Net Income Increased by 29% in the Fourth Quarter of 2015

SAINT-GEORGES, QC, le 18 févr. 2016 /CNW Telbec/ - Canam Group Inc. (TSX: CAM) ("Canam Group" or the "Corporation") today published its financial results for the three-month and twelve-month periods ended December 31, 2015.

Highlights

  • 28.7% increase in consolidated revenues compared to the fourth quarter in 2014
  • Net income attributable to shareholders increased by 28.7% in the fourth quarter and by 59.5% after 12 months compared to the same periods in 2014
  • 17.5% increase in the order backlog compared to December 31, 2014, for a total of $1,183M

 

Periods and years ended December 31

Three months

(in millions of $, except per share amounts)


2015



2014


Revenues

$

493.8


$

383.6


Selling and administrative expenses

$

30.9

6.3%

$

24.6

6.4%

Adjusted EBITDA1

$

34.4

7.0%

$

28.2

7.3%

Net income2

$

17.8

3.6%

$

13.8

3.6%

Net earnings per share2 (basic and diluted)

$

0.39


$

0.33





Twelve months

(in millions of $, except per share amounts)


2015



2014


Revenues

$

1,606.9


$

1,232.8


Selling and administrative expenses

$

108.4

6.7%

$

91.5

7.4%

Adjusted EBITDA1

$

112.5

7.0%

$

78.6

6.4%

Net income2

$

46.8

2.9%

$

29.3

2.4%

Net earnings per share2








Basic

$

1.09


$

0.70



Diluted

$

1.08


$

0.70


1

Refer to the section entitled Non-IFRS measures.

2

Represents net income attributable to shareholders.

 

"These results demonstrate the relevance of our efforts to focus our product and service offering on what enables our customers to perform better," explained Marc Dutil, President and Chief Executive Officer. "We put a lot of energy into identifying and improving areas that can enhance our performance and provide a better customer experience. With a solid balance sheet and a well-filled order backlog, we also remain attentive to opportunities that arise in the marketplace."

Results for the fourth quarter of 2015
Consolidated revenues for the fourth quarter of 2015 totaled $493.8M, which represents a $110.2M or 28.7% increase, compared to revenues of $383.6M for the same quarter in 2014. The increase is mainly attributable to structural steel products and services as well as the appreciation of the US dollar.

Selling and administrative expenses totaled $30.9M, or 6.3% of revenues, for the fourth quarter of 2015 compared to $24.6M, or 6.4% of revenues, in 2014. On a monetary basis, this variation is particularly attributable to the increase in salary charges in order to maintain sales growth as well as the US dollar's rise against the Canadian dollar.

In the fourth quarter of 2015, Adjusted EBITDA amounted to $34.4M, or 7% of revenues, compared to $28.2M, or 7.3% of revenues, for the same period in 2014.

In the fourth quarter of 2015, net income attributable to shareholders totaled $17.8M, or $0.39 per share, compared to $13.8M, or $0.33 per share, for the corresponding period in 2014. We wish to mention that these are our best quarterly results of the last ten years.

Results for fiscal year 2015
In 2015, revenues reached $1,606.9M compared to $1,232.8M in 2014, representing a $374.1M or 30.3% increase. The increase in revenues is attributable to all of the Corporation's groups of products and services, primarily structural steel and buildings. The results also reflect the appreciation of the US dollar.

In fiscal 2015, net income attributable to shareholders totaled $46.8M, or $1.09 per basic share, compared to $29.3M, or $0.70 per basic share, for the previous fiscal year. The $17.5M increase in net income attributable to shareholders in 2015 is primarily attributable to the growth in sales volume combined with a rise in the adjusted gross margins of structural steel and building activities. However, these items were offset by the compression of gross margins for bridge activities and the increase in selling and administrative expenses.

Order backlog
The order backlog stood at $1,183M as at December 31, 2015, compared to $1,007M as at December 31, 2014.

Dividend
The Board of Directors approved a dividend of $0.04 per share payable on March 31, 2016 to shareholders of record on March 17, 2016.

About Canam Group Inc.
Canam Group specializes in designing integrated solutions and fabricating customized products for the North American construction industry. Each year, Canam Group takes part in an average of 10,000 buildingstructural steel and bridge projects, which can also include the supply of preconstruction and project management services. The Corporation operates 22 plants across North America and employs close to 4,300 people in Canada, the United States, Romania, India and Hong Kong. 

Conference call and presentation
Canam Group will hold a conference call with financial analysts and media representatives on Thursday, February 18, 2016 at 9:00 a.m. EDT. The call can be accessed via webcast at canamgroupinc.com and newswire.ca.

Please note that the conference call will be accompanied by a complementary presentation in PDF format that can be downloaded from the Corporation's website at canamgroupinc.com.
A replay of the conference call will be available until March 3, 2016 by dialing 1-800-408-3053 and entering access code 1585337, followed by the pound key (#).

Non-IFRS measure
Earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) is not defined by International Financial Reporting Standards (IFRS) and cannot be formally presented in the consolidated financial statements. Even though Adjusted EBITDA is a non-IFRS measure, it is used by managers, analysts, investors and other financial stakeholders to assess the Corporation's operating performance and management from a financial and operational standpoint. Refer to the section entitled "Non-IFRS measures" of the Corporation's 2014 Annual Report for the definition of this indicator.

Caution regarding forward-looking statements
This press release may contain forward-looking statements, which include, but are not limited to, statements with respect to the Corporation's growth strategy, costs, financial position and financial results, economic and business outlook, prospects and trends of the Corporation's industry segment, expected growth in demand for products and services, the dates of expected or scheduled deliveries, orders and project execution in general, objectives, projects, targets, priorities, business strategy, and the expected impact of legislative and regulatory environment and legal proceedings. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe", "continue" or "maintain", the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require the Corporation to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include in particular the risks and uncertainties described in the Corporation's 2014 Annual Report in the section entitled "Risks and Uncertainties". The forward-looking statements contained herein are made as of the date hereof and are subject to change thereafter, and the Corporation has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities regulations.

 


Consolidated Statements of Income


Periods and years ended December 31



Three-month periods

Years

(in thousands of Canadian dollars, except per share amounts)


2015


2014


2015


2014

Revenues

$

493,797

$

383,641

$

1,606,855

$

1,232,809

Cost of sales, excluding depreciation and amortization(1)


425,371


327,153


1,377,066


1,056,905

Selling and administrative expenses


30,867


24,601


108,358


91,456

Profit sharing program


4,308


3,982


11,287


6,459

Depreciation of property, plant and equipment


6,601


5,342


25,660


22,668

Amortization of intangible assets


866


669


2,943


2,226

Other gains — net


(741)


(170)


(1,857)


(887)

Finance costs


2,599


4,108


14,433


15,125

Finance revenue


(148)


(204)


(667)


(955)

Share of loss of a joint venture and associates


447


282


1,536


866

Income before income tax


23,627


17,878


68,096


38,946

Tax expense (income)










Current


6,351


6,782


13,554


9,166


Deferred


(439)


(2,617)


7,787


595



5,912


4,165


21,341


9,761

Net income

$

17,715

$

13,713

$

46,755

$

29,185










Net income attributable to:










Shareholders

$

17,791

$

13,828

$

46,765

$

29,318


Non-controlling interests


(76)


(115)


(10)


(133)


$

17,715

$

13,713

$

46,755

$

29,185










Net earnings per share attributable to shareholders










Basic

$

0.39

$

0.33

$

1.09

$

0.70


Diluted

$

0.39

$

0.33

$

1.08

$

0.70










Weighted average number of common shares (in thousands of shares)










Basic


46,075


42,029


43,074


42,054


Diluted


46,106


42,079


43,106


42,105

Number of common shares outstanding (in thousands of shares)






47,551


42,079

(1)

As at December 31, 2015 and 2014, the cost of sales, including depreciation and amortization, totaled $431,096 and $332,298, respectively, for the three-month periods, and $1,399,158 and $1,076,639, respectively, for the years.

 

Consolidated Statements of Comprehensive Income


Periods and years ended December 31



Three-month periods

Years

(in thousands of Canadian dollars)


2015


2014


2015


2014

Net income

$

17,715

$

13,713

$

46,755

$

29,185

Other comprehensive income:









Items that will be reclassified subsequently to profit or loss










Change in unrealized gains on translating foreign operations


14,731


11,952


62,653


24,431


Change in unrealized losses on translating debts designated as hedging items of the net investment in foreign operations


(689)


(806)


(3,473)


(806)



14,042


11,146


59,180


23,625

Available-for-sale assets:










Unrealized gains on available-for-sale assets arising during the periods and years


172


- -


199


- -


Reclassified to statements of income


- -


- -


(2)


- -



172


- -


197


- -



14,214


11,146


59,377


23,625

Items not to be reclassified to profit or loss









Defined benefit plans:










Actuarial gains (losses) of the defined benefit plans


2,948


(1,343)


2,948


(1,343)


Tax income (expense)


(780)


352


(780)


352



2,168


(991)


2,168


(991)

Other comprehensive income


16,382


10,155


61,545


22,634

Comprehensive income

$

34,097

$

23,868

$

108,300

$

51,819










Comprehensive income attributable to:










Shareholders

$

34,173

$

23,996

$

108,294

$

51,967


Non-controlling interests


(76)


(128)


6


(148)


$

34,097

$

23,868

$

108,300

$

51,819

 

Consolidated Balance Sheets


 

(in thousands of Canadian dollars)

As at
December 31,
2015

As at
December 31,
2014

Assets





Current assets





Cash and cash equivalents

$

7,050

$

8,261

Accounts receivable


320,517


276,691

Costs and estimated profits in excess of billings


194,298


126,590

Inventories


166,833


156,990

Recoverable tax assets


1,573


1,346

Prepaid expenses and other assets


3,230


5,619



693,501


575,497






Non-current assets





Investments


6,173


4,593

Interests in a joint venture and associates


39,370


40,919

Property, plant and equipment


348,391


308,362

Intangible assets


11,500


10,811

Goodwill


56,023


45,097

Deferred tax assets


4,007


10,128

Long-term receivables and other assets


5,564


7,428

Total assets

$

1,164,529

$

1,002,835






Liabilities





Current liabilities





Accounts payable and accrued liabilities

$

223,580

$

183,937

Billings in excess of costs and estimated profits


73,465


74,366

Current tax liabilities


4,156


4,943

Current portion of balance of purchase price of businesses


1,282


- -

Current portion of long-term debt


43,083


17,659

Convertible debentures


- -


67,137



345,566


348,042

Non-current liabilities





Debt


164,356


175,585

Balance of purchase price of businesses


650


- -

Provisions


19,485


7,417

Deferred tax liabilities


8,897


7,477

Other liabilities


1,208


7,090

Total liabilities


540,162


545,611






Equity





Share capital


239,777


168,162

Retained earnings


294,458


252,386

Other equity items


90,090


36,640

Total equity attributable to shareholders


624,325


457,188

Non-controlling interests


42


36

Total equity


624,367


457,224

Total equity and liabilities

$

1,164,529

$

1,002,835

 

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


Exchange
differences
resulting from
the translation
of debts
designated as
hedging items


Available-for-
sale financial
assets


Debenture
conversion
options


Total other
equity items


Share capital


Retained
earnings


Total

share capital

attributable to

shareholders


Non-
controlling
interests


Total
equity

Balance as at January 1, 2014

$

2,113

$

5,005

$

- -

$

2

$

5,764

$

12,884

$

168,057

$

230,717

$

411,658

$

- -

$

411,658

Investment in a subsidiary by a non-controlling interest


- -


- -


- -


- -


- -


- -


- -


- -


- -


184


 

184

Net income for the year


- -


- -


- -


- -


- -


- -


- -


29,318


29,318


(133)


29,185

Comprehensive income


- -


24,446


(806)


- -


- -


23,640


- -


(991)


22,649


(15)


22,634

Dividends


- -


- -


- -


- -


- -


- -


- -


(6,658)


(6,658)


- -


(6,658)

Shares acquired by employees


(26)


- -


- -


- -


- -


(26)


26


- -


- -


- -


- -

Issuance of shares upon conversion of debentures


- -


- -


- -


- -


- -


- -


73


- -


73


- -


73

Exercise of options upon conversion of debentures


- -


- -


- -


- -


(6)


(6)


6


- -


- -


- -


- -

Amortization of compensation costs related to the profit sharing program - stock ownership component


148


- -


- -


- -


- -


148


- -


- -


148


- -


148

Balance as at December 31, 2014

$

2,235

$

29,451

$

(806)

$

2

$

5,758

$

36,640

$

168,162

$

252,386

$

457,188

$

36

$

457,224

Balance as at January 1, 2015

$

2,235

$

29,451

$

(806)

$

2

$

5,758

$

36,640

$

168,162

$

252,386

$

457,188

$

36

$

457,224

Net income for the year


- -


- -


- -


- -


- -


- -


- -


46,765


46,765


(10)


46,755

Comprehensive income


- -


62,637


(3,473)


197


- -


59,361


- -


2,168


61,529


16


61,545

Dividends


- -


- -


- -


- -


- -


- -


- -


(6,894)


(6,894)


- -


(6,894)

Repurchase of shares


- -


- -


- -


- -


- -


- -


(105)


- -


(105)


- -


(105)

Excess of acquisition cost over carrying amount of acquired common shares


- -


- -


- -


- -


- -


- -


- -


(214)


(214)


- -


(214)

Shares acquired by employees


(238)


- -


- -


- -


- -


(238)


238


- -


- -


- -


- -

Issuance of shares upon the conversion of debentures


- -


- -


- -


- -


- -


- -


65,971


- -


65,971


- -


65,971

Exercise of options upon conversion of debentures


- -


- -


- -


- -


(5,511)


(5,511)


5,511


- -


- -


- -


- -

Unexercised debenture conversion options


- -


- -


- -


- -


(247)


(247)


- -


247


- -


- -


- -

Amortization of compensation costs related to the profit sharing program - stock ownership component


85


- -


- -


- -


- -


85


- -


- -


85


- -


85

Balance as at December 31, 2015

$

2,082

$

92,088

$

(4,279)

$

199

$

- -

$

90,090

$

239,777

$

294,458

$

624,325

$

42

$

624,367

 

Consolidated Statements of Cash Flows


Periods and years ended December 31



Three-month periods

Years

(in thousands of Canadian dollars)

2015

2014

2015

2014

Cash flows from the following activities:









Operating activities









Net income

$

17,715

$

13,713

$

46,755

$

29,185

Adjustments:










Amortization of compensation costs related to the profit sharing program – stock ownership component


21


21


85


148


Gain on disposal of investments


- -


- -


(5)


- -


Loss in decline in value of an investment


- -


200


- -


200


Loss (gain) on disposal of property, plant and equipment


(163)


101


(190)


178


Depreciation of property, plant and equipment


6,601


5,342


25,660


22,668


Amortization of intangible assets


866


669


2,943


2,226


Amortization of deferred financing expenses


338


119


699


419


Provisions


10,834


66


10,834


164


Interest rate swaps


(139)


(39)


(297)


(260)


Imputed interest


390


642


2,365


2,337


Pension expense


(683)


(803)


(2,982)


(2,838)


Deferred tax expense (income)


(439)


(2,617)


7,787


595


Share of loss (income) of joint ventures and associates


447


282


1,536


866



35,788


17,696


95,190


55,888

Net change in non-cash operating working capital items









Decrease (increase) in accounts receivable


3,321


(5,913)


(9,679)


(48,140)

Decrease (increase) in costs and estimated profits in excess of billings


1,497


(2,095)


(50,768)


(38,608)

Decrease (increase) in inventories


13,740


9,994


8,269


(39,845)

Decrease (increase) in current tax assets


(58)


1,002


33


(1,061)

Decrease (increase) in prepaid expenses and other assets


1,276


403


3,472


(1,586)

Increase (decrease) in accounts payable and accrued liabilities


(177)


(10,920)


17,665


27,916

Increase (decrease) in billings in excess of costs and estimated profits


(20,292)


7,321


(11,926)


31,570

Decrease in interest payable


(2,598)


(1,220)


(680)


(11)

Increase (decrease) in current tax liabilities


3,004


4,423


(924)


(3,214)



(287)


2,995


(44,538)


(72,979)

Cash flows from operating activities


35,501


20,691


50,652


(17,091)

Financing activities









Repurchase of shares


- -


- -


(319)


- -

Dividends


(1,671)


(1,669)


(6,681)


(4,991)

Increase in debt and bank loans


14,068


16,249


75,704


131,482

Repayment of debt and bank loans


(35,838)


(30,204)


(81,658)


(82,058)

Repayment of debentures


(2,956)


- -


(2,956)


- -

Repayment of balances of purchase price of businesses


(959)


- -


(959)


- -

Issue expenses related to debt


(71)


- -


(212)


(1,164)

Increase (decrease) in other liabilities


117


(106)


148


(82)

Cash flows from financing activities


(27,310)


(15,730)


(16,933)


43,187

Investing activities









Proceeds from sale of property, plant and equipment


1,534


229


2,005


353

Additions to property, plant and equipment


(11,695)


(7,192)


(30,368)


(22,780)

Additions to intangible assets


(732)


(284)


(1,695)


(1,830)

Acquisition of interests in an associate


- -


- -


(150)


- -

Proceeds from disposal of an investment


- -


- -


48


- -

Acquisition of an investment


(830)


- -


(1,279)


(1,000)

Distributions received


- -


- -


- -


156

Decrease in receivables and other assets


61


109


212


1,146

Increase in long-term receivables


(14)


- -


(258)


(10)

Business assets acquisition, net of cash and cash equivalents


(5)


- -


(6,196)


(1,136)

Cash flows from investing activities


(11,681)


(7,138)


(37,681)


(25,101)

Effects of changes in foreign exchange rate on cash and cash equivalents


982


2,143


2,751


2,576

Net change in cash


(2,508)


(34)


(1,211)


3,571










Cash and cash equivalents – Beginning of periods and years


9,558


8,295


8,261


4,690

Cash and cash equivalents – End of periods and years

$

7,050

$

8,261

$

7,050

$

8,261

Supplementary information










Interest paid

$

1,260

$

3,822

$

7,241

$

10,668


Income taxes paid, net

$

3,405

$

320

$

14,261

$

12,522

 

SOURCE Canam Group Inc.

For further information: Media: François Bégin, Vice President, Communications, Canam Group Inc., 450-641-4000 / 418-225-1355 (mobile phone), francois.begin@canamgroupinc.com; Investors: René Guizzetti, Vice President and Chief Financial Officer, Canam Group Inc., 450-641-4000, rene.guizzetti@canamgroupinc.com


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