Canam Group posts a net income of $31.2M in 2013

BOUCHERVILLE, QC, Feb. 26, 2014 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), specialized in the design and fabrication of construction products, completed the financial year ending December 31, 2013 with a net income of $31.2M, or $0.74 per share, compared with a net income of $17M, or $0.40 per share, in 2012. Consolidated revenues totaled $1,028M, up 13.6% from $905M in 2012.

In the fourth quarter of 2013, net income totaled $10.8M, or $0.26 per share, compared with $7.4M, or $0.18 per share, for the corresponding period in 2012. Consolidated revenues in the fourth quarter came to $282M as compared with $238M in 2012.

As at December 31, 2013, Canam Group's backlog of orders stood at $592M compared with $493M at the end of 2012. This figure does not include the $190M in structural steel contracts announced today.

The increase in revenues in 2013 is mainly attributable to light structural steel, and joist and steel deck activities. The improvement in revenues in the United States is partially explained by a gradual recovery in non-residential construction activities.

"The increase in our sales, 60% of which comes from the United States, is the result of successful acquisitions and market development," declared Canam Group President and Chief Executive Officer Marc Dutil. "This growth also reflects the dynamism of our teams in proposing new services aimed at improving the customer experience and adding new sources of revenue."

Acquisitions in 2013
At the very end of the year, Canam Group acquired a 67% ownership interest in Massif Technologies, an engineering company that specializes in the design and management of non-residential projects featuring lumber framing. The company has since been renamed Structure Fusion.

Over the summer, Canam Group acquired the steel joist fabrication assets of Quincy Joist Company in Buckeye, Arizona, and Quincy, Florida.

The Buckeye plant employs some 70 people and has an annual production capacity of 30,000 tons. This transaction will allow Canam Group to increase its presence in the Southwestern United States while also favoring market consolidation.

Dividend
The Board of Directors approved a quarterly dividend of $0.04 per common share payable on March 31, 2014 to shareholders of record on March 17, 2014.

About Canam Group Inc.
Canam Group is the largest fabricator of steel components in North America. Specialized in designing construction solutions and fabricating customized products since 1961, Canam Group takes part in an average of 10,000 construction projects each year in three activity sectors: buildings, structural steel and bridges. The Corporation operates 21 plants across North America and employs over 3,600 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 26, 2014 at 4:30 p.m. EST. A podcast will be available at www.canamgroupinc.com and www.newswire.ca. A replay of the conference call will be available until March 12, 2014 by dialing 1-800-408-3053 and entering access code 1650511, followed by the pound key (#).

    

CONSOLIDATED STATEMENTS OF INCOME
Periods and Years ended December 31

			Three-month periods						Years
(in thousands of Canadian dollars, except per share amounts)			2013			2012			2013			2012
Revenues		$	281,611		$	238,471		$	1,028,235		$	905,400
Cost of sales, excluding depreciation and amortization ^(1)			234,682			194,395			859,360			767,917
Selling and administrative expenses			25,308			23,217			89,811			83,094
Profit sharing program			1,546			1,963			5,205			3,123
Depreciation of property, plant and equipment			5,771			5,262			22,098			20,952
Amortization of intangible assets			432			357			1,608			1,449
Other gains — net			(246)			(1,480)			(2,075)			(5,935)
Finance costs			3,884			3,899			14,842			16,746
Finance revenue			(244)			(383)			(1,227)			(2,144)
Share of loss (income) of joint ventures and associates			221			468			(274)			120
Income before income tax			10,257			10,773			38,887			20,078
Tax expense (income)
	Current		4,309			2,209			11,257			5,541
	Deferred		(4,877)			1,179			(3,581)			(2,497)
			(568)			3,388			7,676			3,044
Net income		$	10,825		$	7,385		$	31,211		$	17,034
Net earnings per share
	Basic	$	0.26		$	0.18		$	0.74		$	0.40
	Diluted	$	0.26		$	0.18		$	0.74		$	0.40
Weighted average number of common shares (in thousands of shares)
	Basic		41,982			42,012			41,983			42,562
	Diluted		42,073			42,085			42,074			42,633
Number of common shares outstanding (in thousands of shares)									42,073			42,079

^(1)	As at December 31, 2013 and 2012, the cost of sales, including depreciation and amortization, totaled $239,610 and $198,760, respectively, for the three-month periods, and $878,378 and $785,673, respectively, for the years.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Periods and years ended December 31

			Three-month periods						Years
(in thousands of Canadian dollars)			2013			2012			2013			2012
Net income		$	10,825		$	7,385		$	31,211		$	17,034
Other comprehensive income (loss):
Items that will be reclassified subsequently to profit or loss
Change in unrealized gains (losses) on translating foreign operations			9,707			3,379			16,946			(5,533)
Available-for-sale assets:
	Unrealized gains on available-for-sale assets arising during the periods and years		- -			40			41			103
	Reclassified to statements of income		- -			- -			(867)			(274)
	Tax income (expense)		- -			(6)			137			22
			- -			34			(689)			(149)
			9,707			3,413			16,257			(5,682)
Items not to be reclassified to profit or loss
Defined contribution plan:
	Actuarial gains (losses) of the defined benefit plan		5,508			(4 502)			5,508			(4,502)
	Tax income (expense)		(1,452)			1,183			(1,452)			1,183
			4,056			(3,319)			4,056			(3,319)
Other comprehensive income (loss)			13,763			94			20,313			(9,001)
Comprehensive income		$	24,588		$	7,479		$	51,524		$	8,033

CONSOLIDATED BALANCE SHEETS

(in thousands of Canadian dollars)		As at December 31, 2013			As at December 31, 2012
Assets
Current assets
Cash and cash equivalents	$	4,690		$	6,787
Accounts receivable		299,981			273,383
Inventories		110,993			113,217
Recoverable tax assets		264			122
Prepaid expenses and other assets		3,762			3,040
		419,690			396,549
Property, plant and equipment classified as held for sale		1,567			1,466
		421,257			398,015
Non-current assets
Investments		4,699			6,036
Ownership interests in joint ventures and associates		41,390			44,316
Property, plant and equipment		292,289			282,556
Intangible assets		9,760			9,563
Goodwill		41,417			38,088
Deferred tax assets		11,957			7,897
Long-term receivables and other assets		10,971			17,656
Total assets	$	833,740		$	804,127
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	185,909		$	148,202
Current tax liabilities		8,119			6,942
Current portion of long-term debt		13,000			10,382
Current portion of balances of purchase price of businesses		- -			8,988
		207,028			174,514
Non-current liabilities
Debt		124,025			175,605
Convertible debentures		65,442			63,446
Provisions		6,816			2,156
Deferred tax liabilities		9,922			8,629
Other liabilities		8,849			17,592
Total liabilities		422,082			441,942
Equity
Share capital		168,057			168,529
Retained earnings		230,717			197,148
Other equity items		12,884			(3,492)
Total equity		411,658			362,185
Total equity and liabilities	$	833,740		$	804,127

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, 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
Balance as at January 1, 2012	$	1,994		$	(11,941)		$	691		$	5,764		$	(3,492)		$	168,529		$	197,148		$	362,185
Net income for the year		- -			- -			- -			- -			- -			- -			31,211			31,211
Comprehensive income		- -			16,946			(689)			- -			16,257			- -			4,056			20,313
Dividends		- -			- -			- -			- -			- -			- -			(1,682)			(1,682)
Shares purchased by a trust in employee's name on the secondary market		- -			- -			- -			- -			- -			(651)			- -			(651)
Shares acquired by employees		(202)			- -			- -			- -			(202)			202			- -			- -
Repurchase of shares		- -			- -			- -			- -			- -			(23)			- -			(23)
Excess of acquisition cost over carrying amount of acquired common shares		- -			- -			- -			- -			- -			- -			(16)			(16)
Amortization of compensation costs related to the profit sharing program - stock ownership component		321			- -			- -			- -			321			- -			- -			321
Balance as at December 31, 2013	$	2,113		$	5,005		$	2		$	5,764		$	12,884		$	168,057		$	230,717		$	411,658

CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods and years ended December 31

		Three-month periods						Years
(in thousands of Canadian dollars)			2013			2012		2013			2012
Cash flows from the following activities:
Operating activities
Net income		$	10,825		$	7,385		$	31,211		$	17,034
Adjustments:
	Amortization of compensation costs related to the profit sharing program - stock ownership component		80			56			321			226
	Loss on revaluation of balances of purchase price of businesses		35			- -			100			- -
	Loss (gain) on disposal of investments		- -			102			(867)			(2,259)
	Loss in decline in value of an investment		- -			- -			431			- -
	Loss (gain) on disposal of property, plant and equipment		35			41			(36)			17
	Gain on revaluation of property, plant and equipment		(299)			- -			(1,242)			- -
	Depreciation of property, plant and equipment		5,771			5,262			22,098			20,952
	Amortization of intangible assets		432			357			1,608			1,449
	Amortization of deferred financing expenses		312			80			560			276
	Provisions		1,968			521			4,660			543
	Interest rate swaps		(98)			(15)			(464)			32
	Imputed interest		523			576			2,218			2,356
	Pension expense		(456)			(178)			(2,801)			(2,419)
	Deferred tax expense (income)		(4,877)			1,179			(3,581)			(2,497)
	Share of loss (income) of joint ventures and associates		221			468			(274)			120
			14,772			15,834			53,942			35,830
Net change in non-cash operating working capital items
Decrease (increase) in accounts receivable			24,619			16,527			(14,707)			36,524
Decrease (increase) in inventories			3,156			(10,213)			9,832			(2,507)
Decrease (increase) in current tax assets			(17)			223			(134)			16,460
Decrease (increase) in prepaid expenses and other assets			(498)			658			(557)			976
Increase (decrease) in accounts payable and accrued liabilities			(19,265)			(11,978)			27,604			(18,497)
Increase (decrease) in interest payable			(1,339)			151			(298)			(9)
Increase in current tax liabilities			2,637			5,858			1,159			6,782
			9,293			1,226			22,899			39,729
Cash flows from operating activities			23,765			17,060			76,841			75,559
Financing activities
Shares purchased by a trust in employees' name on the secondary market			- -			- -			(651)			- -
Repurchase of shares			- -			- -			(39)			(6,841)
Increase in debt and bank loans			5,911			4,372			13,831			9,323
Repayment of debt and bank loans			(31,741)			(20,453)			(67,506)			(67,781)
Repayment of balances of purchase price of businesses			- -			(284)			(9,558)			(7,213)
Issue expenses related to debt and debenture			(346)			(103)			(542)			(360)
Increase (decrease) in other liabilities			(57)			- -			(57)			63
Cash flows from financing activities			(26,233)			(16,468)			(64,522)			(72,809)
Investing activities
Proceeds from sale of property, plant and equipment			226			44			596			278
Additions to property, plant and equipment			(5,121)			(3,463)			(17,429)			(8,706)
Additions to intangible assets			(288)			(444)			(1,431)			(1,343)
Acquisition of investments			- -			(205)			- -			(2,974)
Proceeds from disposal of investments			- -			6,145			4,585			11,317
Distributions received			- -			380			- -			645
Decrease in receivables and other assets			213			2,798			6,615			5,092
Increase in receivables and other assets			- -			- -			(27)			- -
Business acquisitions, net of cash acquired			(720)			(6,936)			(7,773)			(6,936)
Cash flows from investing activities			(5,690)			(1,681)			(14,864)			(2,627)
Effects of changes in foreign exchange rate on cash and cash equivalents			(38)			389			448			(704)
Net change in cash			(8,196)			(700)			(2,097)			(581)
Cash and cash equivalents - Beginning of periods and years			12,886			7,487			6,787			7,368
Cash and cash equivalents - End of periods and years		$	4,690		$	6,787		$	4,690		$	6,787
Supplementary information
	Interest paid	$	3,723		$	3,348		$	10,052		$	9,171
	Income taxes paid (recovered), net	$	1,560		$	(4,078)		$	10,269		$	(17,684)

 

 

SOURCE: Canam Group Inc.

François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: [phone] (cel.)
Email: [email protected]