Profitable first quarter and substantial increase in the backlog of orders at Canam Group

SAINT-GEORGES, QC, April 25, 2014 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), specialized in the design and fabrication of construction products, took advantage of its 30th annual general meeting of shareholders to present the financial results for the first quarter ended March 29, 2014.

Net income attributable to shareholders totaled $0.5M or $0.01 per share, compared with a net income attributable to shareholders of $3M, or $0.07 per share, for the corresponding period in 2013. Consolidated revenues in the first quarter of 2014 amounted to $239M as compared with $210M in 2013.

Canam Group President and Chief Executive Officer Marc Dutil pointed out that deliveries as well as profit margins were impacted by the inclement weather seen in Eastern Canada and the Eastern United States at the beginning of the year. He is, however, encouraged by the significant increase and quality of the backlog of orders that totaled $793M at quarter-end compared with $592M as at December 31, 2013, which represents an increase of 34%.

Dividend
The Board of Directors approved a quarterly dividend of $0.04 per common share payable on June 30, 2014 to shareholders of record on June 16, 2014.

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 21 plants across North America and employs over 3,600 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 Friday, April 25, 2014 at 1:15 p.m. EDT. A podcast will be available at www.canamgroupinc.com and www.newswire.ca. A replay of the conference call will be available until May 9, 2014 by dialing 1-800-408-3053 and entering access code 9813325, followed by the pound key (#).

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
Periods ended March 29, 2014 and March 30, 2013

(in thousands of Canadian dollars, except per share amounts)		Three months
(unaudited)			2014			2013
Revenues		$	239,303		$	209,752
Cost of sales, excluding depreciation and amortization^(1)			207,666			176,469
Selling and administrative expenses			21,805			20,108
Profit sharing program			217			250
Depreciation of property, plant and equipment			5,595			5,306
Amortization of intangible assets			473			377
Other gains — net			(405)			(119)
Finance costs			3,496			3,749
Finance revenue			(238)			(306)
Share of loss (income) of a joint venture and associates			282			(304)
Income before income tax			412			4,222
Tax expense (income)
	Current		(1,337)			1,117
	Deferred		1,199			132
			(138)			1,249
Net income		$	550		$	2,973
Net income attributable to:
	Shareholders	$	474		$	2,973
	Non-controlling interests		76			- -
		$	550		$	2,973
Net earnings per share attributable to shareholders
	Basic	$	0.01		$	0.07
	Diluted	$	0.01		$	0.07
Weighted average number of common shares (in thousands of shares)
	Basic		41,910			41,939
	Diluted		42,075			42,085
Number of common shares outstanding (in thousands of shares)			42,078			42,073

⁽¹⁾ Cost of sales, including depreciation and amortization, was $212,507 as at March 29, 2014 and $181,182 as at March 30, 2013.

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 29, 2014 and March 30, 2013

(in thousands of Canadian dollars)			Three months
(unaudited)			2014		2013
Net income		$	550	$	2,973
Other comprehensive income:
Items that will be reclassified subsequently to statements of income
	Change in unrealized gains on translating foreign operations		10,466		4,064
Available-for-sale assets:
	Unrealized gains on available-for-sale financial assets arising during the period		- -		27
	Reclassified to statements of income		- -		(39)
	Tax income		- -		2
			- -		(10)
Other comprehensive income			10,466		4,054
Comprehensive income		$	11,016	$	7,027
Attributable to:
	Shareholders	$	10,940	$	7,027
	Non-controlling interests		76		- -
		$	11,016	$	7,027

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(in thousands of Canadian dollars) (unaudited)	As at March 29, 2014				As at December 31, 2013
Assets
Current assets
Cash and cash equivalents	$	6,592			$	4,690
Accounts receivable		290,319				299,981
Inventories		129,164				110,993
Recoverable tax assets		276				264
Prepaid expenses and other assets		6,098				3,762
		432,449				419,690
Property, plant and equipment classified as held for sale		1,630				1,567
		434,079				421,257
Non-current assets
Investments		4,699				4,699
Ownership interests in a joint venture and associates		40,705				41,390
Property, plant and equipment		297,240				292,289
Intangible assets		10,017				9,760
Goodwill		43,034				41,417
Deferred tax assets		11,216				11,957
Long-term receivables and other assets		9,640				10,971
Total assets	$	850,630			$	833,740
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	171,781			$	185,909
Current tax liabilities		1,036				8,119
Current portion of long-term debt		13,242				13,000
		186,059				207,028
Non-current liabilities
Debt		152,391				124,025
Convertible debentures		65,655				65,442
Provisions		7,159				6,816
Deferred tax liabilities		9,926				9,922
Other liabilities		8,122				8,849
Total liabilities		429,312				422,082
Equity
Share capital		168,147				168,057
Retained earnings		229,509				230,717
Other equity items		23,402				12,884
Total equity attributable to shareholders		421,058				411,658
Non-controlling interests		260				- -
Total equity		421,318				411,658
Total equity and liabilities	$	850,630			$	833,740

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 share capital attributable to shareholders			Non- controlling interests			Total equity
Balance as at January 1, 2013	$	1,994		$	(11,941)		$	691		$	5,764		$	(3,492)		$	168,529		$	197,148		$	362,185		$	- -		$	362,185
Net income for the period		- -			- -			- -			- -			- -			- -			2,973			2,973			- -			2,973
Comprehensive income		- -			4,064			(10)			- -			4,054			- -			- -			4,054			- -			4,054
Shares purchased by a trust in employees' name on the secondary market		- -			- -			- -			- -			- -			(651)			- -			(651)			- -			(651)
Shares acquired by employees		(202)			- -			- -			- -			(202)			202			- -			- -			- -			- -
Repurchase of shares		- -			- -			- -			- -			- -			(23)			- -			(23)			- -			(23)
Excess of acquisition cost over carrying amount of acquired common shares		- -			- -			- -			- -			- -			- -			(16)			(16)			- -			(16)
Amortization of compensation costs related to the profit sharing program - stock ownership component		79			- -			- -			- -			79			- -			- -			79			- -			79
Balance as at March 30, 2013	$	1,871		$	(7,877)		$	681		$	5,764		$	439		$	168,057		$	200,105		$	368,601		$	- -		$	368,601
Balance as at January 1, 2014	$	2,113		$	5,005		$	2		$	5,764		$	12,884		$	168,057		$	230,717		$	411,658		$	- -		$	411,658
Non-controlling interest investment in a subsidiary		- -			- -			- -			- -			- -			- -			- -			- -			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 following the conversion of debentures		- -			- -			- -			- -			- -			59			- -			59			- -			59
Exercise of options related to 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

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended March 29, 2014 and March 30, 2013

(in thousands of Canadian dollars)			Three months
(unaudited)			2014			2013
Cash flows from the following activities:
Operating activities
Net income		$	550		$	2,973
Adjustments:
	Amortization of compensation costs related to the profit sharing program - stock ownership component		83			79
	Loss on revaluation of balances of purchase price of businesses		- -			65
	Gain on disposal of investments		- -			(39)
	Loss on disposal of property, plant and equipment		110			3
	Depreciation of property, plant and equipment		5,595			5,306
	Amortization of intangible assets		473			377
	Amortization of deferred financing expenses		93			82
	Provisions		104			(8)
	Interest rate swaps		(68)			(92)
	Imputed interest		534			589
	Pension expense		(704)			(804)
	Deferred tax expense		1,199			132
	Share of loss (income) of a joint venture and associates		282			(304)
			8,251			8,359
Net change in non-cash operating working capital balances
Decrease (increase) in accounts receivable			16,336			(2,751)
Decrease (increase) in inventories			(15,470)			980
Increase in prepaid expenses and other assets			(2,213)			(2,152)
Increase (decrease) in accounts payable and accrued liabilities			(18,771)			5,197
Increase in interest payable			1,386			1,136
Decrease in current tax liabilities			(7,099)			(4,138)
			(25,831)			(1,728)
Cash flows from operating activities			(17,580)			6,631
Financing activities
Shares purchased by a trust in employees' name on the secondary market			- -			(651)
Repurchase of shares			- -			(39)
Dividends			(3,364)			- -
Increase in debt and bank loans			28,956			2,150
Repayment of debt and bank loans			(2,711)			(5,330)
Repayment of balances of purchase price of businesses			- -			(3,326)
Increase in other liabilities			8			- -
Cash flows from financing activities			22,889			(7,196)
Investing activities
Proceeds from sale of property, plant and equipment			42			47
Additions to property, plant and equipment			(3,631)			(2,817)
Additions to intangible assets			(337)			(655)
Proceeds from disposal of investments			- -			337
Distributions received			156			- -
Decrease in receivables and other assets			178			339
Cash flows from investing activities			(3,592)			(2,749)
Effects of changes in foreign exchange rate on cash and cash equivalents			185			168
Net change in cash			1,902			(3,146)
Cash and cash equivalents - Beginning of period			4,690			6,787
Cash and cash equivalents - End of period		$	6,592		$	3,641
Supplementary information
	Interest paid	$	1,253		$	1,455
	Income taxes paid, net	$	5,855		$	5,268

 

SOURCE: Canam Group Inc.

François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: [phone] (cell)
Email: [email protected]