Net Income Increased by 29% in the Fourth Quarter of 2015

SAINT-GEORGES, QC, le 18 févr. 2016 /CNW Telbec/ - Canam Group Inc. (TSX: CAM) ("Canam Group" or the "Corporation") today published its financial results for the three-month and twelve-month periods ended December 31, 2015.

Highlights

• 28.7% increase in consolidated revenues compared to the fourth quarter in 2014
• Net income attributable to shareholders increased by 28.7% in the fourth quarter and by 59.5% after 12 months compared to the same periods in 2014
• 17.5% increase in the order backlog compared to December 31, 2014, for a total of $1,183M

Periods and years ended December 31		Three months
(in millions of $, except per share amounts)			2015			2014
Revenues		$	493.8		$	383.6
Selling and administrative expenses		$	30.9	6.3%	$	24.6	6.4%
Adjusted EBITDA^1		$	34.4	7.0%	$	28.2	7.3%
Net income^2		$	17.8	3.6%	$	13.8	3.6%
Net earnings per share^2 (basic and diluted)		$	0.39		$	0.33
		Twelve months
(in millions of $, except per share amounts)			2015			2014
Revenues		$	1,606.9		$	1,232.8
Selling and administrative expenses		$	108.4	6.7%	$	91.5	7.4%
Adjusted EBITDA^1		$	112.5	7.0%	$	78.6	6.4%
Net income^2		$	46.8	2.9%	$	29.3	2.4%
Net earnings per share^2
	Basic	$	1.09		$	0.70
	Diluted	$	1.08		$	0.70

1	Refer to the section entitled Non-IFRS measures.
2	Represents net income attributable to shareholders.

"These results demonstrate the relevance of our efforts to focus our product and service offering on what enables our customers to perform better," explained Marc Dutil, President and Chief Executive Officer. "We put a lot of energy into identifying and improving areas that can enhance our performance and provide a better customer experience. With a solid balance sheet and a well-filled order backlog, we also remain attentive to opportunities that arise in the marketplace."

Results for the fourth quarter of 2015
Consolidated revenues for the fourth quarter of 2015 totaled $493.8M, which represents a $110.2M or 28.7% increase, compared to revenues of $383.6M for the same quarter in 2014. The increase is mainly attributable to structural steel products and services as well as the appreciation of the US dollar.

Selling and administrative expenses totaled $30.9M, or 6.3% of revenues, for the fourth quarter of 2015 compared to $24.6M, or 6.4% of revenues, in 2014. On a monetary basis, this variation is particularly attributable to the increase in salary charges in order to maintain sales growth as well as the US dollar's rise against the Canadian dollar.

In the fourth quarter of 2015, Adjusted EBITDA amounted to $34.4M, or 7% of revenues, compared to $28.2M, or 7.3% of revenues, for the same period in 2014.

In the fourth quarter of 2015, net income attributable to shareholders totaled $17.8M, or $0.39 per share, compared to $13.8M, or $0.33 per share, for the corresponding period in 2014. We wish to mention that these are our best quarterly results of the last ten years.

Results for fiscal year 2015
In 2015, revenues reached $1,606.9M compared to $1,232.8M in 2014, representing a $374.1M or 30.3% increase. The increase in revenues is attributable to all of the Corporation's groups of products and services, primarily structural steel and buildings. The results also reflect the appreciation of the US dollar.

In fiscal 2015, net income attributable to shareholders totaled $46.8M, or $1.09 per basic share, compared to $29.3M, or $0.70 per basic share, for the previous fiscal year. The $17.5M increase in net income attributable to shareholders in 2015 is primarily attributable to the growth in sales volume combined with a rise in the adjusted gross margins of structural steel and building activities. However, these items were offset by the compression of gross margins for bridge activities and the increase in selling and administrative expenses.

Order backlog
The order backlog stood at $1,183M as at December 31, 2015, compared to $1,007M as at December 31, 2014.

Dividend
The Board of Directors approved a dividend of $0.04 per share payable on March 31, 2016 to shareholders of record on March 17, 2016.

About Canam Group Inc.
Canam Group specializes in designing integrated solutions and fabricating customized products for the North American construction industry. Each year, Canam Group takes part in an average of 10,000 building, structural steel and bridge projects, which can also include the supply of preconstruction and project management services. The Corporation operates 22 plants across North America and employs close to 4,300 people in Canada, the United States, Romania, India and Hong Kong. 

Conference call and presentation
Canam Group will hold a conference call with financial analysts and media representatives on Thursday, February 18, 2016 at 9:00 a.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 March 3, 2016 by dialing 1-800-408-3053 and entering access code 1585337, followed by the pound key (#).

Non-IFRS measure
Earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) is not defined by International Financial Reporting Standards (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 operating 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.

Consolidated Statements of Income
Periods and years ended December 31
		Three-month periods				Years
(in thousands of Canadian dollars, except per share amounts)			2015		2014		2015		2014
Revenues		$	493,797	$	383,641	$	1,606,855	$	1,232,809
Cost of sales, excluding depreciation and amortization^(1)			425,371		327,153		1,377,066		1,056,905
Selling and administrative expenses			30,867		24,601		108,358		91,456
Profit sharing program			4,308		3,982		11,287		6,459
Depreciation of property, plant and equipment			6,601		5,342		25,660		22,668
Amortization of intangible assets			866		669		2,943		2,226
Other gains — net			(741)		(170)		(1,857)		(887)
Finance costs			2,599		4,108		14,433		15,125
Finance revenue			(148)		(204)		(667)		(955)
Share of loss of a joint venture and associates			447		282		1,536		866
Income before income tax			23,627		17,878		68,096		38,946
Tax expense (income)
	Current		6,351		6,782		13,554		9,166
	Deferred		(439)		(2,617)		7,787		595
			5,912		4,165		21,341		9,761
Net income		$	17,715	$	13,713	$	46,755	$	29,185
Net income attributable to:
	Shareholders	$	17,791	$	13,828	$	46,765	$	29,318
	Non-controlling interests		(76)		(115)		(10)		(133)
		$	17,715	$	13,713	$	46,755	$	29,185
Net earnings per share attributable to shareholders
	Basic	$	0.39	$	0.33	$	1.09	$	0.70
	Diluted	$	0.39	$	0.33	$	1.08	$	0.70
Weighted average number of common shares (in thousands of shares)
	Basic		46,075		42,029		43,074		42,054
	Diluted		46,106		42,079		43,106		42,105
Number of common shares outstanding (in thousands of shares)							47,551		42,079

^(1)	As at December 31, 2015 and 2014, the cost of sales, including depreciation and amortization, totaled $431,096 and $332,298, respectively, for the three-month periods, and $1,399,158 and $1,076,639, respectively, for the years.

Consolidated Statements of Comprehensive Income
Periods and years ended December 31
		Three-month periods				Years
(in thousands of Canadian dollars)			2015		2014		2015		2014
Net income		$	17,715	$	13,713	$	46,755	$	29,185
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss
	Change in unrealized gains on translating foreign operations		14,731		11,952		62,653		24,431
	Change in unrealized losses on translating debts designated as hedging items of the net investment in foreign operations		(689)		(806)		(3,473)		(806)
			14,042		11,146		59,180		23,625
Available-for-sale assets:
	Unrealized gains on available-for-sale assets arising during the periods and years		172		- -		199		- -
	Reclassified to statements of income		- -		- -		(2)		- -
			172		- -		197		- -
			14,214		11,146		59,377		23,625
Items not to be reclassified to profit or loss
Defined benefit plans:
	Actuarial gains (losses) of the defined benefit plans		2,948		(1,343)		2,948		(1,343)
	Tax income (expense)		(780)		352		(780)		352
			2,168		(991)		2,168		(991)
Other comprehensive income			16,382		10,155		61,545		22,634
Comprehensive income		$	34,097	$	23,868	$	108,300	$	51,819
Comprehensive income attributable to:
	Shareholders	$	34,173	$	23,996	$	108,294	$	51,967
	Non-controlling interests		(76)		(128)		6		(148)
		$	34,097	$	23,868	$	108,300	$	51,819

Consolidated Balance Sheets
(in thousands of Canadian dollars)	As at December 31, 2015		As at December 31, 2014
Assets
Current assets
Cash and cash equivalents	$	7,050	$	8,261
Accounts receivable		320,517		276,691
Costs and estimated profits in excess of billings		194,298		126,590
Inventories		166,833		156,990
Recoverable tax assets		1,573		1,346
Prepaid expenses and other assets		3,230		5,619
		693,501		575,497
Non-current assets
Investments		6,173		4,593
Interests in a joint venture and associates		39,370		40,919
Property, plant and equipment		348,391		308,362
Intangible assets		11,500		10,811
Goodwill		56,023		45,097
Deferred tax assets		4,007		10,128
Long-term receivables and other assets		5,564		7,428
Total assets	$	1,164,529	$	1,002,835
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	223,580	$	183,937
Billings in excess of costs and estimated profits		73,465		74,366
Current tax liabilities		4,156		4,943
Current portion of balance of purchase price of businesses		1,282		- -
Current portion of long-term debt		43,083		17,659
Convertible debentures		- -		67,137
		345,566		348,042
Non-current liabilities
Debt		164,356		175,585
Balance of purchase price of businesses		650		- -
Provisions		19,485		7,417
Deferred tax liabilities		8,897		7,477
Other liabilities		1,208		7,090
Total liabilities		540,162		545,611
Equity
Share capital		239,777		168,162
Retained earnings		294,458		252,386
Other equity items		90,090		36,640
Total equity attributable to shareholders		624,325		457,188
Non-controlling interests		42		36
Total equity		624,367		457,224
Total equity and liabilities	$	1,164,529	$	1,002,835

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		Exchange differences resulting from the translation of debts designated as hedging items		Available-for- sale financial assets		Debenture conversion options		Total other equity items		Share capital		Retained earnings		Total share capital attributable to shareholders		Non- controlling interests		Total equity
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 year		- -		- -		- -		- -		- -		- -		- -		29,318		29,318		(133)		29,185
Comprehensive income		- -		24,446		(806)		- -		- -		23,640		- -		(991)		22,649		(15)		22,634
Dividends		- -		- -		- -		- -		- -		- -		- -		(6,658)		(6,658)		- -		(6,658)
Shares acquired by employees		(26)		- -		- -		- -		- -		(26)		26		- -		- -		- -		- -
Issuance of shares upon conversion of debentures		- -		- -		- -		- -		- -		- -		73		- -		73		- -		73
Exercise of options upon conversion of debentures		- -		- -		- -		- -		(6)		(6)		6		- -		- -		- -		- -
Amortization of compensation costs related to the profit sharing program - stock ownership component		148		- -		- -		- -		- -		148		- -		- -		148		- -		148
Balance as at December 31, 2014	$	2,235	$	29,451	$	(806)	$	2	$	5,758	$	36,640	$	168,162	$	252,386	$	457,188	$	36	$	457,224
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 year		- -		- -		- -		- -		- -		- -		- -		46,765		46,765		(10)		46,755
Comprehensive income		- -		62,637		(3,473)		197		- -		59,361		- -		2,168		61,529		16		61,545
Dividends		- -		- -		- -		- -		- -		- -		- -		(6,894)		(6,894)		- -		(6,894)
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		- -		- -		- -		- -		- -		- -		65,971		- -		65,971		- -		65,971
Exercise of options upon conversion of debentures		- -		- -		- -		- -		(5,511)		(5,511)		5,511		- -		- -		- -		- -
Unexercised debenture conversion options		- -		- -		- -		- -		(247)		(247)		- -		247		- -		- -		- -
Amortization of compensation costs related to the profit sharing program - stock ownership component		85		- -		- -		- -		- -		85		- -		- -		85		- -		85
Balance as at December 31, 2015	$	2,082	$	92,088	$	(4,279)	$	199	$	- -	$	90,090	$	239,777	$	294,458	$	624,325	$	42	$	624,367

Consolidated Statements of Cash Flows
Periods and years ended December 31
		Three-month periods				Years
(in thousands of Canadian dollars)		2015		2014		2015		2014
Cash flows from the following activities:
Operating activities
Net income		$	17,715	$	13,713	$	46,755	$	29,185
Adjustments:
	Amortization of compensation costs related to the profit sharing program – stock ownership component		21		21		85		148
	Gain on disposal of investments		- -		- -		(5)		- -
	Loss in decline in value of an investment		- -		200		- -		200
	Loss (gain) on disposal of property, plant and equipment		(163)		101		(190)		178
	Depreciation of property, plant and equipment		6,601		5,342		25,660		22,668
	Amortization of intangible assets		866		669		2,943		2,226
	Amortization of deferred financing expenses		338		119		699		419
	Provisions		10,834		66		10,834		164
	Interest rate swaps		(139)		(39)		(297)		(260)
	Imputed interest		390		642		2,365		2,337
	Pension expense		(683)		(803)		(2,982)		(2,838)
	Deferred tax expense (income)		(439)		(2,617)		7,787		595
	Share of loss (income) of joint ventures and associates		447		282		1,536		866
			35,788		17,696		95,190		55,888
Net change in non-cash operating working capital items
Decrease (increase) in accounts receivable			3,321		(5,913)		(9,679)		(48,140)
Decrease (increase) in costs and estimated profits in excess of billings			1,497		(2,095)		(50,768)		(38,608)
Decrease (increase) in inventories			13,740		9,994		8,269		(39,845)
Decrease (increase) in current tax assets			(58)		1,002		33		(1,061)
Decrease (increase) in prepaid expenses and other assets			1,276		403		3,472		(1,586)
Increase (decrease) in accounts payable and accrued liabilities			(177)		(10,920)		17,665		27,916
Increase (decrease) in billings in excess of costs and estimated profits			(20,292)		7,321		(11,926)		31,570
Decrease in interest payable			(2,598)		(1,220)		(680)		(11)
Increase (decrease) in current tax liabilities			3,004		4,423		(924)		(3,214)
			(287)		2,995		(44,538)		(72,979)
Cash flows from operating activities			35,501		20,691		50,652		(17,091)
Financing activities
Repurchase of shares			- -		- -		(319)		- -
Dividends			(1,671)		(1,669)		(6,681)		(4,991)
Increase in debt and bank loans			14,068		16,249		75,704		131,482
Repayment of debt and bank loans			(35,838)		(30,204)		(81,658)		(82,058)
Repayment of debentures			(2,956)		- -		(2,956)		- -
Repayment of balances of purchase price of businesses			(959)		- -		(959)		- -
Issue expenses related to debt			(71)		- -		(212)		(1,164)
Increase (decrease) in other liabilities			117		(106)		148		(82)
Cash flows from financing activities			(27,310)		(15,730)		(16,933)		43,187
Investing activities
Proceeds from sale of property, plant and equipment			1,534		229		2,005		353
Additions to property, plant and equipment			(11,695)		(7,192)		(30,368)		(22,780)
Additions to intangible assets			(732)		(284)		(1,695)		(1,830)
Acquisition of interests in an associate			- -		- -		(150)		- -
Proceeds from disposal of an investment			- -		- -		48		- -
Acquisition of an investment			(830)		- -		(1,279)		(1,000)
Distributions received			- -		- -		- -		156
Decrease in receivables and other assets			61		109		212		1,146
Increase in long-term receivables			(14)		- -		(258)		(10)
Business assets acquisition, net of cash and cash equivalents			(5)		- -		(6,196)		(1,136)
Cash flows from investing activities			(11,681)		(7,138)		(37,681)		(25,101)
Effects of changes in foreign exchange rate on cash and cash equivalents			982		2,143		2,751		2,576
Net change in cash			(2,508)		(34)		(1,211)		3,571
Cash and cash equivalents – Beginning of periods and years			9,558		8,295		8,261		4,690
Cash and cash equivalents – End of periods and years		$	7,050	$	8,261	$	7,050	$	8,261
Supplementary information
	Interest paid	$	1,260	$	3,822	$	7,241	$	10,668
	Income taxes paid, net	$	3,405	$	320	$	14,261	$	12,522

SOURCE Canam Group Inc.

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