Canam Group posts net earnings of $20M, or $0.45 per share, in 2009

BOUCHERVILLE, QC, Feb. 24 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) reported net earnings of $20.1 million, or $0.45 per share, for the 12-month period ended December 31, 2009, compared with $48.4 million, or $1 per share, in 2008. Consolidated sales were $625.8 million versus $796.1 million a year earlier.

Fourth-quarter net earnings were $5 million, or $0.11 per share, as compared to $13.7 million, or $0.29 per share, for the corresponding 2008 period. Consolidated sales for the quarter fell 35%, from $230.9 million in 2008 to $149.7 million in 2009.

Canam Group president and chief operating officer Marc Dutil attributes the decline in sales to the slowdown in non-residential construction in North America and to lower prices for raw materials. Despite fierce competition and the ensuing pressure on gross margins, Mr. Dutil explains that the company was able to remain profitable during this difficult economic period because of its excellent performance in executing infrastructure and complex large-scale structural steel projects.

Canam Group turned in a gross profit of $121.7 million, and its gross margin was 19.4% against 22.6% at the close of fiscal 2008. EBITDA went from $93.4 million at the end of 2008 to $51.8 million one year later. By the end of 2009, the company's net debt stood at $0.3 million versus $69.9 million at the close of 2008. Shareholders' equity was $400.6 million.

As at December 31, 2009, Canam Group's order backlog totaled $460 million, including $277 million worth of fabricated products, in contrast to $444 million, including $313 million worth of fabricated products, at the same time a year earlier.

In January 2010, Canam Group increased its 37.5% ownership in structural nut and bolt distributor Amcan-Jumax to 50% and acquired the assets of Hong Kong-based InteliBuild Limited, a leading consulting services provider on construction projects that use BIM and 3D digital models.

In a press release issued yesterday, Canam Group announced that it has signed an agreement to purchase an additional 65% membership interest in structural steel fabricator FabSouth for $65 million. Once the transaction is finalized, Canam Group will own 80% of FabSouth, which operates six plants with a total capacity of 122,000 tons in the southeastern United States.

The board of directors approved the payment of a quarterly dividend of $0.04 per common share on March 31, 2010 to shareholders of record on March 17, 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 at 9 a.m. on Wednesday, February 24, 2010. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until March 12, 2010, by dialing 1-800-408-3053 and entering access code 2184748, followed by the pound key #.

    
                     Consolidated Statements of Earnings

    Periods ended December 31
    (in thousands of dollars,
     except per share amounts)          3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
                                           (restated)              (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                      $ 149,678   $ 230,898   $ 625,843   $ 796,080
    -------------------------------------------------------------------------
    Cost of sales                121,204     173,573     504,121     615,780
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Gross profit                  28,474      57,325     121,722     180,300
    -------------------------------------------------------------------------
    Selling and administrative
     expenses                     19,464      22,137      71,541      79,193
    -------------------------------------------------------------------------
    Profit sharing programs        1,111       3,837       2,929       9,029
    -------------------------------------------------------------------------
    Exchange loss (gain)          (1,186)      1,694      (2,493)        133
    -------------------------------------------------------------------------
    Interest income and other
     investment income              (784)       (284)     (2,392)       (662)
    -------------------------------------------------------------------------
    Increase in the redemption
     value of an investment
     in a related company              -        (437)          -      (1,811)
    -------------------------------------------------------------------------
    Gain on disposal of
     investments                    (110)          -        (319)          -
    -------------------------------------------------------------------------
    Loss on disposal of
     property, plant and
     equipment, and on
     property, plant and
     equipment held for sale         481         567         497         712
    -------------------------------------------------------------------------
    Impairment of property,
     plant and equipment held
     for sale                        132         154         132         331
                               ----------------------------------------------
    -------------------------------------------------------------------------
                                   9,366      29,657      51,827      93,375
    -------------------------------------------------------------------------
    Depreciation of property,
     plant and equipment           4,468       4,562      16,665      15,914
    -------------------------------------------------------------------------
    Amortization of intangible
     assets                          256         407       1,294       1,760
    -------------------------------------------------------------------------
    Financial expenses             1,158       1,282       4,512       5,677
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Earnings before income tax
     expense and undermentioned
     items                         3,484      23,406      29,356      70,024
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Income tax expense
      Current                     (4,392)      4,990       4,026      18,979
      Future                       3,019       2,907       3,114       2,934
                               ----------------------------------------------
    -------------------------------------------------------------------------
                                  (1,373)      7,897       7,140      21,913
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Earnings before
     undermentioned items          4,857      15,509      22,216      48,111
    -------------------------------------------------------------------------
    Share in earnings (loss)
     of companies subject to
     significant influence           149      (1,096)       (701)        (93)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations         5,006      14,413      21,515      48,018
    -------------------------------------------------------------------------
    Net earnings (net loss)
     from discontinued
     operations                       17        (696)     (1,465)        413
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Net earnings               $   5,023   $  13,717   $  20,050   $  48,431
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)
     per share
    Basic:
      From continuing
       operations              $    0.11   $    0.31   $    0.48   $    0.99
      From discontinued
       operations                      -       (0.02)      (0.03)       0.01
                               ----------------------------------------------
                               ----------------------------------------------
      Total                    $    0.11   $    0.29   $    0.45   $    1.00
                               ----------------------------------------------
                               ----------------------------------------------
    Diluted:
      From continuing
       operations              $    0.11   $    0.31   $    0.47   $    0.98
      From discontinued
       operations                      -       (0.02)      (0.03)       0.01
                               ----------------------------------------------
                               ----------------------------------------------
      Total                    $    0.11   $    0.29   $    0.44   $    0.99
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number
     of common shares
     (in thousands of shares)
      Basic                       45,047      46,537      45,057      48,486
      Diluted                     45,385      46,722      45,385      48,787
    -------------------------------------------------------------------------
    Number of common shares
     outstanding                                          45,368      45,647
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


               Consolidated Statements of Comprehensive Income

    Periods ended December 31
    (in thousands of dollars)           3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings               $   5,023   $  13,717   $  20,050   $  48,431
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss):
      Change in unrealized
       gains and losses on
       translating financial
       statements of self-
       sustaining foreign
       operations              $  (5,927)  $  25,603   $ (23,958)  $  32,103
                               ----------------------------------------------
    -------------------------------------------------------------------------
      Unrealized gains (losses)
       on available-for-sale
       financial assets
       arising during the
       period                  $    (157)  $    (269)  $     398   $    (208)
      Income tax expense              24          26         (80)        (10)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Change in unrealized
     gains and losses on
     available-for-sale
     financial assets          $    (133)  $    (243)  $     318   $    (218)
                               ----------------------------------------------
    -------------------------------------------------------------------------
      Reclassification in
       earnings of gains on
       derivatives designated
       as cash flow hedges on
       sales                   $       -   $    (558)  $       -   $  (2,343)
      Income tax expense               -         181           -         762
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Change in gains on
     derivatives designated
     as cash flow hedges       $       -   $    (377)  $       -   $  (1,581)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss)             $  (6,060)  $  24,983   $ (23,640)  $  30,304
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income
     (loss)                    $  (1,037)  $  38,700   $  (3,590)  $  78,735
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                 Consolidated Statements of Retained Earnings

    Periods ended December 31
    (in thousands of dollars)           3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance            $ 240,820   $ 227,048   $ 232,208   $ 200,421
    -------------------------------------------------------------------------
    Net earnings                   5,023      13,717      20,050      48,431
    -------------------------------------------------------------------------
    Dividends                     (1,814)     (1,833)     (7,261)     (7,748)
    -------------------------------------------------------------------------
    Excess of acquisition cost
     over carrying value of
     acquired common shares            -      (6,724)       (968)     (8,896)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Closing balance            $ 244,029   $ 232,208   $ 244,029   $ 232,208
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                         Consolidated Balance Sheets

    As at December 31
    (in thousands of dollars)                               2009        2008
                                                                   (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current assets
      Cash and cash equivalents                        $  67,393   $  15,619
      Accounts receivable                                 99,444     154,468
      Inventories                                        104,540     176,871
      Income taxes recoverable                             6,701       5,281
      Future income tax assets                             1,008       2,062
      Prepaid expenses and other assets                    3,484       6,546
      Current assets of discontinued operations            1,380      14,307
                                                       ----------------------
                                                       ----------------------
      Total current assets                               283,950     375,154
                                                       ----------------------
    -------------------------------------------------------------------------
    Investments                                           63,503      48,400
    -------------------------------------------------------------------------
    Property, plant and equipment                        184,359     185,945
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale            1,549       1,958
    -------------------------------------------------------------------------
    Intangible assets                                      1,127       2,096
    -------------------------------------------------------------------------
    Goodwill                                                 150         150
    -------------------------------------------------------------------------
    Future income tax assets                                 363         340
    -------------------------------------------------------------------------
    Long-term receivables and other assets                21,612      30,164
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations            9,440      14,082
                                                       ----------------------
    -------------------------------------------------------------------------
                                                       $ 566,053   $ 658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                                       $       -   $  10,353
      Accounts payable and accrued liabilities            77,112     126,177
      Unrealized liability on foreign currency forward
       contracts                                               -         743
      Income taxes payable                                   635         284
      Future income tax liabilities                          876         647
      Current portion of long-term debt                    5,477       5,475
      Current liabilities of discontinued operations       1,495      13,903
                                                       ----------------------
                                                       ----------------------
      Total current liabilities                           85,595     157,582
                                                       ----------------------
    -------------------------------------------------------------------------
    Long-term debt                                        62,212      69,672
    -------------------------------------------------------------------------
    Deferred credits                                       4,749       4,394
    -------------------------------------------------------------------------
    Future income tax liabilities                         11,296      10,368
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued operations       1,604       2,659
                                                       ----------------------
    -------------------------------------------------------------------------
                                                         165,456     244,675
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' Equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Share capital                                        178,024     179,681
    -------------------------------------------------------------------------
    Retained earnings                                    244,029     232,208
    -------------------------------------------------------------------------
    Contributed surplus                                    4,862       4,403
    -------------------------------------------------------------------------
    Accumulated other comprehensive income               (26,318)     (2,678)
                                                       ----------------------
    -------------------------------------------------------------------------
                                                         400,597     413,614
                                                       ----------------------
    -------------------------------------------------------------------------
                                                       $ 566,053   $ 658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                    Consolidated Statements of Cash Flows

    Periods ended December 31
    (in thousands of dollars)           3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
                                           (restated)              (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations     $   5,006   $  14,413   $  21,515   $  48,018
    -------------------------------------------------------------------------
    Items not affecting cash
     and cash equivalents
      Compensation cost
       related to stock
       options                         -           3           -          14
      Amortization of
       compensation costs
       related to the profit
       sharing program - stock
       ownership component           431         390       1,780       1,559
      Unrealized gain on
       foreign currency
       forward contracts             579         366        (743)       (646)
      Increase in the
       redemption value of an
       investment in a related
       company                         -        (437)          -      (1,811)
      Gain on disposal of
       investments                  (110)          -        (319)          -
      Impairment of property,
       plant and equipment
       held for sale                 132         154         132         331
      Loss on disposal of
       property, plant and
       equipment and on
       property, plant and
       equipment held for
       sale                          481         567         497         712
      Depreciation of
       property, plant and
       equipment                   4,468       4,562      16,665      15,914
      Amortization of
       intangible assets             256         407       1,294       1,760
      Amortization of
       deferred financing
       expenses                       54          54         214         235
      Pension expense               (298)        111        (322)       (618)
      Future income tax
       expense                     3,019       2,907       3,114       2,934
      Share in loss (earnings)
       of companies subject
       to significant
       influence                    (149)      1,096         701          93

                               ----------------------------------------------
                               ----------------------------------------------
                                  13,869      24,593      44,528      68,495
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working capital
     items
      Decrease in accounts
       receivable                 20,229      13,493      46,590      15,359
      Decrease (increase)
       in inventories             15,362      13,756      62,179     (51,153)
      Increase in income
       taxes recoverable          (3,180)       (551)     (1,614)     (4,058)
      Decrease (increase)
       in prepaid expenses
       and other assets             (718)     (3,486)      2,689      (1,901)
      Increase (decrease)
       in accounts payable
       and accrued liabilities   (15,686)    (19,722)    (40,928)     16,726
      Decrease in interest
       payable                      (211)       (273)        (26)         (8)
      Increase (decrease)
       in income taxes payable    (1,920)       (225)        418      (7,616)
                               ----------------------------------------------
                               ----------------------------------------------
                                  13,876       2,992      69,308     (32,651)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing
     operating activities         27,745      27,585     113,836      35,844
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased by a
     trust in employees' name
     on the secondary market           -           -      (1,871)     (1,970)
    -------------------------------------------------------------------------
    Repurchase of shares               -     (20,015)     (2,122)    (24,231)
    -------------------------------------------------------------------------
    Proceeds from issuance
     of shares                         -           -          47         365
    -------------------------------------------------------------------------
    Dividends                     (3,630)     (1,833)     (7,261)     (7,748)
    -------------------------------------------------------------------------
    Increase in long-term
     debt and bank loans               -      10,450      11,977      42,770
    -------------------------------------------------------------------------
    Repayment of long-term
     debt and bank loans          (6,679)    (15,799)    (26,403)    (28,814)
    -------------------------------------------------------------------------
    Issue expenses related
     to long-term debt                 -         (78)          -        (216)
    -------------------------------------------------------------------------
    Deferred credits                  (2)        (40)       (237)        134
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from
     continuing financing
     activities                  (10,311)    (27,315)    (25,870)    (19,710)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment                       531          16         923       1,594
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment held for sale           -           -           -       3,797
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment         (10,729)     (8,319)    (27,791)    (27,075)
    -------------------------------------------------------------------------
    Additions to intangible
     assets                          (51)       (301)       (467)       (957)
    -------------------------------------------------------------------------
    Acquisition of
     investments                 (16,111)          -     (20,704)     (1,770)
    -------------------------------------------------------------------------
    Proceeds from disposal
     of investments                2,428           -       3,572           -
    -------------------------------------------------------------------------
    Distribution from a
     company subject to
     significant influence           167         109         467         109
    -------------------------------------------------------------------------
    Decrease in long-term
     receivables                   6,307       6,913       8,807       7,504
    -------------------------------------------------------------------------
    Increase in long-term
     receivables                     (93)       (392)     (4,383)       (661)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from
     continuing investing
     activities                  (17,551)     (1,974)    (39,576)    (17,459)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate on
     cash and cash equivalents       294       3,336        (143)      3,598
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Net change in cash and
     cash equivalents from
     continuing operations           177       1,632      48,247       2,273
    -------------------------------------------------------------------------
    Cash flows from
     discontinued operations
      Operating activities           667       1,035       3,132       1,525
      Investing activities            17         150         395       1,273
                               ----------------------------------------------
    -------------------------------------------------------------------------
                                     684       1,185       3,527       2,798
    -------------------------------------------------------------------------
    Cash, beginning of period     66,532      12,802      15,619      10,548
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period             $  67,393   $  15,619   $  67,393   $  15,619
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary information
      Interest paid            $   1,177   $   1,229   $   3,894   $   4,912
      Income taxes paid
       (recovered), net        $    (428)  $   4,484   $   3,271   $  28,654
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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


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