SAINT-GEORGES, QC, April 25, 2013 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), specialized in the design and fabrication of construction products, today announced at the close of its 29th Annual General Meeting of Shareholders that the Corporation recorded a net income of $3M, or $0.07 per share, for the first quarter ended March 30, 2013, compared with a net loss of $1.3M, or $0.03 per share, for the same period last year. Consolidated sales totaled $209.8M compared with $208.3M in 2012.
Canam Group President and Chief Executive Officer Marc Dutil stated the increased profit margins and the level of sales during the first quarter of 2013 were encouraging signs given that the winter months are historically the least profitable period of the year in the construction industry. Moreover, results for the first quarter of 2012 included a non-recurring gain of $1.8M, which illustrates the extent of the turnaround between these two quarters. He added that the improved results are largely attributable to joist and steel deck sales, but also to bridge and light structural steel activities.
As at March 30, 2013, Canam Group's backlog of orders stood at $575M compared with $493M as at December 31, 2012, representing an increase of 17%.
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 20 plants across North America and employs 3,400 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 Thursday, April 25, 2013 at 1:15 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 May 9, 2013 by dialing 1-800-408-3053 and entering access code 1115138, followed by the pound key (#).
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Periods ended March 30, 2013 and March 31, 2012
| (in thousands of Canadian dollars) (unaudited) |
Three months | |||||
| 2013 | 2012 | |||||
| Revenues | $ | 209,752 | $ | 208,294 | ||
| Cost of sales, excluding depreciation and amortization(1) | 176,469 | 183,810 | ||||
| Selling and administrative expenses | 20,108 | 20,408 | ||||
| Profit sharing program | 250 | 210 | ||||
| Depreciation of property, plant and equipment | 5,306 | 5,293 | ||||
| Amortization of intangible assets | 377 | 356 | ||||
| Other gains — net | (119) | (1,755) | ||||
| 7,361 | (28) | |||||
| Finance costs | 3,749 | 4,500 | ||||
| Finance revenue | (306) | (1,044) | ||||
| Share of income of joint ventures and associates | (304) | (391) | ||||
| Income (loss) before income tax | 4,222 | (3,093) | ||||
| Tax expense (income) | ||||||
| Current | 1,117 | 77 | ||||
| Deferred | 132 | (1,853) | ||||
| 1,249 | (1,776) | |||||
| Net income (loss) | $ | 2,973 | $ | (1,317) | ||
| Net earnings (loss) per share | ||||||
| Basic | $ | 0.07 | $ | (0.03) | ||
| Diluted | $ | 0.07 | $ | (0.03) | ||
| Weighted average number of common shares (in thousands of shares) | ||||||
| Basic | 41,939 | 43,307 | ||||
| Diluted | 42,085 | 43,413 | ||||
| Number of common shares outstanding (in thousands of shares) | 42,073 | 43,195 | ||||
| (1) | Cost of sales, including depreciation and amortization, was $181,182 as at March 30, 2013 and $188,319 as at March 31, 2012. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Periods ended March 30, 2013 and March 31, 2012
| (in thousands of Canadian dollars) (unaudited) |
Three months | ||||||
| 2013 | 2012 | ||||||
| Net income (loss) | $ | 2,973 | $ | (1,317) | |||
| Other comprehensive income (loss): | |||||||
| Items that may be reclassified subsequently to net income | |||||||
| Change in unrealized gains (losses) on translating foreign operations | 4,064 | (4,142) | |||||
| Available-for-sale assets: | |||||||
| Unrealized gains on available-for-sale assets arising during the period | 27 | 135 | |||||
| Reclassified to statements of income (loss) | (39) | (274) | |||||
| Tax expense | 2 | 18 | |||||
| (10) | (121) | ||||||
| Other comprehensive income (loss) | 4,054 | (4,263) | |||||
| Comprehensive income (loss) | $ | 7 027 | $ | (5,580) | |||
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
| (in thousands of Canadian dollars) (unaudited) |
As at March 30, 2013 |
As at December 31, 2012 |
|||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 3,641 | $ | 6,787 | |
| Accounts receivable | 281,425 | 273,383 | |||
| Inventories | 113,472 | 113,217 | |||
| Recoverable tax assets | 124 | 122 | |||
| Prepaid expenses and other assets | 5,242 | 3,040 | |||
| 403,904 | 396,549 | ||||
| Property, plant and equipment classified as held for sale | 1,497 | 1,466 | |||
| 405,401 | 398,015 | ||||
| Non-current assets | |||||
| Investments | 5,724 | 6,036 | |||
| Ownership interests in joint ventures and associates | 42,777 | 44,316 | |||
| Property, plant and equipment | 283,026 | 282,556 | |||
| Intangible assets | 9,892 | 9,563 | |||
| Goodwill | 38,088 | 38,088 | |||
| Deferred tax assets | 7,941 | 7,897 | |||
| Long-term receivables and other assets | 17,304 | 17,656 | |||
| Total assets | $ | 810,153 | $ | 804,127 | |
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 157,204 | $ | 148,202 | |
| Current tax liabilities | 2,807 | 6,942 | |||
| Current portion of long-term debt | 10,510 | 10,382 | |||
| Current portion of balances of purchase price of businesses | 6,009 | 8,988 | |||
| 176,530 | 174,514 | ||||
| Non-current liabilities | |||||
| Debt | 173,637 | 175,605 | |||
| Convertible debentures | 63,879 | 63,446 | |||
| Provisions | 2,148 | 2,156 | |||
| Deferred tax liabilities | 8,628 | 8,629 | |||
| Other liabilities | 16,730 | 17,592 | |||
| Total liabilities | 441,552 | 441,942 | |||
| Equity | |||||
| Share capital | 168,057 | 168,529 | |||
| Retained earnings | 200,105 | 197,148 | |||
| Other equity items | 439 | (3,492) | |||
| Total equity | 368,601 | 362,185 | |||
| Total equity and liabilities | $ | 810,153 | $ | 804,127 | |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| (in thousands of Canadian dollars) (unaudited) |
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 loss for the period | - - | - - | - - | - - | - - | - - | (1,317) | (1,317) | |||||||||
| Comprehensive loss | - - | (4,142) | (121) | - - | (4,263) | - - | - - | (4,263) | |||||||||
| Shares acquired by employees | (1,160) | - - | - - | - - | (1,160) | 1,160 | - - | - - | |||||||||
| Repurchase of shares | - - | - - | - - | - - | - - | (991) | - - | (991) | |||||||||
| Excess of acquisition cost over carrying amount of acquired common shares | - - | - - | - - | - - | - - | - - | (231) | (231) | |||||||||
| Amortization of compensation costs related to the profit sharing program - stock ownership component | 56 | - - | - - | - - | 56 | - - | - - | 56 | |||||||||
| Balance as at March 31, 2012 | $ | 1,824 | $ | (10,550) | $ | 719 | $ | 5,764 | $ | (2,243) | $ | 173,038 | $ | 183,226 | $ | 354,021 | |
| Balance as at January 1, 2013 | $ | 1,994 | $ | (11,941) | $ | 691 | $ | 5,764 | $ | (3,492) | $ | 168,529 | $ | 197,148 | $ | 362,185 | |
| Net income for the period | - - | - - | - - | - - | - - | - - | 2,973 | 2,973 | |||||||||
| Comprehensive income | - - | 4,064 | (10) | - - | 4,054 | - - | - - | 4,054 | |||||||||
| Shares purchased by a trust in employees' 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 | 79 | - - | - - | - - | 79 | - - | - - | 79 | |||||||||
| Balance as at March 30, 2013 | $ | 1,871 | $ | (7,877) | $ | 681 | $ | 5,764 | $ | 439 | $ | 168,057 | $ | 200,105 | $ | 368,601 | |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended March 30, 2013 and March 31, 2012
| (in thousands of Canadian dollars) | Trois mois | |||||
| (unaudited) | 2013 | 2012 | ||||
| Cash flows from the following activities: | ||||||
| Operating activities | ||||||
| Net income (loss) | $ | 2,973 | $ | (1,317) | ||
| Adjustments: | ||||||
| Amortization of compensation costs related to the profit sharing program - stock ownership component | 79 | 56 | ||||
| Loss on revaluation of balances of purchase price of businesses | 65 | - - | ||||
| Gain on disposal of investments | (39) | (262) | ||||
| Loss (gain) on disposal of property, plant and equipment | 3 | (10) | ||||
| Depreciation of property, plant and equipment | 5,306 | 5,293 | ||||
| Amortization of intangible assets | 377 | 356 | ||||
| Amortization of deferred financing expenses | 82 | 61 | ||||
| Provisions | (8) | 27 | ||||
| Interest rate swaps | (92) | (73) | ||||
| Imputed interest | 589 | 657 | ||||
| Pension expense | (804) | (862) | ||||
| Deferred tax expense | 132 | (1,853) | ||||
| Share of income of joint ventures and associates | (304) | (391) | ||||
| 8,359 | 1,682 | |||||
| Net change in non-cash operating working capital items | ||||||
| Decrease (increase) in accounts receivable | (2,751) | 43,509 | ||||
| Decrease in inventories | 980 | 5,591 | ||||
| Decrease in current tax assets | - - | 741 | ||||
| Increase in prepaid expenses and other assets | (2,152) | (197) | ||||
| Increase (decrease) in accounts payable and accrued liabilities | 5,197 | (9,768) | ||||
| Increase in interest payable | 1,136 | 1,248 | ||||
| Increase (decrease) in current tax liabilities | (4,138) | 34 | ||||
| (1,728) | 41,158 | |||||
| Cash flows from operating activities | 6,631 | 42,840 | ||||
| Financing activities | ||||||
| Shares purchased by a trust in employees' name on the secondary market | (651) | - - | ||||
| Repurchase of shares | (39) | (1,222) | ||||
| Increase in debt and bank loans | 2,150 | 579 | ||||
| Repayment of debt and bank loans | (5,330) | (28,847) | ||||
| Repayment of balances of purchase price of businesses | (3,326) | (6,684) | ||||
| Increase in other liabilities | - - | 8 | ||||
| Cash flows from financing activities | (7,196) | (36,166) | ||||
| Investing activities | ||||||
| Proceeds from sale of property, plant and equipment | 47 | 11 | ||||
| Additions to property, plant and equipment | (2,817) | (1,353) | ||||
| Additions to intangible assets | (655) | (46) | ||||
| Acquisition of investments | - - | (2,620) | ||||
| Proceeds from disposal of investments | 337 | 322 | ||||
| Distributions received | - - | 175 | ||||
| Decrease in receivables and other assets | 339 | 520 | ||||
| Cash flows from investing activities | (2,749) | (2,991) | ||||
| Effects of changes in foreign exchange rate on cash and cash equivalents | 168 | (192) | ||||
| Net change in cash | (3,146) | 3,491 | ||||
| Cash and cash equivalents - Beginning of year | 6,787 | 7,368 | ||||
| Cash and cash equivalents - End of year | $ | 3,641 | $ | 10,859 | ||
| Supplementary information | ||||||
| Interest paid | $ | 1,455 | $ | 679 | ||
| Income taxes paid (recovered), net | $ | 5,268 | $ | (690) | ||
SOURCE: CANAM GROUP INC.
François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: 418-225-1355
Email: [email protected]
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