Canam Group Posts a Net Income of $4.4M or $0.10 per Share for the First Quarter of 2015

SAINT-GEORGES, QC, April 24, 2015 /CNW Telbec/ - Canam Group Inc. (TSX: CAM) ("Canam Group" or the "Corporation") today published its financial results for the three-month period ended March 28, 2015.

Highlights

  • 29% increase in consolidated revenues compared to the same quarter in 2014
  • 81% increase in earnings before interest, tax, depreciation and amortization (Adjusted
    EBITDA) compared to the same quarter in 2014

 


Quarters ended

 

(in millions of $, except per share amounts)


March 28,

2015


March 29,

2014


Revenues


$    309.1


$    239.3


Selling and administrative expenses


$      24.2

7.8%

$      21.8

9.1%

Adjusted EBITDA1


$      17.7

5.7%

$        9.8

4.1%

Net income


$        4.4


$        0.5


Net earnings per share (basic and diluted)


$      0.10


$      0.01









1 Refer to the section entitled Non-IFRS measures

 

"These results attest to the continuing recovery in U.S. non-residential construction markets, where we realize close to 68% of our sales, as well as to the quality of our order backlog," explains Marc Dutil, President and Chief Executive Officer of Canam Group. 

Results for the first quarter of 2015

Consolidated revenues for the first quarter of 2015 totaled $309.1M compared to revenues of $239.3M for the same quarter in 2014. The increase is attributable to higher revenues from heavy structural steel, and joist and steel deck activities in addition to the US dollar's rise against the Canadian dollar.

In 2015, selling and administrative expenses totaled $24.2M, or 7.8% of revenues, compared to $21.8M, or 9.1% of revenues, in 2014. The variation is mainly attributable to the payroll increase in order to maintain the current sales growth.

Adjusted EBITDA in the first quarter of 2015 amounted to $17.7M, or 5.7% of revenues, compared to $9.8M, or 4.1% of revenues, for the same quarter in 2014. The increase in 2015 is due, in part, to the growth in sales volume combined with a rise in the adjusted gross margin for a number of the Corporation's activities.

In the first quarter of 2015, net income attributable to shareholders totaled $4.4M, or $0.10 per share, compared to $0.5M, or $0.01 in basic net earnings per share, for the same period in 2014.

Order backlog

The order backlog stood at $1,118M as at March 28, 2015, compared to $1,007M as at December 31, 2014 and $793M as at March 29, 2014.

Dividend

The Board of Directors approved a dividend of $0.04 per share payable on June 30, 2015 to shareholders of record on June 16, 2015.

About Canam Group Inc.

Canam Group is the largest fabricator of steel components in North America. Specialized in designing construction solutions and fabricating customized products since 1961, Canam Group takes part in an average of 10,000 buildingstructural steel and bridge projects each year. The Corporation operates 22 plants across North America and employs over 3,920 people in Canada, the United States, Romania, India and Hong Kong.

Conference call, webcast and presentation

Canam Group will hold a conference call with financial analysts and media representatives on Friday, April 24, 2015 at 1:15 p.m. EDT. The call can be accessed via webcast at canamgroupinc.com and newswire.ca

Please note that the conference call will be accompanied by a complementary presentation in PDF format that can be downloaded from the Corporation's website at canamgroupinc.com.

A replay of the conference call will be available until May 8, 2015 by dialing 1-800-408-3053 and entering access code 4615523, followed by the pound key (#).

Non-IFRS measure

Earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) is not defined by IFRS and cannot be formally presented in the consolidated financial statements. Even though Adjusted EBITDA is a non-IFRS measure, it is used by managers, analysts, investors and other financial stakeholders to assess the Corporation's performance and management from a financial and operational standpoint. Refer to the section entitled "Non-IFRS measures" of the Corporation's 2014 Annual Report for the definition of this indicator.

Caution regarding forward-looking statements

This press release may contain forward-looking statements, which include, but are not limited to, statements with respect to the Corporation's growth strategy, costs, financial position and financial results, economic and business outlook, prospects and trends of the Corporation's industry segment, expected growth in demand for products and services, the dates of expected or scheduled deliveries, orders and project execution in general, objectives, projects, targets, priorities, business strategy, and the expected impact of legislative and regulatory environment and legal proceedings. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe", "continue" or "maintain", the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require the Corporation to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include in particular the risks and uncertainties described in the Corporation's 2014 Annual Report in the section entitled "Risks and Uncertainties". The forward-looking statements contained herein are made as of the date hereof and are subject to change thereafter, and the Corporation has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities regulations.

 

CONDENSED INTERIM CONSOLIDATED

STATEMENTS OF INCOME


Periods ended March 28, 2015 and March 29, 2014


(in thousands of Canadian dollars, except per share amounts)


Three months

(unaudited)


2015


2014

Revenues

$

309,102

$

239,303

Cost of sales, excluding depreciation and amortization(1)


267,090


207,666

Selling and administrative expenses


24,183


21,805

Profit sharing program


489


217

Depreciation of property, plant and equipment


6,218


5,595

Amortization of intangible assets


690


473

Other gains — net


(264)


(405)

Finance costs


3,921


3,496

Finance revenue


(186)


(238)

Share of loss of a joint venture and associates


141


282

Income (expense) before income tax


6,820


412

Tax expense






Current


1,788


(1,337)


Deferred


594


1,199



2,382


(138)

Net income

$

4,438

$

550

Net income attributable to:






Shareholders

$

4,397

$

474


Non-controlling interests


41


76


$

4,438

$

550






Net earnings per share attributable to shareholders






Basic

$

0.10

$

0.01


Diluted

$

0.10

$

0.01






Weighted average number of common shares (in thousands of shares)






Basic


42,028


42,041


Diluted


42,075


42,075

Number of common shares outstanding (in thousands of shares)


42,055


42,078






(1) Cost of sales, including depreciation and amortization, was $272,441 as at March 28, 2015 and $212,507 as at March 29, 2014

 

NOTICE
The Corporation's independent auditors have not performed a review of the accompanying condensed interim consolidated financial statements.

 


CONDENSED INTERIM CONSOLIDATED

STATEMENTS OF COMPREHENSIVE INCOME


Periods ended March 28, 2015 and March 29, 2014


(in thousands of Canadian dollars)


Three months

(unaudited)


2015


2014

Net income

$

4,438

$

550

Other comprehensive income:





Items that will be reclassified subsequently to profit or loss






Change in unrealized gains on translating foreign operations


27,105


10,466


Change in unrealized loss on translating debt designated as hedging item of the net investment in foreign operations


(1,737)


- -

Other comprehensive income


25,368


10,466

Comprehensive income

$

29,806

$

11,016

Attributable to:






Shareholders

$

29,794

$

10,940


Non-controlling interests


12


76


$

29,806

$

11,016

 


CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS






(in thousands of Canadian dollars)

(unaudited)


As at
March 28,
2015


As at
December 31,
2014


Assets







Current assets







Cash and cash equivalents


$

5,137


$

8,261

Accounts receivable



231,144



276,691

Costs and estimated profits in excess of billings



155,814



126,590

Inventories



168,356



156,990

Recoverable tax assets



1,287



1,346

Prepaid expenses and other assets



7,371



5,619




569,109



575,497

Non-current assets







Investments



4,743



4,593

Interests in a joint venture and associates



40,772



40,919

Property, plant and equipment



320,651



308,362

Intangible assets



11,014



10,811

Goodwill



48,907



45,097

Deferred tax assets



10,402



10,128

Long-term receivables and other assets



6,963



7,428

Total assets


$

1,012,561


$

1,002,835


Liabilities







Current liabilities







Accounts payable and accrued liabilities


$

181,080


$

183,937

Billings in excess of costs and estimated profits



81,556



74,366

Current tax liabilities



2,315



4,943

Current portion of long-term debt



18,395



17,659

Convertible debentures



67,641



67,137




350,987



348,042

Non-current liabilities







Debt



154,829



175,585

Provisions



7,883



7,417

Deferred tax liabilities



7,481



7,477

Other liabilities



6,301



7,090

Total liabilities



527,481



545,611


Equity

Share capital



168,314



168,162

Retained earnings



254,899



252,386

Other equity items



61,819



36,640

Total equity attributable to shareholders



485,032



457,188

Non-controlling interests



48



36

Total equity



485,080



457,224

Total equity and liabilities


$

1,012,561


$

1,002,835

 


CONDENSED INTERIM CONSOLIDATED

STATEMENTS OF CHANGES IN EQUITY


(in thousands of Canadian dollars)

(unaudited)


Employee
benefits
paid
in equity
instruments


Exchange
differences
resulting
from
the
translation
of foreign
operations


Exchange
difference
resulting
from
the
translation
of the debt
designated
as
hedging
item


Available-for-
sale financial
assets


Debenture
conversion
options


Total other
equity items


Share
capital


Retained
earnings


Total

share capital

attributable to

shareholders


Non-
controlling
interests


Total
equity

Balance as at January 1, 2014

$

2,113

$

5,005

$

- -

$

2

$

5,764

$

12,884

$

168,057

$

230,717

$

411,658

$

- -

$

411,658

Investment in a subsidiary by a non-controlling interest


- -


- -


- -


- -


- -


- -


- -


- -


- -


184


184

Net income for the period


- -


- -


- -


- -


- -


- -


- -


474


474


76


550

Comprehensive income


- -


10,466


- -


- -


- -


10,466


- -


- -


10,466


- -


10,466

Dividends


- -


- -


- -


- -


- -


- -


- -


(1,682)


(1,682)


- -


(1,682)

Shares acquired by employees


(26)


- -


- -


- -


- -


(26)


26


- -


- -


- -


- -

Issuance of shares upon the conversion of debentures


- -


- -


- -


- -


- -


- -


59


- -


59


- -


59

Exercise of options upon the conversion of debentures


- -


- -


- -


- -


(5)


(5)


5


- -


- -


- -


- -

Amortization of compensation costs related to the profit sharing program -  stock ownership component


83


- -


- -


- -


- -


83


- -


- -


83


- -


83

Balance as at March 29, 2014

$

2,170

$

15,471

$

- -

$

2

$

5,759

$

23,402

$

168,147

$

229,509

$

421,058

$

260

$

421,318

Balance as at January 1, 2015

$

2,235

$

29,451

$

(806)

$

2

$

5,758

$

36,640

$

168,162

$

252,386

$

457,188

$

36

$

457,224

Net income for the period


- -


- -


- -


- -


- -


- -


- -


4,397


4,397


41


4,438

Comprehensive income


- -


27,134


(1,737)


- -


- -


25,397


- -


- -


25,397


(29)


25,368

Dividends


- -


- -


- -


- -


- -


- -


- -


(1,670)


(1,670)


- -


(1,670)

Repurchase of shares


- -


- -


- -


- -


- -


- -


(105)


- -


(105)


- -


(105)

Excess of acquisition cost over carrying amount of acquired common shares


- -


- -


- -


- -


- -


- -


- -


(214)


(214)


- -


(214)

Shares acquired by employees


(238)


- -


- -


- -


- -


(238)


238


- -


- -


- -


- -

Issuance of shares upon the conversion of debentures


- -


- -


- -


- -


- -


- -


18


- -


18


- -


18

Exercise of options upon the conversion of debentures


- -


- -


- -


- -


(1)


(1)


1


- -


- -


- -


- -

Amortization of compensation costs related to the profit sharing program - stock ownership component


21


- -


- -


- -


- -


21


- -


- -


21


- -


21

Balance as at March 28, 2015

$

2,018

$

56,585

$

(2,543)

$

2

$

5,757

$

61,819

$

168,314

$

254,899

$

485,032

$

48

$

485,080

 

CONDENSED INTERIM CONSOLIDATED

STATEMENTS OF CASH FLOWS


Periods ended March 28, 2015 and March 29, 2014


(in thousands of Canadian dollars)


Three months

(unaudited)


2015


2014

Cash flows from the following activities:





Operating activities





Net income

$

4,438

$

550

Adjustments:






Amortization of compensation costs related to the profit sharing program – stock ownership component


21


83


Loss on disposal of property, plant and equipment


23


110


Depreciation of property, plant and equipment


6,218


5,595


Amortization of intangible assets


690


473


Amortization of deferred financing expenses


126


93


Provisions


- -


104


Interest rate swaps


(26)


(68)


Imputed interest


654


534


Pension expense


(848)


(704)


Deferred tax expense


594


1,199


Share of loss (income) of a joint venture and associates


141


282



12,031


8,251

Net change in non-cash operating working capital balances





Decrease in accounts receivable


59,616


30,077

Increase in costs and estimated profits in excess of billings


(21,665)


(13,741)

Increase in inventories


(3,285)


(15,470)

Decrease in current tax assets


175


- -

Increase in prepaid expenses and other assets


(1,345)


(2,213)

Decrease in accounts payable and accrued liabilities


(12,558)


(13,922)

Increase in billings in excess of costs and estimated profits


2,271


(4,891)

Increase in interest payable


1


1,386

Decrease in current tax liabilities


(2,690)


(7,099)



20,520


(25,873)

Cash flows from operating activities


32,551


(17,622)

Financing activities





Repurchase of shares


(319)


- -

Dividends


(1,669)


(3,322)

Increase in debt and bank loans


- -


28,956

Repayment of debt and bank loans


(28,883)


(2,711)

Issue expenses related to long-term debt


(97)


- -

Decrease in other liabilities


10


8

Cash flows from financing activities


(30,958)


22,931

Investing activities





Proceeds from sale of property, plant and equipment


386


42

Additions to property, plant and equipment


(4,884)


(3,631)

Additions to intangible assets


(242)


(337)

Acquisition of investments


(150)


- -

Distributions received


- -


156

Decrease in receivables and other assets


32


178

Cash flows from investing activities


(4,858)


(3,592)

Effects of changes in foreign exchange rate
on cash and cash equivalents


141


185

Net change in cash and cash equivalents


(3,124)


1,902






Cash and cash equivalents – Beginning of period


8,261


4,690

Cash and cash equivalents – End of period

$

5,137

$

6,592

Supplementary information






Interest paid

$

1,201

$

1,253


Income taxes paid, net

$

4,297

$

5,855

 

SOURCE Canam Group Inc.

For further information: Media: François Bégin, Vice President, Communications, Canam Group Inc., 418-228-8031/ 418-225-1355 (mobile phone), francois.begin@canamgroupinc.com; Investors: René Guizzetti, Vice President and Chief Financial Officer, Canam Group Inc., 450-641-4000, rene.guizzetti@canamgroupinc.com


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