Canam Group Posts $14.1 Million in Net Earnings for the Third Quarter of 2007



    BOUCHERVILLE, QC, Nov. 1 /CNW Telbec/ - Construction product manufacturer
Canam Group Inc. (TSX: CAM) today reported net earnings of $14.1 million, or
$0.29 per share, for the third quarter ended September 29, 2007, up 6% from
$13.3 million, or $0.28 per share, for the corresponding period in 2006.
Consolidated sales totaled $238.3 million compared with $213.7 million, which
represents a 12% increase over 2006.
    For the nine-month period ended September 29, 2007, net earnings totaled
$33.8 million, or $0.69 per share, up 18% compared with net earnings of
$28.6 million, or $0.63 per share for the same period in 2006. Consolidated
sales for the first nine months of 2007 increased by 17% to $618.3 million,
from $528.6 million for the same period in 2006.
    According to Canam Group's president and chief operating officer,
Marc Dutil: "The growth of our earnings reflects the steady level of activity
on non-residential construction and infrastructures markets in North America."
    As at September 29, 2007, Canam Group had a healthy balance sheet, with
shareholder's equity totaling $353 million and a net debt of $96 million,
translating into a debt-to-equity ratio of 0.27. For the third quarter of
2007, EBITDA stood at $30.3 million, or 12.7% of sales, compared to
$27 million, or 12.7% of sales, for the corresponding quarter.
    The order backlog stood at $361 million as at September 29, 2007, which
represents a 22% increase compared with $297 million for the same period in
2006. During the third quarter, Canam Group also acquired the assets of
Eastern Bridge, a company located in Claremont, New Hampshire, which
specializes in the fabrication of road and railway bridges.
    The board of directors has approved a quarterly dividend of $0.04 per
share payable on December 31, 2007 to shareholders of record on December 17,
2007.

    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 the
media on Thursday, November 1, 2007 at 9:00 a.m. The conference call will be
webcast live at www.canamgroup.ws and www.cnw.ca. A replay of the conference
call will be available until November 16, 2007 at the following number:     
1-800-408-3053, access code 3239910 followed by the pound key#.


    
                     Consolidated Statements of Earnings

    Periods ended September 29, 2007 and September 30, 2006
    (in thousands of dollars, except per share amounts)

    (unaudited)                     3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                2007         2006         2007          2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                  $ 238,257    $ 213,719    $ 618,276     $ 528,633
    -------------------------------------------------------------------------
    Cost of sales            190,652      164,999      490,798       406,404
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Gross profit              47,605       48,720      127,478       122,229
    -------------------------------------------------------------------------
    Selling and
     administrative
     expenses                 20,003       20,090       58,407        54,518
    -------------------------------------------------------------------------
    Profit sharing and
     continuous
     improvement
     programs                  2,301        3,087        4,221         5,875
    -------------------------------------------------------------------------
    Exchange gain             (4,034)        (405)      (8,544)         (421)
    -------------------------------------------------------------------------
    Interest income             (403)        (694)      (1,079)       (1,831)
    -------------------------------------------------------------------------
    Increase in the
     redemption value of
     an investment in a
     related company            (470)        (506)      (1,405)       (1,410)
    -------------------------------------------------------------------------
    Expenses related to
     plant closings                -            5            -         1,188
    -------------------------------------------------------------------------
    Loss (gain) on
     disposal of property,
     plant and equipment          79          133         (172)          173
    -------------------------------------------------------------------------
    Gain on disposal of
     investments                (176)           -       (1,480)         (678)
    -------------------------------------------------------------------------
                           --------------------------------------------------
                              30,305       27,010       77,530        64,815
    -------------------------------------------------------------------------
    Depreciation of
     property, plant and
     equipment                 3,793        3,633       11,125        10,954
    -------------------------------------------------------------------------
    Amortization of
     intangible assets           533          240        1,347           687
    -------------------------------------------------------------------------
    Financial expenses         2,649        2,526        6,165         8,033
    -------------------------------------------------------------------------
    Impairment of the
     investment in a
     variable interest
     entity located in
     Mexico                        -            -        1,815             -
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Earnings before income
     tax expense and
     undermentioned items     23,330       20,611       57,078        45,141
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Income tax expense
      Current                  9,868        6,453       21,883        17,189
      Future                    (651)         506          995        (1,669)
    -------------------------------------------------------------------------
                           --------------------------------------------------
                               9,217        6,959       22,878        15,520
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Earnings before
     undermentioned items     14,113       13,652       34,200        29,621
    -------------------------------------------------------------------------
    Share in earnings
     (loss) of companies
     subject to
     significant influence       264          (67)         517           172
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Net earnings from
     continuing operations    14,377       13,585       34,717        29,793
    -------------------------------------------------------------------------
    Net loss from
     discontinued
     operations                 (234)        (289)        (938)       (1,201)
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Net earnings           $  14,143    $  13,296    $  33,779     $  28,592
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings
     (net loss) per share
    Basic:
      From continuing
       operations          $    0.29    $    0.28    $    0.71     $    0.66
      From discontinued
       operations                  -            -        (0.02)        (0.03)
                           --------------------------------------------------
                           --------------------------------------------------
      Total                $    0.29    $    0.28    $    0.69     $    0.63
                           --------------------------------------------------
                           --------------------------------------------------
    Diluted:
      From continuing
       operations          $    0.29    $    0.28    $    0.70     $    0.65
      From discontinued
       operations                  -            -        (0.02)        (0.03)
                           --------------------------------------------------
                           --------------------------------------------------
      Total                $    0.29    $    0.28    $    0.68     $    0.62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     (in thousands of
     shares)
      Basic                   48,986       47,710       48,933        45,293
      Diluted                 49,518       48,199       49,388        45,761
    -------------------------------------------------------------------------
    Number of common
     shares outstanding                                 49,258        48,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


               Consolidated Statements of Comprehensive Income

    Periods ended September 29, 2007 and September 30, 2006
    (in thousands of dollars)
    (unaudited)                     3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                2007         2006         2007          2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings           $  14,143    $  13,296    $  33,779     $  28,592
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Other comprehensive
     income, net of income
     taxes:
      Unrealized losses
       on translating
       financial
       statements of
       self-sustaining
       foreign operations  $  (8,857)   $    (318)   $ (20,896)    $  (5,089)
      Reclassification in
       earnings related
       to the reduction in
       the net investment
       in a self-
       sustaining foreign
       operation                   -            -        1,959           189
    -------------------------------------------------------------------------
    Unrealized foreign
     currency translation
     losses                $  (8,857)   $    (318)   $ (18,937)    $  (4,900)
    -------------------------------------------------------------------------
                           --------------------------------------------------
      Unrealized losses on
       available-for-sale
       financial assets
       arising during the
       period              $     (36)   $       -    $    (172)    $       -
      Reclassification in
       earnings                    -            -          (64)            -
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Unrealized losses on
     available-for-sale
     financial assets      $     (36)   $       -    $    (236)    $       -
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Gains on derivatives
     designated as cash
     flow hedges           $  (1,425)   $       -    $       -     $       -
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Other comprehensive
     income                $ (10,318)   $    (318)   $ (19,173)    $  (4,900)
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Comprehensive income   $   3,825    $  12,978    $  14,606     $  23,692
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                 Consolidated Statements of Retained Earnings

    Periods ended September 29, 2007 and September 30, 2006
    (in thousands of dollars)
    (unaudited)                     3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                2007         2006         2007          2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance        $ 176,549    $ 139,317    $ 160,840     $ 127,633
    -------------------------------------------------------------------------
    Net earnings              14,143       13,296       33,779        28,592
    -------------------------------------------------------------------------
    Share issue expenses           -            -            -           (27)
    -------------------------------------------------------------------------
    Dividends                 (1,970)      (1,960)      (5,897)       (5,545)
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Closing balance        $ 188,722    $ 150,653    $ 188,722     $ 150,653
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                         Consolidated Balance Sheets

                                     As at September 29,   As at December 31,
                                                   2007                 2006
    (in thousands of dollars)                (unaudited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Current assets
      Cash                           $            9,308    $           8,977
      Accounts receivable                       174,856              149,291
      Inventories                               146,525              126,149
      Unrealized asset on
       foreign currency forward
       contracts                                     59                    -
      Income taxes recoverable                      187                  209
      Future income tax assets                    4,723                6,380
      Prepaid expenses and other
       assets                                     5,347                6,510
      Current assets of discontinued
       operations                                 4,934               12,618
                                     ----------------------------------------
                                     ----------------------------------------
      Total current assets                      345,939              310,134
    -------------------------------------------------------------------------
                                     ----------------------------------------
    Investments                                  76,381               72,270
    -------------------------------------------------------------------------
    Property, plant and equipment               167,091              172,025
    -------------------------------------------------------------------------
    Property, plant and equipment
     held for sale                                5,798                6,782
    -------------------------------------------------------------------------
    Intangible assets                             3,047                2,713
    -------------------------------------------------------------------------
    Goodwill                                        312                  160
    -------------------------------------------------------------------------
    Future income tax assets                      3,223                3,487
    -------------------------------------------------------------------------
    Other assets                                 11,267                8,704
    -------------------------------------------------------------------------
    Long-term assets of discontinued
     operations                                  20,111               23,917
    -------------------------------------------------------------------------
                                     ----------------------------------------
                                     $          633,169    $         600,192
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                     $           11,128    $          10,363
      Accounts payable and accrued
       liabilities                              147,493              129,083
      Unrealized liability on
       foreign currency forward
       contracts                                      -                1,450
      Income taxes payable                        6,845                4,246
      Future income tax liabilities                  54                   37
      Current portion of long-term
       debt                                       3,014                1,240
      Current liabilities of
       discontinued operations                    2,526                4,356
                                     ----------------------------------------
                                     ----------------------------------------
      Total current liabilities                 171,060              150,775
                                     ----------------------------------------
    Long-term debt                               90,696               85,384
    -------------------------------------------------------------------------
    Deferred credits                              5,181                5,287
    -------------------------------------------------------------------------
    Future income tax liabilities                 8,632                9,556
    -------------------------------------------------------------------------
    Long-term liabilities
     of discontinued operations                   4,376                5,830
    -------------------------------------------------------------------------
                                     ----------------------------------------
                                                279,945              256,832
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' Equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Share capital                               195,794              195,822
    -------------------------------------------------------------------------
    Retained earnings                           188,722              160,840
    -------------------------------------------------------------------------
    Contributed surplus                           2,658                2,020
    -------------------------------------------------------------------------
    Accumulated other comprehensive
     income                                     (33,950)             (15,322)
    -------------------------------------------------------------------------
                                     ----------------------------------------
                                                353,224              343,360
    -------------------------------------------------------------------------
                                     ----------------------------------------
                                     $          633,169    $         600,192
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                    Consolidated Statements of Cash Flows

    Periods ended September 29, 2007 and September 30, 2006
    (in thousands of dollars)
    (unaudited)                     3 months                  9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                2007         2006         2007          2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings from
     continuing
     operations            $  14,377    $  13,585    $  34,717     $  29,793
    -------------------------------------------------------------------------
    Items not affecting
     cash
      Depreciation of
       property, plant
       and equipment           3,793        3,633       11,125        10,954
      Amortization of
       intangible assets         533          240        1,347           687
      Amortization of
       deferred financing
       expenses                   79          240          280           946
      Amortization of
       deferred issue
       expenses related
       to convertible
       debentures                  -            -            -            74
      Future income tax
       expense                  (651)         506          995        (1,669)
      Loss (gain) on
       disposal of
       property, plant
       and equipment              79          133         (172)          173
      Unrealized loss
       (earnings) on
       foreign currency
       forward contracts       2,035         (527)      (1,509)         (465)
      Gain on disposal of
       investments              (176)           -       (1,480)         (678)
      Impairment of
       property, plant and
       equipment held for
       sale                        -            -            -           800
      Impairment of the
       investment in a
       variable interest
       entity located in
       Mexico                      -            -        1,815             -
      Pension expense           (134)         353         (500)        1,059
      Compensation cost
       related to stock
       options                     6          (14)          26           (75)
      Amortization of
       compensation cost
       related to the
       employee share
       purchase plan on
       the open market           225          105          675           315
      Increase in the fair
       value of convertible
       debentures                  -            -            -           207
      Increase in the
       redemption value of
       an investment in a
       related company          (470)        (506)      (1,405)       (1,410)
      Share in loss
       (earnings) of
       companies subject
       to significant
       influence                (264)          67         (517)         (172)
    -------------------------------------------------------------------------
                           --------------------------------------------------
                              19,432       17,815       45,397        40,539
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working
     capital items
      Increase in accounts
       receivable             (9,926)     (17,705)     (32,150)      (15,563)
      Decrease (increase)
       in inventories         12,153        7,128      (22,885)      (31,813)
      Decrease (increase)
       in income taxes
       recoverable                14          985           22          (120)
      Decrease in prepaid
       expenses and other
       assets                  2,024          862        1,858         1,893
      Increase (decrease)
       in accounts payable
       and accrued
       liabilities            (6,751)       9,234       25,408        29,056
      Increase in interest
       payable                    11          740            9           602
      Increase (decrease)
       in income taxes
       payable                 3,622          142        1,973        (5,202)
                           --------------------------------------------------
                           --------------------------------------------------
                               1,147        1,386      (25,765)      (21,147)
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Cash flows from
     continuing operating
     activities               20,579       19,201       19,632        19,392
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased in
     employee's name on the
     open market                   -            -       (1,445)         (214)
    -------------------------------------------------------------------------
    Proceeds from issuance
     of shares                 1,108          171        1,354         1,085
    -------------------------------------------------------------------------
    Issue expenses related
     to share issue                -            -            -           (27)
    -------------------------------------------------------------------------
    Dividends                 (1,970)      (3,844)      (5,897)       (5,545)
    -------------------------------------------------------------------------
    Increase in long-term
     debt and bank loans           -       12,215       31,566        25,558
    -------------------------------------------------------------------------
    Repayment of long-term
     debt and bank loans     (15,155)     (19,981)     (24,359)      (28,381)
    -------------------------------------------------------------------------
    Issue expenses related
     to long-term debt           (41)        (523)        (167)         (652)
    -------------------------------------------------------------------------
    Deferred credits             202          166          319           605
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Cash flows from
     continuing financing
     activities              (15,856)     (11,796)       1,371        (7,571)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment                    13           60        3,206           384
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment      (5,836)      (6,659)     (13,477)      (16,483)
    -------------------------------------------------------------------------
    Additions to intangible
     assets                     (155)        (245)        (772)       (1,227)
    -------------------------------------------------------------------------
    Acquisition of
     investments                   -            -       (2,311)         (150)
    -------------------------------------------------------------------------
    Proceeds from disposal
     of investments                -            -          168         1,124
    -------------------------------------------------------------------------
    Decrease in long-term
     receivables                 451           16          790           111
    -------------------------------------------------------------------------
    Increase in long-term
     receivables                (803)        (390)      (3,543)       (1,331)
    -------------------------------------------------------------------------
    Business acquisitions,
     net of cash acquired     (5,151)           -      (10,554)            -
    -------------------------------------------------------------------------
    Assets held for sale           -          193            -         3,529
    -------------------------------------------------------------------------
    Other assets                   -           12            -            12
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Cash flows from
     continuing investing
     activities              (11,481)      (7,013)     (26,493)      (14,031)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate
     on cash                    (975)         (19)          76          (188)
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Net change in cash
     from continuing
     operations               (7,733)         373       (5,414)       (2,398)
    -------------------------------------------------------------------------
    Cash flows from
     discontinued
     operations
    -------------------------------------------------------------------------
    Operating activities       1,087       (1,755)       5,192          (157)
    -------------------------------------------------------------------------
    Financing activities           -          543            -             -
    -------------------------------------------------------------------------
    Investing activities         264         (792)         553        (1,460)
    -------------------------------------------------------------------------
                           --------------------------------------------------
                               1,351       (2,004)       5,745        (1,617)
    -------------------------------------------------------------------------
    Cash, beginning of
     period                   15,690        2,895        8,977         5,279
    -------------------------------------------------------------------------
                           --------------------------------------------------
    Cash, end of period    $   9,308    $   1,264    $   9,308     $   1,264
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary
     information
      Interest paid        $     392    $   2,018    $   3,526     $   7,386
      Income taxes paid,
       net                 $   6,655    $   2,980    $  17,232     $  18,054
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




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