Canam Group posts a net income of $31.2M in 2013

BOUCHERVILLE, QC, Feb. 26, 2014 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), specialized in the design and fabrication of construction products, completed the financial year ending December 31, 2013 with a net income of $31.2M, or $0.74 per share, compared with a net income of $17M, or $0.40 per share, in 2012. Consolidated revenues totaled $1,028M, up 13.6% from $905M in 2012.

In the fourth quarter of 2013, net income totaled $10.8M, or $0.26 per share, compared with $7.4M, or $0.18 per share, for the corresponding period in 2012. Consolidated revenues in the fourth quarter came to $282M as compared with $238M in 2012.

As at December 31, 2013, Canam Group's backlog of orders stood at $592M compared with $493M at the end of 2012. This figure does not include the $190M in structural steel contracts announced today.

The increase in revenues in 2013 is mainly attributable to light structural steel, and joist and steel deck activities. The improvement in revenues in the United States is partially explained by a gradual recovery in non-residential construction activities.

"The increase in our sales, 60% of which comes from the United States, is the result of successful acquisitions and market development," declared Canam Group President and Chief Executive Officer Marc Dutil. "This growth also reflects the dynamism of our teams in proposing new services aimed at improving the customer experience and adding new sources of revenue."

Acquisitions in 2013
At the very end of the year, Canam Group acquired a 67% ownership interest in Massif Technologies, an engineering company that specializes in the design and management of non-residential projects featuring lumber framing. The company has since been renamed Structure Fusion.

Over the summer, Canam Group acquired the steel joist fabrication assets of Quincy Joist Company in Buckeye, Arizona, and Quincy, Florida.

The Buckeye plant employs some 70 people and has an annual production capacity of 30,000 tons. This transaction will allow Canam Group to increase its presence in the Southwestern United States while also favoring market consolidation.

Dividend
The Board of Directors approved a quarterly dividend of $0.04 per common share payable on March 31, 2014 to shareholders of record on March 17, 2014.

About Canam Group Inc.
Canam Group is the largest fabricator of steel components in North America. Specialized in designing construction solutions and fabricating customized products since 1961, Canam Group takes part in an average of 10,000 construction projects each year in three activity sectors: buildingsstructural steel and bridges. The Corporation operates 21 plants across North America and employs over 3,600 people in Canada, the United States, Romania, India and Hong Kong.

Conference call
Canam Group will hold a conference call with financial analysts and media representatives on Wednesday, February 26, 2014 at 4:30 p.m. EST. A podcast will be available at www.canamgroupinc.com and www.newswire.ca. A replay of the conference call will be available until March 12, 2014 by dialing 1-800-408-3053 and entering access code 1650511, followed by the pound key (#).

    

CONSOLIDATED STATEMENTS OF INCOME
Periods and Years ended December 31

    Three-month periods     Years
(in thousands of Canadian dollars, except per share amounts)   2013     2012     2013     2012
Revenues $ 281,611   $ 238,471   $ 1,028,235   $ 905,400
Cost of sales, excluding depreciation and amortization (1)   234,682     194,395     859,360     767,917
Selling and administrative expenses   25,308     23,217     89,811     83,094
Profit sharing program   1,546     1,963     5,205     3,123
Depreciation of property, plant and equipment   5,771     5,262     22,098     20,952
Amortization of intangible assets   432     357     1,608     1,449
Other gains — net   (246)     (1,480)     (2,075)     (5,935)
Finance costs   3,884     3,899     14,842     16,746
Finance revenue   (244)     (383)     (1,227)     (2,144)
Share of loss (income) of joint ventures and associates   221     468     (274)     120
Income before income tax   10,257     10,773     38,887     20,078
Tax expense (income)                      
  Current   4,309     2,209     11,257     5,541
  Deferred   (4,877)     1,179     (3,581)     (2,497)
    (568)     3,388     7,676     3,044
Net income $ 10,825   $ 7,385   $ 31,211   $ 17,034
                       
Net earnings per share                      
  Basic $ 0.26   $ 0.18   $ 0.74   $ 0.40
  Diluted $ 0.26   $ 0.18   $ 0.74   $ 0.40
                       
Weighted average number of common shares (in thousands of shares)                      
  Basic   41,982     42,012     41,983     42,562
  Diluted   42,073     42,085     42,074     42,633
Number of common shares outstanding (in thousands of shares)                42,073     42,079
(1)  As at December 31, 2013 and 2012, the cost of sales, including depreciation and amortization, totaled $239,610 and $198,760, respectively, for the three-month periods, and $878,378 and $785,673, respectively, for the years.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Periods and years ended December 31

    Three-month periods     Years 
(in thousands of Canadian dollars)   2013     2012     2013     2012
Net income $ 10,825   $ 7,385   $ 31,211   $ 17,034
Other comprehensive income (loss):                      
Items that will be reclassified subsequently to profit or loss                      
Change in unrealized gains (losses) on translating foreign operations   9,707     3,379     16,946     (5,533)
Available-for-sale assets:                      
  Unrealized gains on available-for-sale assets arising during the periods and years   - -     40     41     103
  Reclassified to statements of income   - -     - -     (867)     (274)
  Tax income (expense)   - -     (6)     137     22
    - -     34     (689)     (149)
    9,707     3,413     16,257     (5,682)
Items not to be reclassified to profit or loss                      
Defined contribution plan:                      
  Actuarial gains (losses) of the defined benefit plan    5,508     (4 502)     5,508     (4,502)
  Tax income (expense)   (1,452)     1,183     (1,452)     1,183
    4,056     (3,319)     4,056     (3,319)
Other comprehensive income (loss)   13,763     94     20,313     (9,001)
Comprehensive income $ 24,588   $ 7,479   $ 51,524   $ 8,033

CONSOLIDATED BALANCE SHEETS

(in thousands of Canadian dollars)   As at
December 31,
2013
    As at
December 31,
2012
Assets          
Current assets          
Cash and cash equivalents $ 4,690   $ 6,787
Accounts receivable   299,981     273,383
Inventories   110,993     113,217
Recoverable tax assets   264     122
Prepaid expenses and other assets   3,762     3,040
    419,690     396,549
Property, plant and equipment classified as held for sale   1,567     1,466
    421,257     398,015
Non-current assets          
Investments   4,699     6,036
Ownership interests in joint ventures and associates   41,390     44,316
Property, plant and equipment   292,289     282,556
Intangible assets   9,760     9,563
Goodwill   41,417     38,088
Deferred tax assets   11,957     7,897
Long-term receivables and other assets   10,971     17,656
Total assets $ 833,740   $ 804,127
Liabilities          
Current liabilities          
Accounts payable and accrued liabilities $ 185,909   $ 148,202
Current tax liabilities   8,119     6,942
Current portion of long-term debt   13,000     10,382
Current portion of balances of purchase price of businesses   - -     8,988
    207,028     174,514
Non-current liabilities          
Debt   124,025     175,605
Convertible debentures   65,442     63,446
Provisions   6,816     2,156
Deferred tax liabilities   9,922     8,629
Other liabilities   8,849     17,592
Total liabilities   422,082     441,942
Equity          
Share capital   168,057     168,529
Retained earnings   230,717     197,148
Other equity items   12,884     (3,492)
Total equity   411,658     362,185
Total equity and liabilities $ 833,740   $ 804,127

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars) Employee
benefits paid
in equity instruments
  Exchange
differences
resulting from
the translation
of foreign operations
  Available-for-
sale financial assets
  Debenture conversion
options
  Total other equity items   Share capital   Retained earnings   Total equity
Balance as at January 1, 2012 $ 2,928   $ (6,408)   $ 840   $ 5,764   $ 3,124   $ 172,869   $ 184,774   $ 360,767
Net income for the year   - -     - -     - -     - -     - -     - -     17,034     17,034
Comprehensive loss   - -     (5,533)     (149)     - -     (5,682)     - -     (3,319)     (9,001)
Shares acquired by employees   (1,160)     - -     - -     - -     (1,160)     1,160     - -     - -
Repurchase of shares   - -     - -     - -     - -     - -     (5,500)     - -     (5,500)
Excess of acquisition cost over carrying amount of acquired common shares   - -     - -     - -     - -     - -     - -     (1,341)     (1,341)
Amortization of compensation costs related to the profit sharing program - stock ownership component   226     - -     - -     - -     226     - -     - -     226
Balance as at December 31, 2012 $ 1,994   $ (11,941)   $ 691   $ 5,764   $ (3,492)   $ 168,529   $ 197,148   $ 362,185
Balance as at January 1, 2012 $ 1,994   $ (11,941)   $ 691   $ 5,764   $ (3,492)   $ 168,529   $ 197,148   $ 362,185
Net income for the year   - -     - -     - -     - -     - -     - -     31,211     31,211
Comprehensive income   - -     16,946     (689)     - -     16,257     - -     4,056     20,313
Dividends   - -     - -     - -     - -     - -     - -     (1,682)     (1,682)
Shares purchased by a trust in employee's name on the secondary market   - -     - -     - -     - -     - -     (651)     - -     (651)
Shares acquired by employees   (202)     - -     - -     - -     (202)     202     - -     - -
Repurchase of shares   - -     - -     - -     - -     - -     (23)     - -     (23)
Excess of acquisition cost over carrying amount of acquired common shares   - -     - -     - -     - -     - -     - -     (16)     (16)
Amortization of compensation costs related to the profit sharing program - stock ownership component   321     - -     - -     - -     321     - -     - -     321
Balance as at December 31, 2013 $ 2,113   $ 5,005   $ 2   $ 5,764   $ 12,884   $ 168,057   $ 230,717   $ 411,658

CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods and years ended December 31

  Three-month periods   Years 
(in thousands of Canadian dollars)   2013     2012   2013    2012 
Cash flows from the following activities:                      
Operating activities                      
Net income  $ 10,825   $ 7,385   $ 31,211   $ 17,034
Adjustments:                      
  Amortization of compensation costs related to the profit sharing program - stock ownership component   80     56     321     226
  Loss on revaluation of balances of purchase price of businesses   35     - -     100     - -
  Loss (gain) on disposal of investments   - -     102     (867)     (2,259)
  Loss in decline in value of an investment   - -     - -     431     - -
  Loss (gain) on disposal of property, plant and equipment   35     41     (36)     17
  Gain on revaluation of property, plant and equipment   (299)     - -     (1,242)     - -
  Depreciation of property, plant and equipment   5,771     5,262     22,098     20,952
  Amortization of intangible assets   432     357     1,608     1,449
  Amortization of deferred financing expenses   312     80     560     276
  Provisions   1,968     521     4,660     543
  Interest rate swaps   (98)     (15)     (464)     32
  Imputed interest   523     576     2,218     2,356
  Pension expense   (456)     (178)     (2,801)     (2,419)
  Deferred tax expense (income)   (4,877)     1,179     (3,581)     (2,497)
  Share of loss (income) of joint ventures and associates   221     468     (274)     120
    14,772     15,834     53,942     35,830
Net change in non-cash operating working capital items                      
Decrease (increase) in accounts receivable   24,619     16,527     (14,707)     36,524
Decrease (increase) in inventories   3,156     (10,213)     9,832     (2,507)
Decrease (increase) in current tax assets   (17)     223     (134)     16,460
Decrease (increase) in prepaid expenses and other assets   (498)     658     (557)     976
Increase (decrease) in accounts payable and accrued liabilities   (19,265)     (11,978)     27,604     (18,497)
Increase (decrease) in interest payable   (1,339)     151     (298)     (9)
Increase in current tax liabilities   2,637     5,858     1,159     6,782
    9,293     1,226     22,899     39,729
Cash flows from operating activities   23,765     17,060     76,841     75,559
Financing activities                      
Shares purchased by a trust in employees' name on the secondary market   - -     - -     (651)     - -
Repurchase of shares   - -     - -     (39)     (6,841)
Increase in debt and bank loans   5,911     4,372     13,831     9,323
Repayment of debt and bank loans   (31,741)     (20,453)     (67,506)     (67,781)
Repayment of balances of purchase price of businesses   - -     (284)     (9,558)     (7,213)
Issue expenses related to debt and debenture   (346)     (103)     (542)     (360)
Increase (decrease) in other liabilities   (57)     - -     (57)     63
Cash flows from financing activities   (26,233)     (16,468)     (64,522)     (72,809)
Investing activities                      
Proceeds from sale of property, plant and equipment   226     44     596     278
Additions to property, plant and equipment   (5,121)     (3,463)     (17,429)     (8,706)
Additions to intangible assets   (288)     (444)     (1,431)     (1,343)
Acquisition of investments   - -     (205)     - -     (2,974)
Proceeds from disposal of investments   - -     6,145     4,585     11,317
Distributions received   - -     380     - -     645
Decrease in receivables and other assets   213     2,798     6,615     5,092
Increase in receivables and other assets   - -     - -     (27)     - -
Business acquisitions, net of cash acquired   (720)     (6,936)     (7,773)     (6,936)
Cash flows from investing activities   (5,690)     (1,681)     (14,864)     (2,627)
Effects of changes in foreign exchange rate on cash and cash equivalents   (38)     389     448     (704)
Net change in cash   (8,196)     (700)     (2,097)     (581)
                       
Cash and cash equivalents - Beginning of periods and years   12,886     7,487     6,787     7,368
Cash and cash equivalents - End of periods and years $ 4,690   $ 6,787   $ 4,690   $ 6,787
Supplementary information                      
  Interest paid $ 3,723   $ 3,348   $ 10,052   $ 9,171
  Income taxes paid (recovered), net $ 1,560   $ (4,078)   $ 10,269   $ (17,684)

 

 

SOURCE Canam Group Inc.

For further information:

François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: 450-641-4000 / 418-225-1355 (cel.)
Email: francois.begin@canamgroupinc.com