Canam Group posts net earnings of $48.4 million, or $1.00 per share, for 2008



    BOUCHERVILLE, QC, Feb. 26 /CNW Telbec/ - Construction products fabricator
Canam Group Inc. (TSX: CAM) had a good year in 2008, posting net earnings of
$48.4 million, or $1.00 per share, from $47.5 million, or $0.97 per share, in
2007. Consolidated sales totaled $833.7 million, compared with $870.5 million
for the 2007 period.
    Fourth-quarter net earnings were $13.7 million, or $0.29 per share,
against $13.7 million, or $0.28 per share, for the corresponding 2007 quarter.
Consolidated sales for the quarter fell by $12.6 million or 5%, from $252.2
million in 2007 to $239.6 million in 2008.
    According to president and chief operating officer Marc Dutil, Canam
Group is well positioned to face the current economic situation thanks to its
diversified operations, healthy order backlog and strong balance sheet, giving
it the financial flexibility it needs to seize expansion opportunities as they
come along.
    The consolidated gross profit for 2008 came in at $184.7 million, and the
gross margin at 22.2% compared to 21.5% at the end of the previous year.
EBITDA went from $105.1 million in 2007 to $94 million one year later. By the
end of 2008, the company's net debt stood at $69.5 million versus $63 million
at the close of 2007. Shareholders' equity was $414 million (book value of
$9.06 per share), with the net debt-to-equity ratio remaining at the same 0.17
level as last year.
    As at December 31, 2008, Canam Group's order backlog was worth $313
million, compared with $300 million a year ago. The increase is attributed to
the rising value of the U.S. dollar against the Canadian dollar, representing
a difference of $17 million.
    Canam Group's normal course issuer bid program, which began in August
2008 and involved the buyback of up to 4,074,706 common shares in the company,
was completed on January 21, 2009. Canam Group repurchased $26.3 million worth
of shares at an average price of $6.46 per share. As at today's date, Canam
Group has 45,376,000 outstanding common shares.
    The board of directors approved the payment of a quarterly dividend of
$0.04 per common share on March 31, 2009 to shareholders of record on March
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 close to 3,000 people in Canada, the United States, Romania and India,
and has partnerships with companies in Mexico, France, Saudi Arabia, the
United Arab Emirates, Russia and China.

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

    Canam Group will hold a conference call with financial analysts and media
representatives at 9 a.m. on Thursday, February 26, 2009. The call will be
broadcast live via the Internet at www.canamgroup.ws and www.cnw.ca. A
recording of the conference call will be available at 1-800-408-3053 (access
code 3281120) until March 12, 2009.

    
                     Consolidated Statements of Earnings

    Periods ended December 31
    (in thousands of dollars,
     except per share amounts)       3 months                 12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                  $  239,609   $  252,206   $  833,703   $  870,482
    -------------------------------------------------------------------------
    Cost of sales             181,480      192,527      649,027      683,325
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Gross profit               58,129       59,679      184,676      187,157
    -------------------------------------------------------------------------
    Selling and
     administrative
     expenses                  22,793       22,273       81,848       80,680
    -------------------------------------------------------------------------
    Profit sharing and
     continuous
     improvement programs       3,837        5,256        9,029        9,477
    -------------------------------------------------------------------------
    Exchange loss (gain)        2,639        2,755        1,224       (5,789)
    -------------------------------------------------------------------------
    Interest income              (292)        (188)        (685)      (1,267)
    -------------------------------------------------------------------------
    Increase in the
     redemption value of
     an investment in a
     related company             (437)        (479)      (1,811)      (1,884)
    -------------------------------------------------------------------------
    Loss on disposal of
     property, plant and
     equipment, and on
     property, plant and
     equipment held for
     sale                         567          214          712           42
    -------------------------------------------------------------------------
    Loss on disposal of
     investments                    -        2,234            -          610
    -------------------------------------------------------------------------
    Impairment of property,
     plant and equipment
     held for sale                154          139          331          139
                           --------------------------------------------------
    -------------------------------------------------------------------------
                               28,868       27,475       94,028      105,149
    -------------------------------------------------------------------------
    Depreciation of
     property, plant and
     equipment                  4,647        4,151       16,195       15,276
    -------------------------------------------------------------------------
    Amortization of
     intangible assets            409          452        1,766        1,799
    -------------------------------------------------------------------------
    Financial expenses          1,279        2,212        5,715        8,377
    -------------------------------------------------------------------------
    Impairment of the
     investment in a
     variable interest
     entity located in
     Mexico                         -            -            -        1,959
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Earnings before
     income tax expense
     and undermentioned
     items                     22,533       20,660       70,352       77,738
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Income tax expense
      Current                   4,989        6,020       18,964       27,903
      Future                    2,908        1,701        2,935        2,696
                           --------------------------------------------------
    -------------------------------------------------------------------------
                                7,897        7,721       21,899       30,599
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Earnings before
     undermentioned items      14,636       12,939       48,453       47,139
    -------------------------------------------------------------------------
    Share in earnings
     (loss) of companies
     subject to significant
     influence                 (1,096)         330          (93)         847
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations     13,540       13,269       48,360       47,986
    -------------------------------------------------------------------------
    Net earnings (net loss)
     from discontinued
     operations                   177          405           71         (533)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings           $   13,717   $   13,674   $   48,431   $   47,453
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)
     per share
    Basic:
      From continuing
       operations          $     0.29   $     0.27   $     1.00   $     0.98
      From discontinued
       operations                   -         0.01            -        (0.01)
                           --------------------------------------------------
                           --------------------------------------------------
      Total                $     0.29   $     0.28   $     1.00   $     0.97
                           --------------------------------------------------
                           --------------------------------------------------
    Diluted:
      From continuing
       operations          $     0.29   $     0.27   $     0.99   $     0.97
      From discontinued
       operations                   -         0.01            -        (0.01)
                           --------------------------------------------------
                           --------------------------------------------------
      Total                $     0.29   $     0.28   $     0.99   $     0.96
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     (in thousands of
     shares)
      Basic                    46,537       49,160       48,486       49,010
      Diluted                  46,722       49,625       48,787       49,421
    -------------------------------------------------------------------------
    Number of common
     shares                                              45,647       49,366
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


               Consolidated Statements of Comprehensive Income

    Periods ended December 31
    (in thousands of dollars)        3 months                 12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings           $   13,717   $   13,674   $   48,431   $   47,453
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss):
      Unrealized gains
       (losses) on
       translating
       financial statements
       of self-sustaining
       foreign operations  $   25,603   $     (653)  $   32,103   $  (21,549)
      Reclassification in
       earnings related to
       the reduction in the
       net investment in a
       self-sustaining
       foreign operation            -            -            -        1,959
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Unrealized foreign
     currency translation
     gains (losses)        $   25,603   $     (653)  $   32,103   $  (19,590)
                           --------------------------------------------------
    -------------------------------------------------------------------------
      Unrealized gains
       (losses) on
       available-for-sale
       financial assets
       arising during the
       period              $     (269)  $       48   $     (208)  $     (158)
      Reclassification in
       earnings                     -            -            -          (64)
      Income tax expense           26           (8)         (10)          26
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Change in unrealized
     gains and losses on
     available-for-sale
     financial assets      $     (243)  $       40   $     (218)  $     (196)
                           --------------------------------------------------
    -------------------------------------------------------------------------
      Gains on derivatives
       designated as cash
       flow hedges         $        -   $    2,343   $        -   $    2,343
      Reclassification in
       earnings of gains
       on derivatives
       designated as cash
       flow hedges on sales      (558)           -       (2,343)           -
      Income tax expense          181         (762)         762         (762)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Change in gains on
     derivatives designated
     as cash flow hedges   $     (377)  $    1,581   $   (1,581)  $    1,581
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss)         $   24,983   $      968   $   30,304   $  (18,205)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income   $   38,700   $   14,642   $   78,735   $   29,248
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                 Consolidated Statements of Retained Earnings

    Periods ended December 31
    (in thousands of dollars)        3 months                 12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance        $  227,048   $  188,722   $  200,421   $  160,840
    -------------------------------------------------------------------------
    Net earnings               13,717       13,674       48,431       47,453
    -------------------------------------------------------------------------
    Dividends                  (1,833)      (1,975)      (7,748)      (7,872)
    -------------------------------------------------------------------------
    Excess of purchase
     price over carrying
     value of acquired
     common shares             (6,724)           -       (8,896)           -
    -------------------------------------------------------------------------
    Closing balance        $  232,208   $  200,421   $  232,208   $  200,421
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                         Consolidated Balance Sheets


                                                          As at        As at
                                                    December 31, December 31,
                                                           2008         2007
    (in thousands of dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current assets
      Cash                                           $   15,979   $   11,221
      Accounts receivable                               157,735      156,334
      Inventories                                       184,218      130,388
      Unrealized asset on foreign currency forward
       contracts                                              -          192
      Income taxes recoverable                            5,281          923
      Future income tax assets                            2,996        3,955
      Prepaid expenses and other assets                   6,546        4,583
      Current assets of discontinued operations           2,399        3,821
                                                   --------------------------
      Total current assets                              375,154      311,417
                                                   --------------------------
    -------------------------------------------------------------------------
    Investments                                          48,400       73,238
    -------------------------------------------------------------------------
    Property, plant and equipment                       185,945      168,077
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale           1,958        5,613
    -------------------------------------------------------------------------
    Intangible assets                                     2,108        2,802
    -------------------------------------------------------------------------
    Goodwill                                                150          312
    -------------------------------------------------------------------------
    Future income tax assets                              1,732        2,602
    -------------------------------------------------------------------------
    Long-term receivables and other assets               30,164        5,799
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations          12,678       15,237
                                                   --------------------------
    -------------------------------------------------------------------------
                                                     $  658,289   $  585,097
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                                     $   10,353   $    5,220
      Accounts payable and accrued liabilities          138,129      116,556
      Unrealized liability on foreign currency
       forward contracts                                    743            -
      Income taxes payable                                  342        7,797
      Future income tax liabilities                         647          376
      Current portion of long-term debt                   5,475        3,962
      Current liabilities of discontinued
       operations                                         1,893        2,448
                                                   --------------------------
    -------------------------------------------------------------------------
      Total current liabilities                         157,582      136,359
                                                   --------------------------
    -------------------------------------------------------------------------
    Long-term debt                                       69,672       65,027
    -------------------------------------------------------------------------
    Deferred credits                                      4,526        4,577
    -------------------------------------------------------------------------
    Future income tax liabilities                        10,368        8,409
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued
     operations                                           2,527        3,835
                                                   --------------------------
    -------------------------------------------------------------------------
                                                        244,675      218,207
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' Equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Share capital                                       179,681      196,611
    -------------------------------------------------------------------------
    Retained earnings                                   232,208      200,421
    -------------------------------------------------------------------------
    Contributed surplus                                   4,403        2,840
    -------------------------------------------------------------------------
    Accumulated other comprehensive income               (2,678)     (32,982)
                                                   --------------------------
    -------------------------------------------------------------------------
                                                        413,614      366,890
                                                   --------------------------
    -------------------------------------------------------------------------
                                                     $  658,289   $  585,097
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                    Consolidated Statements of Cash Flows

    Periods ended December 31
    (in thousands of dollars)        3 months                 12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations $   13,540   $   13,269   $   48,360   $   47,986
    -------------------------------------------------------------------------
    Items not affecting
     cash
      Compensation cost
       related to stock
       options                      3            7           14           33
      Amortization of
       compensation costs
       related to the
       profit sharing
       program - stock
       ownership component        390          227        1,559          902
      Unrealized loss
       (gain) on foreign
       currency forward
       contracts                  366         (133)        (646)      (1,642)
      Increase in the
       redemption value
       of an investment
       in a related
       company                   (437)        (479)      (1,811)      (1,884)
      Impairment of
       property, plant and
       equipment held for
       sale                       154          139          331          139
      Loss on disposal of
       property, plant and
       equipment and on
       property, plant and
       equipment held for
       sale                       567          214          712           42
      Loss on disposal of
       investments                  -        2,234            -          610
      Depreciation of
       property, plant and
       equipment                4,647        4,151       16,195       15,276
      Amortization of
       intangible assets          409          452        1,766        1,799
      Amortization of
       deferred financing
       expenses                    54          261          235          541
      Impairment of the
       investment in a
       variable interest
       entity located in
       Mexico                       -            -            -        1,959
      Pension expense             111         (232)        (618)        (732)
      Future income tax
       expense                  2,908        1,701        2,935        2,696
      Share in loss
       (earnings) of
       companies subject
       to significant
       influence                1,096         (330)          93         (847)
                           --------------------------------------------------
                           --------------------------------------------------
                               23,808       21,481       69,125       66,878
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working
     capital items
      Decrease (increase)
       in accounts
       receivable              18,960       21,898       15,804      (10,252)
      Decrease (increase)
       in inventories          14,839       16,524      (55,463)      (6,361)
      Increase in income
       taxes recoverable         (551)        (769)      (4,058)        (747)
      Decrease (increase)
       in prepaid expenses
       and other assets        (3,486)         958       (1,901)       2,816
      Increase (decrease)
       in accounts payable
       and accrued
       liabilities            (25,112)     (31,606)      20,147       (6,198)
      Increase (decrease)
       in interest payable       (273)          (3)          (8)           6
      Increase (decrease)
       in income taxes
       payable                   (221)         842       (7,623)       2,815
                           --------------------------------------------------
                           --------------------------------------------------
                                4,156        7,844      (33,102)     (17,921)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from
     continuing operating
     activities                27,964       29,325       36,023       48,957
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased in
     employees' name on the
     secondary market               -            -       (1,970)      (1,445)
    -------------------------------------------------------------------------
    Redemption of shares      (20,015)           -      (24,231)           -
    -------------------------------------------------------------------------
    Proceeds from issuance
     of shares                      -          765          365        2,119
    -------------------------------------------------------------------------
    Dividends                  (1,833)      (1,975)      (7,748)      (7,872)
    -------------------------------------------------------------------------
    Increase in long-term
     debt and bank loans       10,450       14,313       42,770       45,879
    -------------------------------------------------------------------------
    Repayment of long-term
     debt and bank loans      (15,799)     (44,865)     (28,814)     (69,224)
    -------------------------------------------------------------------------
    Issue expenses related
     to long-term debt            (78)        (219)        (216)        (386)
    -------------------------------------------------------------------------
    Deferred credits              (40)        (375)         134          (56)
    -------------------------------------------------------------------------
    Cash flows from
     continuing financing
     activities               (27,315)     (32,356)     (19,710)     (30,985)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment                     16          431        1,594        3,637
    Proceeds from sale of
     property, plant and
     equipment held for sale        -            -        3,797            -
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment       (8,319)      (9,019)     (27,075)     (22,496)
    -------------------------------------------------------------------------
    Additions to intangible
     assets                      (301)        (517)        (957)      (1,289)
    -------------------------------------------------------------------------
    Acquisition of
     investments                    -         (500)      (1,770)      (2,811)
    -------------------------------------------------------------------------
    Proceeds from disposal
     of investments                 -        1,425            -        1,593
    -------------------------------------------------------------------------
    Distribution from a
     company subject to
     significant influence        109           95          109           95
    -------------------------------------------------------------------------
    Decrease in long-term
     receivables                6,913        5,708        7,504        6,498
    -------------------------------------------------------------------------
    Increase in long-term
     receivables                 (392)        (282)        (661)      (3,825)
    -------------------------------------------------------------------------
    Business acquisitions,
     net of cash acquired           -          (13)           -      (10,567)
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from
     continuing investing
     activities                (1,974)      (2,672)     (17,459)     (29,165)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate
     on cash                    3,336          905        3,598          981
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Net change in cash
     from continuing
     operations                 2,011       (4,798)       2,452      (10,212)
    -------------------------------------------------------------------------
    Cash flows from
     discontinued
     operations
      Operating activities        622        1,847        1,032        7,039
      Investing activities        151        4,864        1,274        5,417
                           --------------------------------------------------
    -------------------------------------------------------------------------
                                  773        6,711        2,306       12,456
    -------------------------------------------------------------------------
    Cash, beginning of
     period                    13,195        9,308       11,221        8,977
                           --------------------------------------------------
    -------------------------------------------------------------------------
    Cash, end of period    $   15,979   $   11,221   $   15,979   $   11,221
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary
     information
      Interest paid        $    1,229   $    3,703   $    4,912   $    7,229
      Income taxes paid,
       net                 $    4,484   $    3,312   $   28,654   $   20,544
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




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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