Canam Group maintains a solid backlogof orders of $563M

BOUCHERVILLE, QC, Aug. 5 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced that its consolidated sales grew by 23% to $185.4M for the quarter ended June 26, 2010, compared with $151.2M for the second quarter of 2009. The company posted a net loss of $2M, or $0.05 per share, as opposed to net earnings of $5.2M, or $0.12 per share, for the year-earlier quarter.

For the first six months of 2010, Canam Group's net loss amounted to $2.9M, or $0.07 per share, compared with net earnings of $10.6M, or $0.24 per share, over the same period last year. Consolidated sales for the first six months totaled $291M versus $331.4M for the corresponding period in 2009, representing a 12% decline.

Strong competition in the non-residential construction market continued into the second quarter, primarily in the United States, exerting pressure on gross margins. Nevertheless, several of the company's business units saw an increase in new bookings, sign of an improving economy.

Canam Group president and chief operating officer Marc Dutil said that management had anticipated that the situation would be difficult in the first half of 2010. He attributed the company's improved sales performance during the second quarter to the acquisition of FabSouth, completed in the first quarter, and a continued high level of activity in the infrastructure market.

Canam Group's backlog of orders as at June 26, 2010, stood at $563M, up 59% from $355M as at June 27, 2009.

The acquisition of two steel deck plants and other assets of a subsidiary of Commercial Metals Company, announced yesterday, will allow Canam Group to significantly broaden its geographic reach and range of products in the U.S. market, added Mr. Dutil.

The board of directors approved the payment of a quarterly dividend of $0.04 per common share on September 30, 2010 to shareholders of record on September 16, 2010.

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
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Canam Group will hold a conference call with financial analysts and media representatives on Thursday, August 5, 2010 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 August 19, 2010 by dialing 1-800-408-3053 and entering access code 3384275, followed by the pound key (#).

    
                 Interim Consolidated Statements of Earnings

    Periods ended June 26, 2010 and June 27, 2009
    (in thousands of dollars,
     except per share amounts)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2010        2009        2010        2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                      $ 185,400   $ 151,239   $ 291,003   $ 331,443
    Cost of sales                161,115     123,472     251,970     266,441
                               ----------------------------------------------
    Gross profit                  24,285      27,767      39,033      65,002
    Selling and
     administrative expenses      20,331      17,582      36,708      35,361
    Profit sharing programs          200         319         508       1,164
    Exchange loss (gain)             206      (1,100)        250        (282)
    Gain on disposal of
     investments                      (9)       (209)         (9)       (209)
    Gain on disposal of
     property, plant and
     equipment                      (290)        (77)       (306)        (85)
                               ----------------------------------------------
                                   3,847      11,252       1,882      29,053
    Depreciation of property,
     plant and equipment           4,880       3,982       9,256       8,011
    Amortization of
     intangible assets             1,555         354       2,216         722
    Financial expenses             1,146         515       1,656       1,131
    Gain on revaluation of
     investments                       -           -      (3,888)          -
                               ----------------------------------------------
    Earnings (loss) before
     income tax expense
     and undermentioned
     items                        (3,734)      6,401      (7,358)     19,189
                               ----------------------------------------------
    Income tax expense
     (recovery)
      Current                      1,286       1,172         434       6,316
      Future                      (2,834)        163      (4,939)        153
                               ----------------------------------------------
                                  (1,548)      1,335      (4,505)      6,469
                               ----------------------------------------------
    Earnings (loss) before
     undermentioned items         (2,186)      5,066      (2,853)     12,720
    Share in gain (loss) of
     companies subject to
     significant influence           123          61        (150)       (897)
    -------------------------------------------------------------------------
    Net earnings (net loss)
     from continuing
     operations                   (2,063)      5,127      (3,003)     11,823
    Net earnings (net loss)
     from discontinued
     operations                       42          99          60      (1,224)
                               ----------------------------------------------
    Net earnings (net loss)    $  (2,021)  $   5,226   $  (2,943)  $  10,599
    -------------------------------------------------------------------------
    Net earnings (net loss)
     per share
    Basic:
      From continuing
        operations             $   (0.05)  $    0.12   $   (0.07)  $    0.27
      From discontinued
       operations                      -           -           -       (0.03)
                               ----------------------------------------------
      Total                    $   (0.05)  $    0.12   $   (0.07)  $    0.24
                               ----------------------------------------------
    Diluted:
      From continuing
       operations              $   (0.05)  $    0.12   $   (0.07)  $    0.26
      From discontinued
        operations                     -           -           -       (0.03)
                               ----------------------------------------------
      Total                    $   (0.05)  $    0.12   $   (0.07)  $    0.23
    -------------------------------------------------------------------------
    Weighted average number
     of common shares
     (in thousands of shares)
      Basic                       45,101      44,928      45,102      44,948
      Diluted                     45,429      45,376      45,414      45,395
    Number of common shares
     outstanding                                          45,366      45,368
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


       Interim Consolidated Statements of Comprehensive Income (loss)

    Periods ended June 26, 2010 and June 27, 2009
    (in thousands of dollars)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2010        2009        2010        2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)    $  (2,021)  $   5,226   $  (2,943)  $  10,599
                               ----------------------------------------------
    Other comprehensive
     income (loss):
      Change in unrealized
       gains and losses on
       translating financial
       statements of
       self-sustaining
       foreign operations      $     964   $ (11,375)  $  (2,438)  $  (9,429)
                               ----------------------------------------------
      Unrealized gains
       (losses) on
       available-for-sale
       financial assets
       arising during the
       period                  $    (127)  $     372   $     (76)  $     529
      Income tax expense              22         (58)         14         (99)
                               ----------------------------------------------
    Change in unrealized
     gains and losses on
     available-for-sale
     financial assets          $    (105)  $     314   $     (62)  $     430
                               ----------------------------------------------
    Other comprehensive
     income (loss)             $     859   $ (11,061)  $  (2,500)  $  (8,999)
                               ----------------------------------------------
    Comprehensive income
     (loss)                    $  (1,162)  $  (5,835)  $  (5,443)  $   1,600
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


             Interim Consolidated Statements of Retained Earnings

    Periods ended June 26, 2010 and June 27, 2009
    (in thousands of dollars)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2010        2009        2010        2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance            $ 241,240   $ 234,798   $ 244,029   $ 232,208
    Net earnings (net loss)       (2,021)      5,226      (2,943)     10,599
    Dividends                     (1,815)     (1,816)     (3,629)     (3,631)
    Excess of acquisition
     cost over carrying value
     of acquired common shares        (5)          -         (58)       (968)
                               ----------------------------------------------
    Closing balance            $ 237,399   $ 238,208   $ 237,399   $ 238,208
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                     Interim Consolidated Balance Sheets

                                                         As at         As at
                                                       June 26,  December 31,
                                                          2010          2009
    (in thousands of dollars)                       (unaudited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    Current assets
      Cash and cash equivalents                      $  29,110     $  67,393
      Accounts receivable                              161,987        99,594
      Inventories                                      143,401       104,540
      Income taxes recoverable                           6,510         6,701
      Future income tax assets                           5,671         1,008
      Prepaid expenses and other assets                  4,212         3,484
      Current assets of discontinued operations            879         1,230
                                                     ------------------------
      Total current assets                             351,770       283,950
                                                     ------------------------
    Investments                                         48,673        63,503
    Property, plant and equipment                      219,390       184,851
    Property, plant and equipment held for sale          1,526         1,549
    Intangible assets                                   13,312         1,127
    Goodwill                                            53,221           150
    Future income tax assets                               246           363
    Long-term receivables and other assets              20,134        21,942
    Long-term assets of discontinued operations          8,166         8,618
                                                     ------------------------
                                                     $ 716,438     $ 566,053
    -------------------------------------------------------------------------
    Liabilities
    Current liabilities
      Bank loans                                     $   4,704     $       -
      Accounts payable and accrued liabilities         140,274        77,112
      Income taxes payable                                 153           635
      Future income tax liabilities                         75           876
      Current portion of long-term debt                  5,953         5,477
      Current portion of the balance of the
       purchase price of subsidiaries                   13,189             -
      Current liabilities of discontinued
       operations                                        1,296         1,495
                                                     ------------------------
      Total current liabilities                        165,644        85,595
                                                     ------------------------
    Long-term debt                                     120,009        62,212
    Balance of the purchase price of
     subsidiaries                                       22,419             -
    Deferred credits                                     4,054         4,749
    Future income tax liabilities                       11,365        11,296
    Long-term liabilities of discontinued
     operations                                          1,096         1,604
                                                       324,587       165,456
    -------------------------------------------------------------------------
    Shareholders' Equity
    Share capital                                      179,102       178,024
    Retained earnings                                  237,399       244,029
    Contributed surplus                                  4,167         4,862
    Accumulated other comprehensive loss               (28,817)      (26,318)
                                                     ------------------------
                                                       391,851       400,597
                                                     ------------------------
                                                     $ 716,438     $ 566,053
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                Interim Consolidated Statements of Cash Flows

    Periods ended June 26, 2010 and June 27, 2009
    (in thousands of dollars)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2010        2009        2010        2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    Net earnings (net loss)
     from continuing
     operations                $  (2,063)  $   5,127   $  (3,003)  $  11,823
    Items not affecting cash
     and cash equivalents
      Amortization of
       compensation costs
       related to the profit
       sharing program -
       stock ownership
       component                     345         431         691         916
      Unrealized gain on
       foreign currency
       forward contracts               -        (480)          -      (1,533)
      Gain on revaluation
       of investments                  -           -      (3,888)          -
      Gain on disposal of
       investments                    (9)       (209)         (9)       (209)
      Gain on disposal of
       property, plant and
       equipment                    (290)        (77)       (306)        (85)
      Depreciation of
       property, plant and
       equipment                   4,880       3,982       9,256       8,011
      Amortization of
       intangible assets           1,555         354       2,216         722
      Amortization of
       deferred financing
       expenses                       62          53         117         108
      Pension expense                 69         (35)         74        (106)
      Future income tax
       expense                    (2,834)        163      (4,939)        153
      Share in loss of
       companies subject to
       significant influence        (123)        (61)        150         897
                               ----------------------------------------------
                                   1,592       9,248         359      20,697
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working capital
     items
      Decrease (increase) in
       accounts receivable       (24,613)     10,841     (13,821)     24,588
      Decrease (increase) in
       inventories               (20,846)     20,133     (27,937)     33,154
      Decrease (increase) in
       income taxes
       recoverable                   781        (260)       (252)      1,925
      Decrease in prepaid
       expenses and other
       assets                        877         553         409       3,531
      Increase (decrease) in
       accounts payable and
       accrued liabilities        18,295      (5,711)      9,419     (20,754)
      Increase (decrease) in
       interest payable              387        (223)        586         (19)
      Decrease in income
       taxes payable                  (1)       (160)       (477)        (47)
                               ----------------------------------------------
                                 (25,120)     25,173     (32,073)     42,378
                               ----------------------------------------------
    Cash flows from continuing
     operating activities        (23,528)     34,421     (31,714)     63,075
    -------------------------------------------------------------------------
    Financing activities
    Shares purchased by a
     trust in employees' name
     on the secondary market           -           -        (364)     (1,871)
    Repurchase of shares              (9)          -        (127)     (2,122)
    Proceeds from issuance
     of shares                       104           -         125          47
    Dividends                     (1,814)     (1,816)     (1,814)     (3,631)
    Increase in long-term
     debt and bank loans          25,156           -      54,027       8,680
    Repayment of long-term
     debt and bank loans          (2,367)    (17,959)     (3,349)    (18,844)
    Deferred credits                   9          10        (666)       (235)
                               ----------------------------------------------
    Cash flows from continuing
     financing activities         21,079     (19,765)     47,832     (17,976)
    -------------------------------------------------------------------------
    Investing activities
    Proceeds from sale of
     property, plant and
     equipment                       500         321         507         392
    Additions to property,
     plant and equipment          (9,617)     (4,833)    (17,040)    (12,399)
    Additions to intangible
     assets                          (99)        (45)       (185)       (330)
    Acquisition of investments         -      (3,288)       (120)     (4,593)
    Proceeds from disposal
     of investments                    3         643           3       1,144
    Distribution from a
     company subject to
     significant influence             -           -           -         300
    Decrease in long-term
     receivables                     952         897       1,715       1,674
    Increase in long-term
     receivables                     (68)     (1,926)        (68)     (2,659)
    Business acquisitions,
     net of cash acquired              -           -     (38,684)          -
                               ----------------------------------------------
    Cash flows from continuing
     investing activities         (8,329)     (8,231)    (53,872)    (16,471)
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate on
     cash and cash equivalents       594        (125)       (727)       (311)
                               ----------------------------------------------
    Net change in cash and
     cash equivalents from
     continuing operations       (10,184)      6,300     (38,481)     28,317
    Cash flows from
     discontinued operations
      Operating activities           139         408         184          31
      Investing activities            (1)        138          14         285
                               ----------------------------------------------
                                     138         546         198         316
    Cash and cash equivalents,
     beginning of period          39,156      37,406      67,393      15,619
                               ----------------------------------------------
    Cash and cash equivalents,
     end of period             $  29,110   $  44,252   $  29,110   $  44,252
    -------------------------------------------------------------------------
    Supplementary information
      Interest paid            $   1,325   $     919   $   2,085   $   2,048
      Income taxes paid
       (recovered), net        $    (359)  $   1,494   $     705   $   5,040
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

SOURCE Canam Group Inc.

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


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