SAINT-GEORGES, QC, April 24, 2015 /CNW Telbec/ - Canam Group Inc. (TSX: CAM) ("Canam Group" or the "Corporation") today published its financial results for the three-month period ended March 28, 2015.
Highlights
- 29% increase in consolidated revenues compared to the same quarter in 2014
- 81% increase in earnings before interest, tax, depreciation and amortization (Adjusted
EBITDA) compared to the same quarter in 2014
Quarters ended |
||||||
(in millions of $, except per share amounts) |
March 28, 2015 |
March 29, 2014 |
||||
Revenues |
$ 309.1 |
$ 239.3 |
||||
Selling and administrative expenses |
$ 24.2 |
7.8% |
$ 21.8 |
9.1% |
||
Adjusted EBITDA1 |
$ 17.7 |
5.7% |
$ 9.8 |
4.1% |
||
Net income |
$ 4.4 |
$ 0.5 |
||||
Net earnings per share (basic and diluted) |
$ 0.10 |
$ 0.01 |
||||
1 Refer to the section entitled Non-IFRS measures |
"These results attest to the continuing recovery in U.S. non-residential construction markets, where we realize close to 68% of our sales, as well as to the quality of our order backlog," explains Marc Dutil, President and Chief Executive Officer of Canam Group.
Results for the first quarter of 2015
Consolidated revenues for the first quarter of 2015 totaled $309.1M compared to revenues of $239.3M for the same quarter in 2014. The increase is attributable to higher revenues from heavy structural steel, and joist and steel deck activities in addition to the US dollar's rise against the Canadian dollar.
In 2015, selling and administrative expenses totaled $24.2M, or 7.8% of revenues, compared to $21.8M, or 9.1% of revenues, in 2014. The variation is mainly attributable to the payroll increase in order to maintain the current sales growth.
Adjusted EBITDA in the first quarter of 2015 amounted to $17.7M, or 5.7% of revenues, compared to $9.8M, or 4.1% of revenues, for the same quarter in 2014. The increase in 2015 is due, in part, to the growth in sales volume combined with a rise in the adjusted gross margin for a number of the Corporation's activities.
In the first quarter of 2015, net income attributable to shareholders totaled $4.4M, or $0.10 per share, compared to $0.5M, or $0.01 in basic net earnings per share, for the same period in 2014.
Order backlog
The order backlog stood at $1,118M as at March 28, 2015, compared to $1,007M as at December 31, 2014 and $793M as at March 29, 2014.
Dividend
The Board of Directors approved a dividend of $0.04 per share payable on June 30, 2015 to shareholders of record on June 16, 2015.
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 building, structural steel and bridge projects each year. The Corporation operates 22 plants across North America and employs over 3,920 people in Canada, the United States, Romania, India and Hong Kong.
Conference call, webcast and presentation
Canam Group will hold a conference call with financial analysts and media representatives on Friday, April 24, 2015 at 1:15 p.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 May 8, 2015 by dialing 1-800-408-3053 and entering access code 4615523, followed by the pound key (#).
Non-IFRS measure
Earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) is not defined by 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 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.
CONDENSED INTERIM CONSOLIDATED |
||||||
STATEMENTS OF INCOME |
||||||
Periods ended March 28, 2015 and March 29, 2014 |
||||||
(in thousands of Canadian dollars, except per share amounts) |
Three months |
|||||
(unaudited) |
2015 |
2014 |
||||
Revenues |
$ |
309,102 |
$ |
239,303 |
||
Cost of sales, excluding depreciation and amortization(1) |
267,090 |
207,666 |
||||
Selling and administrative expenses |
24,183 |
21,805 |
||||
Profit sharing program |
489 |
217 |
||||
Depreciation of property, plant and equipment |
6,218 |
5,595 |
||||
Amortization of intangible assets |
690 |
473 |
||||
Other gains — net |
(264) |
(405) |
||||
Finance costs |
3,921 |
3,496 |
||||
Finance revenue |
(186) |
(238) |
||||
Share of loss of a joint venture and associates |
141 |
282 |
||||
Income (expense) before income tax |
6,820 |
412 |
||||
Tax expense |
||||||
Current |
1,788 |
(1,337) |
||||
Deferred |
594 |
1,199 |
||||
2,382 |
(138) |
|||||
Net income |
$ |
4,438 |
$ |
550 |
||
Net income attributable to: |
||||||
Shareholders |
$ |
4,397 |
$ |
474 |
||
Non-controlling interests |
41 |
76 |
||||
$ |
4,438 |
$ |
550 |
|||
Net earnings per share attributable to shareholders |
||||||
Basic |
$ |
0.10 |
$ |
0.01 |
||
Diluted |
$ |
0.10 |
$ |
0.01 |
||
Weighted average number of common shares (in thousands of shares) |
||||||
Basic |
42,028 |
42,041 |
||||
Diluted |
42,075 |
42,075 |
||||
Number of common shares outstanding (in thousands of shares) |
42,055 |
42,078 |
||||
(1) Cost of sales, including depreciation and amortization, was $272,441 as at March 28, 2015 and $212,507 as at March 29, 2014 |
NOTICE
The Corporation's independent auditors have not performed a review of the accompanying condensed interim consolidated financial statements.
CONDENSED INTERIM CONSOLIDATED |
|||||||
STATEMENTS OF COMPREHENSIVE INCOME |
|||||||
Periods ended March 28, 2015 and March 29, 2014 |
|||||||
(in thousands of Canadian dollars) |
Three months |
||||||
(unaudited) |
2015 |
2014 |
|||||
Net income |
$ |
4,438 |
$ |
550 |
|||
Other comprehensive income: |
|||||||
Items that will be reclassified subsequently to profit or loss |
|||||||
Change in unrealized gains on translating foreign operations |
27,105 |
10,466 |
|||||
Change in unrealized loss on translating debt designated as hedging item of the net investment in foreign operations |
(1,737) |
- - |
|||||
Other comprehensive income |
25,368 |
10,466 |
|||||
Comprehensive income |
$ |
29,806 |
$ |
11,016 |
|||
Attributable to: |
|||||||
Shareholders |
$ |
29,794 |
$ |
10,940 |
|||
Non-controlling interests |
12 |
76 |
|||||
$ |
29,806 |
$ |
11,016 |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands of Canadian dollars) (unaudited) |
As at |
As at |
||||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ |
5,137 |
$ |
8,261 |
||
Accounts receivable |
231,144 |
276,691 |
||||
Costs and estimated profits in excess of billings |
155,814 |
126,590 |
||||
Inventories |
168,356 |
156,990 |
||||
Recoverable tax assets |
1,287 |
1,346 |
||||
Prepaid expenses and other assets |
7,371 |
5,619 |
||||
569,109 |
575,497 |
|||||
Non-current assets |
||||||
Investments |
4,743 |
4,593 |
||||
Interests in a joint venture and associates |
40,772 |
40,919 |
||||
Property, plant and equipment |
320,651 |
308,362 |
||||
Intangible assets |
11,014 |
10,811 |
||||
Goodwill |
48,907 |
45,097 |
||||
Deferred tax assets |
10,402 |
10,128 |
||||
Long-term receivables and other assets |
6,963 |
7,428 |
||||
Total assets |
$ |
1,012,561 |
$ |
1,002,835 |
||
Liabilities |
||||||
Current liabilities |
||||||
Accounts payable and accrued liabilities |
$ |
181,080 |
$ |
183,937 |
||
Billings in excess of costs and estimated profits |
81,556 |
74,366 |
||||
Current tax liabilities |
2,315 |
4,943 |
||||
Current portion of long-term debt |
18,395 |
17,659 |
||||
Convertible debentures |
67,641 |
67,137 |
||||
350,987 |
348,042 |
|||||
Non-current liabilities |
||||||
Debt |
154,829 |
175,585 |
||||
Provisions |
7,883 |
7,417 |
||||
Deferred tax liabilities |
7,481 |
7,477 |
||||
Other liabilities |
6,301 |
7,090 |
||||
Total liabilities |
527,481 |
545,611 |
||||
Equity |
||||||
Share capital |
168,314 |
168,162 |
||||
Retained earnings |
254,899 |
252,386 |
||||
Other equity items |
61,819 |
36,640 |
||||
Total equity attributable to shareholders |
485,032 |
457,188 |
||||
Non-controlling interests |
48 |
36 |
||||
Total equity |
485,080 |
457,224 |
||||
Total equity and liabilities |
$ |
1,012,561 |
$ |
1,002,835 |
CONDENSED INTERIM CONSOLIDATED |
||||||||||||||||||||||
STATEMENTS OF CHANGES IN EQUITY |
||||||||||||||||||||||
(in thousands of Canadian dollars) (unaudited) |
Employee |
Exchange |
Exchange |
Available-for- |
Debenture |
Total other |
Share |
Retained |
Total share capital attributable to shareholders |
Non- |
Total |
|||||||||||
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 period |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
474 |
474 |
76 |
550 |
|||||||||||
Comprehensive income |
- - |
10,466 |
- - |
- - |
- - |
10,466 |
- - |
- - |
10,466 |
- - |
10,466 |
|||||||||||
Dividends |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
(1,682) |
(1,682) |
- - |
(1,682) |
|||||||||||
Shares acquired by employees |
(26) |
- - |
- - |
- - |
- - |
(26) |
26 |
- - |
- - |
- - |
- - |
|||||||||||
Issuance of shares upon the conversion of debentures |
- - |
- - |
- - |
- - |
- - |
- - |
59 |
- - |
59 |
- - |
59 |
|||||||||||
Exercise of options upon the conversion of debentures |
- - |
- - |
- - |
- - |
(5) |
(5) |
5 |
- - |
- - |
- - |
- - |
|||||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component |
83 |
- - |
- - |
- - |
- - |
83 |
- - |
- - |
83 |
- - |
83 |
|||||||||||
Balance as at March 29, 2014 |
$ |
2,170 |
$ |
15,471 |
$ |
- - |
$ |
2 |
$ |
5,759 |
$ |
23,402 |
$ |
168,147 |
$ |
229,509 |
$ |
421,058 |
$ |
260 |
$ |
421,318 |
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 period |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
4,397 |
4,397 |
41 |
4,438 |
|||||||||||
Comprehensive income |
- - |
27,134 |
(1,737) |
- - |
- - |
25,397 |
- - |
- - |
25,397 |
(29) |
25,368 |
|||||||||||
Dividends |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
(1,670) |
(1,670) |
- - |
(1,670) |
|||||||||||
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 |
- - |
- - |
- - |
- - |
- - |
- - |
18 |
- - |
18 |
- - |
18 |
|||||||||||
Exercise of options upon the conversion of debentures |
- - |
- - |
- - |
- - |
(1) |
(1) |
1 |
- - |
- - |
- - |
- - |
|||||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component |
21 |
- - |
- - |
- - |
- - |
21 |
- - |
- - |
21 |
- - |
21 |
|||||||||||
Balance as at March 28, 2015 |
$ |
2,018 |
$ |
56,585 |
$ |
(2,543) |
$ |
2 |
$ |
5,757 |
$ |
61,819 |
$ |
168,314 |
$ |
254,899 |
$ |
485,032 |
$ |
48 |
$ |
485,080 |
CONDENSED INTERIM CONSOLIDATED |
|||||||||||
STATEMENTS OF CASH FLOWS |
|||||||||||
Periods ended March 28, 2015 and March 29, 2014 |
|||||||||||
(in thousands of Canadian dollars) |
Three months |
||||||||||
(unaudited) |
2015 |
2014 |
|||||||||
Cash flows from the following activities: |
|||||||||||
Operating activities |
|||||||||||
Net income |
$ |
4,438 |
$ |
550 |
|||||||
Adjustments: |
|||||||||||
Amortization of compensation costs related to the profit sharing program – stock ownership component |
21 |
83 |
|||||||||
Loss on disposal of property, plant and equipment |
23 |
110 |
|||||||||
Depreciation of property, plant and equipment |
6,218 |
5,595 |
|||||||||
Amortization of intangible assets |
690 |
473 |
|||||||||
Amortization of deferred financing expenses |
126 |
93 |
|||||||||
Provisions |
- - |
104 |
|||||||||
Interest rate swaps |
(26) |
(68) |
|||||||||
Imputed interest |
654 |
534 |
|||||||||
Pension expense |
(848) |
(704) |
|||||||||
Deferred tax expense |
594 |
1,199 |
|||||||||
Share of loss (income) of a joint venture and associates |
141 |
282 |
|||||||||
12,031 |
8,251 |
||||||||||
Net change in non-cash operating working capital balances |
|||||||||||
Decrease in accounts receivable |
59,616 |
30,077 |
|||||||||
Increase in costs and estimated profits in excess of billings |
(21,665) |
(13,741) |
|||||||||
Increase in inventories |
(3,285) |
(15,470) |
|||||||||
Decrease in current tax assets |
175 |
- - |
|||||||||
Increase in prepaid expenses and other assets |
(1,345) |
(2,213) |
|||||||||
Decrease in accounts payable and accrued liabilities |
(12,558) |
(13,922) |
|||||||||
Increase in billings in excess of costs and estimated profits |
2,271 |
(4,891) |
|||||||||
Increase in interest payable |
1 |
1,386 |
|||||||||
Decrease in current tax liabilities |
(2,690) |
(7,099) |
|||||||||
20,520 |
(25,873) |
||||||||||
Cash flows from operating activities |
32,551 |
(17,622) |
|||||||||
Financing activities |
|||||||||||
Repurchase of shares |
(319) |
- - |
|||||||||
Dividends |
(1,669) |
(3,322) |
|||||||||
Increase in debt and bank loans |
- - |
28,956 |
|||||||||
Repayment of debt and bank loans |
(28,883) |
(2,711) |
|||||||||
Issue expenses related to long-term debt |
(97) |
- - |
|||||||||
Decrease in other liabilities |
10 |
8 |
|||||||||
Cash flows from financing activities |
(30,958) |
22,931 |
|||||||||
Investing activities |
|||||||||||
Proceeds from sale of property, plant and equipment |
386 |
42 |
|||||||||
Additions to property, plant and equipment |
(4,884) |
(3,631) |
|||||||||
Additions to intangible assets |
(242) |
(337) |
|||||||||
Acquisition of investments |
(150) |
- - |
|||||||||
Distributions received |
- - |
156 |
|||||||||
Decrease in receivables and other assets |
32 |
178 |
|||||||||
Cash flows from investing activities |
(4,858) |
(3,592) |
|||||||||
Effects of changes in foreign exchange rate |
141 |
185 |
|||||||||
Net change in cash and cash equivalents |
(3,124) |
1,902 |
|||||||||
Cash and cash equivalents – Beginning of period |
8,261 |
4,690 |
|||||||||
Cash and cash equivalents – End of period |
$ |
5,137 |
$ |
6,592 |
|||||||
Supplementary information |
|||||||||||
Interest paid |
$ |
1,201 |
$ |
1,253 |
|||||||
Income taxes paid, net |
$ |
4,297 |
$ |
5,855 |
SOURCE Canam Group Inc.

Media: François Bégin, Vice President, Communications, Canam Group Inc., 418-228-8031/ 418-225-1355 (mobile phone), [email protected]; Investors: René Guizzetti, Vice President and Chief Financial Officer, Canam Group Inc., 450-641-4000, [email protected]
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