Canam Group posts a net loss of $0.9M or $0.02 per share and a 41% higher
backlog totaling $590M for the first quarter of 2010

ST. GEORGES, QC, April 28 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today reported a net loss of $0.9 million, or $0.02 per share, for the first quarter ended March 27, 2010, compared with net earnings of $5.4 million, or $0.12 per share, for the corresponding period in 2009. Consolidated sales were $105.6 million versus $180.2 million for the year-earlier quarter.

Canam Group president and chief operating officer Marc Dutil explained that these results reflect the harsh economic conditions management had foreseen for the first half of 2010. In addition, deliveries related to the replacement of the roof for BC Place in Vancouver and for the Marlins' stadium in Miami are not scheduled to begin before the second quarter." These two orders will generate $180 million in revenue.

Canam Group's order backlog stood at $590 million as at March 27, 2010, up 41% from $417 million as at March 29, 2009. This increase was due to the addition of FabSouth's existing backlog and a surge in new orders in certain business units.

The acquisition of the U.S.-based FabSouth, LLC concluded last month will help strengthen Canam Group's commercial position in the southeastern United States. As well, a major competitor's recent exit from the joist and deck business in the United States is seen as another positive development for Canam Group.

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

Canam Group is an industrial company operating 18 plants specialized in the design and fabrication of construction products and solutions. The company employs close to 3,000 people in Canada, the United States, Romania and India, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.

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

Canam Group will hold a conference call with financial analysts and media representatives on Wednesday, April 28, 2010 at 1:15 p.m. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until May 12, 2010 by dialing 1-800-408-3053 and entering access code 3384275, followed by the pound key #.

    
                   Interim Consolidated Statements of Earnings

    Periods ended March 27, 2010 and March 28, 2009
    (in thousands of dollars, except per share amounts)
    (unaudited)                                                3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2010          2009
                                                                   (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                                            $ 105,603     $ 180,204
    -------------------------------------------------------------------------
    Cost of sales                                       90,855       142,969
                                                     ------------------------
    -------------------------------------------------------------------------
    Gross profit                                        14,748        37,235
    -------------------------------------------------------------------------
    Selling and administrative expenses                 16,377        17,779
    -------------------------------------------------------------------------
    Profit sharing programs                                308           845
    -------------------------------------------------------------------------
    Exchange loss                                           44           818
    -------------------------------------------------------------------------
    Interest income and other investment income           (749)         (525)
    -------------------------------------------------------------------------
    Gain on disposal of property, plant and equipment      (16)           (8)
                                                     ------------------------
    -------------------------------------------------------------------------
                                                        (1,216)       18,326
    -------------------------------------------------------------------------
    Depreciation of property, plant and equipment        4,376         4,029
    -------------------------------------------------------------------------
    Amortization of intangible assets                      661           368
    -------------------------------------------------------------------------
    Financial expenses                                   1,259         1,141
    -------------------------------------------------------------------------
    Gain on revaluation of investments                  (3,888)            -
                                                     ------------------------
    -------------------------------------------------------------------------
    Earnings (loss) before income tax expense and
     undermentioned items                               (3,624)       12,788
                                                     ------------------------
    -------------------------------------------------------------------------
    Income tax expense (recovery)
      Current                                             (852)        5,144
      Future                                            (2,105)          (10)
                                                     ------------------------
    -------------------------------------------------------------------------
                                                        (2,957)        5,134
                                                     ------------------------
    -------------------------------------------------------------------------
    Earnings (loss) before undermentioned items           (667)        7,654
    -------------------------------------------------------------------------
    Share in loss of companies subject to significant
     influence                                            (273)          958
                                                     ------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss) from continuing operations    (940)        6,696
    -------------------------------------------------------------------------
    Net earnings (net loss) from discontinued
     operations                                             18        (1,323)
                                                     ------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)                          $    (922)    $   5,373
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss) per share
    Basic:
      From continuing operations                     $   (0.02)    $    0.15
      From discontinued operations                           -         (0.03)
                                                     ------------------------
                                                     ------------------------
      Total                                          $   (0.02)    $    0.12
                                                     ------------------------
                                                     ------------------------
    Diluted:
      From continuing operations                     $   (0.02)    $    0.15
      From discontinued operations                           -         (0.03)
                                                     ------------------------
                                                     ------------------------
      Total                                          $   (0.02)    $    0.12
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number of common shares
     (in thousands of shares)
      Basic                                             45,052        44,908
      Diluted                                           45,399        45,414
    -------------------------------------------------------------------------
    Number of common shares outstanding                 45,355        45,368
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


         Interim Consolidated Statements of Comprehensive Income (loss)

    Periods ended March 27, 2010 and March 28, 2009
    (in thousands of dollars) (unaudited)                      3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2010          2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)                          $    (922)    $   5,373
                                                     ------------------------
    -------------------------------------------------------------------------
    Other comprehensive income (loss):
      Change in unrealized gains and losses on
       translating financial statements of
       self-sustaining foreign operations            $  (3,402)    $   1,946
                                                     ------------------------
    -------------------------------------------------------------------------
      Unrealized gains on available-for-sale
       financial assets arising during the period    $      51     $     157
      Income tax expense                                    (8)          (41)
                                                     ------------------------
    -------------------------------------------------------------------------
    Change in unrealized gains and losses on
     available-for-sale financial assets             $      43     $     116
                                                     ------------------------
    -------------------------------------------------------------------------
    Other comprehensive income (loss)                $  (3,359)    $   2,062
                                                     ------------------------
    -------------------------------------------------------------------------
    Comprehensive income (loss)                      $  (4,281)    $   7,435
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


              Interim Consolidated Statements of Retained Earnings

    Periods ended March 27, 2010 and March 28, 2009
    (in thousands of dollars) (unaudited)                      3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2010          2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance                                  $ 244,029     $ 232,208
    -------------------------------------------------------------------------
    Net earnings (net loss)                               (922)        5,373
    -------------------------------------------------------------------------
    Dividends                                           (1,814)       (1,815)
    -------------------------------------------------------------------------
    Excess of acquisition cost over carrying value
     of acquired common shares                             (53)         (968)
                                                     ------------------------
    -------------------------------------------------------------------------
    Closing balance                                  $ 241,240     $ 234,798
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                      Interim Consolidated Balance Sheets

                                                         As at         As at
                                                      March 27,  December 31,
                                                          2010          2009
    (in thousands of dollars)                       (unaudited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current assets
      Cash and cash equivalents                      $  39,156     $  67,393
      Accounts receivable                              137,536        99,594
      Inventories                                      122,218       104,540
      Income taxes recoverable                           7,578         6,701
      Future income tax assets                           4,539         1,008
      Prepaid expenses and other assets                  5,074         3,484
      Current assets of discontinued operations          1,110         1,230
                                                     ------------------------
                                                     ------------------------
      Total current assets                             317,211       283,950
                                                     ------------------------
    -------------------------------------------------------------------------
    Investments                                         48,681        63,503
    -------------------------------------------------------------------------
    Property, plant and equipment                      214,383       184,851
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale          1,513         1,549
    -------------------------------------------------------------------------
    Intangible assets                                   14,680         1,127
    -------------------------------------------------------------------------
    Goodwill                                            52,752           150
    -------------------------------------------------------------------------
    Future income tax assets                               356           363
    -------------------------------------------------------------------------
    Long-term receivables and other assets              21,063        21,942
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations          8,389         8,618
                                                     ------------------------
    -------------------------------------------------------------------------
                                                     $ 679,028     $ 566,053
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                                     $     901     $       -
      Accounts payable and accrued liabilities         120,987        77,112
      Income taxes payable                                 156           635
      Future income tax liabilities                        262           876
      Current portion of long-term debt                  5,901         5,477
      Current portion of the balance of the purchase
       price of subsidiaries                            13,595             -
      Current liabilities of discontinued operations     1,393         1,495
                                                     ------------------------
                                                     ------------------------
      Total current liabilities                        143,195        85,595
                                                     ------------------------
    -------------------------------------------------------------------------
    Long-term debt                                     100,808        62,212
    -------------------------------------------------------------------------
    Balance of the purchase price of subsidiaries       22,220             -
    -------------------------------------------------------------------------
    Deferred credits                                     4,059         4,749
    -------------------------------------------------------------------------
    Future income tax liabilities                       12,956        11,296
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued operations     1,403         1,604
                                                     ------------------------
    -------------------------------------------------------------------------
                                                       284,641       165,456
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' Equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Share capital                                      179,002       178,024
    -------------------------------------------------------------------------
    Retained earnings                                  241,240       244,029
    -------------------------------------------------------------------------
    Contributed surplus                                  3,822         4,862
    -------------------------------------------------------------------------
    Accumulated other comprehensive loss               (29,677)      (26,318)
                                                     ------------------------
    -------------------------------------------------------------------------
                                                       394,387       400,597
                                                     ------------------------
    -------------------------------------------------------------------------
                                                     $ 679,028     $ 566,053
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                 Interim Consolidated Statements of Cash Flows

    Periods ended March 27, 2010 and March 28, 2009
    (in thousands of dollars) (unaudited)                      3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          2010          2009
                                                                   (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings (net loss) from continuing
     operations                                      $    (940)    $   6,696
    -------------------------------------------------------------------------
    Items not affecting cash and cash equivalents
      Amortization of compensation costs related
       to the profit sharing program - stock
       ownership component                                 346           485
      Unrealized gain on foreign currency forward
       contracts                                             -        (1,053)
      Gain on revaluation of investments                (3,888)            -
      Gain on disposal of property, plant and
       equipment                                           (16)           (8)
      Depreciation of property, plant and equipment      4,376         4,029
      Amortization of intangible assets                    661           368
      Amortization of deferred financing expenses           55            55
      Pension expense                                        5           (71)
      Future income tax expense                         (2,105)          (10)
      Share in loss of companies subject to
       significant influence                               273           958
                                                     ------------------------
                                                     ------------------------
                                                        (1,233)       11,449
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash operating working capital
     items
      Decrease in accounts receivable                   10,792        13,747
      Decrease (increase) in inventories                (7,091)       13,021
      Decrease (increase) in income taxes recoverable   (1,033)        2,185
      Decrease (increase) in prepaid expenses and
       other assets                                       (468)        2,978
      Decrease in accounts payable and accrued
       liabilities                                      (8,876)      (15,043)
      Increase in interest payable                         199           204
      Increase (decrease) in income taxes payable         (476)          113
                                                     ------------------------
                                                     ------------------------
                                                        (6,953)       17,205
                                                     ------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing operating activities     (8,186)       28,654
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased by a trust in employees' name on
     the secondary market                                 (364)       (1,871)
    -------------------------------------------------------------------------
    Repurchase of shares                                  (118)       (2,122)
    -------------------------------------------------------------------------
    Proceeds from issuance of shares                        21            47
    -------------------------------------------------------------------------
    Dividends                                                -        (1,815)
    -------------------------------------------------------------------------
    Increase in long-term debt and bank loans            28,871        8,680
    -------------------------------------------------------------------------
    Repayment of long-term debt and bank loans             (982)        (885)
    -------------------------------------------------------------------------
    Deferred credits                                       (675)        (245)
                                                     ------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing financing activities      26,753        1,789
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of property, plant and
     equipment                                               7            71
    -------------------------------------------------------------------------
    Additions to property, plant and equipment          (7,423)       (7,566)
    -------------------------------------------------------------------------
    Additions to intangible assets                         (86)         (285)
    -------------------------------------------------------------------------
    Acquisition of investments                            (120)       (1,305)
    -------------------------------------------------------------------------
    Proceeds from disposal of investments                    -           501
    -------------------------------------------------------------------------
    Distribution from a company subject to
     significant influence                                   -           300
    -------------------------------------------------------------------------
    Decrease in long-term receivables                      763           777
    -------------------------------------------------------------------------
    Increase in long-term receivables                        -          (733)
    -------------------------------------------------------------------------
    Business acquisitions, net of cash acquired        (38,684)            -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing investing activities    (45,543)       (8,240)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in foreign exchange rate on
     cash and cash equivalents                          (1,321)         (186)
                                                     ------------------------
    -------------------------------------------------------------------------
    Net change in cash and cash equivalents from
     continuing operations                             (28,927)       22,017
    -------------------------------------------------------------------------
    Cash flows from discontinued operations
      Operating activities                                  45          (377)
      Investing activities                                  15           147
                                                     ------------------------
    -------------------------------------------------------------------------
                                                            60          (230)
    -------------------------------------------------------------------------
    Cash and cash equivalents, beginning of period      67,393        15,619
                                                     ------------------------
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period         $  39,156     $  37,406
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary information
      Interest paid                                  $     760     $   1,129
      Income taxes paid, net                         $   1,064     $   3,546
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

SOURCE Canam Group Inc.

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


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