost
Machinery
and
automotive
equipment
$
Computer
equipment,
furniture and
fixtures
$
Land and
buildings
$
As at January 1, 2020
73,882
228,720
Additions
93
8,641
Leasehold
improvements
$
Construction
in progress (1)
$
Total
$
14,225
130
2,166
15,366
323,828
24,428
—
(1,183)
3,148
—
—
(9,856)
7,822
(6,365)
—
4,835
198
12
(836)
1,197
—
(124)
698
7,810
(4,222)
4,813
As at December 31, 2020
74,120
244,113
(429)
(1,649)
(35)
(212)
(752)
(3,077)
18
—
(6,437)
1,689
7,214
11,629
(4,472)
17,946
5,371
372
16,108
271
6,924
36,844
346,636
44,719
—
(110)
545
—
(74)
823
—
—
11,629
(11,093)
(21,003)
—
As at December 31, 2021
69,103
276,364
6,172
17,087
22,760
391,486
(1) During 2020, the Company reclassified $137 of assets under construction to intangible assets.
(287)
(66)
(6)
(41)
(5)
(405)
Additions through business
combinations (Note 4)
Disposals
Transfers
Effect of foreign currency
exchange differences
Additions
Additions through business
combinations (Note 4)
Disposals
Transfers
Effect of foreign currency
exchange differences
Accumulated depreciation
As at January 1, 2020
Depreciation expense
Disposals
Effect of foreign currency
exchange differences
Land and
buildings
$
Machinery and
automotive
equipment
$
Computer
equipment,
furniture and
fixtures
$
Leasehold
improvements
$
Construction
in progress
$
14,749
114,518
4,019
3,139
(22)
23,150
(3,247)
376
(809)
6,238
1,184
(1,139)
(136)
(927)
(35)
(108)
As at December 31, 2020
17,730
133,494
3,551
Depreciation expense
Disposals
Effect of foreign currency
exchange differences
2,768
(142)
22,890
(3,977)
607
(81)
(9)
(94)
(4)
As at December 31, 2021
20,347
152,313
4,073
6,175
1,337
(69)
(11)
7,432
100
Total
$
139,524
27,849
(5,217)
(1,206)
160,950
27,602
(4,269)
(118)
184,165
—
—
—
—
—
—
—
—
—
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Carrying amount
Land and
buildings
$
Machinery and
automotive
equipment
$
Computer
equipment,
furniture and
fixtures
$
Leasehold
improvements
$
Construction
in progress
$
Total
$
As at December 31, 2020
As at December 31, 2021
56,390
48,756
110,619
124,051
1,820
2,099
9,933
9,655
6,924
185,686
22,760
207,321
As at December 31, 2021, the Company has $14,097 of property, plant and equipment under order, or not yet delivered
(nil in 2020).
FIRE INCIDENT AT THE PORT OF BRUNSWICK (GA)
On May 2, 2021, a fire destroyed a leased warehouse, a portion of a conveyor and certain terminal equipment assets at
our bulk facilities in Brunswick (GA).
The Company has insurance in place covering, among other things, property and equipment damage and general liability
up to specified amounts, subject to limited deductibles. The Company has notified its insurers of the incident and the
anticipated proceeds from the insurance coverage is expected to be sufficient to cover the cost of the assets destroyed,
as well as other costs incurred as a direct result of the fire.
During the year ended December 31, 2021, the Company received confirmation of an advance from the property
insurance carriers on its initial claim in the amount of US$5,000 ($6,147) related to the incident. The Company also
recognized an impairment loss of US$5,250 ($6,454) for the destroyed assets that were impacted by the fire. Both the
insurance recovery and the impairment loss related to the assets destroyed were recognized under other gains (losses) in
the consolidated statements of earnings for the year ended December 31, 2021.
Pursuant to the lease agreement with Georgia Ports Authority, the Company is required to rebuild the warehouse that was
destroyed by the fire, unless agreed to otherwise. As at the date of these consolidated financial statements, discussions
are ongoing with the Georgia Ports Authority and other parties to determine if the warehouse will be rebuilt and if so, the
size and the type of warehouse to be constructed. In accordance with the lease agreement, this warehouse was insured
for US$21,900 ($26,900). As at the date of these financial statements, the Company has not begun reconstruction of the
warehouse and is able to operate with reduced capacity at this facility. The Company will record the impact of final
discussions related to the warehouse, including any required obligations for rebuilding of the warehouse and a
corresponding insurance recovery, in the period when all information will be available.
This reflects management’s best estimates based on the information available as at the date of these consolidated financial
statements and are subject to change as new developments occur in the future in connection with the Company’s
reconstruction of the warehouse and finalization of the insurance claim.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
18. LEASE ARRANGEMENTS
Leases relate to lease agreements to rent offices, port facilities, and equipment that expire until 2040. The Company has
the option to purchase some of the leased equipment at the end of the lease terms. The Company also has the option to
renew certain lease arrangements to rent offices, port facilities and equipment. Contingent rentals are determined based
on the volume and type of cargo handled. Lease liabilities are discounted using the incremental weighted average
borrowing rate of 3.87%.
101
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
RIGHT-OF-USE ASSETS
Carrying amount
As at January 1, 2020
Additions
Derecognition
Depreciation expense (1)
Effect of foreign currency exchange differences
As at December 31, 2020
Additions
Derecognition
Depreciation expense
Effect of foreign currency exchange differences
As at December 31, 2021
Land and
buildings
$
Machinery and
automotive
equipment
$
Computer
equipment,
furniture and
fixtures
$
83,642
55,943
(455)
(10,722)
(2,907)
125,501
15,531
(998)
(12,254)
(176)
127,604
5,493
4,613
—
(2,977)
(211)
6,918
4,260
(196)
(3,450)
(332)
7,200
446
52
—
(134)
(4)
360
10
—
(123)
(2)
245
Total
$
89,581
60,608
(455)
(13,833)
(3,122)
132,779
19,801
(1,194)
(15,827)
(510)
135,049
(1) In 2020, during the construction of a leasehold improvement, the Company capitalized $266 of depreciation expense to its property, plant and
equipment.
LEASE LIABILITIES
Contractual undiscounted cash flows
Less than 1 year
Between 1 and 5 years
More than 5 years
Total undiscounted lease liabilities
Lease liabilities
Current
Non-current
As at
December 31,
2021
$
As at
December 31,
2020
$
20,064
71,043
115,606
206,713
18,148
53,425
107,535
179,108
15,775
125,249
18,251
116,901
AMOUNT RECOGNIZED IN THE CONSOLIDATED STATEMENTS OF EARNINGS
Leases under IFRS 16
Interest on lease liabilities
Expense related to variable lease payments, short-term and low-value assets not included in
the measurement of lease liabilities (1)
(1) Recognized as operating expense in the consolidated statements of earnings.
2021
$
5,222
38,019
43,241
2020
$
5,239
30,766
36,005
102
19. GOODWILL
Carrying amount
Cost, beginning of year
Business combinations (Note 4)
Effect of foreign currency exchange differences
Cost, end of year
Accumulated impairment losses
Net carrying amount
IMPAIRMENT TESTING
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
As at
December 31,
2021
$
As at
December 31,
2020
$
150,611
32,478
917
184,006
(1,300)
182,706
141,917
10,005
(1,311)
150,611
(1,300)
149,311
The carrying amount of goodwill has been allocated to the following CGUs or groups of CGUs:
Carrying amount
Stevedoring
ALTRA Proven Water Technologies
Environment
Agencies
As at
December 31,
2021
$
As at
December 31,
2020
$
56,886
86,445
39,190
185
57,000
86,445
5,681
185
182,706
149,311
The recoverable amount of all CGUs or groups of CGUs has been determined based on value in use, which is calculated
by discounting five-year cash flow projections from the budget approved by the Board of Directors covering a one-year
period and forecasts for the subsequent four years. These cash flow projections reflect past experience, future
expectations of financial performance and current economic situation, including the COVID-19 pandemic.
The key assumptions used in establishing the recoverable amount for the groups of CGUs are as follows:
• A growth rate between 3.0% to 5.0% (3.0% to 5.0% in 2020) has been used to extrapolate cash flow
projections for the forecasted subsequent four years and a growth rate of 2.0% (2.0% in 2020) for the
terminal value.
•
The discount rate used to calculate the recoverable amount is based on market data and was 10.0% (9.1%
in 2020).
Projected cash flows are most sensitive to assumptions regarding the impact of COVID-19, future profitability,
replacement capital expenditure requirements, working capital investment and tax considerations. The values applied to
these key assumptions are derived from a combination of external and internal factors, based on past experience together
with management’s future expectations about business performance.
The discount rates were estimated based on an appropriate weighted average cost of capital for each group of CGUs.
The discount rates were estimated by applying the Company’s weighted average cost of capital as adjusted to reflect the
market assessment of risks and for which the cash flow projections have not been adjusted.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
103
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
20. INTANGIBLE ASSETS
Cost
As at January 1, 2020
Additions
Additions through business combinations (Note 4)
Disposals
Effect of foreign currency exchange differences
As at December 31, 2020
Additions
Additions through a business combination (Note 4)
Disposals
Effect of foreign currency exchange differences
As at December 31, 2021
Lease rights and
location
$
Client
relationships
and backlog
$
Computer
software
$
26,086
—
—
—
(515)
25,571
—
—
—
(109)
25,462
45,151
—
2,051
(50)
(701)
46,451
—
8,250
—
39
3,417
385
—
—
(31)
3,771
117
—
(152)
10
Total
$
74,654
385
2,051
(50)
(1,247)
75,793
117
8,250
(152)
(60)
54,740
3,746
83,948
Accumulated amortization
As at January 1, 2020
Amortization expense
Disposals
Effect of foreign currency exchange differences
As at December 31, 2020
Amortization expense
Disposals
Effect of foreign currency exchange differences
Lease rights and
location
$
Client
relationships
and backlog
$
Computer
software
$
8,093
1,395
—
(230)
9,258
1,302
—
(24)
22,920
2,209
(10)
(248)
24,871
4,046
—
27
2,906
370
—
(34)
3,242
323
(152)
12
Total
$
33,919
3,974
(10)
(512)
37,371
5,671
(152)
15
As at December 31, 2021
10,536
28,944
3,425
42,905
Carrying amount
As at December 31, 2020
As at December 31, 2021
Accumulated impairment losses
Balance, end of year
104
Lease rights and
location
$
Client
relationships and
backlog
$
16,313
14,926
21,580
25,796
Computer
software
$
529
321
Total
$
38,422
41,043
As at
December 31,
2021
$
As at
December 31,
2020
$
9,738
9,738
21. NON-CURRENT FINANCIAL ASSETS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Non-current financial assets
Contract holdbacks
As at
December 31,
2021
$
As at
December 31,
2020
$
3,480
2,422
5,902
4,876
4,334
9,210
22. TRADE AND OTHER PAYABLES
Trade payables and accrued liabilities
Payroll accruals
Due to a non-controlling interest (Note 25)
Provisions (Note 25)
Other
As at
December 31,
2021
$
As at
December 31,
2020
$
67,541
24,315
28,155
789
6,244
127,044
62,730
18,920
5,857
636
3,551
91,694
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
105
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
23. INDEBTEDNESS
LONG-TERM DEBT
Revolving credit facility, bearing interest at bankers’ prime rate and/or acceptance and
LIBOR loans, with no principal repayment required until October 2025. The weighted
average interest rate was 2.13% as at December 31, 2021
(1)
Unsecured long-term debt, bearing interest at 4.50%, without any principal repayment due
before December 2022, to be paid in 20 equal consecutive quarterly payments, maturing
in 2027
(2)
Term credit facilities, bearing interest at prime rate plus 0.75% to 2.00%, with maturities
ranging up to five years from the advance date (3) (4)
Non-interest-bearing government loan, maturing in 2023
Loan for equipment purchases, bearing interest up to 5.36%
Less:
Current portion
As at
December 31,
2021
$
As at
December 31,
2020
$
135,568
106,670
49,974
50,000
9,084
700
28
9,701
1,130
209
195,354
167,710
3,427
191,927
3,748
163,962
(1) As of November 10, 2021, the Company and its wholly owned subsidiary, LOGISTEC USA Inc., jointly and severally renegotiated their credit agreement leading to
an amendment to the existing credit agreement. The revolving credit facility details are as follows:
•
•
•
A $300,000 or the U.S. dollar equivalent unsecured revolving credit facility maturing in October 2025.
The unsecured revolving credit facility is to be used for short-term and long-term cash flow needs and investment purposes, and to
refinance existing indebtedness. The facility can be used in the form of direct advances, bankers’ acceptances, LIBOR, and letters of credit.
As at December 31, 2021, US$60,000 ($76,068) was drawn from the credit facility.
The interest rate charged on the borrowings made under this agreement depends on the form of the borrowing, to which is added a
margin that varies according to the level of a leverage ratio achieved by the Company.
(2) As of September 14, 2021, the Company renegotiated its credit agreement leading to an amendment to the existing unsecured long-term debt. The unsecured
long-term debt details are as follows:
•
•
•
A $25,000 unsecured loan maturing in September 2027, and bearing interest at 4.50% (formerly at 4.82%), paid quarterly. The repayment
schedule begins in December 2022 and payments are to be made in 20 equal consecutive quarterly instalments of $1,250.
A $25,000 unsecured loan maturing in September 2027 and bearing interest at 4.50% (formerly at 4.64%), paid quarterly. The repayment
schedule begins in December 2022 and payments are to be made in 20 equal consecutive quarterly instalments of $1,250.
A $25,000 advance prepayment option exercisable on September 15, 2022 was added without penalty.
(3) The credit facility details of FER-PAL are as follows:
A $10,000 and a US$1,000 overdraft facilities due on demand, to be used for operating requirements. These facilities can be used in the
form of overdrafts, bankers’ acceptances and letters of credit. The advances are based on accounts receivable’s estimated worth of good
quality. As at December 31, 2021, no amount was drawn on these credit facilities.
A demand loan for an amount of $10,000 due over 48 months in equal principal repayments plus monthly interest, bearing interest at
prime rate plus applicable margin varying between 0.25% and 0.75%. As at December 31, 2021, the loan amounted to $3,125.
A $750 corporate credit card credit facility.
A risk management facility for an amount of $1,000 to be used in the form of foreign exchange forward contracts.
The facility is secured by a general security agreement on all of its current and future assets.
•
•
•
•
•
106
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
(4) As of June 26, 2020, LGC extended its credit agreement to US$6,500 by refinancing the overdraft lending facility and an equipment financing loan balance by
converting it to a term loan and increasing the revolving credit facility’s lending capacity.
•
•
•
•
A US$4,000 revolving facility to be used for operating requirements. The facility can be used in the form of prime rate advances plus
2.00%.
A loan facility for an amount of US$2,000 due over 60 months in equal principal repayments plus monthly interest, bearing interest at
prime rate plus 2.00%.
A US$500 corporate credit card credit facility.
The facility is secured by a general security agreement on all of its current and future assets.
Long-term debt matures as follows:
Total principal repayments required
Less than 1 year
Between 1 and 5 years
More than 5 years
HEDGING INSTRUMENTS
As at
December 31,
2021
$
As at
December 31,
2020
$
3,427
191,927
—
195,354
3,748
145,316
18,646
167,710
During the year ended December 31, 2021, an average amount of US$57,333 (US$56,280 in 2020) of the revolving
credit facility denominated in U.S. dollars had been designated by the Corporation as a hedging instrument of its net
investment in foreign operations. As there was no hedge ineffectiveness during the year ended December 31, 2021, there
was no impact on the consolidated statements of earnings. Consequently, a foreign exchange gain of $521 (gain of
$2,306 in 2020) was reclassified to other comprehensive income.
24. POST-EMPLOYMENT BENEFIT ASSETS
AND OBLIGATIONS
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
The Company has various defined benefit and defined contribution retirement plans to provide retirement benefits to
its employees.
The projected benefit obligation as at December 31, 2021, has been extrapolated using the projected benefit obligation
based on the latest actuarial valuations dated December 31, 2019.
The last actuarial valuation for the Supplemental Retirement Plans for Senior Executives (“SERP”) of LOGISTEC
Corporation is dated December 31, 2021.
The Company’s retirement plans may be exposed to various types of risks. The Company has not identified any unusual
risks to which its retirement plans are exposed. Regular asset-liability matching analyses are performed in order to align
the investment policy with the plans’ obligations. Allocation to fixed-income investments is then adjusted following the
evolution of the plans’ obligations. Fixed-income investments are made up of bonds and annuities. Annuities are
purchased when opportunities arise on financial markets.
The weighted average duration of the defined benefit obligation is 14.7 years.
107
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
The following table presents information concerning the defined benefit retirement plans, as established by an
independent actuary:
Benefit obligation, beginning of year
Current service cost
Interest cost
Employees’ contributions
Actuarial gain (loss) arising from experience adjustments
Benefits paid
Benefit obligation, end of year
Fair value of plan assets, beginning of year
Interest income
Variation on plan assets, excluding amounts included in interest income
Employer’s contributions
(1)
Employees’ contributions
Benefits paid
Fair value of plan assets, end of year
Net benefit liability, end of year (2)
2021
$
2020
$
(44,145)
(39,409)
(1,446)
(1,098)
(86)
5,380
1,351
(1,418)
(1,280)
(96)
(3,076)
1,134
(40,044)
(44,145)
22,529
560
1,114
897
86
(1,239)
23,947
21,451
696
485
935
96
(1,134)
22,529
(16,097)
(21,616)
(1) Employer’s contributions include contributions made by an equity accounted investment of the Company of $73 ($64 in 2020) and exclude benefits paid of $198
(nil in 2020) under the SERP.
(2) Post-employment benefit obligations in the consolidated statements of financial position include $115 ($439 in 2020) for defined contribution retirement plans
provided to certain members of key management personnel, for which no contributions were made.
The following table provides the reconciliation of the benefit obligation, the fair value of plan assets and plan deficit in
respect of wholly and partially funded plans, and unfunded plans:
Wholly and partially
funded
Unfunded
(1)
2021
$
2020
$
2021
$
2020
$
Total
2021
$
2020
$
Benefit obligation
Fair value of plan assets
(24,162)
(25,272)
(15,882)
(18,873)
(40,044)
(44,145)
23,947
22,529
—
—
23,947
22,529
Plan deficit
(215)
(2,743)
(15,882)
(18,873)
(16,097)
(21,616)
(1) The unfunded plans consist of SERP. As at December 31, 2021, the plan deficit for the Canadian executives is $14,718 ($17,760 in 2020) and $1,164 ($1,113
in 2020) for the U.S. executives. The SERP are non-contributory, and the Company plans to fund the benefits with future cash flows that will be generated by
operations.
108
Plan assets consist of:
Derived from observable market data – Level 2 fair value
Bonds
Canadian & foreign stock
Non-observable market inputs – Level 3 fair value
Annuity contracts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
As at
December 31,
2021
$
As at
December 31,
2020
$
9,647
11,219
3,081
23,947
8,894
10,271
3,364
22,529
The following table provides the reconciliation of the net expense for all defined benefit and defined contribution
retirement plans in the employee benefits expense in the consolidated statements of earnings for the years ended
December 31:
Current service cost
Net interest expense
Less: net expense assumed by an equity accounted investment of the Company
Defined benefit cost recognized
Net expense for defined contribution retirement plans
Net expense for all defined benefit and defined contribution retirement plans
2021
$
1,446
538
1,984
(120)
1,864
3,486
5,350
2020
$
1,418
584
2,002
(96)
1,906
3,423
5,329
SIGNIFICANT ACTUARIAL ASSUMPTIONS
The significant actuarial assumptions used in the measurement of the Company’s net benefit liability are as follows:
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
Accrued benefit liability
Discount rate, end of year
Expected rate of compensation increase
Benefit cost
Discount rate
Expected rate of compensation increase
SENSITIVITY ANALYSIS
2021
%
2020
%
3.0
3.8
2.5
3.8
2.5
3.8
3.3
3.8
As at December 31, 2021, all else being equal, a hypothetical variation of +1.0% in the discount rate would have a positive
impact of $5,126 ($6,197 in 2020), whereas a hypothetical variation of –1.0% would have a negative impact of $6,392
($7,918 in 2020) on the benefit obligation.
As at December 31, 2021, all else being equal, a hypothetical variation of +1.0% in the expected rate of compensation
increase would have a negative impact of $741 ($1,332 in 2020), whereas a hypothetical variation of –1.0% would have
a positive impact of $703 ($1,252 in 2020) on the benefit obligation.
109
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
CONTRIBUTIONS TO RETIREMENT PLANS
Total cash payments for post-employment benefits for 2021, consisting of cash contributed by the Company to its funded
retirement plans, cash payments made directly to beneficiaries for its unfunded other benefit retirement plans, and cash
contributed to its defined contribution retirement plans, were $4,508 ($4,294 in 2020).
The Company expects to make a contribution of $573 to the defined benefit retirement plans in 2021.
25. NON-CURRENT LIABILITIES
Long-term liability due to a non-controlling interest
Advance due to a non-controlling interest
Provisions
Other
As at
December 31,
2021
$
As at
December 31,
2020
$
36,471
—
2,232
2,027
40,730
32,742
2,447
1,464
1,747
38,400
REPURCHASE OF NON- CONTROLLING INTERESTS
FER- PAL
Following the business combination of FER-PAL on July 6, 2017, the Company granted the non-controlling interest
shareholders a put option, exercisable at any time after July 6, 2021, allowing them to sell all the remaining shares to
LOGISTEC in three equal tranches over three fiscal years for cash consideration based on a predetermined purchase
price formula based on FER-PAL’s performance.
As at December 31, 2021, following the accretion of interest and the remeasurement of the put option, a liability of
$64,366 ($31,963 in 2020) was recognized, of which $27,895 (nil in 2020) has been included in trade and other payables
while the remaining balance of $36,471 ($31,963 in 2020) has been included in non-current liabilities in the consolidated
loss on
statements of financial position. For the year ended December 31, 2021, the Company recognized a
remeasurement of $32,403 ($2,732 in 2020) in retained earnings.
The Company also has a call option, exercisable by LOGISTEC at any time after July 6, 2022, to purchase the remaining
49% shares from the non-controlling interest shareholders on the same terms as the put option.
LGC
On December 31, 2021, the Company repurchased a 4.80% interest in LGC held by the non-controlling interest for a
negligible purchase price. The Company has an obligation to repurchase the remaining 17.29% non-controlling interest
in LGC on December 31, 2021, at the latest, or earlier upon the occurrence of certain events. The purchase price is the
greater of: i) the book value of the 17.29% non-controlling interests or ii) a multiple of an agreed upon measure of financial
performance, minus LGC’s debt. For the year ended December 31, 2021, the Company recognized a gain on
remeasurement of $515 ($309 in 2020) in other losses in the consolidated statements of earnings. As at December 31,
2021, a liability of $260 is included in trade and other payables in the consolidated statements of financial position. On
March 2, 2022, the Company settled the liability, which resulted in LGC being a wholly owned subsidiary at that date.
No profit is attributed to the non-controlling interests of FER-PAL and LGC since the Company recorded a due to non-
controlling interest.
110
PROVISIONS
As at December 31, 2020
Additional provisions
Settlement of provisions
Reversal of provisions
As at December 31, 2021
Less: current provisions
Non-current provisions
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Claims and
litigation
$
Shares-based
payments
$
Share of losses of
certain joint
ventures
$
542
696
(302)
(222)
714
714
—
1,002
1,492
(563)
—
1,931
—
1,931
180
—
—
(180)
—
—
—
Other
$
376
32
4
(36)
376
75
301
Total
$
2,100
2,220
(861)
(438)
3,021
789
2,232
Other provisions include provisions for warranty and provisions for asset retirement obligations. Provisions for asset
retirement obligations essentially derive from the obligation to remove assets and to restore the sites under lease
arrangements expiring until 2026.
INSURANCE BENEFITS
An amount of $388 ($509 in 2020) is recognized as an asset in trade and other receivables relative to the benefit to be
received from the insurance company in connection with claims.
26. SHARE CAPITAL
Authorized in an unlimited number:
•
•
First Ranking Preferred Shares, non-voting, issuable in series;
Second Ranking Preferred Shares, non-voting, issuable in series;
• Class A Common Shares, without par value, 30 votes per share, convertible into Class B Subordinate Voting
Shares at the holder’s discretion;
• Class B Subordinate Voting Shares, without par value, one vote per share, entitling their holders to receive
a dividend equal to 110% of any dividend declared on each Class A Common Share.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
Issued and outstanding (1)
7,377,022 Class A shares (7,377,022 in 2020)
5,683,036 Class B shares (5,535,869 in 2020)
(1) All issued and outstanding shares are fully paid.
As at
December 31,
2021
$
As at
December 31,
2020
$
4,875
46,014
50,889
4,875
40,700
45,575
REPURCHASE OF THE NON- CONTROLLING INTEREST IN SANEXEN
Following the 2016 agreement with the non-controlling interest shareholders of SANEXEN to acquire the remaining
equity interest that LOGISTEC did not already own in SANEXEN, during the year ended December 31,2021, LOGISTEC
issued 148,567 Class B shares at $33.02 per share, which reduced the share capital to be issued from $4,906 as at
December 31,2020 to nil as at December 31 2021.
111
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
In 2020, LOGISTEC has exercised its call option to acquire from the non-controlling interest shareholders their non-voting
and non-dividend bearing Class G Preferred Shares of SANEXEN for cash consideration of $7,634 of which $1,777 was
paid on December 17, 2020, and the remaining $5,857 paid on January 14, 2021.
The following table provides a reconciliation between the opening and closing balances for the year 2021:
Trade and other payables
Share capital to be issued
As at
December 31,
2020
$
5,857
4,906
Settlement
$
(5,857)
(4,906)
As at
December 31,
2021
$
—
—
EXECUTIVE STOCK OPTION PLAN
The Company has an Executive Stock Option Plan under which 58,253 options to subscribe for the Company’s Class B
shares have been granted to certain senior executives in 2021 (60,658 options granted in 2020). The exercise price of the
options is $44.79 ($24.86 for the 2020 grant) and is equal to the average of the daily high and low trading prices for the
five days, consecutive or not, preceding the date of the grant. The options granted vest over a period of four years at the
rate of 25% per year, starting at the grant date. The fair value of the options was estimated at $13.99 ($5.77 for the 2020
grant) at the grant date using the Black-Scholes option pricing model, taking into account the terms and conditions on
which the options were granted. The contractual term of each option granted is ten years. There are no cash settlement
alternatives. The Company accounts for the Executive Stock Option Plan as an equity-settled plan. The expenses recorded
in the consolidated financial statements of earnings for the year ended December 31, 2021, was $364 ($136 in 2020).
EMPLOYEE STOCK PURCHASE PLAN (“ESPP”)
Pursuant to the ESPP, 600,000 Class B shares were reserved for issuance. As at January 1, 2021, there remained an
unallocated balance of 169,400 Class B shares reserved pursuant to this ESPP. Eligible employees designated by the
Board of Directors need to have at least two years of service. Participation is on a voluntary basis. The subscription price
is determined by the average high and low board lot trading prices of the Class B shares on the TSX during five days,
consecutive or not, preceding the last Thursday of the month of May of the year the shares are issued (or the last Thursday
of such other month as shall be determined by the Board, which shall be the month preceding the date of issuance), less
a maximum 10% discount. A non-interest-bearing loan offered by the Company is available to acquire said shares. The
loans are repaid over a two-year period by way of payroll deductions.
As at December 31, 2021, following the issuance of 12,700 (24,300 in 2020) Class B shares under this ESPP, there remains
an unallocated balance of 156,700 Class B shares reserved for issuance pursuant to this ESPP. Those 12,700 (24,300 in
2020) Class B shares were issued for cash consideration of $130 ($190 in 2020) and for non-interest-bearing loans of $385
($505 in 2020), repayable over two years with a carrying value of $500 as at December 31, 2021 ($443 in 2020).
NORMAL COURSE ISSUER BID (“NCIB”)
Pursuant to the current NCIB, which was launched on October 28, 2021, and will terminate on October 27, 2022,
LOGISTEC intends to repurchase for cancellation purposes, up to 368,851 Class A shares and 284,301 Class B shares,
representing 5% of the issued and outstanding shares of each class as at October 15, 2021.
Shareholders may obtain a free copy of the notice of intention regarding the NCIB filed with the TSX by contacting
the Company.
112
Under the various NCIBs, repurchases were made through the TSX or alternative Canadian trading systems. The tables
below summarize the number of shares repurchased by NCIB and by year:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Shares repurchased by bid
NCIB 2019 (October 28, 2019, to October 27, 2020)
Repurchase in 2019
Repurchase in 2020
Total NCIB 2019
NCIB 2020 (October 28, 2020, to October 27, 2021)
Repurchase in 2020
Repurchase in 2021
Total NCIB 2020
NCIB 2020 (October 28, 2021, to October 27, 2022)
Repurchase in 2021
Total NCIB 2021
Shares repurchased by year
2020
NCIB 2019
NCIB 2020
Total 2020
2021
NCIB 2020
NCIB 2021
Total 2021
The number of shares varied as follows:
Shares repurchased by bid
As at January 1, 2020
Repurchased under the NCIBs
Conversion
ESPP
Exercise of option pursuant to the SANEXEN
transaction
As at December 31, 2020
Repurchased under the NCIBs
Conversion
ESPP
Exercise of option pursuant to the SANEXEN
transaction
Class A shares
Class B shares
Class A shares
Average price
$
Class B shares
Average price
$
2,300
5,300
7,600
600
—
600
—
—
7,000
28,100
35,100
6,500
11,100
17,600
3,000
3,000
41.78
30.73
34.08
38.41
—
38.41
—
—
40.52
31.98
33.69
35.59
37.92
37.06
43,34
43,34
Class A shares
Class B shares
5,300
600
5,900
—
—
—
28,100
6,500
34,600
11,100
3,000
14,100
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
Number of
Class A shares
Number of
Class B shares
Class A shares
$
Class B shares
$
7,383,622
5,396,901
(5,900)
(700)
—
—
(34,600)
700
24,300
148,568
4,879
(4)
—
—
—
35,343
(243)
—
695
4,905
7,377,022
5,535,869
4,875
40,700
—
—
—
—
(14,100)
—
12,700
148,567
—
—
—
—
(107)
—
515
4,906
46,014
113
As at December 31, 2021
7,377,022
5,683,036
4,875
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
DIVIDENDS
Details of dividends declared per share are as follows:
Class A shares
Class B shares
Details of dividends paid per share are as follows:
Class A shares
Class B shares
2021
$
0.38
0.42
2021
$
0.38
0.42
2020
$
0.37
0.41
2020
$
0.37
0.41
On March 18, 2022, the Board of Directors declared a dividend of $0.09818 per Class A share and $0.10799 per Class B
share, which will be paid on April 14, 2022, to all shareholders of record as of March 31, 2022. The estimated dividend
to be paid is $724 on Class A shares and $613 on Class B shares.
27. ACCUMULATED OTHER COMPREHENSIVE
INCOME, NET OF TAXES
Loss on financial instruments designated as cash flow hedges
Currency translation differences arising on translation of foreign operations
Unrealized gain on translating debt designated as hedging item of the net investment
in foreign operations
As at
December 31,
2021
$
As at
December 31,
2020
$
(247)
8,067
1,231
9,051
(106)
7,218
831
7,943
114
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
28. CONSOLIDATED STATEMENTS OF CASH
FLOWS
ITEMS NOT AFFECTING CASH AND CASH EQUIVALENTS
Defined benefit and defined contribution retirement plan expense
Depreciation and amortization expense
Share of profit of equity accounted investments
Finance expense
Finance income
Current income taxes
Deferred income taxes
Non-current assets
Contract liabilities
Non-current liabilities
Other
CHANGES IN NON-CASH WORKING CAPITAL ITEMS
(Increase) decrease in:
Trade and other receivables
Income taxes
Prepaid expenses and other
Inventories
Increase (decrease) in:
Trade and other payables
Contract liabilities
2021
$
1,864
49,100
(10,084)
11,103
(541)
13,824
(3,353)
438
(400)
504
1,810
64,265
2020
$
1,937
45,390
(9,529)
12,453
(635)
9,991
671
525
(400)
(2,517)
2,631
60,517
2021
$
2020
$
(29,571)
(806)
(1,023)
(3,169)
1,153
5,860
(27,556)
22,692
(2,532)
(3,874)
(386)
(4,345)
3,511
15,066
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
NON-CASH TRANSACTIONS
During 2021, the Company acquired property, plant and equipment, of which $1,587 ($1,174 in 2020) was unpaid at the
end of the year.
115
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
The following table provides a reconciliation between the opening and closing balances for financing activities,
including cash and non-cash flow changes:
2021
Opening
DEC 31,
2020
$
Cash
changes
Non-cash
changes
Non-cash
changes
Repayments
$
Borrowings
$
Debt from
acquisitions/
adjustments
$
Borrowings
$
Foreign
exchange
$
Ending
DEC 31,
2021
$
Short-term bank loans
—
—
8,600
Revolving credit
facility
106,670
(59,086)
88,451
Unsecured loan debt
50,000
—
—
Term credit facility
Government loan
Equipment loan
9,701
1,130
209
(430)
(201)
Lease liabilities
135,152
(13,384)
(3,884)
3,222
—
8
—
Total
302,862
(76,985)
100,281
—
—
(26)
(13)
—
13
—
—
—
—
—
—
—
8,600
(467)
135,568
—
58
—
(1)
49,974
9,084
700
28
1,429
1,403
17,972
17,972
(145)
(555)
141,024
344,978
2020
Revolving credit
facility
Unsecured loan debt
Term credit facility
Government loan
Equipment loan
Opening
DEC 31,
2019
$
Cash
changes
Non-cash
changes
Non-cash
changes
Repayments
$
Borrowings
$
Debt from
acquisitions/
adjustments
$
Borrowings
$
Foreign
exchange
$
Ending
DEC 31,
2020
$
115,003
(80,064)
74,381
50,000
10,333
1,200
1,364
—
(2,698)
(100)
(1,100)
—
2,137
—
—
—
—
—
—
30
(44)
(16)
(30)
—
—
—
—
—
(2,650)
106,670
—
(71)
—
(11)
50,000
9,701
1,130
209
60,927
60,927
(3,025)
135,152
(5,757)
302,862
Lease liabilities
91,315
(14,049)
Total
269,215
(98,011)
76,518
116
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
29. RELATED PARTY TRANSACTIONS
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have
been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Company and
other related parties are disclosed hereafter.
TRADING TRANSACTIONS
The following tables summarize the Company’s related party transactions with its joint ventures:
Sale of services
Purchase of services
Amounts owed to joint ventures
Amounts owed from joint ventures
2021
$
7,492
847
2020
$
5,028
921
As at
December 31,
2021
$
As at
December 31,
2020
$
3,485
264
640
2,045
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received.
TRANSACTIONS WITH SHAREHOLDERS
Transactions with the Company’s largest shareholder, Sumanic Investments Inc., were as follows:
Dividends paid to Sumanic Investments Inc.
2021
$
2,227
2020
$
2,173
COMPENSATION OF KEY MANAGEMENT PERSONNEL
The compensation of directors and of other members of key management personnel (1) during the years ended was as
follows:
Short-term benefits
Post-employment benefits
Other long-term benefits
2021
$
5,192
262
595
6,049
2020
$
5,789
248
(879)
5,158
(1) The compensation of members of key management personnel includes the compensation of the president of one of the Company’s joint ventures.
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
117
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
30. SEGMENTED INFORMATION
The Company and its subsidiaries are organized and operate primarily in two reportable industry segments: marine
services and environmental services. The accounting policies used within the segments are applied in the same manner
as for the consolidated financial statements.
The Company discloses information about its reportable segments based upon the measures used by management in
assessing the performance of those reportable segments. The Company uses segmented profit before income taxes to
measure the operating performance of its segments.
The financial information by industry and geographic segments is as follows:
Marine
services
$
Environmental
services
$
Total
$
426,967
316,736
743,703
34,577
9,217
7,820
40
30,450
14,523
867
3,283
501
25,645
49,100
10,084
11,103
541
56,095
34,457
21,891
56,348
Marine
services
$
344,622
33,094
9,239
8,980
100
27,233
Environmental
services
$
260,079
12,296
290
3,473
535
16,217
Total
$
604,701
45,390
9,529
12,453
635
43,450
24,280
7,970
32,250
INDUSTRY SEGMENTS
REVENUE, RESULTS AND OTHER INFORMATION
2021
Revenue
Depreciation and amortization expense
Share of profit of equity accounted investments
Finance expense
Finance income
Profit before income taxes
Acquisition of property, plant and equipment,
including business combinations
2020
Revenue
Depreciation and amortization expense
Share of profit of equity accounted investments
Finance expense
Finance income
Profit before income taxes
Acquisition of property, plant and equipment,
including business combinations
118
ASSETS AND LIABILITIES
2021
Total assets
Equity accounted investments
Total liabilities
2020
Total assets
Equity accounted investments
Total liabilities
GEOGRAPHIC SEGMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
year ended December 31, 2021 and 2020
(in thousands of Canadian dollars, except for per share amounts)
Marine
services
$
538,261
44,259
376,841
525,833
42,913
374,346
Environmental
services
$
360,710
2,052
206,521
273,619
2,148
123,535
Total
$
898,971
46,311
583,362
799,452
45,061
497,881
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
The Company's revenue from external customers by country of origin and information about its non-current assets by
location of assets are detailed below:
Revenue
2021
2020
Non-current assets
(1)
As at December 31, 2021
As at December 31, 2020
Canada
$
401,262
338,396
USA
$
342,441
266,305
Total
$
743,703
604,701
346,673
281,235
268,205
272,405
614,878
553,640
(1) Non-current assets exclude non-current financial assets and deferred income tax assets.
31. CONTINGENT LIABILITIES AND
GUARANTEES
As at December 31, 2021, the Company has outstanding letters of credit for an amount of $14,513 ($4,108 in 2020)
relating to financial guarantees issued in the normal course of business. Most of these letters of credit mature within the
next 12 months.
The Company, together with one of its partners, severally guarantees the obligations of a lease arrangement in one
of its joint ventures. The guarantee is limited to a cumulative amount of $2,385 ($2,222 in 2020).
As at December 31, 2021, the Company has contingent liabilities totalling $486 ($2,025 in 2020) for contingent
obligations to remove assets and to restore sites under lease arrangements.
The Company indemnifies its directors and officers for prejudices suffered by reason or in respect of the execution of
their duties for the Company to the extent permitted by law. The Company has underwritten and maintains directors’ and
officers’ liability insurance coverage.
No amounts have been recorded in the consolidated financial statements related to the above contingent liabilities
and guarantees.
119
BOARD OF
DIRECTORS
Madeleine
Paquin, C.M. (1)
President & Chief
Executive Officer
Curtis J.
Foltz (1) (2) (3)
Consultant
Corporate Director
Michael
Dodson (2) (3)
Corporate Director
Lukas Loeffler,
Eng., Ph.D.
Corporate Director
Nicole Paquin
Corporate Director
George
Gugelmann (2) (3)
Private Investor
J. Mark
Rodger (1) (3)
Partner - Borden
Ladner Gervais LLP
Dany
St-Pierre (2) (3)
President -
Cleantech
Expansion LLC
Suzanne Paquin
President -
Transport Nanuk Inc.
Luc Villeneuve,
FCPA, FCA (1) (2)
Corporate Director
(1) Member of the Executive Committee
(2) Member of the Audit Committee
(3) Member of the Governance and Human Resources Committee
120
OFFICERS OF
THE COMPANY
Curtis J. Foltz
Chairman of
the Board
Madeleine
Paquin, C.M.
President & Chief
Executive Officer
Jean-Claude
Dugas, CPA, CA
Chief Financial
Officer
Stéphane
Blanchette, CHRP
Vice-President,
Human Resources
Suzanne Paquin
Vice-President
Carl Delisle,
CPA, CA
Vice-President
and Corporate
Controller
Martin Ponce
Chief Information
Officer
Marie-Chantal
Savoy
Vice-President,
Strategy &
Communications
Arty Davilmar,
CPA, CFA, MBA
Treasurer
Ingrid Stefancic,
LL.B., FCG,
Acc. Dir.
Vice-President,
Corporate and Legal
Services -
Corporate Secretary
Rodney Corrigan
President -
LOGISTEC
Stevedoring Inc.
Jean-François
Bolduc
President -
LOGISTEC
Environmental
Services Inc.
and SANEXEN
Environmental
Services Inc.
121
2021 ANNUAL REPORT SHAREHOLDER
AND INVESTOR
INFORMATION
ANNUAL MEETING
STOCK EXCHANGES
The annual meeting of shareholders will be held on
May 5, 2022.
Please refer to www.logistec.com/investors for
meeting details.
LOGISTEC shares are listed on the Toronto Stock Exchange.
Ticker symbols:
LGT.A for Class A Common Shares
LGT.B for Class B Subordinate Voting Shares
TRANSFER AGENT AND REGISTRAR
INVESTOR RELATIONS
Computershare Trust Company of Canada
1500 Robert-Bourassa Boulevard, Suite 700
Montréal, QC H3A 3S8
Tel.: 514-982-7270
or 1-800-564-6253
Fax: 416-263-9394
or 1-888-453-0330
caregistryinfo@computershare.com
INDEPENDENT AUDITOR
KPMG LLP
KPMG Tower
600 De Maisonneuve Blvd. West
Suite 1500
Montréal, QC H3A 0A3
Tel.: 514-840-2100
www.kpmg.com
Jean-Claude Dugas
Chief Financial Officer
600 De La Gauchetière Street West
14th Floor
Montréal, QC H3B 4L2
Tel.: 514-844-9381
ir@logistec.com
HEAD OFFICE
600 De La Gauchetière Street West
14th Floor
Montréal, QC H3B 4L2
Tel.: 514-844-9381
Toll Free: 1-888-844-9381
122
This year, LOGISTEC celebrates
its 70th anniversary.
Our culture is built on a rich heritage,
sustained over the years through
creative thinking, ingenuity, and
collaboration. Since 1952, the
LOGISTEC family has experienced
spectacular growth. This celebration
provides us with a great opportunity
to reflect upon our past, and more
importantly, to craft a bold vision for
our future.
www.logistec.com