BOUCHERVILLE, QC, Oct. 25, 2012 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced a net income of $6.5M, or $0.15 per share, for the third quarter of 2012, compared with a net income of $9.7M, or $0.22 per share, for the same quarter in 2011. The 2011 results included the proceeds of $9.9M from an insurance policy. Consolidated revenues totaled $226.9M as compared to $225.6M for the year-earlier quarter.
The increase in results in the third quarter of 2012 compared to 2011 excluding the proceeds from an insurance policy, is mainly attributable to the rise in joist and steel deck sales in Canada and the United States combined with improved profit margins in joist, steel deck and bridge activities.
For the first nine months of 2012, net income totaled $9.6M, or $0.23 per share, compared with a net loss of $35.8M, or $0.79 per share, for the corresponding period in 2011. Consolidated sales for the first nine months of the year increased by 12.1%, from $594.7M in 2011 to $666.9M in 2012.
As at September 29, 2012, the backlog of orders stood at $498M compared to $503M as at June 30, 2012.
Financial management
President and Chief Executive Officer Marc Dutil confirmed the appointment of René Guizzetti to the position of Vice President and Chief Financial Officer. Mr. Guizzetti had held this position in the interim since last August in addition to his duties as Vice President, Corporate Control and Taxation.
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 an average of 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 China.
Conference call
Canam Group will hold a conference call with financial analysts and media representatives on Thursday, October 25, 2012 at 9 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 November 8, 2012 by dialing 1-800-408-3053 and entering access code 3303467, followed by the pound key (#).
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Periods ended September 29, 2012 and September 24, 2011
(in thousands of Canadian dollars, except per share amounts) | Three months | Nine months | ||||||||
(unaudited) | 2012 | 2011 | 2012 | 2011 | ||||||
Revenues | $ | 226,894 | $ | 225,599 | $ | 666,929 | $ | 594,709 | ||
Cost of sales, excluding depreciation and amortization (1) | 190,630 | 199,728 | 573,522 | 573,624 | ||||||
Selling and administrative expenses | 18,859 | 18,461 | 59,877 | 62,308 | ||||||
Profit sharing program | 802 | 6 | 1,160 | 225 | ||||||
Depreciation of property, plant and equipment | 5,138 | 5,110 | 15,690 | 15,117 | ||||||
Amortization of intangible assets | 384 | 360 | 1,092 | 1,627 | ||||||
Other losses (gains) — net | 229 | (11,414) | (4,455) | (11,566) | ||||||
10,852 | 13,348 | 20,043 | (46,626) | |||||||
Finance costs | 4,070 | 5,147 | 12,847 | 13,478 | ||||||
Finance revenue | (352) | (657) | (1,761) | (1,459) | ||||||
Impairment of goodwill | - - | 8,980 | - - | 8,980 | ||||||
Gain on revaluation of balances of purchase price of businesses | - - | (9,127) | - - | (9,127) | ||||||
Share of loss (income) of joint ventures and associates | 72 | (219) | (348) | (457) | ||||||
Income (loss) before income tax | 7,062 | 9,224 | 9,305 | (58,041) | ||||||
Tax expense (income) | ||||||||||
Current (recovered) | 1,721 | 1,130 | 3,332 | (14,293) | ||||||
Deferred | (1,131) | (1,648) | (3,676) | (7,952) | ||||||
590 | (518) | (344) | (22,245) | |||||||
Net income (loss) | $ | 6,472 | $ | 9,742 | $ | 9,649 | $ | (35,796) | ||
Net earnings (loss) per share | ||||||||||
Basic | $ | 0.15 | $ | 0.22 | $ | 0.23 | $ | (0.79) | ||
Diluted | $ | 0.15 | $ | 0.21 | $ | 0.23 | $ | (0.79) | ||
Weighted average number of common shares (in thousands of shares) | ||||||||||
Basic | 42,013 | 45,301 | 42,737 | 45,303 | ||||||
Diluted | 42,096 | 45,357 | 42,820 | 45,369 | ||||||
Number of common shares outstanding (in thousands of shares) | 42,079 | 45,352 |
(1) | As at September 29, 2012 and September 24, 2011, the cost of sales, including depreciation and amortization, totaled $195,042 and $204,094, respectively, for the three-month period, and $586,913 and $586,637, respectively, for the nine-month period. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Periods ended September 29, 2012 and September 24, 2011
(in thousands of Canadian dollars) | Three months | Nine months | ||||||||
(unaudited) | 2012 | 2011 | 2012 | 2011 | ||||||
Net income (loss) | $ | 6,472 | $ | 9,742 | $ | 9,649 | $ | (35,796) | ||
Other comprehensive income (loss): | ||||||||||
Change in unrealized gains (losses) on translating foreign operations | (8,588) | 8,700 | (8,912) | 7,970 | ||||||
Available-for-sale assets: | ||||||||||
Unrealized gains (losses) on available-for-sale assets arising during the period | 16 | (155) | 63 | (40) | ||||||
Reclassified to statements of income (loss) | - - | - - | (274) | - - | ||||||
Tax income (expense) | (1) | 20 | 28 | 5 | ||||||
15 | (135) | (183) | (35) | |||||||
Other comprehensive income (loss) | (8,573) | 8,565 | (9,095) | 7,935 | ||||||
Comprehensive income (loss) | $ | (2,101) | $ | 18,307 | $ | 554 | $ | (27,861) |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars) (unaudited) |
As at September 29, 2012 |
As at December 31, 2011 |
|||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 7,487 | $ | 7,368 | |
Accounts receivable | 281,728 | 304,551 | |||
Inventories | 102,346 | 111,955 | |||
Recoverable tax assets | 342 | 16,588 | |||
Prepaid expenses and other assets | 3,673 | 4,063 | |||
395,576 | 444,525 | ||||
Property, plant and equipment classified as held for sale | 1,449 | 1,498 | |||
397,025 | 446,023 | ||||
Non-current assets | |||||
Investments | 6,182 | 4,959 | |||
Ownership interests in joint ventures and associates | 56,574 | 61,954 | |||
Property, plant and equipment | 263,346 | 279,554 | |||
Intangible assets | 9,414 | 9,772 | |||
Goodwill | 37,641 | 38,930 | |||
Deferred tax assets | 7,538 | 4,472 | |||
Long-term receivables and other assets | 20,601 | 21,820 | |||
Total assets | $ | 798,321 | $ | 867,484 | |
Liabilities | |||||
Current liabilities | |||||
Bank loans | $ | - - | $ | 32,761 | |
Accounts payable and accrued liabilities | 158,626 | 169,110 | |||
Current tax liabilities | 1,083 | 165 | |||
Current portion of long-term debt | 10,063 | 37,038 | |||
Current portion of balances of purchase price of businesses | 9,134 | 7,315 | |||
178,906 | 246,389 | ||||
Non-current liabilities | |||||
Debt | 179,267 | 163,782 | |||
Balances of purchase price of businesses | - - | 8,768 | |||
Convertible debentures | 63,024 | 61,816 | |||
Provisions | 1,635 | 1,613 | |||
Deferred tax liabilities | 7,445 | 8,107 | |||
Other liabilities | 13,394 | 16,242 | |||
Total liabilities | 443,671 | 506,717 | |||
Equity | |||||
Share capital | 168,529 | 172,869 | |||
Retained earnings | 193,082 | 184,774 | |||
Other equity items | (6,961) | 3,124 | |||
Total equity | 354,650 | 360,767 | |||
Total equity and liabilities | $ | 798,321 | $ | 867,484 |
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, 2011 | $ | 4,035 | $ | (11,133) | $ | 798 | $ | 5,764 | $ | (536) | $ | 179,102 | $ | 222,877 | $ | 401,443 |
Net loss for the period | - - | - - | - - | - - | - - | - - | (35,796) | (35,796) | ||||||||
Comprehensive income | - - | 7,970 | (35) | - - | 7,935 | - - | - - | 7,935 | ||||||||
Dividends | - - | - - | - - | - - | - - | - - | (3,592) | (3,592) | ||||||||
Issuance of shares pursuant to options | (13) | - - | - - | - - | (13) | 57 | - - | 44 | ||||||||
Shares acquired by employees | (1,810) | - - | - - | - - | (1,810) | 1,810 | - - | - - | ||||||||
Repurchase of shares | - - | - - | - - | - - | - - | (86) | - - | (86) | ||||||||
Excess of acquisition cost over carrying amount of acquired common shares | - - | - - | - - | - - | - - | - - | (70) | (70) | ||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 560 | - - | - - | - - | 560 | - - | - - | 560 | ||||||||
Balance as at September 24, 2011 | $ | 2,772 | $ | (3,163) | $ | 763 | $ | 5,764 | $ | 6,136 | $ | 180,883 | $ | 183,419 | $ | 370,438 |
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 period | - - | - - | - - | - - | - - | - - | 9,649 | 9,649 | ||||||||
Comprehensive loss | - - | (8,912) | (183) | - - | (9,095) | - - | - - | (9,095) | ||||||||
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 | 170 | - - | - - | - - | 170 | - - | - - | 170 | ||||||||
Balance as at September 29, 2012 | $ | 1,938 | $ | (15,320) | $ | 657 | $ | 5,764 | $ | (6,961) | $ | 168,529 | $ | 193,082 | $ | 354,650 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended September 29, 2012 and September 24, 2011
(in thousands of Canadian dollars) | Three months | Nine months | ||||||||
(unaudited) | 2012 | 2011 | 2012 | 2011 | ||||||
Cash flows from the following activities: | ||||||||||
Operating activities | ||||||||||
Net income (loss) | $ | 6,472 | $ | 9,742 | $ | 9,649 | $ | (35,796) | ||
Adjustments: | ||||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 57 | 187 | 170 | 560 | ||||||
Impairment of goodwill | - - | 8,980 | - - | 8,980 | ||||||
Gain on revaluation of balances of purchase price of businesses | - - | (9,127) | - - | (9,127) | ||||||
Gain on disposal of investments | - - | - - | (2,361) | - - | ||||||
Gain on disposal of property, plant and equipment | (19) | (9) | (24) | (230) | ||||||
Depreciation of property, plant and equipment | 5,138 | 5,110 | 15,690 | 15,117 | ||||||
Amortization of intangible assets | 384 | 360 | 1,092 | 1,627 | ||||||
Amortization of deferred financing expenses | 74 | 123 | 196 | 367 | ||||||
Provisions | 106 | 75 | 22 | 87 | ||||||
Interest rate swaps | 11 | 352 | 47 | 543 | ||||||
Imputed interest | 564 | 837 | 1,780 | 2,508 | ||||||
Pension expense | (641) | 184 | (2,241) | 383 | ||||||
Deferred tax expense | (1,131) | (1,648) | (3,676) | (7,952) | ||||||
Share of loss (income) of joint ventures and associates | 72 | (219) | (348) | (457) | ||||||
11,087 | 14,947 | 19,996 | (23,390) | |||||||
Net change in non-cash operating working capital items | ||||||||||
Decrease in the investment pledged as collateral | - - | 7,721 | - - | 7,721 | ||||||
Decrease (increase) in accounts receivable | 1,888 | (3,679) | 19,997 | (29,083) | ||||||
Decrease (increase) in inventories | (4,413) | (11,031) | 7,706 | (25,826) | ||||||
Decrease (increase) in current tax assets | 1,703 | 756 | 16,237 | (10,722) | ||||||
Decrease in prepaid expenses and other assets | 167 | 209 | 318 | 227 | ||||||
Increase (decrease) in accounts payable and accrued liabilities | (3,097) | 6,976 | (6,519) | 26,240 | ||||||
Decrease in provisions | - - | (7,691) | - - | (3,760) | ||||||
Increase (decrease) in interest payable | (150) | 1,223 | (160) | 1,220 | ||||||
Increase (decrease) in current tax liabilities | 860 | (23) | 924 | 92 | ||||||
(3,042) | (5,539) | 38,503 | (33,891) | |||||||
Cash flows from operating activities | 8,045 | 9,408 | 58,499 | (57,281) | ||||||
Financing activities | ||||||||||
Repurchase of shares | (129) | - - | (6,841) | (156) | ||||||
Proceeds from issuance of shares | - - | - - | - - | 44 | ||||||
Dividends | - - | (1,796) | - - | (3,592) | ||||||
Increase in debt and bank loans | 4,372 | 16,287 | 4,951 | 107,586 | ||||||
Repayment of debt and bank loans | (7,347) | (10,777) | (47,328) | (15,081) | ||||||
Repayment of balances of purchase price of businesses | (245) | (121) | (6,929) | (7,177) | ||||||
Issue expenses related to debt and debenture | (257) | (74) | (257) | (842) | ||||||
Other liabilities | 8 | (164) | 63 | (570) | ||||||
Cash flows from financing activities | (3,598) | 3,355 | (56,341) | 80,212 | ||||||
Investing activities | ||||||||||
Proceeds from sale of property, plant and equipment | 221 | 14 | 234 | 80 | ||||||
Additions to property, plant and equipment | (2,745) | (3,495) | (5,243) | (14,810) | ||||||
Additions to intangible assets | (808) | (39) | (899) | (345) | ||||||
Acquisition of investments | (149) | - - | (2,769) | - - | ||||||
Proceeds from disposal of investments | - - | - - | 5,172 | - - | ||||||
Distribution received from a joint venture | - - | 225 | 265 | 225 | ||||||
Decrease in receivables and other assets | 1,198 | 590 | 2,294 | 752 | ||||||
Increase in receivables and other assets | - - | - - | - - | (52) | ||||||
Cash flows from investing activities | (2,283) | (2,705) | (946) | (14,150) | ||||||
Effects of changes in foreign exchange rate on cash and cash equivalents | (693) | (54) | (1,093) | 189 | ||||||
Net change in cash | 1,471 | 10,004 | 119 | 8,970 | ||||||
Cash and cash equivalents - Beginning of period | 6,016 | 7,496 | 7,368 | 8,530 | ||||||
Cash and cash equivalents - End of period | $ | 7,487 | $ | 17,500 | $ | 7,487 | $ | 17,500 | ||
Supplementary information | ||||||||||
Interest paid | $ | 1,367 | $ | 2,084 | $ | 5,823 | $ | 6,018 | ||
Income taxes paid (recovered), net | $ | (641) | $ | 184 | $ | (13,606) | $ | (2,937) |
SOURCE: CANAM GROUP INC.
For further information:
François Bégin
Vice President, Communications
Canam Group Inc.
450-641-4000
[email protected]
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