Canam Group posts net earnings of $5.4m for the first quarter of 2009



    ST. GEORGES, QC, April 29 /CNW Telbec/ - Construction products fabricator
Canam Group Inc. (TSX: CAM) today reported net earnings of $5.4 million, or
$0.12 per share, for the first quarter ended March 28, 2009, compared with
$7.6 million, or $0.16 per share, for the corresponding period in 2008.
Consolidated sales were $184.7 million, up 11% from $166 million the year
before.
    Canam Group president and chief operating officer Marc Dutil said these
results reflect the company's good performance in the heavy structural steel
and infrastructure construction sectors. The fact remains that these results
would have been similar to those obtained for the year-earlier quarter had it
not been for the losses related to peripheral activities undertaken in Mexico,
the United States and Romania.
    Selling and administrative expenses went down by $1.7 million to $18.3
million or 9.9% of sales, compared with $20 million or 12% of sales for the
same quarter in 2008. Earnings before interest, taxes, depreciation and
amortization (EBITDA) rose by $1.2 million to $17.2 million or 9.3% of sales,
against $16 million or 9.6% of sales the previous year.
    According to Mr. Dutil, these results will allow Canam Group to continue
strengthening its balance sheet. Net debt stood at $55.6 million, while
shareholders' equity reached $415.8 million, bringing the net debt-to-equity
ratio to 0.13.
    Canam Group's order backlog totaled $278 million as at March 28, 2009,
compared with $313 million at the close of 2008 and $308 million at the end of
the year-earlier quarter.
    The board of directors approved the payment of a quarterly dividend of
$0.04 per common share on June 30, 2009 to shareholders of record on June 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 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 1:15 p.m. on Wednesday, April 29, and webcast in real time
via www.canamgroup.ws and www.cnw.ca. An audio replay of the conference call
will be accessible at 1-800-408-3053 (passcode 6527342) until May 15, 2009.

    
                     Consolidated Statements of Earnings

    Periods ended March 28, 2009 and March 29, 2008
    (in thousands of dollars, except per share amounts)
    (unaudited)                                                 3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                                             $  184,673  $  166,016
    -------------------------------------------------------------------------
    Cost of sales                                        147,953     130,647
                                                     ------------------------
    -------------------------------------------------------------------------
    Gross profit                                          36,720      35,369
    -------------------------------------------------------------------------
    Selling and administrative expenses                   18,258      19,975
    -------------------------------------------------------------------------
    Profit sharing and continuous improvement
     programs                                                845       1,022
    -------------------------------------------------------------------------
    Exchange loss (gain)                                     903      (1,112)
    -------------------------------------------------------------------------
    Interest income                                         (527)       (150)
    -------------------------------------------------------------------------
    Increase in the redemption value of an
     investment in a related company                           -        (451)
    -------------------------------------------------------------------------
    Gain on disposal of property, plant and
     equipment, and on property, plant and
     equipment held for sale                                  (8)        (69)
    -------------------------------------------------------------------------
    Impairment of property, plant and equipment
     held for sale                                             -         177
                                                     ------------------------
    -------------------------------------------------------------------------
                                                          17,249      15,977
    -------------------------------------------------------------------------
    Depreciation of property, plant and equipment          4,099       3,754
    -------------------------------------------------------------------------
    Amortization of intangible assets                        369         465
    -------------------------------------------------------------------------
    Financial expenses                                     1,144       1,280
                                                     ------------------------
    -------------------------------------------------------------------------
    Earnings before income tax expense and
     undermentioned items                                 11,637      10,478
                                                     ------------------------
    -------------------------------------------------------------------------
    Income tax expense
      Current                                              5,170       3,402
      Future                                                 (10)         63
                                                     ------------------------
    -------------------------------------------------------------------------
                                                           5,160       3,465
                                                     ------------------------
    -------------------------------------------------------------------------
    Earnings before undermentioned items                   6,477       7,013
    -------------------------------------------------------------------------
    Share in earnings (loss) of companies
     subject to significant influence                       (958)        502
                                                     ------------------------
    -------------------------------------------------------------------------
    Net earnings from continuing operations                5,519       7,515
    -------------------------------------------------------------------------
    Net earnings (net loss) from discontinued
     operations                                             (146)        118
                                                     ------------------------
    -------------------------------------------------------------------------
    Net earnings                                      $    5,373  $    7,633
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings per share
    Basic:
      From continuing operations                      $     0.12  $     0.16
      From discontinued operations                             -           -
                                                     ------------------------
                                                     ------------------------
      Total                                           $     0.12  $     0.16
                                                     ------------------------
                                                     ------------------------
    Diluted:
      From continuing operations                      $     0.12  $     0.15
      From discontinued operations                             -           -
                                                     ------------------------
                                                     ------------------------
      Total                                           $     0.12  $     0.15
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number of shares (in thousands
     of shares)
      Basic                                               44,908      49,063
      Diluted                                             45,414      49,601
    -------------------------------------------------------------------------
    Number of common shares in circulation                45,368      49,371
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


               Consolidated Statements of Comprehensive Income

    Periods ended March 28, 2009 and March 29, 2008
    (in thousands of dollars) (unaudited)                       3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings                                      $    5,373  $    7,633
                                                     ------------------------
    -------------------------------------------------------------------------
    Other comprehensive income:
    Change in unrealized gains and losses on
     translating financial statements of self-
     sustaining foreign operations                    $    1,946  $    4,369
                                                     ------------------------
    -------------------------------------------------------------------------
    Unrealized gains on available-for-sale
     financial assets arising during the period       $      157  $      100
    Income tax expense                                       (41)        (47)
                                                     ------------------------
    -------------------------------------------------------------------------
    Change in unrealized gains and losses on
     available-for-sale financial assets              $      116  $       53
                                                     ------------------------
    -------------------------------------------------------------------------
    Reclassification in earnings of gains on
     derivatives designated as cash flow hedges
     on sales                                         $        -  $     (614)
    Income tax expense                                         -         200
                                                     ------------------------
    -------------------------------------------------------------------------
    Change in gains on derivatives designated as
     cash flow hedges                                 $        -  $     (414)
                                                     ------------------------
    -------------------------------------------------------------------------
    Other comprehensive income                        $    2,062  $    4,008
                                                     ------------------------
    -------------------------------------------------------------------------
    Comprehensive income                              $    7,435  $   11,641
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                 Consolidated Statements of Retained Earnings

    Periods ended March 28, 2009 and March 29, 2008
    (in thousands of dollars) (unaudited)                       3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance                                   $  232,208  $  200,421
    -------------------------------------------------------------------------
    Net earnings                                           5,373       7,633
    -------------------------------------------------------------------------
    Dividends                                             (1,815)     (1,975)
    -------------------------------------------------------------------------
    Excess of acquisition cost over carrying value
     of acquired common shares                              (968)          -
                                                     ------------------------
    -------------------------------------------------------------------------
    Closing balance                                   $  234,798  $  206,079
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                         Consolidated Balance Sheets

    (in thousands of dollars)                              As at       As at
                                                           March    December
                                                              28,         31,
                                                            2009        2008
                                                      (unaudited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current assets
      Cash                                            $   38,082  $   15,979
      Accounts receivable                                144,841     157,735
      Inventories                                        170,799     184,218
      Unrealized asset on foreign currency forward
       contracts                                             310           -
      Income taxes recoverable                             3,117       5,281
      Future income tax assets                             2,977       2,996
      Prepaid expenses and other assets                    3,595       6,546
      Current assets of discontinued operations            3,533       2,399
                                                     ------------------------
                                                     ------------------------
      Total current assets                               367,254     375,154
                                                     ------------------------
    -------------------------------------------------------------------------
    Investments                                           48,206      48,400
    -------------------------------------------------------------------------
    Property, plant and equipment                        189,900     185,945
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale            1,989       1,958
    -------------------------------------------------------------------------
    Intangible assets                                      1,949       2,108
    -------------------------------------------------------------------------
    Goodwill                                                 150         150
    -------------------------------------------------------------------------
    Future income tax assets                               1,712       1,732
    -------------------------------------------------------------------------
    Long-term receivables and other assets                30,800      30,164
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations           10,938      12,678
                                                     ------------------------
    -------------------------------------------------------------------------
                                                      $  652,898  $  658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                                      $   19,148  $   10,353
      Accounts payable and accrued liabilities           123,640     138,129
      Unrealized liability on foreign currency
       forward contracts                                       -         743
      Income taxes payable                                   480         342
      Future income tax liabilities                          646         647
      Current portion of long-term debt                    5,534       5,475
      Current liabilities of discontinued operations       1,607       1,893
                                                     ------------------------
                                                     ------------------------
      Total current liabilities                          151,055     157,582
                                                     ------------------------
    -------------------------------------------------------------------------
    Long-term debt                                        68,995      69,672
    -------------------------------------------------------------------------
    Deferred credits                                       4,263       4,526
    -------------------------------------------------------------------------
    Future income tax liabilities                         10,515      10,368
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued operations       2,298       2,527
                                                     ------------------------
    -------------------------------------------------------------------------
                                                         237,126     244,675
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Share capital                                        178,024     179,681
    -------------------------------------------------------------------------
    Retained earnings                                    234,798     232,208
    -------------------------------------------------------------------------
    Contributed surplus                                    3,567       4,403
    -------------------------------------------------------------------------
    Accumulated other comprehensive loss                    (617)     (2,678)
                                                     ------------------------
    -------------------------------------------------------------------------
                                                         415,772     413,614
                                                     ------------------------
    -------------------------------------------------------------------------
                                                      $  652,898  $  658,289
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                    Consolidated Statements of Cash Flows

    Periods ended March 28, 2009 and March 29, 2008
    (in thousands of dollars) (unaudited)                       3 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                            2009        2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings from continuing operations           $    5,519  $    7,515
    -------------------------------------------------------------------------
    Items not affecting cash
      Compensation cost related to stock options               -           3
      Amortization of compensation costs related to
       the profit sharing program - stock ownership
       component                                             485         390
      Unrealized gain on foreign currency forward
       contracts                                          (1,053)       (268)
      Increase in the redemption value of an
       investment in a related company                         -        (451)
      Impairment of property, plant and equipment
       held for sale                                           -         177
      Gain on disposal of property, plant and
       equipment and on property, plant and
       equipment held for sale                                (8)        (69)
      Depreciation of property, plant and equipment        4,099       3,754
      Amortization of intangible assets                      369         465
      Amortization of deferred financing expenses             55          66
      Pension expense                                        (71)       (192)
      Future income tax expense                              (10)         63
      Share in loss (earnings) of companies subject
       to significant influence                              958        (502)
                                                     ------------------------
                                                     ------------------------
                                                          10,343      10,951
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash operating working capital
     items
      Decrease in accounts receivable                     13,278      14,053
      Decrease (increase) in inventories                  14,407     (19,277)
      Decrease (increase) in income taxes recoverable      2,185      (2,572)
      Decrease (increase) in prepaid expenses and
       other assets                                        2,978        (309)
      Increase (decrease) in accounts payable and
       accrued liabilities                               (14,747)     23,827
      Increase (decrease) in interest payable                204         (14)
      Increase (decrease) in income taxes payable            139      (7,670)
                                                     ------------------------
                                                     ------------------------
                                                          18,444       8,038
                                                     ------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing operating activities       28,787      18,989
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased in employees' name on the
     secondary market                                     (1,871)     (1,970)
    -------------------------------------------------------------------------
    Repurchase of shares                                  (2,122)          -
    -------------------------------------------------------------------------
    Proceeds from issuance of shares                          47          23
    -------------------------------------------------------------------------
    Dividends                                             (1,815)     (1,975)
    -------------------------------------------------------------------------
    Increase in long-term debt and bank loans              8,680         687
    -------------------------------------------------------------------------
    Repayment of long-term debt and bank loans              (885)     (3,095)
    -------------------------------------------------------------------------
    Issue expenses related to long-term debt                   -         (38)
    -------------------------------------------------------------------------
    Deferred credits                                        (245)        518
                                                     ------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing financing activities        1,789      (5,850)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of property, plant and
     equipment                                                71       1,029
    -------------------------------------------------------------------------
    Proceeds from sale of property, plant and
     equipment held for sale                                   -         559
    -------------------------------------------------------------------------
    Additions to property, plant and equipment            (7,566)     (5,083)
    -------------------------------------------------------------------------
    Additions to intangible assets                          (288)       (178)
    -------------------------------------------------------------------------
    Acquisition of investments                            (1,305)          -
    -------------------------------------------------------------------------
    Proceeds from disposal of investments                    501           -
    -------------------------------------------------------------------------
    Distribution from a company subject to
     significant influence                                   300           -
    -------------------------------------------------------------------------
    Decrease in long-term receivables                        777          88
    -------------------------------------------------------------------------
    Increase in long-term receivables                       (733)        (15)
                                                     ------------------------
    -------------------------------------------------------------------------
    Cash flows from continuing investing activities       (8,243)     (3,600)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in foreign exchange rate on
     cash                                                   (186)         (4)
                                                     ------------------------
    -------------------------------------------------------------------------
    Net change in cash from continuing operations         22,147       9,535
    -------------------------------------------------------------------------
    Cash flows from discontinued operations
      Operating activities                                  (194)        (48)
      Investing activities                                   150         150
                                                     ------------------------
    -------------------------------------------------------------------------
                                                             (44)        102
    -------------------------------------------------------------------------
    Cash, beginning of period                             15,979      11,221
                                                     ------------------------
    -------------------------------------------------------------------------
    Cash, end of period                               $   38,082  $   20,858
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary information
      Interest paid                                   $    1,129  $    1,222
      Income taxes paid, net                          $    3,546  $   13,129
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




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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