Apr.13, 2009
Year 2008 data
Logistic Company with long history.
Checklist
1. Major business.
(1) Marine Services: $188m revenue at 2008
(2) Environmental Services: $40m revenue at 2008
2.Price/Book ratio.
2.Price/Book ratio.
Shares: 6.67m. Current price around $10. Book value $13.7.
3.Current ratio. Debt/Current Asset ratio. Inventory level.
Current asset $68.4m. Current Liability $32.1m. Total Debt $29.2m. From Dec.2006 to Dec.2008, added debt by around $20m. No Inventory.
4.P/E ratio.Deficit check.Revenue/price ratio.
Average earning per share for last 5 years around $1.5 per share. No deficit since go public(1969). 2008 Revenue $228m. Revenue/Price around 3.4.
5.Dividend.
Paid dividend since go public(1969). For last 5 years paid dividend from 0.23 to 0.32 per share. Paid special $1.50 dividend at 2007. Paid total $1.30 at 1984 and total $0.66 at 1996.
6.Cash flow
2008 2007 2006 2005
FCF 6.4m -6.0m 9m 11m
FCF 6.4m -6.0m 9m 11m
Dividend 2.2m 12.5m 1.8m 1.6m
FCF looks OK. However, looks like all the dividend paid in 2007 and 2008 are main cause of debt increase.
7.Grows related.
Fore past five years, revenue grew from 180m to 230m. Earning grew from $1.17 to $2.01.
8.Management compensation.
Top five officer:
S+B LTIP Pension Total
S+B LTIP Pension Total
2008 $1.8m $1.0m $1.7m $4.5m
2007 $1.7m 0 0 $1.7m
2006 $1.2m $1.0m 0 $2.2m
Don't know why the pension is so big in 2008.
9.Industry comparison.
Based on 2006 data, it mentioned 0.2m TEU handling which is 15% of Montreal port.
2006 2007 2008
2006 2007 2008
Vancouver 2.20m 2.49m 2.49m
Montreal 1.29m 1.36m 1.46mHalifax 0.53m
Montreal Port terminals: Cast, Racine, Termont(Owned by Logistec), and Bikerdike.
Montreal Gateway Terminals(MGT): Owned by Morgan Stanley(80%) since 2007. It owns terminal Cast and Racine. Handling around 80%-90% of TEUs of Montreal port.
From Jan. 1, 2009 MGT reduce both port open hour for Truck service from 6:00-24:00 to 6:00-16:00.
From May. 4, 2009 MGT reduce Cast port open hour for Truck service from 6:00-16:00 to 8:00-16:00.
Port Metro Vancouver:
10.Buy back, insider holding and trading info.
Total Voting Right Dividend Other
Class A 3.80m 30 100% Can be converted to class B at any time.
Class A 3.80m 30 100% Can be converted to class B at any time.
Class B 2.85m 1 110%
Sumanic Investments Inc. 2,88m 75.9% of Class A. It is controlled by Suzanne Paquin(President)(1/3), Madeleine Paquin(CEO)(1/3), Nicole Paquin(VP)(1/3)
159585 Canada Inc. 1,27m 44.4% of Class B. It is controlled by Pierre Somers. He is not a director of the company.
John Springer(Director) 0.22m of Class A.
In 2007, the company buy back some shares at around $20 per share.
From 2008 to now, continue to buy back. in 2008 bought back 20,000 share. Average volume of the stock is pretty low.
11.Major events.
Nov. 2008, bought Sydney Coal Railway(SCR) from Quebec Railway Corporation(QRC) which it owns 16% share. Paid $11m in cash and also issued $9m 5% notes to QRC due at Oct. 2009. Get back $5.9m of notes at end of 2008. Balance is $3.1m.
Nov. 2008, bought Sydney Coal Railway(SCR) from Quebec Railway Corporation(QRC) which it owns 16% share. Paid $11m in cash and also issued $9m 5% notes to QRC due at Oct. 2009. Get back $5.9m of notes at end of 2008. Balance is $3.1m.
Since the rest $3.1 will be paid this year. So roughly this investment is to convert the $9m invest of QRC + $11m cash to SCR( $1m cash + $3m good will + $16m Assets).
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