Canam Group maintains a solid backlogof orders of $563M
BOUCHERVILLE, QC, Aug. 5 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced that its consolidated sales grew by 23% to $185.4M for the quarter ended June 26, 2010, compared with $151.2M for the second quarter of 2009. The company posted a net loss of $2M, or $0.05 per share, as opposed to net earnings of $5.2M, or $0.12 per share, for the year-earlier quarter.
For the first six months of 2010, Canam Group's net loss amounted to $2.9M, or $0.07 per share, compared with net earnings of $10.6M, or $0.24 per share, over the same period last year. Consolidated sales for the first six months totaled $291M versus $331.4M for the corresponding period in 2009, representing a 12% decline.
Strong competition in the non-residential construction market continued into the second quarter, primarily in the United States, exerting pressure on gross margins. Nevertheless, several of the company's business units saw an increase in new bookings, sign of an improving economy.
Canam Group president and chief operating officer Marc Dutil said that management had anticipated that the situation would be difficult in the first half of 2010. He attributed the company's improved sales performance during the second quarter to the acquisition of FabSouth, completed in the first quarter, and a continued high level of activity in the infrastructure market.
Canam Group's backlog of orders as at June 26, 2010, stood at $563M, up 59% from $355M as at June 27, 2009.
The acquisition of two steel deck plants and other assets of a subsidiary of Commercial Metals Company, announced yesterday, will allow Canam Group to significantly broaden its geographic reach and range of products in the U.S. market, added Mr. Dutil.
The board of directors approved the payment of a quarterly dividend of $0.04 per common share on September 30, 2010 to shareholders of record on September 16, 2010.
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 building information modeling (BIM) services. The company operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.
Conference call
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Canam Group will hold a conference call with financial analysts and media representatives on Thursday, August 5, 2010 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 August 19, 2010 by dialing 1-800-408-3053 and entering access code 3384275, followed by the pound key (#).
Interim Consolidated Statements of Earnings
Periods ended June 26, 2010 and June 27, 2009
(in thousands of dollars,
except per share amounts)
(unaudited) 3 months 6 months
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2010 2009 2010 2009
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Sales $ 185,400 $ 151,239 $ 291,003 $ 331,443
Cost of sales 161,115 123,472 251,970 266,441
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Gross profit 24,285 27,767 39,033 65,002
Selling and
administrative expenses 20,331 17,582 36,708 35,361
Profit sharing programs 200 319 508 1,164
Exchange loss (gain) 206 (1,100) 250 (282)
Gain on disposal of
investments (9) (209) (9) (209)
Gain on disposal of
property, plant and
equipment (290) (77) (306) (85)
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3,847 11,252 1,882 29,053
Depreciation of property,
plant and equipment 4,880 3,982 9,256 8,011
Amortization of
intangible assets 1,555 354 2,216 722
Financial expenses 1,146 515 1,656 1,131
Gain on revaluation of
investments - - (3,888) -
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Earnings (loss) before
income tax expense
and undermentioned
items (3,734) 6,401 (7,358) 19,189
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Income tax expense
(recovery)
Current 1,286 1,172 434 6,316
Future (2,834) 163 (4,939) 153
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(1,548) 1,335 (4,505) 6,469
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Earnings (loss) before
undermentioned items (2,186) 5,066 (2,853) 12,720
Share in gain (loss) of
companies subject to
significant influence 123 61 (150) (897)
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Net earnings (net loss)
from continuing
operations (2,063) 5,127 (3,003) 11,823
Net earnings (net loss)
from discontinued
operations 42 99 60 (1,224)
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Net earnings (net loss) $ (2,021) $ 5,226 $ (2,943) $ 10,599
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Net earnings (net loss)
per share
Basic:
From continuing
operations $ (0.05) $ 0.12 $ (0.07) $ 0.27
From discontinued
operations - - - (0.03)
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Total $ (0.05) $ 0.12 $ (0.07) $ 0.24
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Diluted:
From continuing
operations $ (0.05) $ 0.12 $ (0.07) $ 0.26
From discontinued
operations - - - (0.03)
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Total $ (0.05) $ 0.12 $ (0.07) $ 0.23
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Weighted average number
of common shares
(in thousands of shares)
Basic 45,101 44,928 45,102 44,948
Diluted 45,429 45,376 45,414 45,395
Number of common shares
outstanding 45,366 45,368
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Interim Consolidated Statements of Comprehensive Income (loss)
Periods ended June 26, 2010 and June 27, 2009
(in thousands of dollars)
(unaudited) 3 months 6 months
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2010 2009 2010 2009
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Net earnings (net loss) $ (2,021) $ 5,226 $ (2,943) $ 10,599
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Other comprehensive
income (loss):
Change in unrealized
gains and losses on
translating financial
statements of
self-sustaining
foreign operations $ 964 $ (11,375) $ (2,438) $ (9,429)
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Unrealized gains
(losses) on
available-for-sale
financial assets
arising during the
period $ (127) $ 372 $ (76) $ 529
Income tax expense 22 (58) 14 (99)
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Change in unrealized
gains and losses on
available-for-sale
financial assets $ (105) $ 314 $ (62) $ 430
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Other comprehensive
income (loss) $ 859 $ (11,061) $ (2,500) $ (8,999)
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Comprehensive income
(loss) $ (1,162) $ (5,835) $ (5,443) $ 1,600
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Interim Consolidated Statements of Retained Earnings
Periods ended June 26, 2010 and June 27, 2009
(in thousands of dollars)
(unaudited) 3 months 6 months
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2010 2009 2010 2009
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Opening balance $ 241,240 $ 234,798 $ 244,029 $ 232,208
Net earnings (net loss) (2,021) 5,226 (2,943) 10,599
Dividends (1,815) (1,816) (3,629) (3,631)
Excess of acquisition
cost over carrying value
of acquired common shares (5) - (58) (968)
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Closing balance $ 237,399 $ 238,208 $ 237,399 $ 238,208
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Interim Consolidated Balance Sheets
As at As at
June 26, December 31,
2010 2009
(in thousands of dollars) (unaudited)
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Assets
Current assets
Cash and cash equivalents $ 29,110 $ 67,393
Accounts receivable 161,987 99,594
Inventories 143,401 104,540
Income taxes recoverable 6,510 6,701
Future income tax assets 5,671 1,008
Prepaid expenses and other assets 4,212 3,484
Current assets of discontinued operations 879 1,230
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Total current assets 351,770 283,950
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Investments 48,673 63,503
Property, plant and equipment 219,390 184,851
Property, plant and equipment held for sale 1,526 1,549
Intangible assets 13,312 1,127
Goodwill 53,221 150
Future income tax assets 246 363
Long-term receivables and other assets 20,134 21,942
Long-term assets of discontinued operations 8,166 8,618
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$ 716,438 $ 566,053
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Liabilities
Current liabilities
Bank loans $ 4,704 $ -
Accounts payable and accrued liabilities 140,274 77,112
Income taxes payable 153 635
Future income tax liabilities 75 876
Current portion of long-term debt 5,953 5,477
Current portion of the balance of the
purchase price of subsidiaries 13,189 -
Current liabilities of discontinued
operations 1,296 1,495
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Total current liabilities 165,644 85,595
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Long-term debt 120,009 62,212
Balance of the purchase price of
subsidiaries 22,419 -
Deferred credits 4,054 4,749
Future income tax liabilities 11,365 11,296
Long-term liabilities of discontinued
operations 1,096 1,604
324,587 165,456
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Shareholders' Equity
Share capital 179,102 178,024
Retained earnings 237,399 244,029
Contributed surplus 4,167 4,862
Accumulated other comprehensive loss (28,817) (26,318)
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391,851 400,597
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$ 716,438 $ 566,053
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Interim Consolidated Statements of Cash Flows
Periods ended June 26, 2010 and June 27, 2009
(in thousands of dollars)
(unaudited) 3 months 6 months
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2010 2009 2010 2009
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Cash flows from the
following activities:
Operating activities
Net earnings (net loss)
from continuing
operations $ (2,063) $ 5,127 $ (3,003) $ 11,823
Items not affecting cash
and cash equivalents
Amortization of
compensation costs
related to the profit
sharing program -
stock ownership
component 345 431 691 916
Unrealized gain on
foreign currency
forward contracts - (480) - (1,533)
Gain on revaluation
of investments - - (3,888) -
Gain on disposal of
investments (9) (209) (9) (209)
Gain on disposal of
property, plant and
equipment (290) (77) (306) (85)
Depreciation of
property, plant and
equipment 4,880 3,982 9,256 8,011
Amortization of
intangible assets 1,555 354 2,216 722
Amortization of
deferred financing
expenses 62 53 117 108
Pension expense 69 (35) 74 (106)
Future income tax
expense (2,834) 163 (4,939) 153
Share in loss of
companies subject to
significant influence (123) (61) 150 897
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1,592 9,248 359 20,697
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Net change in non-cash
operating working capital
items
Decrease (increase) in
accounts receivable (24,613) 10,841 (13,821) 24,588
Decrease (increase) in
inventories (20,846) 20,133 (27,937) 33,154
Decrease (increase) in
income taxes
recoverable 781 (260) (252) 1,925
Decrease in prepaid
expenses and other
assets 877 553 409 3,531
Increase (decrease) in
accounts payable and
accrued liabilities 18,295 (5,711) 9,419 (20,754)
Increase (decrease) in
interest payable 387 (223) 586 (19)
Decrease in income
taxes payable (1) (160) (477) (47)
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(25,120) 25,173 (32,073) 42,378
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Cash flows from continuing
operating activities (23,528) 34,421 (31,714) 63,075
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Financing activities
Shares purchased by a
trust in employees' name
on the secondary market - - (364) (1,871)
Repurchase of shares (9) - (127) (2,122)
Proceeds from issuance
of shares 104 - 125 47
Dividends (1,814) (1,816) (1,814) (3,631)
Increase in long-term
debt and bank loans 25,156 - 54,027 8,680
Repayment of long-term
debt and bank loans (2,367) (17,959) (3,349) (18,844)
Deferred credits 9 10 (666) (235)
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Cash flows from continuing
financing activities 21,079 (19,765) 47,832 (17,976)
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Investing activities
Proceeds from sale of
property, plant and
equipment 500 321 507 392
Additions to property,
plant and equipment (9,617) (4,833) (17,040) (12,399)
Additions to intangible
assets (99) (45) (185) (330)
Acquisition of investments - (3,288) (120) (4,593)
Proceeds from disposal
of investments 3 643 3 1,144
Distribution from a
company subject to
significant influence - - - 300
Decrease in long-term
receivables 952 897 1,715 1,674
Increase in long-term
receivables (68) (1,926) (68) (2,659)
Business acquisitions,
net of cash acquired - - (38,684) -
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Cash flows from continuing
investing activities (8,329) (8,231) (53,872) (16,471)
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Effect of changes in
foreign exchange rate on
cash and cash equivalents 594 (125) (727) (311)
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Net change in cash and
cash equivalents from
continuing operations (10,184) 6,300 (38,481) 28,317
Cash flows from
discontinued operations
Operating activities 139 408 184 31
Investing activities (1) 138 14 285
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138 546 198 316
Cash and cash equivalents,
beginning of period 39,156 37,406 67,393 15,619
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Cash and cash equivalents,
end of period $ 29,110 $ 44,252 $ 29,110 $ 44,252
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Supplementary information
Interest paid $ 1,325 $ 919 $ 2,085 $ 2,048
Income taxes paid
(recovered), net $ (359) $ 1,494 $ 705 $ 5,040
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For further information: Jasmin Gosselin, Vice President, Communications, Tel.: 450-641-4000, Email: [email protected]; www.canamgroup.ws
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