CANAM GROUP POSTS A NET LOSS OF $39.7M FOR THE FIRST QUARTER OF 2011

ST. GEORGES, QC, April 27 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today reported a net loss of $39.7 million, or $0.88 per share, for the first quarter ended March 26, 2011, compared with a net loss of $0.6 million, or $0.01 per share, for the corresponding period in 2010. Consolidated sales were $150.6 million, up 48% from $101.9 million for the year-earlier quarter.

Canam Group president and chief operating officer Marc Dutil explained that the additional costs incurred during the installation of cables for the BC Place project and the monetary out-of-court settlement of a claim had a major negative impact on the results of the first quarter. He added that these charges are non-recurring and that the expected negative impact of the BC Place project as a whole will be limited to these charges.

The order backlog at Canam Group increased 7% from $485 million as at December 31, 2010 to $519 million as at March 26, 2011. This increase resulted from the addition of the backlog at the company's Canam U.S. and FabSouth business units.

The board of directors approved the payment of a quarterly dividend of $0.04 per common share on June 30, 2011 to shareholders of record on June 16, 2011.

About Canam Group Inc.
Canam Group is a leader in the design and fabrication of construction products and solutions and a leading provider of design-build and building information modeling (BIM) services. The company operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.

Conference call
Canam Group will hold a conference call with financial analysts and media representatives at 1:15 p.m. on Wednesday, April 27, 2011. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until May 11, 2011, by dialing 1-800-408-3053 and entering access code 3281055, followed by the pound key (#).

Interim Consolidated Statements of Income (Loss)
     
Periods ended March 26, 2011 and March 27, 2010    
     
(in thousands of Canadian dollars, except per share amounts)     Three months
(unaudited)     2011     2010
Revenues   $ 150,635   $ 101,854
Cost of sales     176,135     87,741
      (25,500)     14,113
Selling and administrative expenses     22,322     15,665
Profit sharing programs     98     308
Exchange loss     393     42
Gain on disposal of property, plant and equipment     (92)     (11)
      (48,221)     (1,891)
Depreciation of property, plant and equipment     4,949     4,230
Amortization of intangible assets     872     661
Finance costs     2,926     494
Gain on revaluation of investments     - -     (3,888)
Share in loss of joint ventures and associates     221     166
Loss before income tax     (57,189)     (3,554)
Tax expense (recovery)            
  Current     (13,278)     (892)
  Deferred     (4,174)     (2,037)
      (17,452)     (2,929)
Net loss attributable to shareholders of Canam Group Inc.   $ (39,737)   $ (625)
             
Net loss per share            
Basic   $ (0.88)   $ (0.01)
Diluted   $ (0.88)   $ (0.01)
Weighted average number of common shares (in thousands of shares)            
  Basic     45,237     45,052
  Diluted     45,390     45,399
Number of common shares outstanding     45,350     45,355
     
     
Interim Consolidated Statements of Comprehensive loss
     
Periods ended March 26, 2011 and March 27, 2010    
    Three months
(in thousands of Canadian dollars) (unaudited)     2011     2010
Net loss   $ (39,737)   $ (625)
Other comprehensive loss:            
             
Change in unrealized gains and losses on translating foreign operations     (1,804)     (3,487)
Unrealized  gains on available-for-sale financial assets arising during the period     108     51
Income tax expense     (14)     (8)
      94     43
Other comprehensive loss     (1,710)     (3,444)
Comprehensive loss attributable to shareholders of Canam Group Inc.   $ (41,447)   $ (4,069)

                   
Interim Consolidated Balance Sheets
             
(in thousands of Canadian dollars) (unaudited)   As at March 26,
2011
  As at December 31,
2010
  As at January 1,
2010
                   
Assets                  
Current assets                  
Cash and cash equivalents   $ 7,760   $ 8,530   $ 57,469
Short-term investment pledged as collateral     9,817     9,946     - -
Accounts receivable     155,077     198,807     97,196
Inventories     149,606     132,684     102,432
Income tax assets     15,693     4,190     6,701
Prepaid expenses and other assets     4,753     3,675     3,363
Current assets of discontinued operations     - -     - -     1,230
      342,706     357,832     268,391
Property, plant and equipment held for sale     1,446     1,465     1,549
      344,152     359,297     269,940
Non-current assets                  
Investments     5,025     4,895     16,677
Ownership interests in joint ventures and associates     59,656     59,913     58,845
Property, plant and equipment     280,274     280,292     211,956
Intangible assets     10,401     11,156     1,127
Goodwill     48,729     49,366     150
Deferred tax assets     17,690     13,788     3,362
Long-term receivables and other assets     25,210     24,020     21,389
Non-current assets of discontinued operations     - -     - -     8,618
Total assets   $ 791,137   $ 802,727   $ 592,064
                   
Liabilities                  
Current liabilities                  
Bank loans   $ 16,014   $ 8,454   $ - -
Accounts payable and accrued liabilities     155,915     145,353     74,060
Income tax liabilities     120     56     580
Current portion of long-term debt     9,039     8,855     5,477
Current portion of balances of purchase price of businesses     8,736     10,043     1,495
      189,824     172,761     81,612
Non-current liabilities                  
Debt     124,730     104,388     62,212
Balance of purchase price of businesses     18,690     24,173     - -
Convertible debentures     60,690     60,408     - -
Provisions     1,346     1,325     3,335
Deferred tax liabilities     25,373     25,623     20,329
Other liabilities     12,220     12,606     9,661
Non-current liabilities of discontinued operations     - -     - -     1,604
Total liabilities     432,873     401,284     178,753
                   
Equity                  
Equity attributable to shareholders of Canam Group Inc.                  
Share capital     180,869     179,102     178,024
Retained earnings     181,274     222,877     230,800
Other equity items     (3,879)     (536)     4,487
Total equity     358,264     401,443     413,311
Total equity and liabilities   $ 791,137   $ 802,727   $ 592,064

                                                 
Interim Consolidated Statements of Changes in Equity
                                                 
As at March 26, 2011    
    ATTRIBUTABLE TO SHAREHOLDERS OF CANAM GROUP INC.
                                                 
(in thousands of Canadian dollars)
(unaudited)
  Employee
benefits
paid in
equity instruments
  Translation
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, 2010   $ 4,038   $ - -   $ 449   $ - -   $ 4,487   $ 178,024   $ 230,800   $ 413,311
Net loss for the period     - -     - -     - -     - -     - -     - -     (625)     (625)
Comprehensive loss     - -     (3,487)     43     - -     (3,444)     - -     - -     (3,444)
Dividends     - -     - -     - -     - -     - -     - -     (1,815)     (1,815)
Issuance of shares pursuant to options     (4)     - -     - -     - -     (4)     25     - -     21
Shares purchased by a trust in employees' name on the secondary market     - -     - -     - -     - -     - -     (364)     - -     (364)
Shares acquired by employees     (1,382)     - -     - -     - -     (1,382)     1,382     - -     - -
Repurchase of shares     - -     - -     - -     - -     - -     (65)     - -     (65)
Excess of acquisition cost over carrying amount of acquired common shares     - -     - -     - -     - -     - -     - -     (53)     (53)
Amortization of compensation costs related to the profit sharing program -
stock ownership component
    344     - -     - -     - -     344     - -     - -     344
Balance as at March 27, 2010   $ 2,996   $ (3,487)   $ 492   $ - -   $ 1   $ 179,002   $ 228,307   $ 407,310
Balance as at January 1, 2011   $ 4,035   $ (11,133)   $ 798   $ 5,764   $ (536)   $ 179,102   $ 222,877   $ 401,443
Net loss for the period     - -     - -     - -     - -     - -     - -     (39,737)     (39,737)
Comprehensive loss     - -     (1,804)     94     - -     (1,710)     - -     - -     (1,710)
Dividends     - -     - -     - -     - -     - -     - -     (1,796)     (1,796)
Issuance of shares pursuant to options     (9)     - -     - -     - -     (9)     43     - -     34
Shares acquired by employees     (1,810)     - -     - -     - -     (1,810)     1,810     - -     - -
Repurchase of shares     - -     - -     - -     - -     - -     (86)     - -     (86)
Excess of acquisition cost over carrying amount of acquired common shares     - -     - -     - -     - -     - -     - -     (70)     (70)
Amortization of compensation costs related to the profit sharing program -
stock ownership component
    186     - -     - -     - -     186     - -     - -     186
Balance as at March 26, 2011   $ 2,402   $ (12,937)   $ 892   $ 5,764   $ (3,879)   $ 180,869   $ 181,274   $ 358,264

             
Interim Consolidated Statements of Cash Flows
Periods ended March 26, 2011 and March 27, 2010            
    Three months
(in thousands of Canadian dollars) (unaudited)     2011     2010
Cash flows from the following activities:            
Operating activities            
Net loss   $ (39,737)   $ (625)
Adjustments:            
  Amortization of compensation costs related to the profit sharing program - stock ownership component     186     346
  Gain on revaluation of investments     - -     (3,888)
  Gain on disposal of property, plant and equipment     (92)     (11)
  Depreciation of property, plant and equipment     4,949     4,230
  Amortization of intangible assets     872     661
  Amortization of deferred financing expenses     112     55
  Provisions     21     (686)
  Interest rate swaps     (117)     - -
  Imputed interest     495     - -
  Deferred tax expense     (4,174)     (2,037)
  Pension expense     53     (251)
  Share in loss of joint ventures and associates     221     166
      (37,211)     (2,040)
Net change in non-cash operating working capital items            
  Decrease in accounts receivable     42,094     11,643
  Increase in inventories     (17,619)     (6,569)
  Increase in income taxes assets     (11,508)     (1,010)
  Increase in prepaid expenses and other assets     (1,097)     (77)
  Increase (decrease) in accounts payable and accrued liabilities     10,564     (7,494)
  Increase in interest payable     1,253     199
  Increase (decrease) in tax liabilities     105     (496)
      23,792     (3,804)
Cash flows from continuing operating activities     (13,419)     (5,844)
Financing activities            
Shares purchased by a trust in employees' name on the secondary market     - -     (364)
Repurchase of shares     (156)     (118)
Proceeds from issuance of shares     34     21
Dividends     (1,796)     - -
Increase in debt and bank loans     30,402     28,871
Repayment of debt and bank loans     (1,793)     (916)
Repayment of balances of purchase price of businesses     (6,892)     - -
Issue expenses related to debt and debenture     (595)     - -
Other liabilities     (211)     11
Cash flows from continuing financing activities     18,993     27,505
Investing activities            
Proceeds from sale of property, plant and equipment     47     7
Additions to property, plant and equipment     (6,206)     (7,416)
Additions to intangible assets     (245)     (86)
Acquisition of investments     - -     (120)
Decrease in receivable and other assets     81     763
Increase in receivable and other assets     (50)     - -
Business acquisitions, net of cash acquired     - -     (38,684)
Cash flows from continuing investing activities     (6,373)     (45,536)
Effects of changes in foreign exchange rate on cash and cash equivalents     29     (1,170)
Net change in cash from continuing operations     (770)     (25,045)
Cash flows from discontinued operations            
  Operating activities     - -     27
  Investing activities     - -     15
            42
Cash and cash equivalents, beginning of period     8,530     57,469
Cash and cash equivalents, end of period   $ 7,760   $ 32,466
Supplementary information            
  Interest paid   $ 1,290   $ 730
  Income taxes paid (recovered), net   $ (1,067)   $ 1,001

  

SOURCE CANAM GROUP INC.

For further information:

Source:  Jasmin Gosselin
  Vice President, Communications
  Tel.: 450-641-4000
  Email:  jasmin.gosselin@canamgroup.ws
    www.canamgroup.ws

 

Profil de l'entreprise

CANAM GROUP INC.

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