Canam Group posts net earnings of $5.2M for the second quarter of 2009



    BOUCHERVILLE, QC, Aug. 6 /CNW Telbec/ - Construction products fabricator
Canam Group Inc. (TSX: CAM) today reported net earnings of $5.2 million, or
$0.12 per share, for the quarter ended June 27, 2009, compared with $12.1
million, or $0.25 per share, for the corresponding period in 2008.
Consolidated sales totaled $151.2 million, from $187.3 million for the
year-earlier quarter.
    Net earnings for the six-month period ended June 27, 2009 were $10.6
million, or $0.24 per share, compared with $19.7 million, or $0.40 per share,
during the same period in 2008. Consolidated sales for the first six months of
2009 reached $331.4 million, against $346.9 million the previous year.
    Canam Group president and chief operating officer Marc Dutil considers
that the company was able to maintain a suitable level of profitability
despite the slowdown in non-residential construction in Canada and the U.S.
The heavy construction and infrastructure markets in North America continue to
be profitable.
    EBITDA for the last 12 months ended June 27, 2009 was $86.4 million or
11.1% of sales, in contrast to $93.4 million or 11.7% of sales for the
12-month period ended December 31, 2008.
    The second quarter of 2009 saw Canam Group sell its 35% stake in both
Canam Romsa in Mexico and Canam Russia in Russia.
    Canam Group's order backlog fell 14% from $278 million as at March 28,
2009 to $239 million as at June 27, 2009. This figure, however, does not
include the CA$60-million contract for the Marlins' ballpark.
    The board of directors approved the payment of a quarterly dividend of
$0.04 per common share on September 30, 2009 to shareholders of record on
September 16, 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 2,600 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 Thursday, August 6, 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
1228526) until August 21, 2009.

    
                 Interim Consolidated Statements of Earnings

    Periods ended June 27, 2009
     and June 28, 2008
    (in thousands of dollars,
     except per share amounts)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
                                           (restated)              (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                     $  151,239  $  187,344  $  331,443  $  346,935
    -------------------------------------------------------------------------
    Cost of sales                123,472     145,668     266,441     270,652
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Gross profit                  27,767      41,676      65,002      76,283
    -------------------------------------------------------------------------
    Selling and administrative
     expenses                     17,552      18,809      35,255      38,305
    -------------------------------------------------------------------------
    Profit sharing programs          319       1,372       1,164       2,394
    -------------------------------------------------------------------------
    Exchange loss (gain)          (1,129)         68        (432)       (858)
    -------------------------------------------------------------------------
    Interest income                 (625)       (115)     (1,150)       (263)
    -------------------------------------------------------------------------
    Increase in the redemption
     value of an investment in
     a related company                 -        (462)          -        (913)
    -------------------------------------------------------------------------
    Gain on disposal of
     investments                    (209)          -        (209)          -
    -------------------------------------------------------------------------
    Loss (gain) on disposal of
     property, plant and
     equipment, and on
     property, plant and
     equipment held for sale         (77)         97         (85)         28
    -------------------------------------------------------------------------
    Impairment of property,
     plant and equipment held
     for sale                          -           -           -         177
                              -----------------------------------------------
    -------------------------------------------------------------------------
                                  11,936      21,907      30,459      37,413
    -------------------------------------------------------------------------
    Depreciation of property,
     plant and equipment           3,982       3,804       8,011       7,497
    -------------------------------------------------------------------------
    Amortization of intangible
     assets                          354         459         722         923
    -------------------------------------------------------------------------
    Financial expenses             1,140       1,578       2,281       2,853
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Earnings before income tax
     expense and
     undermentioned items          6,460      16,066      19,445      26,140
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Income tax expense
      Current                      1,172       4,869       6,316       8,221
      Future                         163        (308)        153        (245)
                              -----------------------------------------------
    -------------------------------------------------------------------------
                                   1,335       4,561       6,469       7,976
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Earnings before
     undermentioned items          5,125      11,505      12,976      18,164
    -------------------------------------------------------------------------
    Share in earnings (loss)
     of companies subject to
     significant influence            61         137        (897)        639
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations         5,186      11,642      12,079      18,803
    -------------------------------------------------------------------------
    Net earnings (net loss)
     from discontinued
     operations                       40         415      (1,480)        887
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Net earnings              $    5,226  $   12,057  $   10,599  $   19,690
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)
     per share
    Basic:
      From continuing
       operations             $     0.12  $     0.24  $     0.27  $     0.38
      From discontinued
       operations                      -        0.01       (0.03)       0.02
                              -----------------------------------------------
                              -----------------------------------------------
      Total                   $     0.12  $     0.25  $     0.24  $     0.40
                              -----------------------------------------------
                              -----------------------------------------------
    Diluted:
      From continuing
       operations             $     0.12  $     0.23  $     0.26  $     0.38
      From discontinued
       operations                      -        0.01       (0.03)       0.02
                              -----------------------------------------------
                              -----------------------------------------------
      Total                   $     0.12  $     0.24  $     0.23  $     0.40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number
     of shares (in thousands
     of shares)
      Basic                       44,928      49,115      44,948      49,110
      Diluted                     45,376      49,581      45,395      49,573
    -------------------------------------------------------------------------
    Number of common shares
     outstanding                                          45,368      49,428
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


           Interim Consolidated Statements of Comprehensive Income

    Periods ended June 27, 2009
     and June 28, 2008
    (in thousands of dollars)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings              $    5,226  $   12,057  $   10,599  $   19,690
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss):
    Change in unrealized
     gains and losses on
     translating financial
     statements of self-
     sustaining foreign
     operations               $  (11,375) $     (734) $   (9,429) $    3,635
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Unrealized gains (losses)
     on available-for-sale
     financial assets arising
     during the period        $      372  $      (89) $      529  $       11
    Income tax expense               (58)         28         (99)        (19)
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Change in unrealized
     gains and losses on
     available-for-sale
     financial assets         $      314  $      (61) $      430  $       (8)
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Reclassification in
     earnings of gains on
     derivatives designated
     as cash flow hedges on
     sales                    $        -  $     (595) $        -  $   (1,209)
    Income tax expense                 -         193           -         393
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Change in gains on
     derivatives designated
     as cash flow hedges      $        -  $     (402) $        -  $     (816)
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Other comprehensive
     income (loss)            $  (11,061) $   (1,197) $   (8,999) $    2,811
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income
     (loss)                   $   (5,835) $   10,860  $    1,600  $   22,501
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


             Interim Consolidated Statements of Retained Earnings

    Periods ended June 27, 2009
     and June 28, 2008
    (in thousands of dollars)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance           $  234,798  $  206,079  $  232,208  $  200,421
    -------------------------------------------------------------------------
    Net earnings                   5,226      12,057      10,599      19,690
    -------------------------------------------------------------------------
    Dividends                     (1,816)     (1,975)     (3,631)     (3,950)
    -------------------------------------------------------------------------
    Excess of acquisition
     cost over carrying value
     of acquired common
     shares                            -           -        (968)          -
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Closing balance           $  238,208  $  216,161  $  238,208  $  216,161
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                     Interim Consolidated Balance Sheets

                                                         As at         As at
                                                       June 27,  December 31,
                                                          2009          2008
    (in thousands of dollars)                       (unaudited)    (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current assets
      Cash                                          $   44,191    $   15,619
      Accounts receivable                              127,293       154,468
      Inventories                                      139,826       176,871
      Unrealized asset on foreign currency forward
       contracts                                           790             -
      Income taxes recoverable                           3,280         5,281
      Future income tax assets                           2,015         2,062
      Prepaid expenses and other assets                  2,828         6,546
      Current assets of discontinued operations          4,140        14,307
                                                    -------------------------
                                                    -------------------------
      Total current assets                             324,363       375,154
                                                    -------------------------
    -------------------------------------------------------------------------
    Investments                                         51,733        48,400
    -------------------------------------------------------------------------
    Property, plant and equipment                      185,176       185,945
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale          1,855         1,958
    -------------------------------------------------------------------------
    Intangible assets                                    1,601         2,096
    -------------------------------------------------------------------------
    Goodwill                                               150           150
    -------------------------------------------------------------------------
    Future income tax assets                               354           340
    -------------------------------------------------------------------------
    Long-term receivables and other assets              28,437        30,164
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations          9,793        14,082
                                                    -------------------------
    -------------------------------------------------------------------------
                                                    $  603,462    $  658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                                    $    1,692    $   10,353
      Accounts payable and accrued liabilities         101,997       126,177
      Unrealized liabilities on foreign currency
       forward contracts                                     -           743
      Income taxes payable                                 208           284
      Future income tax liabilities                        266           647
      Current portion of long-term debt                  5,494         5,475
      Current liabilities of discontinued
       operations                                        1,573        13,903
                                                    -------------------------
                                                    -------------------------
      Total current liabilities                        111,230       157,582
                                                    -------------------------
    -------------------------------------------------------------------------
    Long-term debt                                      66,328        69,672
    -------------------------------------------------------------------------
    Deferred credits                                     4,788         4,394
    -------------------------------------------------------------------------
    Future income tax liabilities                       10,557        10,368
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued
     operations                                          2,006         2,659
                                                    -------------------------
    -------------------------------------------------------------------------
                                                       194,909       244,675
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Share capital                                      178,024       179,681
    -------------------------------------------------------------------------
    Retained earnings                                  238,208       232,208
    -------------------------------------------------------------------------
    Contributed surplus                                  3,998         4,403
    -------------------------------------------------------------------------
    Accumulated other comprehensive loss               (11,677)       (2,678)
                                                    -------------------------
    -------------------------------------------------------------------------
                                                       408,553       413,614
                                                    -------------------------
    -------------------------------------------------------------------------
                                                    $  603,462    $  658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                Interim Consolidated Statements of Cash Flows

    Periods ended June 27, 2009
     and June 28, 2008
    (in thousands of dollars)
     (unaudited)                       3 months                6 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2009        2008        2009        2008
                                           (restated)              (restated)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations    $    5,186  $   11,642  $   12,079  $   18,803
    -------------------------------------------------------------------------
    Items not affecting cash
      Compensation costs
       related to stock
       options                         -           4           -           7
      Amortization of
       compensation costs
       related to the profit
       sharing program - stock
       ownership component           431         389         916         779
      Unrealized gain on
       foreign currency
       forward contracts            (480)       (350)     (1,533)       (618)
      Increase in the
       redemption value of an
       investment in a related
       company                         -        (462)          -        (913)
      Gain on disposal of
       investments                  (209)          -        (209)          -
      Impairment of property,
       plant and equipment
       held for sale                   -           -           -         177
      Loss (gain) on disposal
       of property, plant and
       equipment and on
       property, plant and
       equipment held for sale       (77)         97         (85)         28
      Depreciation of property,
       plant and equipment         3,982       3,804       8,011       7,497
      Amortization of
       intangible assets             354         459         722         923
      Amortization of deferred
       financing expenses             53          60         108         126
      Pension expense                (35)        (98)       (106)       (290)
      Future income tax expense      163        (308)        153        (245)
      Share in loss (earnings)
       of companies subject to
       significant influence         (61)       (137)        897        (639)
                              -----------------------------------------------
                              -----------------------------------------------
                                   9,307      15,100      20,953      25,635
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working capital
     items
      Decrease (increase) in
       accounts receivable        10,624      (9,894)     24,371       6,319
      Decrease (increase) in
       inventories                20,133     (42,619)     33,154     (61,212)
      Decrease (increase) in
       income taxes
       recoverable                  (260)     (1,687)      1,925      (4,260)
      Decrease in prepaid
       expenses and other
       assets                        553         583       3,531         275
      Increase (decrease) in
       accounts payable and
       accrued liabilities        (5,712)     16,350     (20,754)     38,351
      Increase (decrease) in
       interest payable             (223)         40         (19)         26
      Decrease in income taxes
       payable                      (160)        (13)        (47)     (7,735)
                              -----------------------------------------------
                              -----------------------------------------------
                                  24,955     (37,240)     42,161     (28,236)
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing
     operating activities         34,262     (22,140)     63,114      (2,601)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased by a
     trust in employees' name
     on the secondary market           -           -      (1,871)     (1,970)
    -------------------------------------------------------------------------
    Repurchase of shares               -           -      (2,122)          -
    -------------------------------------------------------------------------
    Proceeds from issuance of
     shares                            -         275          47         298
    -------------------------------------------------------------------------
    Dividends                     (1,816)     (1,975)     (3,631)     (3,950)
    -------------------------------------------------------------------------
    Increase in long-term debt
     and bank loans                    -      18,542       8,680      19,229
    -------------------------------------------------------------------------
    Repayment of long-term
     debt and bank loans         (17,959)     (4,555)    (18,844)     (7,650)
    -------------------------------------------------------------------------
    Issue expenses related to
     long-term debt                    -         (12)          -         (50)
    -------------------------------------------------------------------------
    Deferred credits                  10        (210)       (235)        308
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing
     financing activities        (19,765)     12,065     (17,976)      6,215
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment                       321         549         392       1,578
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment held for sale           -       3,238           -       3,797
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment          (4,833)     (6,864)    (12,399)    (11,947)
    -------------------------------------------------------------------------
    Additions to intangible
     assets                          (45)       (354)       (330)       (532)
    -------------------------------------------------------------------------
    Acquisition of investments    (3,288)       (220)     (4,593)       (220)
    -------------------------------------------------------------------------
    Proceeds from disposal of
     investments                     643           -       1,144           -
    -------------------------------------------------------------------------
    Distribution from a
     company subject to
     significant influence             -          56         300          56
    -------------------------------------------------------------------------
    Decrease in long-term
     receivables                     897         196       1,674         284
    -------------------------------------------------------------------------
    Increase in long-term
     receivables                  (1,926)       (254)     (2,659)       (269)
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing
     investing activities         (8,231)     (3,653)    (16,471)     (7,253)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate on
     cash                           (126)       (159)       (311)       (163)
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Net change in cash from
     continuing operations         6,140     (13,887)     28,356      (3,802)
    -------------------------------------------------------------------------
    Cash flows from
     discontinued operations
      Operating activities           507       1,318         (69)      1,246
      Investing activities           138         600         285         750
                              -----------------------------------------------
    -------------------------------------------------------------------------
                                     645       1,918         216       1,996
    -------------------------------------------------------------------------
    Cash, beginning of period     37,406      20,711      15,619      10,548
                              -----------------------------------------------
    -------------------------------------------------------------------------
    Cash, end of period       $   44,191  $    8,742  $   44,191  $    8,742
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary information
      Interest paid           $      919  $    1,378  $    2,048  $    2,600
      Income taxes paid, net  $    1,494  $    5,666  $    5,040  $   18,795
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




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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