BOUCHERVILLE, QC, Aug. 7, 2012 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced a net income of $4.5M, or $0.10 per share, for the second quarter of 2012, compared with a net loss of $5.8M, or $0.13 per share, for the same quarter in 2011. Consolidated revenues increased by 6% to $232M as compared to $218M for the year-earlier quarter.
For the first six months of 2012, net income totaled $3.2M, or $0.07 per share, compared with a net loss of $45.5M, or $1.01 per share, for the corresponding period in 2011. Consolidated sales for the first six months of the year increased by 19%, from $369M in 2011 to $440M in 2012.
The results include a gain on disposal of investment in the amount of $2.1M following the sale of the 50% ownership interest held by the Corporation in the Amcan-Jumax joint venture.
The increase in sales recorded in the second quarter is mainly attributable to joist and steel deck activities in Canada and the United States. The results reflect a gradual improvement in the profit margins of joist, steel deck and bridge activities.
As at June 30, 2012, the backlog of orders stood at $503M compared to $421M as at March 31, 2012.
In 2012, the Corporation repurchased 1,320,688 common shares for a total consideration of $6.7M, representing an average price of $5.04 per share. The average price of the 3,232,588 shares repurchased since the implementation of the buyback program on November 1, 2011 is $3.99.
Changes in the management team
Mr. Dutil underlined the departure of Charles Pinel, who held the position of Vice President and Chief Financial Officer for over seven years. Mr. Dutil wished to thank Mr. Pinel for his thoroughness as well as his contribution in ensuring a sound and efficient management. René Guizzetti, Vice President, Corporate Control and Taxation, will occupy both positions in the interim.
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 Tuesday, August 7, 2012 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 August 22, 2012 by dialing 1-800-408-3053 and entering access code 8436533, followed by the pound key (#).
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||||
Periods ended June 30, 2012 and June 25, 2011 | |||||||||||||
(in thousands of Canadian dollars, except per share amounts) | Three months | Six months | |||||||||||
(unaudited) | 2012 | 2011 | 2012 | 2011 | |||||||||
Revenues | $ | 231,741 | $ | 218,475 | $ | 440,035 | $ | 369,110 | |||||
Cost of sales, excluding depreciation and amortization (1) | 199,082 | 197,761 | 382,892 | 373,896 | |||||||||
Selling and administrative expenses | 20,610 | 21,525 | 41,018 | 43,847 | |||||||||
Profit sharing program | 148 | 121 | 358 | 219 | |||||||||
Depreciation of property, plant and equipment | 5,259 | 5,058 | 10,552 | 10,007 | |||||||||
Amortization of intangible assets | 352 | 395 | 708 | 1,267 | |||||||||
Other gains - net | (2,929) | (453) | (4,684) | (152) | |||||||||
9,219 | (5,932) | 9,191 | (59,974) | ||||||||||
Finance costs | 4,277 | 5,000 | 8,777 | 8,331 | |||||||||
Finance revenue | (365) | (397) | (1,409) | (802) | |||||||||
Share of income of joint ventures and associates | (29) | (459) | (420) | (238) | |||||||||
Income (loss) before income tax | 5,336 | (10,076) | 2,243 | (67,265) | |||||||||
Tax expense (income) | |||||||||||||
Current (recovered) | 1,534 | (2,145) | 1,611 | (15,423) | |||||||||
Deferred | (692) | (2,130) | (2,545) | (6,304) | |||||||||
842 | (4,275) | (934) | (21,727) | ||||||||||
Net income (loss) | $ | 4,494 | $ | (5,801) | $ | 3,177 | $ | (45,538) | |||||
Net income (loss) per share | |||||||||||||
Basic | $ | 0.10 | $ | (0.13) | $ | 0.07 | $ | (1.01) | |||||
Diluted | $ | 0.10 | $ | (0.13) | $ | 0.07 | $ | (1.01) | |||||
Weighted average number of common shares (in thousands of shares) | |||||||||||||
Basic | 42,856 | 45,264 | 43,087 | 45,269 | |||||||||
Diluted | 42,950 | 45,385 | 43,182 | 45,387 | |||||||||
Number of common shares outstanding (in thousands of shares) | 42,105 | 45,352 | |||||||||||
(1) | As at June 30, 2012 and June 25, 2011, the cost of sales, including depreciation and amortization, respectively totaled $203,551 and $202,098 for the three-month period, and $391,870 and $382,543 for the six-month period. |
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||
Periods ended June 30, 2012 and June 25, 2011 | |||||||||||||
(in thousands of Canadian dollars) | Three months | Six months | |||||||||||
(unaudited) | 2012 | 2011 | 2012 | 2011 | |||||||||
Net income (loss) | $ | 4,494 | $ | (5,801) | $ | 3,177 | $ | (45,538) | |||||
Other comprehensive income (loss): | |||||||||||||
Change in unrealized gains (losses) on translating foreign operations | 3,818 | 1,074 | (324) | (730) | |||||||||
Available-for-sale assets: | |||||||||||||
Unrealized gains (losses) on available-for-sale assets arising during the period | (88) | 7 | 47 | 115 | |||||||||
Reclassified to statements of income (loss) | - - | - - | (274) | - - | |||||||||
Tax income (expense) | 11 | (1) | 29 | (15) | |||||||||
(77) | 6 | (198) | 100 | ||||||||||
Other comprehensive income (loss) | 3,741 | 1,080 | (522) | (630) | |||||||||
Comprehensive income (loss) | $ | 8,235 | $ | (4,721) | $ | 2,655 | $ | (46,168) |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands of Canadian dollars) (unaudited) |
As at June 30, 2012 |
As at December 31, 2011 |
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Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 6,016 | $ | 7,368 | ||
Accounts receivable | 287,306 | 304,551 | ||||
Inventories | 99,897 | 111,955 | ||||
Recoverable tax assets | 2,055 | 16,588 | ||||
Prepaid expenses and other assets | 3,911 | 4,063 | ||||
399,185 | 444,525 | |||||
Property, plant and equipment held for sale | 1,500 | 1,498 | ||||
400,685 | 446,023 | |||||
Non-current assets | ||||||
Investments | 6,023 | 4,959 | ||||
Ownership interests in joint ventures and associates | 56,662 | 61,954 | ||||
Property, plant and equipment | 271,064 | 279,554 | ||||
Intangible assets | 9,242 | 9,772 | ||||
Goodwill | 38,972 | 38,930 | ||||
Deferred tax assets | 27,907 | 25,149 | ||||
Long-term receivables and other assets | 22,271 | 21,820 | ||||
Total assets | $ | 832,826 | $ | 888,161 | ||
Liabilities | ||||||
Current liabilities | ||||||
Bank loans | $ | 24,123 | $ | 32,761 | ||
Accounts payable and accrued liabilities | 165,038 | 169,110 | ||||
Current tax liabilities | 227 | 165 | ||||
Current portion of long-term debt | 11,344 | 37,038 | ||||
Current portion of balances of purchase price of businesses |
3,663 | 7,315 | ||||
204,395 | 246,389 | |||||
Non-current liabilities | ||||||
Debt | 158,638 | 163,782 | ||||
Balances of purchase price of businesses | 5,868 | 8,768 | ||||
Convertible debentures | 62,612 | 61,816 | ||||
Provisions | 1,529 | 1,613 | ||||
Deferred tax liabilities | 28,891 | 28,784 | ||||
Other liabilities | 14,070 | 16,242 | ||||
Total liabilities | 476,003 | 527,394 | ||||
Equity | ||||||
Share capital | 168,634 | 172,869 | ||||
Retained earnings | 186,634 | 184,774 | ||||
Other equity items | 1,555 | 3,124 | ||||
Total equity | 356,823 | 360,767 | ||||
Total equity and liabilities | $ | 832,826 | $ | 888,161 |
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 | - - | - - | - - | - - | - - | - - | (45,538) | (45,538) | |||||||||
Comprehensive loss | - - | (730) | 100 | - - | (630) | - - | - - | (630) | |||||||||
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 | 373 | - - | - - | - - | 373 | - - | - - | 373 | |||||||||
Balance as at June 25, 2011 | $ | 2,585 | $ | (11,863) | $ | 898 | $ | 5,764 | $ | (2,616) | $ | 180,883 | $ | 173,677 | $ | 351,944 | |
Balance as at January 1, 2012 | $ | 2,928 | $ | (6,408) | $ | 840 | $ | 5,764 | $ | 3,124 | $ | 172,869 | $ | 184,774 | $ | 360,767 | |
Net earnings for the period | - - | - - | - - | - - | - - | - - | 3,177 | 3,177 | |||||||||
Comprehensive loss | - - | (324) | (198) | - - | (522) | - - | - - | (522) | |||||||||
Shares acquired by employees | (1,160) | - - | - - | - - | (1,160) | 1,160 | - - | - - | |||||||||
Repurchase of shares | - - | - - | - - | - - | - - | (5,395) | - - | (5,395) | |||||||||
Excess of acquisition cost over carrying amount of acquired common shares | - - | - - | - - | - - | - - | - - | (1,317) | (1,317) | |||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 113 | - - | - - | - - | 113 | - - | - - | 113 | |||||||||
Balance as at June 30, 2012 | $ | 1,881 | $ | (6,732) | $ | 642 | $ | 5,764 | $ | 1,555 | $ | 168,634 | $ | 186,634 | $ | 356,823 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
Periods ended June 30, 2012 and June 25, 2011 | |||||||||
(in thousands of Canadian dollars) | Three months | Six months | |||||||
(unaudited) | 2012 | 2011 | 2012 | 2011 | |||||
Cash flows from the following activities: | |||||||||
Operating activities | |||||||||
Net income (loss) | $ | 4,494 | $ | (5,801) | $ | 3,177 | $ | (45,538) | |
Adjustments: | |||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component |
57 | 187 | 113 | 373 | |||||
Gain on disposal of investments | (2,099) | - - | (2,361) | - - | |||||
Gain on disposal of property, plant and equipment | 5 | (129) | (5) | (221) | |||||
Depreciation of property, plant and equipment | 5,259 | 5,058 | 10,552 | 10,007 | |||||
Amortization of intangible assets | 352 | 395 | 708 | 1,267 | |||||
Amortization of deferred financing expenses | 61 | 132 | 122 | 244 | |||||
Provisions | (111) | (9) | (84) | 12 | |||||
Interest rate swaps | 109 | 308 | 36 | 191 | |||||
Imputed interest | 559 | 1,141 | 1,216 | 1,671 | |||||
Pension expense | (738) | 146 | (1,600) | 199 | |||||
Deferred tax expense | (692) | (2,130) | (2,545) | (6,304) | |||||
Share of income of joint ventures and associates | (29) | (459) | (420) | (238) | |||||
7,227 | (1,161) | 8,909 | (38,337) | ||||||
Net change in non-cash operating working capital items | |||||||||
Decrease (increase) in accounts receivable | (25,400) | (64,299) | 18,109 | (25,404) | |||||
Decrease (increase) in inventories | 6,528 | (375) | 12,119 | (14,795) | |||||
Decrease (increase) in current tax assets | 13,793 | 30 | 14,534 | (11,478) | |||||
Decrease in prepaid expenses and other assets | 348 | 1,115 | 151 | 18 | |||||
Increase (decrease) in accounts payable and accrued liabilities | 6,346 | 36,235 | (3,422) | 19,264 | |||||
Increase (decrease) in provisions | - - | (23,569) | - - | 3,931 | |||||
Decrease in interest payable | (1,258) | (1,256) | (10) | (3) | |||||
Increase in current tax liabilities | 30 | 10 | 64 | 115 | |||||
387 | (52,109) | 41,545 | (28,352) | ||||||
Cash flows from operating activities | 7,614 | (53,270) | 50,454 | (66,689) | |||||
Financing activities | |||||||||
Repurchase of shares | (5,490) | - - | (6,712) | (156) | |||||
Proceeds from issuance of shares | - - | 10 | - - | 44 | |||||
Dividends | - - | - - | - - | (1,796) | |||||
Increase in debt and bank loans | - - | 60,897 | 579 | 91,299 | |||||
Repayment of debt and bank loans | (11,134) | (2,511) | (39,981) | (4,304) | |||||
Repayment of balances of purchase price of businesses | - - | (164) | (6,684) | (7,056) | |||||
Issue expenses related to debt and debenture | - - | (173) | - - | (768) | |||||
Other liabilities | 47 | (195) | 55 | (406) | |||||
Cash flows from financing activities | (16,577) | 57,864 | (52,743) | 76,857 | |||||
Investing activities | |||||||||
Proceeds from sale of property, plant and equipment | 2 | 19 | 13 | 66 | |||||
Additions to property, plant and equipment | (1,145) | (5,109) | (2,498) | (11,315) | |||||
Additions to intangible assets | (45) | (61) | (91) | (306) | |||||
Acquisition of investments | - - | - - | (2,620) | - - | |||||
Proceeds from disposal of investments | 4,850 | - - | 5,172 | - - | |||||
Distribution received from a joint venture | 90 | - - | 265 | - - | |||||
Decrease in receivables and other assets | 576 | 81 | 1,096 | 162 | |||||
Increase in receivables and other assets | - - | (2) | - - | (52) | |||||
Cash flows from investing activities | 4,328 | (5,072) | 1,337 | (11,445) | |||||
Effects of changes in foreign exchange rate on cash and cash equivalents | (208) | 214 | (400) | 243 | |||||
Net change in cash | (4,843) | (264) | (1,352) | (1,034) | |||||
Cash and cash equivalents - Beginning of period | 10,859 | 7,760 | 7,368 | 8,530 | |||||
Cash and cash equivalents - End of period | $ | 6,016 | $ | 7,496 | $ | 6,016 | $ | 7,496 | |
Supplementary information | |||||||||
Interest paid | $ | 3,777 | $ | 2,644 | $ | 4,456 | $ | 3,934 | |
Income taxes recovered, net | $ | (12,275) | $ | (2,054) | $ | (12,965) | $ | (3,121) |
SOURCE: CANAM GROUP INC.
For further information:
François Bégin
Vice President, Communications
Canam Group Inc.
450-641-4000
[email protected]
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