Canam Group posts net earnings of $4.4 million for the third quarter of 2009

BOUCHERVILLE, QC, Oct. 28 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today reported net earnings of $4.4 million, or $0.10 per share, for the third quarter of 2009, compared with $15 million, or $0.31 per share, for the same period in 2008. Consolidated sales totaled $144.7 million, against $218.2 million for the year-earlier quarter.

Net earnings for the first nine months of 2009 were $15 million, or $0.33 per share, compared with $34.7 million, or $0.71 per share, during the corresponding period in 2008. Consolidated sales for the first nine months dropped 15.8% to $476.2 million, from $565.2 million a year ago.

As president and chief operating officer Marc Dutil noted, the company continues to post net profits and maintain a full order book despite the current economic downturn and the heavy toll it has exacted on commercial and industrial construction throughout North America. "The strategic plan that we began implementing a few years ago to build on Canam Group's financial strength and allow the company to capitalize on the vitality of the infrastructure and heavy construction sectors is paying off and we are seeing results," he said.

EBITDA for the first nine months of 2009 was $42.5 million or 8.9% of sales, in contrast to $63.7 million or 11.3% of sales for the same period in 2008.

Canam Group's combined order backlog stood at $290 million as at September 26, 2009, compared with $239 million as at June 27, 2009 and $313 million at the end of fiscal 2008.

The board of directors approved the payment of a quarterly dividend of $0.04 per common share on December 31, 2009 to shareholders of record on December 17, 2009.

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 2,500 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 9:00 a.m. on Wednesday, October 28, 2009. The conference call will be webcast in real time at www.canamgroup.ws and www.cnw.ca. An audio replay of the conference call will be available at 1-800-408-3053 (passcode 3032536) until November 11, 2009.

    
                 Interim Consolidated Statements of Earnings

    Periods ended September 26, 2009
     and September 27, 2008
     (in thousands of dollars,
     except per share amounts)
     (unaudited)                        3 months                9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
                                           (restated)              (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                      $ 144,722   $ 218,247   $ 476,165   $ 565,182
    -------------------------------------------------------------------------
    Cost of sales                116,476     171,555     382,917     442,207
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Gross profit                  28,246      46,692      93,248     122,975
    -------------------------------------------------------------------------
    Selling and administrative
     expenses                     16,822      18,751      52,077      57,056
    -------------------------------------------------------------------------
    Profit sharing programs          654       2,798       1,818       5,192
    -------------------------------------------------------------------------
    Exchange gain                   (875)       (703)     (1,307)     (1,561)
    -------------------------------------------------------------------------
    Interest income                 (458)       (115)     (1,608)       (378)
    -------------------------------------------------------------------------
    Increase in the redemption
     value of an investment in
     a related company                 -        (461)          -      (1,374)
    -------------------------------------------------------------------------
    Gain on disposal of
     investments                       -           -        (209)          -
    -------------------------------------------------------------------------
    Loss on disposal of
     property, plant and
     equipment, and on
     property, plant and
     equipment held for sale         101         117          16         145
    -------------------------------------------------------------------------
    Impairment of property,
     plant and equipment held
     for sale                          -           -           -         177
                               ----------------------------------------------
    -------------------------------------------------------------------------
                                  12,002      26,305      42,461      63,718
    -------------------------------------------------------------------------
    Depreciation of property,
     plant and equipment           4,186       3,855      12,197      11,352
    -------------------------------------------------------------------------
    Amortization of intangible
     assets                          316         430       1,038       1,353
    -------------------------------------------------------------------------
    Financial expenses             1,073       1,542       3,354       4,395
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Earnings before income tax
     expense and undermentioned
     items                         6,427      20,478      25,872      46,618
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Income tax expense
      Current                      2,102       5,768       8,418      13,989
      Future                         (58)        272          95          27
                               ----------------------------------------------
    -------------------------------------------------------------------------
                                   2,044       6,040       8,513      14,016
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Earnings before
     undermentioned items          4,383      14,438      17,359      32,602
    -------------------------------------------------------------------------
    Share in earnings (loss)
     of companies subject to
     significant influence            47         364        (850)      1,003
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations         4,430      14,802      16,509      33,605
    -------------------------------------------------------------------------
    Net earnings (net loss)
     from discontinued
     operations                       (2)        222      (1,482)      1,109
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Net earnings               $   4,428   $  15,024   $  15,027   $  34,714
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)
     per share
    Basic:
      From continuing
       operations              $    0.10   $    0.30   $    0.36   $    0.69
      From discontinued
       operations                      -        0.01       (0.03)       0.02
                               ----------------------------------------------
    -------------------------------------------------------------------------
      Total                    $    0.10   $    0.31   $    0.33   $    0.71
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Diluted:
      From continuing
       operations              $    0.10   $    0.30   $    0.36   $    0.68
      From discontinued
       operations                      -           -       (0.03)       0.02
                               ----------------------------------------------
    -------------------------------------------------------------------------
      Total                    $    0.10   $    0.30   $    0.33   $    0.70
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number
     of common shares (in
     thousands of shares)
      Basic                       44,988      49,078      45,001      49,127
      Diluted                     45,377      49,409      45,388      49,513
    -------------------------------------------------------------------------
    Number of common shares
     outstanding                                          45,368      48,938
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


       Interim Consolidated Statements of Comprehensive Income (loss)

    Periods ended September 26, 2009
     and September 27, 2008
     (in thousands of dollars)
     (unaudited)                        3 months                9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings               $   4,428   $  15,024   $  15,027   $  34,714
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive income
     (loss):
    Change in unrealized gains
     and losses on translating
     financial statements of
     self-sustaining foreign
     operations                   (8,602)      2,865     (18,031)      6,500
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Unrealized gains on
     available-for-sale
     financial assets arising
     during the period                26          50         555          61
    Income tax expense                (5)        (17)       (104)        (36)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Change in unrealized gains
     and losses on available-
     for-sale financial assets        21          33         451          25
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Reclassification in
     earnings of gains on
     derivatives designated as
     cash flow hedges on sales         -        (576)          -      (1 785)
    -------------------------------------------------------------------------
    Income tax expense                 -         188           -         581
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Change in gains on
     derivatives designated as
     cash flow hedges                  -        (388)          -      (1,204)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive income
     (loss)                       (8,581)      2,510     (17,580)      5,321
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income
     (loss)                    $  (4,153)  $  17,534   $  (2,553)  $  40,035
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


             Interim Consolidated Statements of Retained Earnings

    Periods ended September 26, 2009
     and September 27, 2008
     (in thousands of dollars)
     (unaudited)                        3 months                9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance            $ 238,208   $ 216,161   $ 232,208   $ 200,421
    -------------------------------------------------------------------------
    Net earnings                   4,428      15,024      15,027      34,714
    -------------------------------------------------------------------------
    Dividends                     (1,816)     (1,965)     (5,447)     (5,915)
    -------------------------------------------------------------------------
    Excess of acquisition cost
     over carrying value of
     acquired common shares            -      (2,172)       (968)     (2,172)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Closing balance            $ 240,820   $ 227,048   $ 240,820   $ 227,048
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                     Interim Consolidated Balance Sheets

                                                         As at         As at
                                                  September 26,  December 31,
                                                          2009          2008
    (in thousands of dollars)                       (unaudited)    (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current assets
      Cash and cash equivalents                      $  66,532     $  15,619
      Accounts receivable                              120,607       154,468
      Inventories                                      122,379       176,871
      Unrealized assets on foreign currency forward
       contracts                                           579	            -
      Income taxes recoverable                           3,565         5,281
      Future income tax assets                           2,018         2,062
      Prepaid expenses and other assets                  2,793         6,546
      Current assets of discontinued operations          2,392        14,307
                                                     ------------------------
                                                     ------------------------
      Total current assets                             320,865       375,154
                                                     ------------------------
    -------------------------------------------------------------------------
    Investments                                         51,503        48,400
    -------------------------------------------------------------------------
    Property, plant and equipment                      181,667       185,945
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale          1,755         1,958
    -------------------------------------------------------------------------
    Intangible assets                                    1,363         2,096
    -------------------------------------------------------------------------
    Goodwill                                               150           150
    -------------------------------------------------------------------------
    Future income tax assets                               339           340
    -------------------------------------------------------------------------
    Long-term receivables and other assets              28,890        30,164
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations          9,402        14,082
                                                     ------------------------
    -------------------------------------------------------------------------
                                                     $ 595,934     $ 658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                                     $   4,878     $  10,353
      Accounts payable and accrued liabilities          96,780       126,177
      Unrealized liabilities on foreign currency
       forward contracts                                     -           743
      Income taxes payable                               2,572           284
      Future income tax liabilities                        200           647
      Current portion of long-term debt                  5,474         5,475
      Current liabilities of discontinued operations     1,572        13,903
                                                     ------------------------
                                                     ------------------------
      Total current liabilities                        111,476       157,582
                                                     ------------------------
    -------------------------------------------------------------------------
    Long-term debt                                      64,672        69,672
    -------------------------------------------------------------------------
    Deferred credits                                     4,767         4,394
    -------------------------------------------------------------------------
    Future income tax liabilities                       10,197        10,368
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued operations     1,805         2,659
                                                     ------------------------
    -------------------------------------------------------------------------
                                                       192,917       244,675
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Share capital                                      178,024       179,681
    -------------------------------------------------------------------------
    Retained earnings                                  240,820       232,208
    -------------------------------------------------------------------------
    Contributed surplus                                  4,431         4,403
    -------------------------------------------------------------------------
    Accumulated other comprehensive loss               (20,258)       (2,678)
                                                     ------------------------
    -------------------------------------------------------------------------
                                                       403,017       413,614
                                                     ------------------------
    -------------------------------------------------------------------------
                                                     $ 595,934     $ 658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                Interim Consolidated Statements of Cash Flows

    Periods ended September 26, 2009
     and September 27, 2008
     (in thousands of dollars)
     (unaudited)                        3 months                9 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
                                           (restated)              (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations     $   4,430   $  14,802   $  16,509   $  33,605
    -------------------------------------------------------------------------
    Items not affecting cash
      Compensation costs
       related to stock options        -           4           -          11
      Amortization of
       compensation costs
       related to the profit
       sharing program - stock
       ownership component           433         390       1,349       1,169
      Unrealized loss (gain)
       on foreign currency
       forward contracts             211        (394)     (1,322)     (1,012)
      Increase in the
       redemption value of an
       investment in a related
       company                         -        (461)          -      (1,374)
      Gain on disposal of
       investments                     -           -        (209)          -
      Impairment of property,
       plant and equipment
       held for sale                   -           -           -         177
      Loss on disposal of
       property, plant and
       equipment and on
       property, plant and
       equipment held for sale       101         117          16         145
      Depreciation of property,
       plant and equipment         4,186       3,855      12,197      11,352
      Amortization of
       intangible assets             316         430       1,038       1,353
      Amortization of deferred
       financing expenses             52          55         160         181
      Pension expense                 82        (439)        (24)       (729)
      Future income tax expense      (58)        272          95          27
      Share in loss (earnings)
       of companies subject to
       significant influence         (47)       (364)        850      (1,003)
                               ----------------------------------------------
                               ----------------------------------------------
                                   9,706      18,267      30,659      43,902
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working capital
     items
      Decrease (increase) in
       accounts receivable         1,990      (4,453)     26,361       1,866
      Decrease (increase) in
       inventories                13,663      (3,697)     46,817     (64,909)
      Decrease (increase) in
       income taxes recoverable     (359)        753       1,566      (3,507)
      Decrease (increase) in
       prepaid expenses and
       other assets                 (124)      1,310       3,407       1,585
      Increase (decrease) in
       accounts payable and
       accrued liabilities        (4,488)     (1,903)    (25,242)     36,448
      Increase in interest
       payable                       204         239         185         265
      Increase (decrease) in
       income taxes payable        2,385         344       2,338      (7,391)
                               ----------------------------------------------
                               ----------------------------------------------
                                  13,271      (7,407)     55,432     (35,643)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing
     operating activities         22,977      10,860      86,091       8,259
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased by a
     trust in employees' name
     on the secondary market           -           -      (1,871)     (1,970)
    -------------------------------------------------------------------------
    Repurchase of shares               -      (4,216)     (2,122)     (4,216)
    -------------------------------------------------------------------------
    Proceeds from issuance of
     shares                            -          67          47         365
    -------------------------------------------------------------------------
    Dividends                          -      (1,965)     (3,631)     (5,915)
    -------------------------------------------------------------------------
    Increase in long-term debt
     and bank loans                3,297      13,091      11,977      32,320
    -------------------------------------------------------------------------
    Repayment of long-term
     debt and bank loans            (880)     (5,365)    (19,724)    (13,015)
    -------------------------------------------------------------------------
    Issue expenses related to
     long-term debt                    -         (88)          -        (138)
    -------------------------------------------------------------------------
    Deferred credits                   -        (134)       (235)        174
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing
     financing activities          2,417       1,390     (15,559)      7,605
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment                         -           -         392       1,578
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment held for sale           -           -           -       3,797
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment          (4,663)     (6,809)    (17,062)    (18,756)
    -------------------------------------------------------------------------
    Additions to intangible
     assets                          (86)       (124)       (416)       (656)
    -------------------------------------------------------------------------
    Acquisition of investments         -      (1,550)     (4,593)     (1,770)
    -------------------------------------------------------------------------
    Proceeds from disposal of
     investments                       -           -       1,144           -
    -------------------------------------------------------------------------
    Distribution from a
     company subject to
     significant influence             -         (56)        300           -
    -------------------------------------------------------------------------
    Decrease in long-term
     receivables                     826         307       2,500         591
    -------------------------------------------------------------------------
    Increase in long-term
     receivables                  (1,631)          -      (4,290)       (269)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing
     investing activities         (5,554)     (8,232)    (22,025)    (15,485)
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate on
     cash                           (126)        425        (437)        262
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Net change in cash from
     continuing operations        19,714       4,443      48,070         641
    -------------------------------------------------------------------------
    Cash flows from
     discontinued operations
      Operating activities         2,534        (756)      2,465         490
      Investing activities            93         373         378       1,123
                               ----------------------------------------------
    -------------------------------------------------------------------------

                                   2,627        (383)      2,843       1,613
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     beginning of period          44,191       8,742      15,619      10,548
                               ----------------------------------------------
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period             $  66,532   $  12,802   $  66,532   $  12,802
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary information
      Interest paid            $     669   $   1,083   $   2,717   $   3,683
      Income taxes paid
       (recovered), net        $  (1,341)  $   5,375   $   3,699   $  24,170
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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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