Canam Group Reports a Net Income of $3.3M in the Fourth Quarter of 2011

BOUCHERVILLE, QC, Feb. 15, 2012 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), which specializes in the design and fabrication of construction products, closed its recent financial year ended December 31, 2011 with consolidated sales totaling $881M, up 20.2% from $732.7M in 2010.The Corporation incurred a net loss of $32.5M, or $0.72 per share, compared with a net income of $1.1M, or $0.02 per share, in 2010.

Fourth-quarter net income totaled $3.3M, or $0.07 per share, compared with a net income of $1M, or $0.02 per share, for the corresponding period in 2010. Consolidated sales in the fourth quarter increased by 17.4%, from $243.8M in 2010 to $286.3M in 2011.

Canam Group president and chief executive officer, Marc Dutil, explained that the increase in sales registered in 2011 is primarily attributable to Canam's activities in Canada and the integration of the activities of United Steel Deck. However, weak non-residential construction in the United States exerted downward pressure on profit margins on both sides of the border. Mr. Dutil added that the Corporation's 2011 financial results were mainly curtailed by the losses on the BC Place project, a non-recurring event.

As at December 31, 2011, Canam Group's backlog of orders stood at $462M, compared with $485M at the end of 2010.

As at December 31, 2011, pursuant to its normal course issuer bid that was authorized by the Toronto Stock Exchange (TSX), Canam Group had purchased 1,911,900 common shares at an average price of $3.26 per share. The book value per share as at December 31, 2011 was $8.30, whereas the closing price at the TSX on this same date was $4.10.

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 virtual design and construction services. The Corporation operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has a manufacturing joint venture in China.

Conference call
Canam Group will hold a conference call with financial analysts and media representatives on Wednesday, February 15, 2012 at 9:00 a.m. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until February 29, 2012 by dialing 1-800-408-3053 and entering access code 6765860, followed by the pound key (#).

Consolidated Statements of Income (Loss)
 
Periods ended December 31
  3 months   12 months
(in thousands of Canadian dollars, except per share amounts)   2011   2010   2011   2010
                 
Revenues $ 286,319 $ 243,790 $ 881,028 $ 732,674
Cost of sales, excluding depreciation and amortization   248,211   218,445   821,835   641,565
Selling and administrative expenses   24,249   20,682   86,557   74,911
Profit sharing programs   707   884   932   1,658
Depreciation of property, plant and equipment   5,205   4,792   20,322   18,317
Amortization of intangible assets   359   1,122   1,986   3,968
Other losses (revenues) - nets   449   (273)   (11,117)          (337)
    7,139   (1,862)   (39,487)     (7,408)
Finance costs   4,844   3,689   18,322   8,709
Finance incomes   (422)   (421)       (1,881)   (2,280)
Impairment of goodwill   2,346   -   11,326   -
Gain on revaluation of balances of purchase price of businesses   (2,155)   -   (11,282)   -
Gain (loss) on revaluation of investments   -   78   -      (3,810)
Gain on business acquisition   -   (7,464)   -      (7,464)
Share of income of joint ventures and associates   (1,007)            123   (1,464)         (264)
Income (loss) before income tax     3,533         2,133   (54,508)       (2,299)
Tax expense (income)                
  Current (recovered)   (827)     (1,837)   (15,120)           290
  Deferred      1,072        2,971   (6,880)      (3,657)
          245   1,134   (22,000)      (3,367)
Net income (loss) $ 3,288 $ 999 $ (32,508) $      1,068
                 
Net income (loss) per share                
  Basic $ 0.07 $ 0.02 $ (0.72) $ 0.02
  Diluted $ 0.07 $ 0.02 $ (0.72) $ 0.02
                 
Weighted average number of common shares (in thousands of shares)                
  Basic   44,710   45,208   45,097   45,207
  Diluted   44,825   45,394   45,218   45,396
Number of common shares outstanding           43,440   45,366
                 
                 
Consolidated Statements of Comprehensive Income (Loss)
                 
Periods ended December 31
    3 months   12 months
(in thousands of Canadian dollars)   2011   2010   2011   2010
Net income (loss) $ 3,288 $ 999 $ (32,508) $ 1,068
Other comprehensive income (loss):                
  Change in unrealized gains (losses) on translating foreign operations   (3,245)   (7,257)   4,725   (11,133)
  Defined benefit pension plan:                
    Actuarial losses of the defined benefit pension plan   (4,648)   (2,395)   (4,648)   (2,395)
    Tax income   1,217   621   1,217   621
    (3,431)   (1,774)   (3,431)   (1,774)
  Available-for-sale financial assets:                
    Unrealized gains on available-for-sale financial assets arising during the period   90   81   50   839
    Reclassification in earnings   -   -   -   (421)
    Tax expense   (12)   (12)   (7)   (70)
    78   69   43   348
Other comprehensive income (loss)   (6,598)   (8,962)   1,337   (12,559)
Comprehensive loss $ (3,310) $ (7,963) $ (31,171) $ (11,491)


Consolidated Balance Sheets
                 
(in thousands of Canadian dollars) As at
December 31,
2011
  As at
December 31,
2010
  As at
January 1,
2010
                 
Assets                
Current assets                
Cash and cash equivalents $ 7,368   $ 8,530   $ 57,469
Investment pledged as collateral   -     9,946     -
Accounts receivable   304,551     224,304     120,462
Inventories   111,955     107,187     79,166
Current tax assets   16,588     4,190     6,701
Prepaid expenses and other assets   4,063     3,675     3,363
Current assets of discontinued operations   -     -     1,230
    444,525     357,832     268,391
Property, plant and equipment held for sale   1,498     1,465     1,549
    446,023     359,297     269,940
Non-current assets                
Investments   4,959     4,895     16,677
Ownership interests in joint ventures and associates   61,954     59,913     58,845
Property, plant and equipment   279,554     280,292     211,956
Intangible assets   9,772     11,156     1,127
Goodwill   38,930     49,366     150
Deferred tax assets   25,149     13,788     3,362
Long-term receivables and other assets   21,820     24,020     21,389
Non-current assets of discontinued operations   -     -     8,618
Total assets $ 888,161   $ 802,727   $ 592,064
                 
Liabilities                
Current liabilities                
Bank loans $ 32,761   $ 8,454   $ -
Accounts payable and accrued liabilities   169,110     138,853     74,060
Provisions   -     6,500     -
Current tax liabilities   165     56     580
Current portion of long-term debt   37,038     8,855     5,477
Current portion of balances of purchase price of businesses   7,315     10,043     -
Current liabilities of discontinued operations   -     -     1,495
    246,389     172,761     81,612
Non-current liabilities                
Debt   163,782     104,388     62,212
Balances of purchase price of businesses   8,768     24,173     -
Convertible debentures   61,816     60,408     -
Provisions   1,613     1,325     3,335
Deferred tax liabilities   28,784     25,623     20,329
Other liabilities   16,242     12,606     9,661
Non-current liabilities of discontinued operations   -     -     1,604
Total liabilities   527,394     401,284     178,753
                 
Equity                
Share capital   172,869     179,102     178,024
Retained earnings   184,774     222,877     230,800
Other equity items   3,124     (536)     4,487
Total equity   360,767     401,443     413,311
Total equity and liabilities $ 888,161   $ 802,727   $ 592,064


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, 2010 $ 4,038   $ -   $ 449   $ -   $ 4,487   $ 178,024   $ 230,800   $ 413,311
Net income for the period   -     -     -     -     -     -     1,068     1,068
Comprehensive loss   -     (11,133)     348     -     (10,785)     -     (1,774)     (12,559)
Dividends   -     -     -     -     -     -     (7,157)     (7,157)
Issuance of shares pursuant to options   (3)     -     -     -     (3)     129     -     126
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   -     -     -     -     -     (69)     -     (69)
Excess of acquisition cost over carrying amount of acquired common shares   -     -     -     -     -     -           (60)     (60)
Amortization of compensation costs related to the profit sharing program - stock ownership component   1,383     -     -     -     1,383     -     -     1,383
Debenture conversion options   -     -     -     5,764     5,764     -     -     5,764
Balance as at December 31, 2010 $ 4,036   $ (11,133)   $ 797   $ 5,764   $ (536)   $ 179,102   $ 222,877   $ 401,443
Balance as at January 1, 2011 $ 4,036   $ (11,133)   $ 797   $ 5,764   $ (536)   $ 179,102   $ 222,877   $ 401,443
Net loss for the period   -     -     -     -     -     -     (32,508)     (32,508)
Comprehensive income   -     4,725     43     -     4,768     -     (3,431)     1,337
Dividends   -     -     -     -     -     -     (3,592)     (3,592)
Issuance of shares pursuant to options   (13)     -     -     -     (13)     57     -     44
Shares purchased by a trust in employees' name on the secondary market   -     -     -     -     -     (318)     -     (318)
Shares acquired by employees   (1,841)     -     -     -     (1,841)     1,841     -     -
Repurchase of shares   -     -     -     -     -     (7,813)     -     (7,813)
Excess of carrying amount over acquisition cost of acquired common shares   -     -     -     -     -     -     1,428     1,428
Amortization of compensation costs related to the profit sharing program - stock ownership component   746     -     -     -     746     -     -     746
Balance as at December 31, 2011 $ 2,928   $ (6,408)   $ 840   $ 5,764   $ 3,124   $ 172,869   $ 184,774   $ 360,767

Consolidated Statements of Cash Flows
                       
Periods ended December 31                      
  3 months   12 months
(in thousands of Canadian dollars) 2011   2010   2011   2010
Cash flows from the following activities:                      
Operating activities                      
Net earnings (loss) $ 3,288   $ 999   $ (32,508)   $ 1,068
Adjustments:                      
  Amortization of compensation costs related to the profit sharing program - stock ownership component   186     345     746     1,383
  Impairment of goodwill   2,346     -     11,326     -
  Gain on revaluation of balances of purchase price of businesses   (2,155)     -     (11,282)     -
  Gain on revaluation of investments   -     78     -     (3,810)
  Gain on business acquisition   -     (7,464)     -     (7,464)
  Gain on disposal of investments   -     -     -     (448)
  Loss (gain) on disposal of property, plant and equipment   16     152     (214)     117
  Depreciation of property, plant and equipment   5,205     4,792     20,322     18,317
  Amortization of intangible assets   359     1,122     1,986     3,968
  Amortization of deferred financing expenses   99     55     466     234
  Provisions   201     405     288     (683)
  Interest rate swaps   (69)     279     474     279
  Imputed interest   617     1,067     3,125     2,021
  Pension expense   (1,045)     (378)     (662)     (964)
  Deferred tax expense   1,072     2,971     (6,880)     (3,657)
  Share of loss of joint ventures and associates   (1,007)     123     (1,464)     (264)
    9,113     4,546     (14,277)     10,097
Net change in non-cash operating working capital items                      
  Decrease (increase) in the short-term investment pledged as collateral   2,449     (9,946)     10,170     (9,946)
  Increase in accounts receivable   (49,004)     (8,589)     (78,087)     (60,687)
  Decrease (increase) in inventories   22,085     14,724     (3,741)     (16,451)
  Decrease (increase) in current tax assets   (1,668)     (4,180)     (12,390)     814
  Decrease (increase) in prepaid expenses and other assets   (574)     31     (347)     755
  Increase (decrease) in accounts payable and accrued liabilities   3,721     (33,910)       29,961     9,095
  Increase (decrease) in provisions   (2,740)     6,500     (6,500)     6,500
  Increase (decrease) in interest payable   (1,222)     (228)     (2)     916
  Increase (decrease) in current tax liabilities   62     475     154     (247)
    (26,891)     (35,123)     (60,782)     (69,251)
Cash flows from continuing operating activities   (17,778)     (30,577)     (75,059)     (59,154)
Financing activities                      
Shares purchased by a trust in employees' name on the secondary market   (318)     -     (318)     (364)
Repurchase of shares   (6,229)     -     (6,385)     (127)
Proceeds from issuance of shares   -     -     44     125
Dividends   -     (3,579)     (3,592)     (7,157)
Increase in debt and bank loans   20,870     38,116     128,456     112,742
Repayment of debt and bank loans   (2,584)     (62,643)     (17,665)     (66,279)
Repayment of balances of purchase price of businesses   (1,689)     (2,587)     (8,866)     (5,217)
Issuance of debenture   -     66,240     - -     66,240
Issue expenses related to debt and debenture   (8)       (618)     (850)     (618)
Other liabilities   (174)     (756)     (744)     (923)
Cash flows from continuing financing activities   9,868     34,173     90,080     98,422
Investing activities                      
Proceeds from sale of property, plant and equipment   12     (115)     92     464
Additions to property, plant and equipment   (3 144)     (11,269)     (17,954)     (38,812)
Additions to intangible assets   (61)     (88)     (406)     (416)
Acquisition of investments   (468)     -     (468)     (120)
Proceeds from disposal of investments   -     -     -     1,503
Distributions received from a joint venture and an associate   150     529     375     529
Decrease in receivables and other assets   1,130     624     1,882     5,207
Increase in receivables and other assets   -     (41)     (52)     (176)
Business acquisitions, net of cash acquired   -     146     -     (54,139)
Cash flows from continuing investing activities   (2,381)     (10,214)     (16,531)     (85,960)
Effects of changes in foreign exchange rate on cash and cash equivalents   159     (1,802)     348     (2,385)
Net change in cash from continuing operations   (10,132)     (8,420)     (1,162)     (49,077)
Cash flows from discontinued operations                      
  Operating activities   -     -     -     124
  Investing activities   -     -     -     14
    -     -     -     138
Cash and cash equivalents - Beginning of period   17,500     16,950     8,530     57,469
Cash and cash equivalents - End of period $ 7,368   $ 8,530   $ 7,368   $ 8,530
Supplementary information                      
  Interest paid $ 6,327   $ 1,898   $ 12,345   $ 5,014
  Income taxes paid (recovered), net $ 70   $ 1,510   $ (2,867)   $ (1,853)

 

 

SOURCE CANAM GROUP INC.

For further information:

François Bégin
Vice President, Communications
Telephone: 450-641-4000
Email:  francois.begin@canamgroup.ws
Website: www.canamgroup.ws

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CANAM GROUP INC.

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