Canam Group net earnings up 6.3% to $15 million in the third quarter of 2008



    BOUCHERVILLE, QC, Oct. 22 /CNW Telbec/ - Construction product
manufacturer Canam Group Inc. (TSX: CAM) today reported net earnings of
$15 million, or $0.31 per share, for the third quarter ended September 27,
2008, up 6.3% compared to net earnings of $14.1 million, or $0.29 per share,
during the corresponding period in 2007. Consolidated sales totaled
$231.7 million versus $238.3 million.
    Net earnings for the nine-month period ended September 27, 2008 amounted
to $34.7 million, or $0.71 per share, up 2.8% compared with $33.8 million, or
$0.69 per share, for the same period in 2007. In the first nine months of
2008, consolidated sales fell slightly to $594.1 million compared to
$618.3 million a year ago.
    For Canam Group president and chief operating officer Marc Dutil, "These
quarterly results, the size of our order backlog, the diversification of our
activity sectors and the strength of our balance sheet indicate that the
company is well positioned with respect to the expected economic slowdown."
    As at September 27, 2008, shareholders' equity totaled $396.4 million and
net debt stood at $79.4 million, translating into a net debt-to-equity ratio
of 0.20. For the third quarter of 2008, EBITDA was $26.6 million or 11.5% of
sales, compared with $30.3 million or 12.7% of sales for the same period last
year.
    Canam Group's order backlog stood at $340 million as at September 27,
2008, compared to $352 million as at June 28, 2008.
    In addition, as at October 21, 2008, the company had acquired
2,185,100 shares at an average price of $6.14 per share, for a total amount of
$13.4 million. The shares were purchased in the scope of the company's Common
Share Buyback Program pursuant to a normal course issuer bid at the TSX for up
to 4,075,000 shares that began last August 11. As at October 21, 2008, there
were a total of 47,258,606 outstanding shares.
    The board of directors approved a quarterly dividend of $0.04 per common
share payable on December 31, 2008 to shareholders of record on December 17,
2008.

    Canam Group is an industrial company operating 12 plants specialized in
the design and fabrication of construction products and solutions. The company
employs more than 3,000 people in Canada, the United States, Romania and
India, and has partnerships with companies in Mexico, France, Saudi Arabia,
the United Arab Emirates, Russia and China.

    Conference call
    ---------------

    Canam Group will hold a conference call with financial analysts and media
at 9 a.m. on Thursday, October 23, 2008. The call will be broadcast live via
the Internet at www.canamgroup.ws and www.cnw.ca. A recording of the
conference call will be available at 1-800-408-3053 (access code 3272828)
until November 14, 2008.


    

                     Consolidated Statements of Earnings

    Periods ended
     September 27, 2008 and
     September 29, 2007
    (in thousands of dollars,
     except per share
     amounts) (unaudited)            3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                  $  231,694   $  238,257   $  594,094   $  618,276
    -------------------------------------------------------------------------
    Cost of sales             183,194      190,652      467,547      490,798
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Gross profit               48,500       47,605      126,547      127,478
    -------------------------------------------------------------------------
    Selling and
     administrative
     expenses                  19,483       20,003       59,055       58,407
    -------------------------------------------------------------------------
    Profit sharing and
     continuous
     improvement programs       2,798        2,301        5,192        4,221
    -------------------------------------------------------------------------
    Exchange loss (gain)           42       (4,034)      (1,415)      (8,544)
    -------------------------------------------------------------------------
    Interest income              (122)        (403)        (393)      (1,079)
    -------------------------------------------------------------------------
    Increase in the
     redemption value of
     an investment in a
     related company             (461)        (470)      (1,374)      (1,405)
    -------------------------------------------------------------------------
    Loss (gain) on disposal
     of property, plant
     and equipment, and on
     property, plant and
     equipment held for sale      117           79          145         (172)
    -------------------------------------------------------------------------
    Gain on disposal
     of investments                 -         (176)           -       (1,624)
    -------------------------------------------------------------------------
    Impairment of property,
     plant and equipment
     held for sale                  -            -          177            -
                           --------------------------------------------------
    -------------------------------------------------------------------------
                               26,643       30,305       65,160       77,674
    -------------------------------------------------------------------------
    Depreciation of
     property, plant and
     equipment                  3,934        3,793       11,548       11,125
    -------------------------------------------------------------------------
    Amortization of
     intangible assets            431          533        1,357        1,347
    -------------------------------------------------------------------------
    Financial expenses          1,499        2,649        4,436        6,165
    -------------------------------------------------------------------------
    Impairment of the
     investment in a
     variable interest
     entity located in
     Mexico                         -            -            -        1,959
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Earnings before income
     tax expense and
     undermentioned items      20,779       23,330       47,819       57,078
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Income tax expense
      Current                   5,722        9,868       13,975       21,883
      Future                      272         (651)          27          995
                           --------------------------------------------------
    -------------------------------------------------------------------------
                                5,994        9,217       14,002       22,878
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Earnings before
     undermentioned items      14,785       14,113       33,817       34,200
    -------------------------------------------------------------------------
    Share in earnings of
     companies subject to
     significant influence        364          264        1,003          517
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings from
      continuing operations    15,149       14,377       34,820       34,717
    -------------------------------------------------------------------------
    Net loss from
     discontinued
     operations                  (125)        (234)        (106)        (938)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings           $   15,024   $   14,143   $   34,714   $   33,779
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings
     (net loss) per share
    Basic:
      From continuing
       operations          $     0.31   $     0.29   $     0.71   $     0.71
      From discontinued
       operations                   -            -            -        (0.02)
                           --------------------------------------------------
                           --------------------------------------------------
      Total                $     0.31   $     0.29   $     0.71   $     0.69
                           --------------------------------------------------
                           --------------------------------------------------
    Diluted:
      From continuing
       operations          $     0.30   $     0.29   $     0.70   $     0.70
      From discontinued
       operations                   -            -            -        (0.02)
                           --------------------------------------------------
                           --------------------------------------------------
      Total                $     0.30   $     0.29   $     0.70   $     0.68
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     (in thousands of
     shares)
      Basic                    49,078       48,986       49,127       48,933
      Diluted                  49,409       49,518       49,513       49,388
    -------------------------------------------------------------------------
    Number of common
     shares outstanding                                  48,938       49,258
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


               Consolidated Statements of Comprehensive Income

    Periods ended
     September 27, 2008 and
     September 29, 2007
    (in thousands of dollars)
     (unaudited)                     3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings           $   15,024   $   14,143   $   34,714   $   33,779
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income, net of
     income taxes:
      Unrealized gains
       (losses) on
       translating
       financial
       statements of
       self-sustaining
       foreign operations  $    2,865   $   (8,857)  $    6,500   $  (20,896)
      Reclassification in
       earnings related
       to the reduction in
       the net investment
       in a self-sustaining
       foreign operation            -            -            -        1,959
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Unrealized foreign
     currency translation
     gains (losses)        $    2,865   $   (8,857)  $    6,500   $  (18,937)
                           --------------------------------------------------
    -------------------------------------------------------------------------
      Unrealized gains
      (losses) on
       available-for-sale
       financial assets
       arising during
       the period          $       50   $      (22)  $       61   $     (206)
      Reclassification
       in earnings                  -            -            -          (64)
      Income tax expense          (17)         (14)         (36)          34
                           --------------------------------------------------
    -------------------------------------------------------------------------

    Change in unrealized
     gains and losses
     on available-for-sale
     financial assets      $       33   $      (36)  $       25   $     (236)
                           --------------------------------------------------
    -------------------------------------------------------------------------
      Gains on derivatives
       designated as
       cash flow hedges    $        -   $   (2,095)  $        -   $        -
      Reclassification in
       earnings of gains
       on derivatives
       designated as cash
       flow hedges on sales      (576)           -       (1,785)           -
      Income tax expense          188          670          581            -
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Change in gains on
     derivatives designated
     as cash flow hedges   $     (388)  $   (1,425)  $   (1,204)  $        -
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss)         $    2,510   $  (10,318)  $    5,321   $  (19,173)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income   $   17,534   $    3,825   $   40,035   $   14,606
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                 Consolidated Statements of Retained Earnings

    Periods ended
     September 27, 2008 and
     September 29, 2007
    (in thousands of dollars)
     (unaudited)                     3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance        $  216,161   $  176,549   $  200,421   $  160,840
    -------------------------------------------------------------------------
    Net earnings               15,024       14,143       34,714       33,779
    -------------------------------------------------------------------------
    Dividends                  (1,965)      (1,970)      (5,915)      (5,897)
    -------------------------------------------------------------------------
    Excess of purchase
     price over carrying
     value of acquired
     common shares             (2,172)           -       (2,172)           -
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Closing balance        $  227,048   $  188,722   $  227,048   $  188,722
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                         Consolidated Balance Sheets

                                                          As at        As at
                                                   September 27, December 31,
                                                           2008         2007
    (in thousands of dollars)                        (unaudited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current assets
      Cash                                           $   13,195   $   11,221
      Accounts receivable                               163,945      156,334
      Inventories                                       202,002      130,388
      Unrealized asset on foreign
       currency forward contracts                             -          192
      Income taxes recoverable                            4,508          923
      Future income tax assets                            4,527        3,955
      Prepaid expenses and other assets                   2,958        4,583
      Current assets of discontinued operations           3,050        3,821
                                                   --------------------------
                                                   --------------------------
      Total current assets                              394,185      311,417
                                                   --------------------------
    -------------------------------------------------------------------------
    Investments                                          77,418       73,238
    -------------------------------------------------------------------------
    Property, plant and equipment                       175,511      168,077
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale           1,793        5,613
    -------------------------------------------------------------------------
    Intangible assets                                     2,148        2,802
    -------------------------------------------------------------------------
    Goodwill                                                312          312
    -------------------------------------------------------------------------
    Future income tax assets                              2,624        2,602
    -------------------------------------------------------------------------
    Other assets                                          5,733        5,799
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations          13,028       15,237
                                                   --------------------------
    -------------------------------------------------------------------------
                                                     $  672,752   $  585,097
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    Current liabilities
      Bank loans                                     $    5,114   $    5,220
      Accounts payable and accrued liabilities          164,839      116,556
      Income taxes payable                                  434        7,797
      Future income tax liabilities                         428          376
      Current portion of long-term debt                   5,259        3,962
      Current liabilities of discontinued
       operations                                         2,031        2,448
                                                   --------------------------
                                                   --------------------------
      Total current liabilities                         178,105      136,359
                                                   --------------------------
    -------------------------------------------------------------------------
    Long-term debt                                       82,218       65,027
    -------------------------------------------------------------------------
    Deferred credits                                      4,323        4,577
    -------------------------------------------------------------------------
    Future income tax liabilities                         8,958        8,409
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued
     operations                                           2,779        3,835
                                                   --------------------------
    -------------------------------------------------------------------------
                                                        276,383      218,207
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' Equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Share capital                                       192,972      196,611
    -------------------------------------------------------------------------
    Retained earnings                                   227,048      200,421
    -------------------------------------------------------------------------
    Contributed surplus                                   4,010        2,840
    -------------------------------------------------------------------------
    Accumulated other comprehensive income              (27,661)     (32,982)
                                                   --------------------------
    -------------------------------------------------------------------------
                                                        396,369      366,890
                                                   --------------------------
    -------------------------------------------------------------------------
                                                     $  672,752   $  585,097
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                    Consolidated Statements of Cash Flows


    Periods ended
     September 27, 2008 and
     September 29, 2007
    (in thousands of dollars)
     (unaudited)                     3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings
     from continuing
     operations            $   15,149   $   14,377   $   34,820   $   34,717
    -------------------------------------------------------------------------
    Items not
     affecting cash
      Depreciation of
      property, plant
       and equipment            3,934        3,793       11,548       11,125
      Amortization of
       intangible assets          431          533        1,357        1,347
      Amortization of
       deferred financing
       expenses                    55           79          181          280
      Future income tax
       expense                    272         (651)          27          995
      Loss (gain) on
       disposal of property,
       plant and equipment
       and on property,
       plant and equipment
       held for sale              117           79          145         (172)
      Loss (gain) on
       foreign currency
       forward contracts         (394)       2,035       (1,012)      (1,509)
      Gain on disposal
       of investments               -         (176)           -       (1,624)
      Impairment of the
       investment in a
       variable interest
       entity located
       in Mexico                    -            -            -        1,959
      Pension expense            (439)        (134)        (729)        (500)
      Compensation cost
       related to stock
       options                      4            6           11           26
      Amortization of
       compensation costs
       related to the
       profit sharing
       program - stock
       ownership component        390          225        1,169          675
      Increase in the
       redemption value of
       an investment in a
       related company           (461)        (470)      (1,374)      (1,405)
      Impairment of
       property, plant and
       equipment held for
       sale                         -            -          177            -
      Share in earnings of
       companies subject
       to significant
       influence                 (364)        (264)      (1,003)        (517)
                           --------------------------------------------------
                           --------------------------------------------------
                               18,694       19,432       45,317       45,397
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working
     capital items
      Increase in accounts
       receivable              (6,983)      (9,926)      (3,156)     (32,150)
      Decrease (increase)
       in inventories          (1,508)      12,153      (70,302)     (22,885)
      Decrease (increase)
       in income taxes
       recoverable                753           14       (3,507)          22
      Decrease in prepaid
       expenses and other
       assets                   1,310        2,024        1,585        1,858
      Increase (decrease)
       in accounts payable
       and accrued
       liabilities             (3,132)      (6,751)      45,259       25,408
      Increase in interest
       payable                    239           11          265            9
      Increase (decrease)
       in income taxes
       payable                    330        3,622       (7,402)       1,973
                           --------------------------------------------------
                           --------------------------------------------------
                               (8,991)       1,147      (37,258)     (25,765)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from
     continuing operating
     activities                 9,703       20,579        8,059       19,632
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased in
     employees' name on
     the secondary market           -            -       (1,970)      (1,445)
    -------------------------------------------------------------------------
    Redemption of shares       (4,216)           -       (4,216)           -
    -------------------------------------------------------------------------
    Proceeds from issuance
     of shares                     67        1,108          365        1,354
    -------------------------------------------------------------------------
    Dividends                  (1,965)      (1,970)      (5,915)      (5,897)
    -------------------------------------------------------------------------
    Increase in long-term
     debt and bank loans       13,091            -       32,320       31,566
    -------------------------------------------------------------------------
    Repayment of long-term
     debt and bank loans       (5,365)     (15,155)     (13,015)     (24,359)
    -------------------------------------------------------------------------
    Issue expenses related
     to long-term debt            (88)         (41)        (138)        (167)
    -------------------------------------------------------------------------
    Deferred credits             (134)         202          174          319
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from
     continuing financing
     activities                 1,390      (15,856)       7,605        1,371
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment                      -           13        1,578        3,206
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment held for sale        -            -        3,797            -
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment       (6,809)      (5,836)     (18,756)     (13,477)
    -------------------------------------------------------------------------
    Additions to
     intangible assets           (124)        (155)        (656)        (772)
    -------------------------------------------------------------------------
    Acquisition of
     investments               (1,550)           -       (1,770)      (2,311)
    -------------------------------------------------------------------------
    Proceeds from disposal
     of investments                 -            -            -          168
    -------------------------------------------------------------------------
    Distribution from a
     company subject to
     significant influence        (56)           -            -            -
    -------------------------------------------------------------------------
    Decrease in long-term
     receivables                  307          451          591          790
    -------------------------------------------------------------------------
    Increase in long-term
     receivables                    -         (803)        (269)      (3,543)
    -------------------------------------------------------------------------
    Business acquisitions,
     net of cash acquired           -       (5,151)           -      (10,554)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from
     continuing investing
     activities                (8,232)     (11,481)     (15,485)     (26,493)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate
     on cash                      425         (975)         262           76
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Net change in cash from
     continuing operations      3,286       (7,733)         441       (5,414)
    -------------------------------------------------------------------------
    Cash flows from
     discontinued operations
      Operating activities         48        1,087          410        5,192
      Investing activities        373          264        1,123          553
                           --------------------------------------------------
    -------------------------------------------------------------------------
                                  421        1,351        1,533        5,745
    -------------------------------------------------------------------------
    Cash, beginning of
     period                     9,488       15,690       11,221        8,977
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Cash, end of period    $   13,195   $    9,308   $   13,195   $    9,308
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary
     information
      Interest paid        $    1,083   $      392   $    3,683   $    3,526
      Income taxes paid,
      net                  $    5,375   $    6,655   $   24,170   $   17,232
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




For further information:

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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890