BOUCHERVILLE, QC, Feb. 15, 2012 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), which specializes in the design and fabrication of construction products, closed its recent financial year ended December 31, 2011 with consolidated sales totaling $881M, up 20.2% from $732.7M in 2010.The Corporation incurred a net loss of $32.5M, or $0.72 per share, compared with a net income of $1.1M, or $0.02 per share, in 2010.
Fourth-quarter net income totaled $3.3M, or $0.07 per share, compared with a net income of $1M, or $0.02 per share, for the corresponding period in 2010. Consolidated sales in the fourth quarter increased by 17.4%, from $243.8M in 2010 to $286.3M in 2011.
Canam Group president and chief executive officer, Marc Dutil, explained that the increase in sales registered in 2011 is primarily attributable to Canam's activities in Canada and the integration of the activities of United Steel Deck. However, weak non-residential construction in the United States exerted downward pressure on profit margins on both sides of the border. Mr. Dutil added that the Corporation's 2011 financial results were mainly curtailed by the losses on the BC Place project, a non-recurring event.
As at December 31, 2011, Canam Group's backlog of orders stood at $462M, compared with $485M at the end of 2010.
As at December 31, 2011, pursuant to its normal course issuer bid that was authorized by the Toronto Stock Exchange (TSX), Canam Group had purchased 1,911,900 common shares at an average price of $3.26 per share. The book value per share as at December 31, 2011 was $8.30, whereas the closing price at the TSX on this same date was $4.10.
About Canam Group Inc.
Canam Group is a leader in the design and fabrication of construction products and solutions, and a leading provider of design-build and virtual design and construction services. The Corporation operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has a manufacturing joint venture in China.
Conference call
Canam Group will hold a conference call with financial analysts and media representatives on Wednesday, February 15, 2012 at 9:00 a.m. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until February 29, 2012 by dialing 1-800-408-3053 and entering access code 6765860, followed by the pound key (#).
Consolidated Statements of Income (Loss) | ||||||||||
Periods ended December 31 | ||||||||||
3 months | 12 months | |||||||||
(in thousands of Canadian dollars, except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||
Revenues | $ | 286,319 | $ | 243,790 | $ | 881,028 | $ | 732,674 | ||
Cost of sales, excluding depreciation and amortization | 248,211 | 218,445 | 821,835 | 641,565 | ||||||
Selling and administrative expenses | 24,249 | 20,682 | 86,557 | 74,911 | ||||||
Profit sharing programs | 707 | 884 | 932 | 1,658 | ||||||
Depreciation of property, plant and equipment | 5,205 | 4,792 | 20,322 | 18,317 | ||||||
Amortization of intangible assets | 359 | 1,122 | 1,986 | 3,968 | ||||||
Other losses (revenues) - nets | 449 | (273) | (11,117) | (337) | ||||||
7,139 | (1,862) | (39,487) | (7,408) | |||||||
Finance costs | 4,844 | 3,689 | 18,322 | 8,709 | ||||||
Finance incomes | (422) | (421) | (1,881) | (2,280) | ||||||
Impairment of goodwill | 2,346 | - | 11,326 | - | ||||||
Gain on revaluation of balances of purchase price of businesses | (2,155) | - | (11,282) | - | ||||||
Gain (loss) on revaluation of investments | - | 78 | - | (3,810) | ||||||
Gain on business acquisition | - | (7,464) | - | (7,464) | ||||||
Share of income of joint ventures and associates | (1,007) | 123 | (1,464) | (264) | ||||||
Income (loss) before income tax | 3,533 | 2,133 | (54,508) | (2,299) | ||||||
Tax expense (income) | ||||||||||
Current (recovered) | (827) | (1,837) | (15,120) | 290 | ||||||
Deferred | 1,072 | 2,971 | (6,880) | (3,657) | ||||||
245 | 1,134 | (22,000) | (3,367) | |||||||
Net income (loss) | $ | 3,288 | $ | 999 | $ | (32,508) | $ | 1,068 | ||
Net income (loss) per share | ||||||||||
Basic | $ | 0.07 | $ | 0.02 | $ | (0.72) | $ | 0.02 | ||
Diluted | $ | 0.07 | $ | 0.02 | $ | (0.72) | $ | 0.02 | ||
Weighted average number of common shares (in thousands of shares) | ||||||||||
Basic | 44,710 | 45,208 | 45,097 | 45,207 | ||||||
Diluted | 44,825 | 45,394 | 45,218 | 45,396 | ||||||
Number of common shares outstanding | 43,440 | 45,366 | ||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||
Periods ended December 31 | ||||||||||
3 months | 12 months | |||||||||
(in thousands of Canadian dollars) | 2011 | 2010 | 2011 | 2010 | ||||||
Net income (loss) | $ | 3,288 | $ | 999 | $ | (32,508) | $ | 1,068 | ||
Other comprehensive income (loss): | ||||||||||
Change in unrealized gains (losses) on translating foreign operations | (3,245) | (7,257) | 4,725 | (11,133) | ||||||
Defined benefit pension plan: | ||||||||||
Actuarial losses of the defined benefit pension plan | (4,648) | (2,395) | (4,648) | (2,395) | ||||||
Tax income | 1,217 | 621 | 1,217 | 621 | ||||||
(3,431) | (1,774) | (3,431) | (1,774) | |||||||
Available-for-sale financial assets: | ||||||||||
Unrealized gains on available-for-sale financial assets arising during the period | 90 | 81 | 50 | 839 | ||||||
Reclassification in earnings | - | - | - | (421) | ||||||
Tax expense | (12) | (12) | (7) | (70) | ||||||
78 | 69 | 43 | 348 | |||||||
Other comprehensive income (loss) | (6,598) | (8,962) | 1,337 | (12,559) | ||||||
Comprehensive loss | $ | (3,310) | $ | (7,963) | $ | (31,171) | $ | (11,491) |
Consolidated Balance Sheets | ||||||||
(in thousands of Canadian dollars) | As at December 31, 2011 |
As at December 31, 2010 |
As at January 1, 2010 |
|||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 7,368 | $ | 8,530 | $ | 57,469 | ||
Investment pledged as collateral | - | 9,946 | - | |||||
Accounts receivable | 304,551 | 224,304 | 120,462 | |||||
Inventories | 111,955 | 107,187 | 79,166 | |||||
Current tax assets | 16,588 | 4,190 | 6,701 | |||||
Prepaid expenses and other assets | 4,063 | 3,675 | 3,363 | |||||
Current assets of discontinued operations | - | - | 1,230 | |||||
444,525 | 357,832 | 268,391 | ||||||
Property, plant and equipment held for sale | 1,498 | 1,465 | 1,549 | |||||
446,023 | 359,297 | 269,940 | ||||||
Non-current assets | ||||||||
Investments | 4,959 | 4,895 | 16,677 | |||||
Ownership interests in joint ventures and associates | 61,954 | 59,913 | 58,845 | |||||
Property, plant and equipment | 279,554 | 280,292 | 211,956 | |||||
Intangible assets | 9,772 | 11,156 | 1,127 | |||||
Goodwill | 38,930 | 49,366 | 150 | |||||
Deferred tax assets | 25,149 | 13,788 | 3,362 | |||||
Long-term receivables and other assets | 21,820 | 24,020 | 21,389 | |||||
Non-current assets of discontinued operations | - | - | 8,618 | |||||
Total assets | $ | 888,161 | $ | 802,727 | $ | 592,064 | ||
Liabilities | ||||||||
Current liabilities | ||||||||
Bank loans | $ | 32,761 | $ | 8,454 | $ | - | ||
Accounts payable and accrued liabilities | 169,110 | 138,853 | 74,060 | |||||
Provisions | - | 6,500 | - | |||||
Current tax liabilities | 165 | 56 | 580 | |||||
Current portion of long-term debt | 37,038 | 8,855 | 5,477 | |||||
Current portion of balances of purchase price of businesses | 7,315 | 10,043 | - | |||||
Current liabilities of discontinued operations | - | - | 1,495 | |||||
246,389 | 172,761 | 81,612 | ||||||
Non-current liabilities | ||||||||
Debt | 163,782 | 104,388 | 62,212 | |||||
Balances of purchase price of businesses | 8,768 | 24,173 | - | |||||
Convertible debentures | 61,816 | 60,408 | - | |||||
Provisions | 1,613 | 1,325 | 3,335 | |||||
Deferred tax liabilities | 28,784 | 25,623 | 20,329 | |||||
Other liabilities | 16,242 | 12,606 | 9,661 | |||||
Non-current liabilities of discontinued operations | - | - | 1,604 | |||||
Total liabilities | 527,394 | 401,284 | 178,753 | |||||
Equity | ||||||||
Share capital | 172,869 | 179,102 | 178,024 | |||||
Retained earnings | 184,774 | 222,877 | 230,800 | |||||
Other equity items | 3,124 | (536) | 4,487 | |||||
Total equity | 360,767 | 401,443 | 413,311 | |||||
Total equity and liabilities | $ | 888,161 | $ | 802,727 | $ | 592,064 |
Consolidated Statements of Changes in Equity | |||||||||||||||||||||||
(in thousands of Canadian dollars) | Employee benefits paid in equity instruments |
Exchange differences resulting from the translation of foreign operations |
Available -for-sale financial assets |
Debenture conversion options |
Total other equity items |
Share capital |
Retained earnings |
Total equity |
|||||||||||||||
Balance as at January 1, 2010 | $ | 4,038 | $ | - | $ | 449 | $ | - | $ | 4,487 | $ | 178,024 | $ | 230,800 | $ | 413,311 | |||||||
Net income for the period | - | - | - | - | - | - | 1,068 | 1,068 | |||||||||||||||
Comprehensive loss | - | (11,133) | 348 | - | (10,785) | - | (1,774) | (12,559) | |||||||||||||||
Dividends | - | - | - | - | - | - | (7,157) | (7,157) | |||||||||||||||
Issuance of shares pursuant to options | (3) | - | - | - | (3) | 129 | - | 126 | |||||||||||||||
Shares purchased by a trust in employees' name on the secondary market | - | - | - | - | - | (364) | - | (364) | |||||||||||||||
Shares acquired by employees | (1,382) | - | - | - | (1,382) | 1,382 | - | - | |||||||||||||||
Repurchase of shares | - | - | - | - | - | (69) | - | (69) | |||||||||||||||
Excess of acquisition cost over carrying amount of acquired common shares | - | - | - | - | - | - | (60) | (60) | |||||||||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 1,383 | - | - | - | 1,383 | - | - | 1,383 | |||||||||||||||
Debenture conversion options | - | - | - | 5,764 | 5,764 | - | - | 5,764 | |||||||||||||||
Balance as at December 31, 2010 | $ | 4,036 | $ | (11,133) | $ | 797 | $ | 5,764 | $ | (536) | $ | 179,102 | $ | 222,877 | $ | 401,443 | |||||||
Balance as at January 1, 2011 | $ | 4,036 | $ | (11,133) | $ | 797 | $ | 5,764 | $ | (536) | $ | 179,102 | $ | 222,877 | $ | 401,443 | |||||||
Net loss for the period | - | - | - | - | - | - | (32,508) | (32,508) | |||||||||||||||
Comprehensive income | - | 4,725 | 43 | - | 4,768 | - | (3,431) | 1,337 | |||||||||||||||
Dividends | - | - | - | - | - | - | (3,592) | (3,592) | |||||||||||||||
Issuance of shares pursuant to options | (13) | - | - | - | (13) | 57 | - | 44 | |||||||||||||||
Shares purchased by a trust in employees' name on the secondary market | - | - | - | - | - | (318) | - | (318) | |||||||||||||||
Shares acquired by employees | (1,841) | - | - | - | (1,841) | 1,841 | - | - | |||||||||||||||
Repurchase of shares | - | - | - | - | - | (7,813) | - | (7,813) | |||||||||||||||
Excess of carrying amount over acquisition cost of acquired common shares | - | - | - | - | - | - | 1,428 | 1,428 | |||||||||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 746 | - | - | - | 746 | - | - | 746 | |||||||||||||||
Balance as at December 31, 2011 | $ | 2,928 | $ | (6,408) | $ | 840 | $ | 5,764 | $ | 3,124 | $ | 172,869 | $ | 184,774 | $ | 360,767 |
Consolidated Statements of Cash Flows | ||||||||||||
Periods ended December 31 | ||||||||||||
3 months | 12 months | |||||||||||
(in thousands of Canadian dollars) | 2011 | 2010 | 2011 | 2010 | ||||||||
Cash flows from the following activities: | ||||||||||||
Operating activities | ||||||||||||
Net earnings (loss) | $ | 3,288 | $ | 999 | $ | (32,508) | $ | 1,068 | ||||
Adjustments: | ||||||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 186 | 345 | 746 | 1,383 | ||||||||
Impairment of goodwill | 2,346 | - | 11,326 | - | ||||||||
Gain on revaluation of balances of purchase price of businesses | (2,155) | - | (11,282) | - | ||||||||
Gain on revaluation of investments | - | 78 | - | (3,810) | ||||||||
Gain on business acquisition | - | (7,464) | - | (7,464) | ||||||||
Gain on disposal of investments | - | - | - | (448) | ||||||||
Loss (gain) on disposal of property, plant and equipment | 16 | 152 | (214) | 117 | ||||||||
Depreciation of property, plant and equipment | 5,205 | 4,792 | 20,322 | 18,317 | ||||||||
Amortization of intangible assets | 359 | 1,122 | 1,986 | 3,968 | ||||||||
Amortization of deferred financing expenses | 99 | 55 | 466 | 234 | ||||||||
Provisions | 201 | 405 | 288 | (683) | ||||||||
Interest rate swaps | (69) | 279 | 474 | 279 | ||||||||
Imputed interest | 617 | 1,067 | 3,125 | 2,021 | ||||||||
Pension expense | (1,045) | (378) | (662) | (964) | ||||||||
Deferred tax expense | 1,072 | 2,971 | (6,880) | (3,657) | ||||||||
Share of loss of joint ventures and associates | (1,007) | 123 | (1,464) | (264) | ||||||||
9,113 | 4,546 | (14,277) | 10,097 | |||||||||
Net change in non-cash operating working capital items | ||||||||||||
Decrease (increase) in the short-term investment pledged as collateral | 2,449 | (9,946) | 10,170 | (9,946) | ||||||||
Increase in accounts receivable | (49,004) | (8,589) | (78,087) | (60,687) | ||||||||
Decrease (increase) in inventories | 22,085 | 14,724 | (3,741) | (16,451) | ||||||||
Decrease (increase) in current tax assets | (1,668) | (4,180) | (12,390) | 814 | ||||||||
Decrease (increase) in prepaid expenses and other assets | (574) | 31 | (347) | 755 | ||||||||
Increase (decrease) in accounts payable and accrued liabilities | 3,721 | (33,910) | 29,961 | 9,095 | ||||||||
Increase (decrease) in provisions | (2,740) | 6,500 | (6,500) | 6,500 | ||||||||
Increase (decrease) in interest payable | (1,222) | (228) | (2) | 916 | ||||||||
Increase (decrease) in current tax liabilities | 62 | 475 | 154 | (247) | ||||||||
(26,891) | (35,123) | (60,782) | (69,251) | |||||||||
Cash flows from continuing operating activities | (17,778) | (30,577) | (75,059) | (59,154) | ||||||||
Financing activities | ||||||||||||
Shares purchased by a trust in employees' name on the secondary market | (318) | - | (318) | (364) | ||||||||
Repurchase of shares | (6,229) | - | (6,385) | (127) | ||||||||
Proceeds from issuance of shares | - | - | 44 | 125 | ||||||||
Dividends | - | (3,579) | (3,592) | (7,157) | ||||||||
Increase in debt and bank loans | 20,870 | 38,116 | 128,456 | 112,742 | ||||||||
Repayment of debt and bank loans | (2,584) | (62,643) | (17,665) | (66,279) | ||||||||
Repayment of balances of purchase price of businesses | (1,689) | (2,587) | (8,866) | (5,217) | ||||||||
Issuance of debenture | - | 66,240 | - - | 66,240 | ||||||||
Issue expenses related to debt and debenture | (8) | (618) | (850) | (618) | ||||||||
Other liabilities | (174) | (756) | (744) | (923) | ||||||||
Cash flows from continuing financing activities | 9,868 | 34,173 | 90,080 | 98,422 | ||||||||
Investing activities | ||||||||||||
Proceeds from sale of property, plant and equipment | 12 | (115) | 92 | 464 | ||||||||
Additions to property, plant and equipment | (3 144) | (11,269) | (17,954) | (38,812) | ||||||||
Additions to intangible assets | (61) | (88) | (406) | (416) | ||||||||
Acquisition of investments | (468) | - | (468) | (120) | ||||||||
Proceeds from disposal of investments | - | - | - | 1,503 | ||||||||
Distributions received from a joint venture and an associate | 150 | 529 | 375 | 529 | ||||||||
Decrease in receivables and other assets | 1,130 | 624 | 1,882 | 5,207 | ||||||||
Increase in receivables and other assets | - | (41) | (52) | (176) | ||||||||
Business acquisitions, net of cash acquired | - | 146 | - | (54,139) | ||||||||
Cash flows from continuing investing activities | (2,381) | (10,214) | (16,531) | (85,960) | ||||||||
Effects of changes in foreign exchange rate on cash and cash equivalents | 159 | (1,802) | 348 | (2,385) | ||||||||
Net change in cash from continuing operations | (10,132) | (8,420) | (1,162) | (49,077) | ||||||||
Cash flows from discontinued operations | ||||||||||||
Operating activities | - | - | - | 124 | ||||||||
Investing activities | - | - | - | 14 | ||||||||
- | - | - | 138 | |||||||||
Cash and cash equivalents - Beginning of period | 17,500 | 16,950 | 8,530 | 57,469 | ||||||||
Cash and cash equivalents - End of period | $ | 7,368 | $ | 8,530 | $ | 7,368 | $ | 8,530 | ||||
Supplementary information | ||||||||||||
Interest paid | $ | 6,327 | $ | 1,898 | $ | 12,345 | $ | 5,014 | ||||
Income taxes paid (recovered), net | $ | 70 | $ | 1,510 | $ | (2,867) | $ | (1,853) |
François Bégin
Vice President, Communications
Telephone: 450-641-4000
Email: [email protected]
Website: www.canamgroup.ws
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