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Press release from CNW Group

CANAM GROUP POSTS A NET LOSS OF $39.7M FOR THE FIRST QUARTER OF 2011

Wednesday, April 27, 2011

CANAM GROUP POSTS A NET LOSS OF $39.7M FOR THE FIRST QUARTER OF 201111:10 EDT Wednesday, April 27, 2011ST. GEORGES, QC, April 27 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today reported a net loss of $39.7 million, or $0.88 per share, for the first quarter ended March 26, 2011, compared with a net loss of $0.6 million, or $0.01 per share, for the corresponding period in 2010. Consolidated sales were $150.6 million, up 48% from $101.9 million for the year-earlier quarter.Canam Group president and chief operating officer Marc Dutil explained that the additional costs incurred during the installation of cables for the BC Place project and the monetary out-of-court settlement of a claim had a major negative impact on the results of the first quarter. He added that these charges are non-recurring and that the expected negative impact of the BC Place project as a whole will be limited to these charges.The order backlog at Canam Group increased 7% from $485 million as at December 31, 2010 to $519 million as at March 26, 2011. This increase resulted from the addition of the backlog at the company's Canam U.S. and FabSouth business units.The board of directors approved the payment of a quarterly dividend of $0.04 per common share on June 30, 2011 to shareholders of record on June 16, 2011.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 callCanam Group will hold a conference call with financial analysts and media representatives at 1:15 p.m. on Wednesday, April 27, 2011. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until May 11, 2011, by dialing 1-800-408-3053 and entering access code 3281055, followed by the pound key (#).Interim Consolidated Statements of Income (Loss)   Periods ended March 26, 2011 and March 27, 2010     (in thousands of Canadian dollars, except per share amounts)   Three months(unaudited)  2011  2010Revenues $150,635 $101,854Cost of sales  176,135  87,741   (25,500)  14,113Selling and administrative expenses  22,322  15,665Profit sharing programs  98  308Exchange loss  393  42Gain on disposal of property, plant and equipment  (92)  (11)   (48,221)  (1,891)Depreciation of property, plant and equipment  4,949  4,230Amortization of intangible assets  872  661Finance costs  2,926  494Gain on revaluation of investments  - -  (3,888)Share in loss of joint ventures and associates  221  166Loss before income tax  (57,189)  (3,554)Tax expense (recovery)       Current  (13,278)  (892) Deferred  (4,174)  (2,037)   (17,452)  (2,929)Net loss attributable to shareholders of Canam Group Inc.  $(39,737) $(625)       Net loss per share      Basic $(0.88) $(0.01)Diluted $(0.88) $(0.01)Weighted average number of common shares (in thousands of shares)       Basic  45,237  45,052 Diluted  45,390  45,399Number of common shares outstanding  45,350  45,355      Interim Consolidated Statements of Comprehensive loss   Periods ended March 26, 2011 and March 27, 2010    Three months(in thousands of Canadian dollars) (unaudited)  2011  2010Net loss $(39,737) $(625)Other comprehensive loss:             Change in unrealized gains and losses on translating foreign operations  (1,804)  (3,487)Unrealized  gains on available-for-sale financial assets arising during the period  108  51Income tax expense  (14)  (8)   94  43Other comprehensive loss  (1,710)  (3,444)Comprehensive loss attributable to shareholders of Canam Group Inc. $(41,447) $(4,069)          Interim Consolidated Balance Sheets       (in thousands of Canadian dollars) (unaudited) As at March 26, 2011 As at December 31,2010 As at January 1,2010          Assets         Current assets         Cash and cash equivalents $7,760 $8,530 $57,469Short-term investment pledged as collateral  9,817  9,946  - -Accounts receivable  155,077  198,807  97,196Inventories  149,606  132,684  102,432Income tax assets  15,693  4,190  6,701Prepaid expenses and other assets  4,753  3,675  3,363Current assets of discontinued operations  - -  - -  1,230   342,706  357,832  268,391Property, plant and equipment held for sale  1,446  1,465  1,549   344,152  359,297  269,940Non-current assets         Investments  5,025  4,895  16,677Ownership interests in joint ventures and associates  59,656  59,913  58,845Property, plant and equipment  280,274  280,292  211,956Intangible assets  10,401  11,156  1,127Goodwill  48,729  49,366  150Deferred tax assets  17,690  13,788  3,362Long-term receivables and other assets  25,210  24,020  21,389Non-current assets of discontinued operations  - -  - -  8,618Total assets $791,137 $802,727 $592,064          Liabilities         Current liabilities         Bank loans $16,014 $8,454 $- -Accounts payable and accrued liabilities  155,915  145,353  74,060Income tax liabilities  120  56  580Current portion of long-term debt  9,039  8,855  5,477Current portion of balances of purchase price of businesses  8,736  10,043  1,495   189,824  172,761  81,612Non-current liabilities         Debt  124,730  104,388  62,212Balance of purchase price of businesses  18,690  24,173  - -Convertible debentures  60,690  60,408  - -Provisions  1,346  1,325  3,335Deferred tax liabilities  25,373  25,623  20,329Other liabilities  12,220  12,606  9,661Non-current liabilities of discontinued operations  - -  - -  1,604Total liabilities  432,873  401,284  178,753          Equity         Equity attributable to shareholders of Canam Group Inc.         Share capital  180,869  179,102  178,024Retained earnings  181,274  222,877  230,800Other equity items  (3,879)  (536)  4,487Total equity  358,264  401,443  413,311Total equity and liabilities $791,137 $802,727 $592,064                         Interim Consolidated Statements of Changes in Equity                         As at March 26, 2011    ATTRIBUTABLETO SHAREHOLDERSOF CANAM GROUP INC.                         (in thousands of Canadian dollars)(unaudited) Employee benefits paid in equity instruments Translationdifferencesresulting from the translation of foreign operations Available-for-salefinancial assets Debenture conversionoptions Total otherequity items Sharecapital Retainedearnings TotalequityBalance as at January 1, 2010 $4,038 $- - $449 $- - $4,487 $178,024 $230,800 $413,311Net loss for the period  - -  - -  - -  - -  - -  - -  (625)  (625)Comprehensive loss  - -  (3,487)  43  - -  (3,444)  - -  - -  (3,444)Dividends  - -  - -  - -  - -  - -  - -  (1,815)  (1,815)Issuance of shares pursuant to options  (4)  - -  - -  - -  (4)  25  - -  21Shares purchased by a trust in employees' name on the secondary market  - -  - -  - -  - -  - -  (364)  - -  (364)Shares acquired by employees  (1,382)  - -  - -  - -  (1,382)  1,382  - -  - -Repurchase of shares  - -  - -  - -  - -  - -  (65)  - -  (65)Excess of acquisition cost over carrying amount of acquired common shares  - -  - -  - -  - -  - -  - -  (53)  (53)Amortization of compensation costs related to the profit sharing program -stock ownership component  344  - -  - -  - -  344  - -  - -  344Balance as at March 27, 2010 $2,996 $(3,487) $492 $- - $1 $179,002 $228,307 $407,310Balance as at January 1, 2011 $4,035 $(11,133) $798 $5,764 $(536) $179,102 $222,877 $401,443Net loss for the period  - -  - -  - -  - -  - -  - -  (39,737)  (39,737)Comprehensive loss  - -  (1,804)  94  - -  (1,710)  - -  - -  (1,710)Dividends  - -  - -  - -  - -  - -  - -  (1,796)  (1,796)Issuance of shares pursuant to options  (9)  - -  - -  - -  (9)  43  - -  34Shares 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  186  - -  - -  - -  186  - -  - -  186Balance as at March 26, 2011 $2,402 $(12,937) $892 $5,764 $(3,879) $180,869 $181,274 $358,264       Interim Consolidated Statements of Cash FlowsPeriods ended March 26, 2011 and March 27, 2010        Three months(in thousands of Canadian dollars) (unaudited)  2011  2010Cash flows from the following activities:      Operating activities      Net loss $(39,737) $(625)Adjustments:       Amortization of compensation costs related to the profit sharing program - stock ownership component  186  346 Gain on revaluation of investments  - -  (3,888) Gain on disposal of property, plant and equipment  (92)  (11) Depreciation of property, plant and equipment  4,949  4,230 Amortization of intangible assets  872  661 Amortization of deferred financing expenses  112  55 Provisions  21  (686) Interest rate swaps  (117)  - - Imputed interest  495  - - Deferred tax expense  (4,174)  (2,037) Pension expense  53  (251) Share in loss of joint ventures and associates  221  166   (37,211)  (2,040)Net change in non-cash operating working capital items       Decrease in accounts receivable  42,094  11,643 Increase in inventories  (17,619)  (6,569) Increase in income taxes assets  (11,508)  (1,010) Increase in prepaid expenses and other assets  (1,097)  (77) Increase (decrease) in accounts payable and accrued liabilities  10,564  (7,494) Increase in interest payable  1,253  199 Increase (decrease) in tax liabilities  105  (496)   23,792  (3,804)Cash flows from continuing operating activities  (13,419)  (5,844)Financing activities      Shares purchased by a trust in employees' name on the secondary market  - -  (364)Repurchase of shares  (156)  (118)Proceeds from issuance of shares  34  21Dividends  (1,796)  - -Increase in debt and bank loans  30,402  28,871Repayment of debt and bank loans  (1,793)  (916)Repayment of balances of purchase price of businesses  (6,892)  - -Issue expenses related to debt and debenture  (595)  - -Other liabilities  (211)  11Cash flows from continuing financing activities  18,993  27,505Investing activities      Proceeds from sale of property, plant and equipment  47  7Additions to property, plant and equipment  (6,206)  (7,416)Additions to intangible assets  (245)  (86)Acquisition of investments  - -  (120)Decrease in receivable and other assets  81  763Increase in receivable and other assets  (50)  - -Business acquisitions, net of cash acquired  - -  (38,684)Cash flows from continuing investing activities  (6,373)  (45,536)Effects of changes in foreign exchange rate on cash and cash equivalents  29  (1,170)Net change in cash from continuing operations  (770)  (25,045)Cash flows from discontinued operations       Operating activities  - -  27 Investing activities  - -  15      42Cash and cash equivalents, beginning of period  8,530  57,469Cash and cash equivalents, end of period $7,760 $32,466Supplementary information       Interest paid $1,290 $730 Income taxes paid (recovered), net $(1,067) $1,001  For further information: Source:  Jasmin Gosselin   Vice President, Communications   Tel.: 450-641-4000   Email:  jasmin.gosselin@canamgroup.ws     www.canamgroup.ws