Net earnings up 16.7% - Canam Group posts net earnings of $47.5 million, or $0.97 per share, for 2007



    BOUCHERVILLE, QC, March 5 /CNW Telbec/ - The 12-month period ended
December 31, 2007 was a good year for construction products fabricator Canam
Group Inc. (TSX - CAM), with sales reaching $870.5 million from $740.6 million
in 2006. Net earnings rose 16.7% to $47.5 million, or $0.97 per share,
compared with $40.7 million, or $0.88 per share, in 2006.
    Marc Dutil, president and chief operating officer of Canam Group, is
encouraged by the results and especially the state of the company's balance
sheet. Posting a steadily better performance helps the company seize
opportunities as they come up, said Mr. Dutil. He made a point of praising the
business units for the successful strategies put in place and the string of
contracts executed in 2007, including several high-profile projects in the
New York metropolitan area.
    Net earnings for the fourth quarter were $13.7 million, or $0.28 per
share, compared with $12.1 million, or $0.25 per share, for the corresponding
quarter in 2006. Consolidated sales climbed 19% to $252.2 million from
$212 million for the year-earlier quarter.
    Mr. Dutil explained that these positive results were achieved despite a
number of unusual items totaling $5.4 million, or $0.11 per share, in the
fourth quarter, notably a $2.2-million net loss on disposal of investments and
a net loss of $2.2 million incurred by Canam Romsa in Mexico. The unusual
items for fiscal 2007 totaled $11.8 million, or $0.24 per share, mainly due to
a net loss of $8.6 million related to the company's Mexican operations.
Mr. Dutil is satisfied that the restructuring of Canam Romsa's operations is
now completed.
    For 2007, the consolidated gross profit came in at $187.2 million and the
gross margin was 21.5%. The EBITDA went from $89.4 million at the close of
2006 to $105.1 million one year later. By the end of 2007, the company's net
debt stood at $63 million versus $88 million at the close of 2006.
Shareholders' equity was $367 million, bringing the net debt-to-equity ratio
to 0.17, compared to 0.26 a year ago.
    On December 31, 2007, the business units of Canam Group recorded a
combined order backlog worth $288 million, virtually the same level as they
recorded at the close of 2006. This figure does not include the $30-million
contract, announced on February 20, 2008, for the construction of Red Bull
Park, the new home of the New York Red Bulls.
    The board of directors approved the payment of a quarterly dividend of
$0.04 per common share on March 31, 2008 to shareholders of record on
March 17, 2008.

    Canam Group is an industrial company operating 12 plants specialized in
the design and fabrication of construction products and solutions. The company
employs more than 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
at 9 a.m. on Wednesday, March 5, 2008. The call will be broadcast live via the
Internet at www.canamgroup.ws and www.cnw.ca. An archived conference call
recording will be available at 1-800-408-3053 (access code 3251252) until
March 21, 2008.


    
                     Consolidated Statements of Earnings

    Periods ended December 31
    (in thousands of dollars, except
     per share amounts)                3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Sales                      $ 252,206   $ 212,016   $ 870,482   $ 740,649
    -------------------------------------------------------------------------
    Cost of sales                192,527     160,325     683,325     566,729
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Gross profit                  59,679      51,691     187,157     173,920
    -------------------------------------------------------------------------
    Selling and
     administrative
     expenses                     22,273      20,392      80,680      74,910
    -------------------------------------------------------------------------
    Profit sharing and
     continuous improvement
     programs                      5,256       4,093       9,477       9,968
    -------------------------------------------------------------------------
    Exchange (gain) loss           2,755       2,382      (5,789)      1,961
    -------------------------------------------------------------------------
    Interest income                 (188)       (505)     (1,267)     (2,336)
    -------------------------------------------------------------------------
    Increase in the
     redemption value of
     an investment in a
     related company                (479)       (475)     (1,884)     (1,885)
    -------------------------------------------------------------------------
    Expenses related to
     plant closings                  139         916         139       2,104
    -------------------------------------------------------------------------
    Loss on disposal of
     property, plant and
     equipment                       214         497          42         670
    -------------------------------------------------------------------------
    Loss (gain) on disposal
     of investments                2,090        (170)        610        (848)
    -------------------------------------------------------------------------
                               ----------------------------------------------
                                  27,619      24,561     105,149      89,376
    -------------------------------------------------------------------------
    Depreciation of
     property, plant and
     equipment                     4,151       4,016      15,276      14,970
    -------------------------------------------------------------------------
    Amortization of
     intangible assets               452         253       1,799         940
    -------------------------------------------------------------------------
    Financial expenses             2,212       2,868       8,377      10,901
    -------------------------------------------------------------------------
    Impairment of the
     investment in a
     variable interest
     entity located in
     Mexico                          144           -       1,959           -
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Earnings before income
     tax expense and
     undermentioned items         20,660      17,424      77,738      62,565
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Income tax expense
      Current                      6,020       8,312      27,903      25,501
      Future                       1,701      (2,539)      2,696      (4,208)
    -------------------------------------------------------------------------
                               ----------------------------------------------
                                   7,721       5,773      30,599      21,293
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Earnings before
     undermentioned items         12,939      11,651      47,139      41,272
    -------------------------------------------------------------------------
    Share in earnings of
     companies subject to
     significant influence           330          64         847         236
    -------------------------------------------------------------------------
    Non-controlling
     interest                          -         265           -         265
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Net earnings from
     continuing operations        13,269      11,980      47,986      41,773
    -------------------------------------------------------------------------
    Net earnings (net loss)
     from discontinued
     operations                      405         168        (533)     (1,033)
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Net earnings               $  13,674   $  12,148   $  47,453   $  40,740
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings (net loss)
     per share
    Basic:
      From continuing
       operations              $    0.27   $    0.25   $    0.98   $    0.90
      From discontinued
       operations                   0.01           -       (0.01)      (0.02)
                               ----------------------------------------------
                               ----------------------------------------------
      Total                    $    0.28   $    0.25   $    0.97   $    0.88
                               ----------------------------------------------
                               ----------------------------------------------
    Diluted:
      From continuing
       operations              $    0.27   $    0.24   $    0.97   $    0.89
      From discontinued
       operations                   0.01           -       (0.01)      (0.02)
                               ----------------------------------------------
                               ----------------------------------------------
      Total                    $    0.28   $    0.24   $    0.96   $    0.87
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number
     of shares (in
     thousands of shares)
      Basic                       49,160      48,896      49,010      46,211
      Diluted                     49,625      49,255      49,421      46,617
    -------------------------------------------------------------------------
    Number of common shares
     outstanding                                          49,366      49,056
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


               Consolidated Statements of Comprehensive Income

    Periods ended December 31
    (in thousands of dollars)          3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings               $  13,674   $  12,148   $  47,453   $  40,740
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Other comprehensive
     income, net of
     income taxes:
      Unrealized gains (losses)
       on translating financial
       statements of
       self-sustaining foreign
       operations              $    (653)  $   6,525   $ (21,549)  $   1,436
      Reclassification in
       earnings related to
       the reduction in the net
       investment in a
       self-sustaining foreign
       operation                       -         289       1,959         478
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Unrealized foreign currency
     translation gains
     (losses)                  $    (653)  $   6,814   $ (19,590)  $   1,914
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Unrealized gains (losses)
     on available-for-sale
     financial assets arising
     during the period         $      40   $       -   $    (132)  $       -
    Reclassification in
     earnings                          -           -         (64)          -
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Unrealized gains (losses)
     on available-for-sale
     financial assets          $      40   $       -   $    (196)  $       -
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Gains on derivatives
     designated as cash flow
     hedges                    $   1,581   $       -   $   1,581   $       -
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Other comprehensive
     income                    $     968   $   6,814   $ (18,205)  $   1,914
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Comprehensive income       $  14,642   $  18,962   $  29,248   $  42,654
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                 Consolidated Statements of Retained Earnings

    Periods ended December 31
    (in thousands of dollars)          3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Opening balance            $ 188,722   $ 150,653   $ 160,840   $ 127,633
    -------------------------------------------------------------------------
    Net earnings                  13,674      12,148      47,453      40,740
    -------------------------------------------------------------------------
    Share issue expenses               -           -           -         (27)
    -------------------------------------------------------------------------
    Dividends                     (1,975)     (1,961)     (7,872)     (7,506)
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Closing balance            $ 200,421   $ 160,840   $ 200,421   $ 160,840
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                         Consolidated Balance Sheets

    As at December 31
    (in thousands of dollars)                               2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Current assets
      Cash                                             $  11,221   $   8,977
      Accounts receivable                                156,334     149,291
      Unrealized asset on foreign currency
       forward contracts                                     192           -
      Inventories                                        130,388     126,149
      Income taxes recoverable                               923         209
      Future income tax assets                             3,955       6,380
      Prepaid expenses and other assets                    4,583       6,510
      Current assets of discontinued operations            3,821      12,618
                                                      -----------------------
                                                      -----------------------
      Total current assets                               311,417     310,134
    -------------------------------------------------------------------------
                                                      -----------------------
    Investments                                           73,238      72,270
    -------------------------------------------------------------------------
    Property, plant and equipment                        168,077     172,025
    -------------------------------------------------------------------------
    Property, plant and equipment held for sale            5,613       6,782
    -------------------------------------------------------------------------
    Intangible assets                                      2,802       2,713
    -------------------------------------------------------------------------
    Goodwill                                                 312         160
    -------------------------------------------------------------------------
    Future income tax assets                               2,602       3,487
    -------------------------------------------------------------------------
    Other assets                                           5,799       8,704
    -------------------------------------------------------------------------
    Long-term assets of discontinued operations           15,237      23,917
    -------------------------------------------------------------------------
                                                      -----------------------
                                                       $ 585,097   $ 600,192
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Current liabilities
      Bank loans                                       $   5,220   $  10,363
      Accounts payable and accrued liabilities           116,556     129,083
      Unrealized liability on foreign currency
       forward contracts                                       -       1,450
      Income taxes payable                                 7,797       4,246
      Future income tax liabilities                          376          37
      Current portion of long-term debt                    3,962       1,240
      Current liabilities of discontinued
       operations                                          2,448       4,356
                                                      -----------------------
                                                      -----------------------
      Total current liabilities                          136,359     150,775
    -------------------------------------------------------------------------
                                                      -----------------------
    Long-term debt                                        65,027      85,384
    -------------------------------------------------------------------------
    Deferred credits                                       4,577       5,287
    -------------------------------------------------------------------------
    Future income tax liabilities                          8,409       9,556
    -------------------------------------------------------------------------
    Long-term liabilities of discontinued operations       3,835       5,830
    -------------------------------------------------------------------------
                                                      -----------------------
                                                         218,207     256,832
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' Equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Share capital                                        196,611     195,822
    -------------------------------------------------------------------------
    Retained earnings                                    200,421     160,840
    -------------------------------------------------------------------------
    Contributed surplus                                    2,840       2,020
    -------------------------------------------------------------------------
    Accumulated other comprehensive income               (32,982)    (15,322)
    -------------------------------------------------------------------------
                                                      -----------------------
                                                         366,890     343,360
    -------------------------------------------------------------------------
                                                      -----------------------
                                                       $ 585,097   $ 600,192
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                    Consolidated Statements of Cash Flows

    Periods ended December 31
    (in thousands of dollars)          3 months                12 months
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows from the
     following activities:
    Operating activities
    -------------------------------------------------------------------------
    Net earnings from
     continuing operations     $  13,269   $  11,980   $  47,986   $  41,773
    -------------------------------------------------------------------------
    Items not affecting cash
     Depreciation of property,
      plant and equipment          4,151       4,016      15,276      14,970
      Amortization of
       intangible assets             452         253       1,799         940
      Amortization of deferred
       financing expenses            261         864         541       1,810
      Amortization of deferred
       issue expenses related
       to convertible
       debentures                      -           -           -          74
      Future income tax
       expense                     1,701      (2,539)      2,696      (4,208)
      Loss on disposal of
       property, plant and
       equipment                     214         497          42         670
      Unrealized loss (earnings)
       on foreign currency
       forward contracts            (133)      2,264      (1,642)      1,799
      Loss (gain) on disposal
       of investments              2,090        (170)        610        (848)
      Impairment of property,
       plant and equipment held
       for sale                      139         972         139       1,772
      Impairment of the
       investment in a variable
       interest entity located
       in Mexico                     144           -       1,959           -
      Pension expense               (232)     (1,534)       (732)       (475)
      Compensation cost related
       to stock options                7          17          33         (58)
      Amortization of
       compensation costs
       related to the profit
       sharing program - stock
       ownership component           227         105         902         420
      Increase in the fair
       value of convertible
       debentures                      -           -           -         207
      Increase in the
       redemption value of an
       investment in a related
       company                      (479)       (475)     (1,884)     (1,885)
      Share earnings of
       companies subject to
       significant influence        (330)        (64)       (847)       (236)
      Non-controlling interest         -        (265)          -        (265)
                               ----------------------------------------------
                               ----------------------------------------------
                                  21,481      15,921      66,878      56,460
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in non-cash
     operating working
     capital items
      Decrease (increase) in
       accounts receivable        21,898      24,786     (10,252)      9,223
      Decrease (increase) in
       inventories                16,524      11,983      (6,361)    (19,830)
      Increase in income
       taxes recoverable            (769)        (89)       (747)       (209)
      Decrease (increase) in
       prepaid expenses and
       other assets                  958      (4,351)      2,816      (2,458)
      Increase (decrease) in
       accounts payable and
       accrued liabilities       (31,606)    (19,240)     (6,198)      9,816
      Increase (decrease) in
       interest payable               (3)       (516)          6          86
      Increase (decrease) in
       income taxes payable          842       3,580       2,815      (1,622)
                               ----------------------------------------------
                               ----------------------------------------------
                                   7,844      16,153     (17,921)     (4,994)
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Cash flows from continuing
     operating activities         29,325      32,074      48,957      51,466
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financing activities
    -------------------------------------------------------------------------
    Shares purchased in
     employees' name by a
     trust on the secondary
     market                            -           -      (1,445)       (214)
    -------------------------------------------------------------------------
    Proceeds from issuance
     of shares                       765         365       2,119       1,450
    -------------------------------------------------------------------------
    Issue expenses related
     to share issue                    -           -           -         (27)
    -------------------------------------------------------------------------
    Dividends                     (1,975)     (1,961)     (7,872)     (7,506)
    -------------------------------------------------------------------------
    Increase in long-term
     debt and bank loans          14,313      76,453      45,879     102,011
    -------------------------------------------------------------------------
    Repayment of long-term
     debt and bank loans         (44,865)    (95,260)    (69,224)   (123,641)
    -------------------------------------------------------------------------
    Issue expenses related
     to long-term debt              (219)          6        (386)       (646)
    -------------------------------------------------------------------------
    Deferred credits                (375)       (418)        (56)        187
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Cash flows from
     continuing financing
     activities                  (32,356)    (20,815)    (30,985)    (28,386)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Investing activities
    -------------------------------------------------------------------------
    Proceeds from sale of
     property, plant and
     equipment                       431       2,539       3,637       2,923
    -------------------------------------------------------------------------
    Additions to property,
     plant and equipment          (9,019)     (8,629)    (22,496)    (25,112)
    -------------------------------------------------------------------------
    Additions to intangible
     assets                         (517)       (343)     (1,289)     (1,570)
    -------------------------------------------------------------------------
    Acquisition of
     investments                    (500)          -      (2,811)       (150)
    -------------------------------------------------------------------------
    Proceeds from disposal
     of investments                1,425         720       1,593       1,844
    -------------------------------------------------------------------------
    Distribution from a
     limited liability
     partnership                      95           -          95           -
    -------------------------------------------------------------------------
    Decrease in long-term
     receivables                   5,708       8,581       6,498       8,692
    -------------------------------------------------------------------------
    Increase in long-term
     receivables                    (282)       (998)     (3,825)     (2,329)
    -------------------------------------------------------------------------
    Business acquisitions,
     net of cash acquired            (13)     (3,061)    (10,567)     (3,061)
    -------------------------------------------------------------------------
    Assets held for sale               -      (3,529)          -           -
    -------------------------------------------------------------------------
    Other assets                       -         (12)          -           -
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Cash flows from
     continuing investing
     activities                   (2,672)     (4,732)    (29,165)    (18,763)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of changes in
     foreign exchange rate
     on cash                         905         208         981          20
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Net change in cash from
     continuing operations        (4,798)      6,735     (10,212)      4,337
    -------------------------------------------------------------------------
    Cash flows from
     discontinued operations
    -------------------------------------------------------------------------
    Operating activities           1,847       2,093       7,039       1,936
    -------------------------------------------------------------------------
    Financing activities               -           -           -           -
    -------------------------------------------------------------------------
    Investing activities           4,864      (1,115)      5,417      (2,575)
    -------------------------------------------------------------------------
                               ----------------------------------------------
                                   6,711         978      12,456        (639)
    -------------------------------------------------------------------------
    Cash, beginning of
     period                        9,308       1,264       8,977       5,279
    -------------------------------------------------------------------------
                               ----------------------------------------------
    Cash, end of period        $  11,221   $   8,977   $  11,221   $   8,977
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary information
      Interest paid            $   3,703   $   1,682   $   7,229   $   9,068
      Income taxes paid, net   $   3,312   $   4,734   $  20,544   $  22,788
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    




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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