The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Canam Group maintains a solid backlogof orders of $563M

Thursday, August 05, 2010

Canam Group maintains a solid backlogof orders of $563M06:30 EDT Thursday, August 05, 2010BOUCHERVILLE, QC, Aug. 5 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced that its consolidated sales grew by 23% to $185.4M for the quarter ended June 26, 2010, compared with $151.2M for the second quarter of 2009. The company posted a net loss of $2M, or $0.05 per share, as opposed to net earnings of $5.2M, or $0.12 per share, for the year-earlier quarter.For the first six months of 2010, Canam Group's net loss amounted to $2.9M, or $0.07 per share, compared with net earnings of $10.6M, or $0.24 per share, over the same period last year. Consolidated sales for the first six months totaled $291M versus $331.4M for the corresponding period in 2009, representing a 12% decline.Strong competition in the non-residential construction market continued into the second quarter, primarily in the United States, exerting pressure on gross margins. Nevertheless, several of the company's business units saw an increase in new bookings, sign of an improving economy.Canam Group president and chief operating officer Marc Dutil said that management had anticipated that the situation would be difficult in the first half of 2010. He attributed the company's improved sales performance during the second quarter to the acquisition of FabSouth, completed in the first quarter, and a continued high level of activity in the infrastructure market.Canam Group's backlog of orders as at June 26, 2010, stood at $563M, up 59% from $355M as at June 27, 2009.The acquisition of two steel deck plants and other assets of a subsidiary of Commercial Metals Company, announced yesterday, will allow Canam Group to significantly broaden its geographic reach and range of products in the U.S. market, added Mr. Dutil.The board of directors approved the payment of a quarterly dividend of $0.04 per common share on September 30, 2010 to shareholders of record on September 16, 2010.About Canam Group Inc.Canam Group is a leader in the design and fabrication of construction products and solutions and a leading provider of design-build and building information modeling (BIM) services. The company operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, 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 Thursday, August 5, 2010 at 9:00 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 August 19, 2010 by dialing 1-800-408-3053 and entering access code 3384275, followed by the pound key (#). << Interim Consolidated Statements of Earnings Periods ended June 26, 2010 and June 27, 2009 (in thousands of dollars, except per share amounts) (unaudited) 3 months 6 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Sales $ 185,400 $ 151,239 $ 291,003 $ 331,443 Cost of sales 161,115 123,472 251,970 266,441 ---------------------------------------------- Gross profit 24,285 27,767 39,033 65,002 Selling and administrative expenses 20,331 17,582 36,708 35,361 Profit sharing programs 200 319 508 1,164 Exchange loss (gain) 206 (1,100) 250 (282) Gain on disposal of investments (9) (209) (9) (209) Gain on disposal of property, plant and equipment (290) (77) (306) (85) ---------------------------------------------- 3,847 11,252 1,882 29,053 Depreciation of property, plant and equipment 4,880 3,982 9,256 8,011 Amortization of intangible assets 1,555 354 2,216 722 Financial expenses 1,146 515 1,656 1,131 Gain on revaluation of investments - - (3,888) - ---------------------------------------------- Earnings (loss) before income tax expense and undermentioned items (3,734) 6,401 (7,358) 19,189 ---------------------------------------------- Income tax expense (recovery) Current 1,286 1,172 434 6,316 Future (2,834) 163 (4,939) 153 ---------------------------------------------- (1,548) 1,335 (4,505) 6,469 ---------------------------------------------- Earnings (loss) before undermentioned items (2,186) 5,066 (2,853) 12,720 Share in gain (loss) of companies subject to significant influence 123 61 (150) (897) ------------------------------------------------------------------------- Net earnings (net loss) from continuing operations (2,063) 5,127 (3,003) 11,823 Net earnings (net loss) from discontinued operations 42 99 60 (1,224) ---------------------------------------------- Net earnings (net loss) $ (2,021) $ 5,226 $ (2,943) $ 10,599 ------------------------------------------------------------------------- Net earnings (net loss) per share Basic: From continuing operations $ (0.05) $ 0.12 $ (0.07) $ 0.27 From discontinued operations - - - (0.03) ---------------------------------------------- Total $ (0.05) $ 0.12 $ (0.07) $ 0.24 ---------------------------------------------- Diluted: From continuing operations $ (0.05) $ 0.12 $ (0.07) $ 0.26 From discontinued operations - - - (0.03) ---------------------------------------------- Total $ (0.05) $ 0.12 $ (0.07) $ 0.23 ------------------------------------------------------------------------- Weighted average number of common shares (in thousands of shares) Basic 45,101 44,928 45,102 44,948 Diluted 45,429 45,376 45,414 45,395 Number of common shares outstanding 45,366 45,368 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Statements of Comprehensive Income (loss) Periods ended June 26, 2010 and June 27, 2009 (in thousands of dollars) (unaudited) 3 months 6 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (net loss) $ (2,021) $ 5,226 $ (2,943) $ 10,599 ---------------------------------------------- Other comprehensive income (loss): Change in unrealized gains and losses on translating financial statements of self-sustaining foreign operations $ 964 $ (11,375) $ (2,438) $ (9,429) ---------------------------------------------- Unrealized gains (losses) on available-for-sale financial assets arising during the period $ (127) $ 372 $ (76) $ 529 Income tax expense 22 (58) 14 (99) ---------------------------------------------- Change in unrealized gains and losses on available-for-sale financial assets $ (105) $ 314 $ (62) $ 430 ---------------------------------------------- Other comprehensive income (loss) $ 859 $ (11,061) $ (2,500) $ (8,999) ---------------------------------------------- Comprehensive income (loss) $ (1,162) $ (5,835) $ (5,443) $ 1,600 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Statements of Retained Earnings Periods ended June 26, 2010 and June 27, 2009 (in thousands of dollars) (unaudited) 3 months 6 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Opening balance $ 241,240 $ 234,798 $ 244,029 $ 232,208 Net earnings (net loss) (2,021) 5,226 (2,943) 10,599 Dividends (1,815) (1,816) (3,629) (3,631) Excess of acquisition cost over carrying value of acquired common shares (5) - (58) (968) ---------------------------------------------- Closing balance $ 237,399 $ 238,208 $ 237,399 $ 238,208 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Balance Sheets As at As at June 26, December 31, 2010 2009 (in thousands of dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents $ 29,110 $ 67,393 Accounts receivable 161,987 99,594 Inventories 143,401 104,540 Income taxes recoverable 6,510 6,701 Future income tax assets 5,671 1,008 Prepaid expenses and other assets 4,212 3,484 Current assets of discontinued operations 879 1,230 ------------------------ Total current assets 351,770 283,950 ------------------------ Investments 48,673 63,503 Property, plant and equipment 219,390 184,851 Property, plant and equipment held for sale 1,526 1,549 Intangible assets 13,312 1,127 Goodwill 53,221 150 Future income tax assets 246 363 Long-term receivables and other assets 20,134 21,942 Long-term assets of discontinued operations 8,166 8,618 ------------------------ $ 716,438 $ 566,053 ------------------------------------------------------------------------- Liabilities Current liabilities Bank loans $ 4,704 $ - Accounts payable and accrued liabilities 140,274 77,112 Income taxes payable 153 635 Future income tax liabilities 75 876 Current portion of long-term debt 5,953 5,477 Current portion of the balance of the purchase price of subsidiaries 13,189 - Current liabilities of discontinued operations 1,296 1,495 ------------------------ Total current liabilities 165,644 85,595 ------------------------ Long-term debt 120,009 62,212 Balance of the purchase price of subsidiaries 22,419 - Deferred credits 4,054 4,749 Future income tax liabilities 11,365 11,296 Long-term liabilities of discontinued operations 1,096 1,604 324,587 165,456 ------------------------------------------------------------------------- Shareholders' Equity Share capital 179,102 178,024 Retained earnings 237,399 244,029 Contributed surplus 4,167 4,862 Accumulated other comprehensive loss (28,817) (26,318) ------------------------ 391,851 400,597 ------------------------ $ 716,438 $ 566,053 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interim Consolidated Statements of Cash Flows Periods ended June 26, 2010 and June 27, 2009 (in thousands of dollars) (unaudited) 3 months 6 months ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 2010 2009 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flows from the following activities: Operating activities Net earnings (net loss) from continuing operations $ (2,063) $ 5,127 $ (3,003) $ 11,823 Items not affecting cash and cash equivalents Amortization of compensation costs related to the profit sharing program - stock ownership component 345 431 691 916 Unrealized gain on foreign currency forward contracts - (480) - (1,533) Gain on revaluation of investments - - (3,888) - Gain on disposal of investments (9) (209) (9) (209) Gain on disposal of property, plant and equipment (290) (77) (306) (85) Depreciation of property, plant and equipment 4,880 3,982 9,256 8,011 Amortization of intangible assets 1,555 354 2,216 722 Amortization of deferred financing expenses 62 53 117 108 Pension expense 69 (35) 74 (106) Future income tax expense (2,834) 163 (4,939) 153 Share in loss of companies subject to significant influence (123) (61) 150 897 ---------------------------------------------- 1,592 9,248 359 20,697 ------------------------------------------------------------------------- Net change in non-cash operating working capital items Decrease (increase) in accounts receivable (24,613) 10,841 (13,821) 24,588 Decrease (increase) in inventories (20,846) 20,133 (27,937) 33,154 Decrease (increase) in income taxes recoverable 781 (260) (252) 1,925 Decrease in prepaid expenses and other assets 877 553 409 3,531 Increase (decrease) in accounts payable and accrued liabilities 18,295 (5,711) 9,419 (20,754) Increase (decrease) in interest payable 387 (223) 586 (19) Decrease in income taxes payable (1) (160) (477) (47) ---------------------------------------------- (25,120) 25,173 (32,073) 42,378 ---------------------------------------------- Cash flows from continuing operating activities (23,528) 34,421 (31,714) 63,075 ------------------------------------------------------------------------- Financing activities Shares purchased by a trust in employees' name on the secondary market - - (364) (1,871) Repurchase of shares (9) - (127) (2,122) Proceeds from issuance of shares 104 - 125 47 Dividends (1,814) (1,816) (1,814) (3,631) Increase in long-term debt and bank loans 25,156 - 54,027 8,680 Repayment of long-term debt and bank loans (2,367) (17,959) (3,349) (18,844) Deferred credits 9 10 (666) (235) ---------------------------------------------- Cash flows from continuing financing activities 21,079 (19,765) 47,832 (17,976) ------------------------------------------------------------------------- Investing activities Proceeds from sale of property, plant and equipment 500 321 507 392 Additions to property, plant and equipment (9,617) (4,833) (17,040) (12,399) Additions to intangible assets (99) (45) (185) (330) Acquisition of investments - (3,288) (120) (4,593) Proceeds from disposal of investments 3 643 3 1,144 Distribution from a company subject to significant influence - - - 300 Decrease in long-term receivables 952 897 1,715 1,674 Increase in long-term receivables (68) (1,926) (68) (2,659) Business acquisitions, net of cash acquired - - (38,684) - ---------------------------------------------- Cash flows from continuing investing activities (8,329) (8,231) (53,872) (16,471) ------------------------------------------------------------------------- Effect of changes in foreign exchange rate on cash and cash equivalents 594 (125) (727) (311) ---------------------------------------------- Net change in cash and cash equivalents from continuing operations (10,184) 6,300 (38,481) 28,317 Cash flows from discontinued operations Operating activities 139 408 184 31 Investing activities (1) 138 14 285 ---------------------------------------------- 138 546 198 316 Cash and cash equivalents, beginning of period 39,156 37,406 67,393 15,619 ---------------------------------------------- Cash and cash equivalents, end of period $ 29,110 $ 44,252 $ 29,110 $ 44,252 ------------------------------------------------------------------------- Supplementary information Interest paid $ 1,325 $ 919 $ 2,085 $ 2,048 Income taxes paid (recovered), net $ (359) $ 1,494 $ 705 $ 5,040 ------------------------------------------------------------------------- ------------------------------------------------------------------------- >> For further information: Jasmin Gosselin, Vice President, Communications, Tel.: 450-641-4000, Email: jasmin.gosselin@canamgroup.ws; www.canamgroup.ws