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Press release from CNW Group

Canam Group posts a net loss of $0.9M or $0.02 per share and a 41% higher backlog totaling $590M for the first quarter of 2010

Wednesday, April 28, 2010

Canam Group posts a net loss of $0.9M or $0.02 per share and a 41% higher backlog totaling $590M for the first quarter of 201011:09 EDT Wednesday, April 28, 2010ST. GEORGES, QC, April 28 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today reported a net loss of $0.9 million, or $0.02 per share, for the first quarter ended March 27, 2010, compared with net earnings of $5.4 million, or $0.12 per share, for the corresponding period in 2009. Consolidated sales were $105.6 million versus $180.2 million for the year-earlier quarter.Canam Group president and chief operating officer Marc Dutil explained that these results reflect the harsh economic conditions management had foreseen for the first half of 2010. In addition, deliveries related to the replacement of the roof for BC Place in Vancouver and for the Marlins' stadium in Miami are not scheduled to begin before the second quarter." These two orders will generate $180 million in revenue.Canam Group's order backlog stood at $590 million as at March 27, 2010, up 41% from $417 million as at March 29, 2009. This increase was due to the addition of FabSouth's existing backlog and a surge in new orders in certain business units.The acquisition of the U.S.-based FabSouth, LLC concluded last month will help strengthen Canam Group's commercial position in the southeastern United States. As well, a major competitor's recent exit from the joist and deck business in the United States is seen as another positive development for Canam Group.The board of directors approved the payment of a quarterly dividend of $0.04 per common share on June 30, 2010 to shareholders of record on June 16, 2010.Canam Group is an industrial company operating 18 plants specialized in the design and fabrication of construction products and solutions. The company employs close to 3,000 people in Canada, the United States, Romania and India, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China. << Conference call --------------- >> Canam Group will hold a conference call with financial analysts and media representatives on Wednesday, April 28, 2010 at 1:15 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 May 12, 2010 by dialing 1-800-408-3053 and entering access code 3384275, followed by the pound key #. << Interim Consolidated Statements of Earnings Periods ended March 27, 2010 and March 28, 2009 (in thousands of dollars, except per share amounts) (unaudited) 3 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 (restated) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Sales $ 105,603 $ 180,204 ------------------------------------------------------------------------- Cost of sales 90,855 142,969 ------------------------ ------------------------------------------------------------------------- Gross profit 14,748 37,235 ------------------------------------------------------------------------- Selling and administrative expenses 16,377 17,779 ------------------------------------------------------------------------- Profit sharing programs 308 845 ------------------------------------------------------------------------- Exchange loss 44 818 ------------------------------------------------------------------------- Interest income and other investment income (749) (525) ------------------------------------------------------------------------- Gain on disposal of property, plant and equipment (16) (8) ------------------------ ------------------------------------------------------------------------- (1,216) 18,326 ------------------------------------------------------------------------- Depreciation of property, plant and equipment 4,376 4,029 ------------------------------------------------------------------------- Amortization of intangible assets 661 368 ------------------------------------------------------------------------- Financial expenses 1,259 1,141 ------------------------------------------------------------------------- Gain on revaluation of investments (3,888) - ------------------------ ------------------------------------------------------------------------- Earnings (loss) before income tax expense and undermentioned items (3,624) 12,788 ------------------------ ------------------------------------------------------------------------- Income tax expense (recovery) Current (852) 5,144 Future (2,105) (10) ------------------------ ------------------------------------------------------------------------- (2,957) 5,134 ------------------------ ------------------------------------------------------------------------- Earnings (loss) before undermentioned items (667) 7,654 ------------------------------------------------------------------------- Share in loss of companies subject to significant influence (273) 958 ------------------------ ------------------------------------------------------------------------- Net earnings (net loss) from continuing operations (940) 6,696 ------------------------------------------------------------------------- Net earnings (net loss) from discontinued operations 18 (1,323) ------------------------ ------------------------------------------------------------------------- Net earnings (net loss) $ (922) $ 5,373 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (net loss) per share Basic: From continuing operations $ (0.02) $ 0.15 From discontinued operations - (0.03) ------------------------ ------------------------ Total $ (0.02) $ 0.12 ------------------------ ------------------------ Diluted: From continuing operations $ (0.02) $ 0.15 From discontinued operations - (0.03) ------------------------ ------------------------ Total $ (0.02) $ 0.12 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of common shares (in thousands of shares) Basic 45,052 44,908 Diluted 45,399 45,414 ------------------------------------------------------------------------- Number of common shares outstanding 45,355 45,368 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Statements of Comprehensive Income (loss) Periods ended March 27, 2010 and March 28, 2009 (in thousands of dollars) (unaudited) 3 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (net loss) $ (922) $ 5,373 ------------------------ ------------------------------------------------------------------------- Other comprehensive income (loss): Change in unrealized gains and losses on translating financial statements of self-sustaining foreign operations $ (3,402) $ 1,946 ------------------------ ------------------------------------------------------------------------- Unrealized gains on available-for-sale financial assets arising during the period $ 51 $ 157 Income tax expense (8) (41) ------------------------ ------------------------------------------------------------------------- Change in unrealized gains and losses on available-for-sale financial assets $ 43 $ 116 ------------------------ ------------------------------------------------------------------------- Other comprehensive income (loss) $ (3,359) $ 2,062 ------------------------ ------------------------------------------------------------------------- Comprehensive income (loss) $ (4,281) $ 7,435 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Statements of Retained Earnings Periods ended March 27, 2010 and March 28, 2009 (in thousands of dollars) (unaudited) 3 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Opening balance $ 244,029 $ 232,208 ------------------------------------------------------------------------- Net earnings (net loss) (922) 5,373 ------------------------------------------------------------------------- Dividends (1,814) (1,815) ------------------------------------------------------------------------- Excess of acquisition cost over carrying value of acquired common shares (53) (968) ------------------------ ------------------------------------------------------------------------- Closing balance $ 241,240 $ 234,798 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Balance Sheets As at As at March 27, December 31, 2010 2009 (in thousands of dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Assets ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current assets Cash and cash equivalents $ 39,156 $ 67,393 Accounts receivable 137,536 99,594 Inventories 122,218 104,540 Income taxes recoverable 7,578 6,701 Future income tax assets 4,539 1,008 Prepaid expenses and other assets 5,074 3,484 Current assets of discontinued operations 1,110 1,230 ------------------------ ------------------------ Total current assets 317,211 283,950 ------------------------ ------------------------------------------------------------------------- Investments 48,681 63,503 ------------------------------------------------------------------------- Property, plant and equipment 214,383 184,851 ------------------------------------------------------------------------- Property, plant and equipment held for sale 1,513 1,549 ------------------------------------------------------------------------- Intangible assets 14,680 1,127 ------------------------------------------------------------------------- Goodwill 52,752 150 ------------------------------------------------------------------------- Future income tax assets 356 363 ------------------------------------------------------------------------- Long-term receivables and other assets 21,063 21,942 ------------------------------------------------------------------------- Long-term assets of discontinued operations 8,389 8,618 ------------------------ ------------------------------------------------------------------------- $ 679,028 $ 566,053 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current liabilities Bank loans $ 901 $ - Accounts payable and accrued liabilities 120,987 77,112 Income taxes payable 156 635 Future income tax liabilities 262 876 Current portion of long-term debt 5,901 5,477 Current portion of the balance of the purchase price of subsidiaries 13,595 - Current liabilities of discontinued operations 1,393 1,495 ------------------------ ------------------------ Total current liabilities 143,195 85,595 ------------------------ ------------------------------------------------------------------------- Long-term debt 100,808 62,212 ------------------------------------------------------------------------- Balance of the purchase price of subsidiaries 22,220 - ------------------------------------------------------------------------- Deferred credits 4,059 4,749 ------------------------------------------------------------------------- Future income tax liabilities 12,956 11,296 ------------------------------------------------------------------------- Long-term liabilities of discontinued operations 1,403 1,604 ------------------------ ------------------------------------------------------------------------- 284,641 165,456 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Shareholders' Equity ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Share capital 179,002 178,024 ------------------------------------------------------------------------- Retained earnings 241,240 244,029 ------------------------------------------------------------------------- Contributed surplus 3,822 4,862 ------------------------------------------------------------------------- Accumulated other comprehensive loss (29,677) (26,318) ------------------------ ------------------------------------------------------------------------- 394,387 400,597 ------------------------ ------------------------------------------------------------------------- $ 679,028 $ 566,053 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Statements of Cash Flows Periods ended March 27, 2010 and March 28, 2009 (in thousands of dollars) (unaudited) 3 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 (restated) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flows from the following activities: Operating activities ------------------------------------------------------------------------- Net earnings (net loss) from continuing operations $ (940) $ 6,696 ------------------------------------------------------------------------- Items not affecting cash and cash equivalents Amortization of compensation costs related to the profit sharing program - stock ownership component 346 485 Unrealized gain on foreign currency forward contracts - (1,053) Gain on revaluation of investments (3,888) - Gain on disposal of property, plant and equipment (16) (8) Depreciation of property, plant and equipment 4,376 4,029 Amortization of intangible assets 661 368 Amortization of deferred financing expenses 55 55 Pension expense 5 (71) Future income tax expense (2,105) (10) Share in loss of companies subject to significant influence 273 958 ------------------------ ------------------------ (1,233) 11,449 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net change in non-cash operating working capital items Decrease in accounts receivable 10,792 13,747 Decrease (increase) in inventories (7,091) 13,021 Decrease (increase) in income taxes recoverable (1,033) 2,185 Decrease (increase) in prepaid expenses and other assets (468) 2,978 Decrease in accounts payable and accrued liabilities (8,876) (15,043) Increase in interest payable 199 204 Increase (decrease) in income taxes payable (476) 113 ------------------------ ------------------------ (6,953) 17,205 ------------------------ ------------------------------------------------------------------------- Cash flows from continuing operating activities (8,186) 28,654 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Financing activities ------------------------------------------------------------------------- Shares purchased by a trust in employees' name on the secondary market (364) (1,871) ------------------------------------------------------------------------- Repurchase of shares (118) (2,122) ------------------------------------------------------------------------- Proceeds from issuance of shares 21 47 ------------------------------------------------------------------------- Dividends - (1,815) ------------------------------------------------------------------------- Increase in long-term debt and bank loans 28,871 8,680 ------------------------------------------------------------------------- Repayment of long-term debt and bank loans (982) (885) ------------------------------------------------------------------------- Deferred credits (675) (245) ------------------------ ------------------------------------------------------------------------- Cash flows from continuing financing activities 26,753 1,789 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Investing activities ------------------------------------------------------------------------- Proceeds from sale of property, plant and equipment 7 71 ------------------------------------------------------------------------- Additions to property, plant and equipment (7,423) (7,566) ------------------------------------------------------------------------- Additions to intangible assets (86) (285) ------------------------------------------------------------------------- Acquisition of investments (120) (1,305) ------------------------------------------------------------------------- Proceeds from disposal of investments - 501 ------------------------------------------------------------------------- Distribution from a company subject to significant influence - 300 ------------------------------------------------------------------------- Decrease in long-term receivables 763 777 ------------------------------------------------------------------------- Increase in long-term receivables - (733) ------------------------------------------------------------------------- Business acquisitions, net of cash acquired (38,684) - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flows from continuing investing activities (45,543) (8,240) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Effect of changes in foreign exchange rate on cash and cash equivalents (1,321) (186) ------------------------ ------------------------------------------------------------------------- Net change in cash and cash equivalents from continuing operations (28,927) 22,017 ------------------------------------------------------------------------- Cash flows from discontinued operations Operating activities 45 (377) Investing activities 15 147 ------------------------ ------------------------------------------------------------------------- 60 (230) ------------------------------------------------------------------------- Cash and cash equivalents, beginning of period 67,393 15,619 ------------------------ ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 39,156 $ 37,406 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplementary information Interest paid $ 760 $ 1,129 Income taxes paid, net $ 1,064 $ 3,546 ------------------------------------------------------------------------- ------------------------------------------------------------------------- >> For further information: Jasmin Gosselin, Vice President, Communications, (450) 641-4000, jasmin.gosselin@canamgroup.ws, www.canamgroup.ws