Profitable first quarter and substantial increase in the backlog of orders at Canam Group

SAINT-GEORGES, QC, April 25, 2014 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), specialized in the design and fabrication of construction products, took advantage of its 30th annual general meeting of shareholders to present the financial results for the first quarter ended March 29, 2014.

Net income attributable to shareholders totaled $0.5M or $0.01 per share, compared with a net income attributable to shareholders of $3M, or $0.07 per share, for the corresponding period in 2013. Consolidated revenues in the first quarter of 2014 amounted to $239M as compared with $210M in 2013.

Canam Group President and Chief Executive Officer Marc Dutil pointed out that deliveries as well as profit margins were impacted by the inclement weather seen in Eastern Canada and the Eastern United States at the beginning of the year. He is, however, encouraged by the significant increase and quality of the backlog of orders that totaled $793M at quarter-end compared with $592M as at December 31, 2013, which represents an increase of 34%.

Dividend
The Board of Directors approved a quarterly dividend of $0.04 per common share payable on June 30, 2014 to shareholders of record on June 16, 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 Friday, April 25, 2014 at 1:15 p.m. EDT. A podcast will be available at www.canamgroupinc.com and www.newswire.ca. A replay of the conference call will be available until May 9, 2014 by dialing 1-800-408-3053 and entering access code 9813325, followed by the pound key (#).

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
Periods ended March 29, 2014 and March 30, 2013

(in thousands of Canadian dollars, except per share amounts) Three months
(unaudited)   2014     2013
Revenues $ 239,303   $ 209,752
Cost of sales, excluding depreciation and amortization(1)   207,666     176,469
Selling and administrative expenses   21,805     20,108
Profit sharing program   217     250
Depreciation of property, plant and equipment   5,595     5,306
Amortization of intangible assets   473     377
Other gains — net   (405)     (119)
Finance costs   3,496     3,749
Finance revenue   (238)     (306)
Share of loss (income) of a joint venture and associates   282     (304)
Income before income tax   412     4,222
Tax expense (income)          
  Current   (1,337)     1,117
  Deferred   1,199     132
    (138)     1,249
Net income $ 550   $ 2,973
Net income attributable to:          
  Shareholders $ 474   $ 2,973
  Non-controlling interests   76     - -
  $ 550   $ 2,973
           
Net earnings per share attributable to shareholders          
  Basic $ 0.01   $ 0.07
  Diluted $ 0.01   $ 0.07
           
Weighted average number of common shares (in thousands of shares)          
  Basic   41,910     41,939
  Diluted   42,075     42,085
Number of common shares outstanding (in thousands of shares)   42,078     42,073
(1) Cost of sales, including depreciation and amortization, was $212,507 as at March 29, 2014 and $181,182 as at March 30, 2013.

NOTICE
The Corporation's independent auditors have not performed a review of the accompanying condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Periods ended March 29, 2014 and March 30, 2013

(in thousands of Canadian dollars)   Three months
(unaudited)   2014   2013
Net income $ 550 $ 2,973
Other comprehensive income:        
Items that will be reclassified subsequently to statements of income        
  Change in unrealized gains on translating foreign operations   10,466   4,064
Available-for-sale assets:        
  Unrealized gains on available-for-sale financial assets arising during the period   - -   27
  Reclassified to statements of income   - -   (39)
  Tax income   - -   2
    - -   (10)
Other comprehensive income   10,466   4,054
Comprehensive income $ 11,016 $ 7,027
Attributable to:        
  Shareholders $ 10,940 $ 7,027
  Non-controlling interests   76   - -
  $ 11,016 $ 7,027


CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(in thousands of Canadian dollars)
(unaudited)
As at
March 29,
2014
  As at
December 31,
2013
Assets          
Current assets          
Cash and cash equivalents $ 6,592   $ 4,690
Accounts receivable   290,319     299,981
Inventories   129,164     110,993
Recoverable tax assets   276     264
Prepaid expenses and other assets   6,098     3,762
    432,449     419,690
Property, plant and equipment classified as held for sale   1,630     1,567
    434,079     421,257
Non-current assets          
Investments   4,699     4,699
Ownership interests in a joint venture and associates   40,705     41,390
Property, plant and equipment   297,240     292,289
Intangible assets   10,017     9,760
Goodwill   43,034     41,417
Deferred tax assets   11,216     11,957
Long-term receivables and other assets   9,640     10,971
Total assets $ 850,630   $ 833,740
Liabilities          
Current liabilities          
Accounts payable and accrued liabilities $ 171,781   $ 185,909
Current tax liabilities   1,036     8,119
Current portion of long-term debt   13,242     13,000
    186,059     207,028
Non-current liabilities          
Debt   152,391     124,025
Convertible debentures   65,655     65,442
Provisions   7,159     6,816
Deferred tax liabilities   9,926     9,922
Other liabilities   8,122     8,849
Total liabilities   429,312     422,082
Equity          
Share capital   168,147     168,057
Retained earnings   229,509     230,717
Other equity items   23,402     12,884
Total equity attributable to shareholders   421,058     411,658
Non-controlling interests   260     - -
Total equity   421,318     411,658
Total equity and liabilities $ 850,630   $ 833,740


CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars)
(unaudited)
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
share
capital
attributable
to
shareholders
    Non-
controlling
interests
    Total
equity
Balance as at January 1, 2013 $ 1,994   $ (11,941)   $ 691   $ 5,764   $ (3,492)   $ 168,529   $ 197,148   $ 362,185   $ - -   $ 362,185
Net income for the period   - -     - -     - -     - -     - -     - -     2,973     2,973     - -     2,973
Comprehensive income   - -     4,064     (10)     - -     4,054     - -     - -     4,054     - -     4,054
Shares purchased by a trust in employees' name on the secondary market   - -     - -     - -     - -     - -     (651)     - -     (651)     - -     (651)
Shares acquired by employees   (202)     - -     - -     - -     (202)     202     - -     - -     - -     - -
Repurchase of shares   - -     - -     - -     - -     - -     (23)     - -     (23)     - -     (23)
Excess of acquisition cost over carrying amount of acquired common shares   - -     - -     - -     - -     - -     - -     (16)     (16)     - -     (16)
Amortization of compensation costs related to the profit sharing program - stock ownership component   79     - -     - -     - -     79     - -     - -     79     - -     79
Balance as at March 30, 2013 $ 1,871   $ (7,877)   $ 681   $ 5,764   $ 439   $ 168,057   $ 200,105   $ 368,601   $ - -   $ 368,601
Balance as at January 1, 2014 $ 2,113   $ 5,005   $ 2   $ 5,764   $ 12,884   $ 168,057   $ 230,717   $ 411,658   $ - -   $ 411,658
Non-controlling interest investment in a subsidiary   - -     - -     - -     - -     - -     - -     - -     - -     184     184
Net income for the period   - -     - -     - -     - -     - -     - -     474     474     76     550
Comprehensive income   - -     10,466     - -     - -     10,466     - -     - -     10,466     - -     10,466
Dividends   - -     - -     - -     - -     - -     - -     (1,682)     (1,682)     - -     (1,682)
Shares acquired by employees   (26)     - -     - -     - -     (26)     26     - -     - -     - -     - -
Issuance of shares following the conversion of debentures   - -     - -     - -     - -     - -     59     - -     59     - -     59
Exercise of options related to the conversion of debentures   - -     - -     - -     (5)     (5)     5     - -     - -     - -     - -
Amortization of compensation costs related to the profit sharing program - stock ownership component   83     - -     - -     - -     83     - -     - -     83     - -     83
Balance as at March 29, 2014 $ 2,170   $ 15,471   $ 2   $ 5,759   $ 23,402   $ 168,147   $ 229,509   $ 421,058   $ 260   $ 421,318


CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended March 29, 2014 and March 30, 2013

(in thousands of Canadian dollars)   Three months 
(unaudited)   2014     2013
Cash flows from the following activities:          
Operating activities          
Net income $ 550   $ 2,973
Adjustments:          
  Amortization of compensation costs related to the profit sharing program - stock ownership component   83     79
  Loss on revaluation of balances of purchase price of businesses   - -     65
  Gain on disposal of investments   - -     (39)
  Loss on disposal of property, plant and equipment   110     3
  Depreciation of property, plant and equipment   5,595     5,306
  Amortization of intangible assets   473     377
  Amortization of deferred financing expenses   93     82
  Provisions   104     (8)
  Interest rate swaps   (68)     (92)
  Imputed interest   534     589
  Pension expense   (704)     (804)
  Deferred tax expense   1,199     132
  Share of loss (income) of a joint venture and associates   282     (304)
    8,251     8,359
Net change in non-cash operating working capital balances          
Decrease (increase) in accounts receivable   16,336     (2,751)
Decrease (increase) in inventories   (15,470)     980
Increase in prepaid expenses and other assets   (2,213)     (2,152)
Increase (decrease) in accounts payable and accrued liabilities   (18,771)     5,197
Increase in interest payable   1,386     1,136
Decrease in current tax liabilities   (7,099)     (4,138)
    (25,831)     (1,728)
Cash flows from operating activities   (17,580)     6,631
Financing activities          
Shares purchased by a trust in employees' name on the secondary market   - -     (651)
Repurchase of shares   - -     (39)
Dividends   (3,364)     - -
Increase in debt and bank loans   28,956     2,150
Repayment of debt and bank loans   (2,711)     (5,330)
Repayment of balances of purchase price of businesses   - -     (3,326)
Increase in other liabilities   8     - -
Cash flows from financing activities   22,889     (7,196)
Investing activities          
Proceeds from sale of property, plant and equipment   42     47 
Additions to property, plant and equipment   (3,631)     (2,817)
Additions to intangible assets   (337)     (655) 
Proceeds from disposal of investments   - -     337 
Distributions received   156     - -
Decrease in receivables and other assets   178     339
Cash flows from investing activities   (3,592)     (2,749)
Effects of changes in foreign exchange rate on cash and cash equivalents   185     168 
Net change in cash   1,902     (3,146)
           
Cash and cash equivalents - Beginning of period   4,690     6,787
Cash and cash equivalents - End of period $ 6,592   $ 3,641
Supplementary information          
  Interest paid $ 1,253   $ 1,455
  Income taxes paid, net $ 5,855   $ 5,268

 

SOURCE Canam Group Inc.

For further information:

François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: 418-228-8031 / 418-225-1355 (cell)
Email: francois.begin@canamgroupinc.com