BOUCHERVILLE, QC, Feb. 20, 2013 /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, 2012 with a net income of $17M, or $0.40 per share, compared with a net loss of $32.5M, or $0.72 per share, in 2011. Consolidated sales totaled $905.4M, up 2.8% from $881M in 2011. The 2011 financial results contained a $25M after-tax provision that was recognized in the first quarter for the BC Place project.
In the fourth quarter of 2012, net income totaled $7.4M, or $0.18 per share, compared with $3.3M, or $0.07 per share, for the corresponding period in 2011. Consolidated sales in the fourth quarter came to $238.5M.
As at December 31, 2012, Canam Group's backlog of orders stood at $493M compared with $462M at the end of 2011.
Canam Group President and Chief Executive Officer Marc Dutil explained that the increase in sales in 2012 is primarily attributable to joist and steel deck activities in Canada and the United States, and to FabSouth. Enhanced profit margins in joist, steel deck, structural steel and bridge activities largely account for the improved results in 2012.
Sale of ownership interests in joint ventures
At the very end of 2012, Canam Group sold its ownership interest held since 2007 in Chinese company United Steel Structures Limited (USSL) for a total consideration of US$13.5M. This transaction is in line with the Corporation's strategy to dispose of certain investments in order to focus on its core activities in North America. It follows the sale of its ownership interest in the Canadian joint venture, Amcan-Jumax, and the Canam Asia joint venture in 2012.
Repurchase of shares
In 2012, Canam Group took advantage of the share buyback program authorized by the Toronto Stock Exchange to acquire 1,346,588 common shares at an average price of $5.04 per share. A total of 3,258,488 common shares have been acquired and cancelled since the start of the program on November 1, 2011. As at December 31, 2012, the book value of the Corporation's 42,079,145 outstanding common shares was $8.61 per share.
About Canam Group Inc.
Canam Group is a manufacturing company that operates 20 plants across North America. Specialized in designing construction solutions and fabricating customized products since 1961. Canam Group takes part in close to 10,000 construction projects each year in three activity sectors: buildings, structural steel and bridges. The Corporation employs close to 3,500 people in Canada, the United States, Romania, India and Hong Kong.
Conference call
Canam Group will hold a conference call with financial analysts and media representatives on Wednesday, February 20, 2013 at 4:30 p.m. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until March 7, 2013 by dialing 1-800-408-3053 and entering access code 3303467, followed by the pound key (#).
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||
Periods and Years ended December 31 | |||||||||
Three-month periods | Years | ||||||||
(in thousands of Canadian dollars, except per share amounts) | 2012 | 2011 | 2012 | 2011 | |||||
Revenues | $ | 238,471 | $ | 286,319 | $ | 905,400 | $ | 881,028 | |
Cost of sales, excluding depreciation and amortization (1) | 194,395 | 248,211 | 767,917 | 821,835 | |||||
Selling and administrative expenses | 23,217 | 24,249 | 83,094 | 86,557 | |||||
Profit sharing program | 1,963 | 707 | 3,123 | 932 | |||||
Depreciation of property, plant and equipment | 5,262 | 5,205 | 20,952 | 20,322 | |||||
Amortization of intangible assets | 357 | 359 | 1,449 | 1,986 | |||||
Other losses (gains) — net | (1,480) | 449 | (5,935) | (11,117) | |||||
14,757 | 7,139 | 34,800 | (39,487) | ||||||
Finance costs | 3,899 | 4,844 | 16,746 | 18,322 | |||||
Finance revenue | (383) | (422) | (2,144) | (1,881) | |||||
Impairment of goodwill | - - | 2,346 | - - | 11,326 | |||||
Gain on revaluation of balances of purchase price of businesses | - - | (2,155) | - - | (11,282) | |||||
Share of loss (income) of joint ventures and associates | 468 | (1,007) | 120 | (1,464) | |||||
Income (loss) before income tax | 10,773 | 3,533 | 20,078 | (54,508) | |||||
Tax expense (income) | |||||||||
Current (recovered) | 2,209 | (827) | 5,541 | (15,120) | |||||
Deferred | 1,179 | 1,072 | (2,497) | (6,880) | |||||
3,388 | 245 | 3,044 | (22,000) | ||||||
Net income (loss) | $ | 7,385 | $ | 3,288 | $ | 17,034 | $ | (32,508) | |
Net earnings (loss) per share | |||||||||
Basic | $ | 0.18 | $ | 0.07 | $ | 0.40 | $ | (0.72) | |
Diluted | $ | 0.18 | $ | 0.07 | $ | 0.40 | $ | (0.72) | |
Weighted average number of common shares (in thousands of shares) | |||||||||
Basic | 42,012 | 44,710 | 42,562 | 45,097 | |||||
Diluted | 42,085 | 44,825 | 42,633 | 45,218 | |||||
Number of common shares outstanding (in thousands of shares) | 42,079 | 43,440 |
(1) | As at December 31, 2012 and 2011, the cost of sales, including depreciation and amortization, totaled $198,760 and $252,655, respectively, for the three-month periods, and $785,673 and $839,292, respectively, for the years. |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||
Periods and years ended December 31 | ||||||||||
Three-month periods | Years | |||||||||
(in thousands of Canadian dollars) | 2012 | 2011 | 2012 | 2011 | ||||||
Net income (loss) | $ | 7,385 | $ | 3,288 | $ | 17,034 | $ | (32,508) | ||
Other comprehensive income (loss): | ||||||||||
Change in unrealized gains (losses) on translating foreign operations | 3,379 | (3,245) | (5,533) | 4,725 | ||||||
Defined benefit plans: | ||||||||||
Actuarial losses of the defined benefit plan | (4,502) | (4,648) | (4,502) | (4,648) | ||||||
Tax income | 1,183 | 1,217 | 1,183 | 1,217 | ||||||
(3,319) | (3,431) | (3,319) | (3,431) | |||||||
Available-for-sale assets: | ||||||||||
Unrealized gains on available-for-sale assets arising during the periods and years | 40 | 90 | 103 | 50 | ||||||
Reclassified to statements of income (loss) | - - | - - | (274) | - - | ||||||
Tax income (expense) | (6) | (12) | 22 | (7) | ||||||
34 | 78 | (149) | 43 | |||||||
Other comprehensive income (loss) | 94 | (6,598) | (9,001) | 1,337 | ||||||
Comprehensive income (loss) | $ | 7,479 | $ | (3,310) | $ | 8,033 | $ | (31,171) |
CONSOLIDATED BALANCE SHEETS | ||||
(in thousands of Canadian dollars) | As at December 31, 2012 |
As at December 31, 2011 |
||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 6,787 | $ | 7,368 |
Accounts receivable | 273,383 | 304,551 | ||
Inventories | 113,217 | 111,955 | ||
Recoverable tax assets | 122 | 16,588 | ||
Prepaid expenses and other assets | 3,040 | 4,063 | ||
396,549 | 444,525 | |||
Property, plant and equipment classified as held for sale | 1,466 | 1,498 | ||
398,015 | 446,023 | |||
Non-current assets | ||||
Investments | 6,036 | 4,959 | ||
Ownership interests in joint ventures and associates | 44,316 | 61,954 | ||
Property, plant and equipment | 282,556 | 279,554 | ||
Intangible assets | 9,563 | 9,772 | ||
Goodwill | 38,088 | 38,930 | ||
Deferred tax assets | 7,897 | 4,472 | ||
Long-term receivables and other assets | 17,656 | 21,820 | ||
Total assets | $ | 804,127 | $ | 867,484 |
Liabilities | ||||
Current liabilities | ||||
Bank loans | $ | - - | $ | 32,761 |
Accounts payable and accrued liabilities | 148,202 | 169,110 | ||
Current tax liabilities | 6,942 | 165 | ||
Current portion of long-term debt | 10,382 | 37,038 | ||
Current portion of balances of purchase price of businesses | 8,988 | 7,315 | ||
174,514 | 246,389 | |||
Non-current liabilities | ||||
Debt | 175,605 | 163,782 | ||
Balances of purchase price of businesses | - - | 8,768 | ||
Convertible debentures | 63,446 | 61,816 | ||
Provisions | 2,156 | 1,613 | ||
Deferred tax liabilities | 8,629 | 8,107 | ||
Other liabilities | 17,592 | 16,242 | ||
Total liabilities | 441,942 | 506,717 | ||
Equity | ||||
Share capital | 168,529 | 172,869 | ||
Retained earnings | 197,148 | 184,774 | ||
Other equity items | (3,492) | 3,124 | ||
Total equity | 362,185 | 360,767 | ||
Total equity and liabilities | $ | 804,127 | $ | 867,484 |
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, 2011 | $ | 4,036 | $ | (11,133) | $ | 797 | $ | 5,764 | $ | (536) | $ | 179,102 | $ | 222,877 | $ | 401,443 |
Net loss for the year | - - | - - | - - | - - | - - | - - | (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 acquisition cost over carrying amount 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 |
Balance as at January 1, 2012 | $ | 2,928 | $ | (6,408) | $ | 840 | $ | 5,764 | $ | 3,124 | $ | 172,869 | $ | 184,774 | $ | 360,767 |
Net income for the year | - - | - - | - - | - - | - - | - - | 17,034 | 17,034 | ||||||||
Comprehensive loss | - - | (5,533) | (149) | - - | (5,682) | - - | (3,319) | (9,001) | ||||||||
Shares acquired by employees | (1,160) | - - | - - | - - | (1,160) | 1,160 | - - | - - | ||||||||
Repurchase of shares | - - | - - | - - | - - | - - | (5,500) | - - | (5,500) | ||||||||
Excess of acquisition cost over carrying amount of acquired common shares | - - | - - | - - | - - | - - | - - | (1,341) | (1,341) | ||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 226 | - - | - - | - - | 226 | - - | - - | 226 | ||||||||
Balance as at December 31, 2012 | $ | 1,994 | $ | (11,941) | $ | 691 | $ | 5,764 | $ | (3,492) | $ | 168,529 | $ | 197,148 | $ | 362,185 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
Periods and years ended December 31 | |||||||||
Three-month periods | Years | ||||||||
(in thousands of Canadian dollars) | 2012 | 2011 | 2012 | 2011 | |||||
Cash flows from the following activities: | |||||||||
Operating activities | |||||||||
Net income (loss) | $ | 7,385 | $ | 3,288 | $ | 17,034 | $ | (32,508) | |
Adjustments: | |||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 56 | 186 | 226 | 746 | |||||
Impairment of goodwill | - - | 2,346 | - - | 11,326 | |||||
Gain on revaluation of balances of purchase price of businesses | - - | (2,155) | - - | (11,282) | |||||
Loss (gain) on disposal of investments | 102 | - - | (2,259) | - - | |||||
Loss (gain) on disposal of property, plant and equipment | 41 | 16 | 17 | (214) | |||||
Depreciation of property, plant and equipment | 5,262 | 5,205 | 20,952 | 20,322 | |||||
Amortization of intangible assets | 357 | 359 | 1,449 | 1,986 | |||||
Amortization of deferred financing expenses | 80 | 99 | 276 | 466 | |||||
Provisions | 521 | 201 | 543 | 288 | |||||
Interest rate swaps | (15) | (69) | 32 | 474 | |||||
Imputed interest | 576 | 617 | 2,356 | 3,125 | |||||
Pension expense | (178) | (1,045) | (2,419) | (662) | |||||
Deferred tax expense (income) | 1,179 | 1,072 | (2,497) | (6,880) | |||||
Share of loss (income) of joint ventures and associates | 468 | (1,007) | 120 | (1,464) | |||||
15,834 | 9,113 | 35,830 | (14,277) | ||||||
Net change in non-cash operating working capital items | |||||||||
Decrease in the investment pledged as collateral | - - | 2,449 | - - | 10,170 | |||||
Decrease (increase) in accounts receivable | 16,527 | (49,004) | 36,524 | (78,087) | |||||
Decrease (increase) in inventories | (10,213) | 22,085 | (2,507) | (3,741) | |||||
Decrease (increase) in current tax assets | 223 | (1,668) | 16,460 | (12,390) | |||||
Decrease (increase) in prepaid expenses and other assets | 658 | (574) | 976 | (347) | |||||
Increase (decrease) in accounts payable and accrued liabilities | (11,978) | 3,721 | (18,497) | 29,961 | |||||
Decrease in provisions | - - | (2,740) | - - | (6,500) | |||||
Increase (decrease) in interest payable | 151 | (1,222) | (9) | (2) | |||||
Increase in current tax liabilities | 5,858 | 62 | 6,782 | 154 | |||||
1,226 | (26,891) | 39,729 | (60,782) | ||||||
Cash flows from operating activities | 17,060 | (17,778) | 75,559 | (75,059) | |||||
Financing activities | |||||||||
Shares purchased by a trust in employees' name on the secondary market | - - | (318) | - - | (318) | |||||
Repurchase of shares | - - | (6,229) | (6,841) | (6,385) | |||||
Proceeds from issuance of shares | - - | - - | - - | 44 | |||||
Dividends | - - | - - | - - | (3,592) | |||||
Increase in debt and bank loans | 4,372 | 20,870 | 9,323 | 128,456 | |||||
Repayment of debt and bank loans | (20,453) | (2,584) | (67,781) | (17,665) | |||||
Repayment of balances of purchase price of businesses | (284) | (1,689) | (7,213) | (8,866) | |||||
Issue expenses related to debt and debenture | (103) | (8) | (360) | (850) | |||||
Increase (decrease) in other liabilities | - - | (174) | 63 | (744) | |||||
Cash flows from financing activities | (16,468) | 9,868 | (72,809) | 90,080 | |||||
Investing activities | |||||||||
Proceeds from sale of property, plant and equipment | 44 | 12 | 278 | 92 | |||||
Additions to property, plant and equipment | (3,463) | (3,144) | (8,706) | (17,954) | |||||
Additions to intangible assets | (444) | (61) | (1,343) | (406) | |||||
Acquisition of investments | (205) | (468) | (2,974) | (468) | |||||
Proceeds from disposal of investments | 6,145 | - - | 11,317 | - - | |||||
Distributions received | 380 | 150 | 645 | 375 | |||||
Decrease in receivables and other assets | 2,798 | 1,130 | 5,092 | 1,882 | |||||
Increase in receivables and other assets | - - | - - | - - | (52) | |||||
Business acquisitions, net of cash acquired | (6,936) | - - | (6,936) | - - | |||||
Cash flows from investing activities | (1,681) | (2,381) | (2,627) | (16,531) | |||||
Effects of changes in foreign exchange rate on cash and cash equivalents | 389 | 159 | (704) | 348 | |||||
Net change in cash | (700) | (10,132) | (581) | (1,162) | |||||
Cash and cash equivalents - Beginning of periods and years | 7,487 | 17,500 | 7,368 | 8,530 | |||||
Cash and cash equivalents - End of periods and years | $ | 6,787 | $ | 7,368 | $ | 6,787 | $ | 7,368 | |
Supplementary information | |||||||||
Interest paid | $ | 3,348 | $ | 6,327 | $ | 9,171 | $ | 12,345 | |
Income taxes paid (recovered), net | $ | (4,078) | $ | 70 | $ | (17,684) | $ | (2,867) |
SOURCE: CANAM GROUP INC.
François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: 450-641-4000
Email: [email protected]
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