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 sales up 8.9% to $225.6M in the third quarter of 2011

Thursday, October 27, 2011

Canam Group sales up 8.9% to $225.6M in the third quarter of 201106:30 EDT Thursday, October 27, 2011BOUCHERVILLE, QC, Oct. 27, 2011 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced a net income of $9.7M, or $0.22 per share, for the third quarter of 2011, compared with $2.4M, or $0.05 per share, for the same quarter in 2010. Consolidated sales for the quarter rose 8.9% to $225.6M versus $207.1M for the year-earlier quarter.For the first nine-month period of 2011, the Corporation's net loss was $35.8M, or $0.79 per share, compared to a net income of $0.1M for the corresponding period in 2010. Consolidated sales for the first nine months of 2011 totaled $594.7M, up 21.6% from $488.9M last year.Canam Group president and chief operating officer Marc Dutil underlined that the North American non-residential construction market has remained highly competitive. He added that the sales growth in the third quarter was mainly attributable to the Corporation's joist and steel deck activities, historically a buoyant business segment for the Corporation. He also pointed out that Canam Group recorded a tax-free gain of US$10M resulting from life insurance proceeds following the death of an executive officer of a U.S. subsidiary.Canam Group's order backlog as at September 24, 2011 stood at $526M, up from $512M as at June 25, 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 virtual design and construction 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 on Wednesday, October 27, 2011 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 November 10, 2011 by dialing 1-800-408-3053 and entering access code 4184177, followed by the pound key (#).Interim Consolidated Statements of Income (loss) Periods ended September 24, 2011 and September 25, 2010(in thousands of Canadian dollars, except per share amounts) Three months  Nine months(unaudited) 2011  2010  2011  2010            Revenues$225,599 $207,061 $594,709 $488,884Cost of sales 199,728  178,970  573,624  423,120  25,871  28,091  21,085  65,764Selling and administrative expenses 18,461  18,968  62,308  54,229Profit sharing programs 6  266  225  774Exchange loss (gain) (1,495)  184  (1,426)  419Loss (gain) on disposal of property, plant and equipment (9)  198  (230)  (35)Gain on disposal of investments - -  (439)  - -  (448)Proceeds from an insurance policy (9,910)  - -  (9,910)  - -  18,818       8,914  (29,882)  10,825Depreciation of property, plant and equipment 5,110  4,671  15,117   13,525Amortization of intangible assets 360  631  1,627  2,846Finance costs 4,490  1,525  12,019  3,161Impairment of goodwill 8,980  - -  8,980  - -Gain on revaluation of balances of purchase price of businesses (9,127)  - -  (9,127)  - -Gain on revaluation of investments - -  - -  - -  (3,888)Share of earnings of joint ventures and associates (219)  (363)  (457)  (387)Income (loss) before income tax 9,224  2,450  (58 041)  (4,432)Tax expense (income)            Current 1,130  1,777  (14,293)  2,127 Deferred (1,648)  (1,728)  (7,952)  (6,628)  (518)  49  (22,245)  (4,501)Net income (loss) attributable to shareholders of Canam Group Inc.$9,742 $2,401 $(35,796) $69            Net income (loss) per share            Basic$0.22 $0.05 $(0.79) $0 Diluted$0.21 $0.05 $(0.79) $0            Weighted average number of common shares (in thousands of shares)            Basic 45,301  45,156  45,303  45,155 Diluted 45,357  45,388  45,369  45,404Number of common shares outstanding       45,352  45,366  Interim Consolidated Statements of Comprehensive income (loss) Periods ended September 24, 2011 and September 25, 2010  Three months  Nine months(in thousands of Canadian dollars) (unaudited) 2011  2010  2011  2010Net income (loss)$9,742 $2,401 $(35,796) $69Other comprehensive income (loss):            Change in unrealized gains (losses) on translating foreign operations 8,700  (906)  7,970  (3,876) Unrealized gains (losses) on available-for-sale financial assets arising during the period (155)  834  (40)  758 Reclassification in earnings - -  (421)  - -  (421) Income tax expense (income) 20  (72)  5  (58)  (135)  341  (35)  279Other comprehensive income (loss) 8,565  (565)  7,935  (3,597)Comprehensive income (loss) attributable to shareholders of Canam Group Inc.$18,307 $1,836 $(27,861) $(3,528) Interim Consolidated Balance Sheets (in thousands of Canadian dollars) (unaudited)As atSeptember 24,2011 As atDecember 31,2010 As atJanuary 1,2010         Assets        Current assets        Cash and cash equivalents$17,500 $8,530 $57,469Short-term investment pledged as collateral 2,574  9,946  - -Accounts receivable 231,426  198,807  97,196Inventories 160,050  132,684  102,432Current tax assets 14,924  4,190  6,701Prepaid expenses and other assets 3,515  3,675  3,363Current assets of discontinued operations - -  - -  1,230  429,989  357,832  268,391Property, plant and equipment held for sale 1,517  1,465  1,549  431,506  359,297  269,940Non-current assets        Investments 4,871  4,895  16,677Ownership interests in joint ventures and associates 60,312  59,913  58,845Property, plant and equipment 284,433  280,292  211,956Intangible assets 10,192  11,156  1,127Goodwill 41,761  49,366  150Deferred tax assets 22,356  13,788  3,362Long-term receivables and other assets 24,004  24,020  21,389Non-current assets of discontinued operations - -  - -  8,618Total assets$879,435 $802,727 $592,064         Liabilities        Current liabilities        Bank loans$24,382 $8,454 $- -Accounts payable and accrued liabilities 169,224  138,853  74,060Provisions 2,740  6,500  - -Current tax liabilities 105  56  580Current portion of long-term debt 24,812  8,855  5,477Current portion of balances of purchase price of businesses 9,237  10,043  1,495  230,500  172,761  81,612Non-current liabilities        Debt 166,728  104,388  62,212Balances of purchase price of businesses 9,911  24,173  - -Convertible debentures 61,432  60,408  - -Provisions 1,412  1,325  3,335Deferred tax liabilities 26,111  25,623  20,329Other liabilities 12,903  12,606  9,661Non-current liabilities of discontinued operations - -  - -  1,604Total liabilities 508,997  401,284  178,753         Equity        Equity attributable to shareholders of Canam Group Inc.        Share capital 180,883  179,102  178,024Retained earnings 183,419  222,877  230,800Other equity items 6,136  (536)  4,487Total equity 370,438  401,443  413,311Total equity and liabilities$879,435 $802,727 $592,064  InterimConsolidated Statements of Changes inEquity   ATTRIBUTABLE TOSHAREHOLDERS OFCANAM GROUP INC.                        (in thousands of Canadian dollars)(unaudited)Employeebenefits paidin equityinstruments Exchangedifferencesresulting fromthe translationof foreignoperations Available-for-salefinancialassets Debentureconversionoptions Total otherequityitems Share capital Retained earnings Total equity Balance as at January 1, 2010$4,038 $- - $449 $- - $4,487 $178,024 $230,800 $413,311Net income for the period - -  - -  - -  - -  - -  - -  69  69Comprehensive loss - -  (3,876)  279  - -  (3,597)  - -  - -  (3,597)Dividends - -  - -  - -  - -  - -  - -  (5,368)  (5,368)Issuance of shares pursuant to options (4)  - -  - -  - -  (4)  129  - -  125Shares 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 - -  - -  - -  - -  - -  (69)  - -  (69)Excess of acquisition cost over carrying amount of acquired common shares - -  - -  - -  - -  - -  - -  (59)  (59)Amortization of compensation costs related to the profit sharing program - stock ownership component 1,038  - -  - -  - -  1,038  - -  - -  1,038Balance as at September 25, 2010$3,690 $(3,876) $728 $- - $542 $179,102 $225,442 $405,086Balance as at January 1, 2011$4,035 $(11,133) $798 $5,764 $(536) $179,102 $222,877 $401,443Net loss for the period - -  - -  - -  - -  - -  - -  (35,796)  (35,796)Comprehensive income - -  7,970  (35)  - -  7,935  - -  - -  7,935Dividends - -  - -  - -  - -  - -  - -  (3,592)  (3,592)Issuance of shares pursuant to options (13)  - -  - -  - -  (13)  57  - -  44Shares 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 560  - -  - -  - -  560  - -  - -  560Balance as at September 24, 2011$2,772 $(3,163) $763 $5,764 $6,136 $180,883 $183,419 $370,438 Interim Consolidated Statements of Cash Flows            Periods ended September 24, 2011 and September 25, 2010            Three months Nine months(in thousands of Canadian dollars) (unaudited)2011 2010 2011 2010Cash flows from the following activities:           Operating activities           Net earnings (loss)$9,742 $2,401 $(35,796) $69Adjustments:            Amortization of compensation costs related to the profit sharing program - stock ownership component 187  347  560  1,038 Impairment of goodwill 8,980  - -  8,980  - - Gain on revaluation of balances of purchase price of businesses (9,127)  - -  (9,127)  - - Gain on revaluation of investments - -  - -  - -  (3,888) Gain on disposal of investments - -  (439)  - -   (448) Loss (gain) on disposal of property, plant and equipment (9)  198  (230)  (35) Depreciation of property, plant and equipment 5,110  4,671  15,117  13,525 Amortization of intangible assets 360  631  1,627  2,846 Amortization of deferred financing expenses 123  62  367  179 Provisions 75  (399)  87  (1,088) Interest rate swaps 352  - -  543  - - Imputed interest 837  419  2,508  954 Pension expense 184  (148)  383  (586) Deferred tax expense (1,648)  (1,728)  (7,952)  (6,628) Share of loss of joint ventures and associates (219)  (363)  (457)  (387)  14,947  5,652  (23,390)  5,551Net change in non-cash operating working capital items            Decrease in the short-term investment pledged as collateral 7,721  - -  7,721  - - Increase in accounts receivable (12,781)  (36,306)  (29,422)  (48,747) Increase in inventories (1,929)  (6,459)  (25,487)  (34,526) Decrease (increase) in current tax assets 756  5,217  (10,722)  4,994 Decrease in prepaid expenses and other assets 209  177  227  724 Increase in accounts payable and accrued liabilities 6,976  32,661  26,240  43,005 Decrease in provisions (7,691)  - -  (3,760)  - - Increase in interest payable 1,223  558  1,220  1,144 Increase (decrease) in current tax liabilities (23)  (239)  92  (722)  (5,539)  (4,391)  (33,891)  (34,128)Cash flows from continuing operating activities 9,408  1,261  (57,281)  (28,577)Financing activities           Shares purchased by a trust in employees' name on the secondary market - -  - -  - -  (364)Repurchase of shares - -  - -  (156)  (127)Proceeds from issuance of shares - -  - -  44  125Dividends (1,796)  (1,764)  (3,592)  (3,578)Increase in debt and bank loans 16,287  20,599  107,586  74,626Repayment of debt and bank loans (10,777)  (991)  (15,081)  (3,636)Repayment of balances of purchase price of businesses (121)  (2,630)  (7,177)  (2,630)Issue expenses related to debt and debenture (74)  - -  (842)  - -Other liabilities (164)  (190)  (570)  (167)Cash flows from continuing financing activities 3,355  15,024  80,212  64,249Investing activities           Proceeds from sale of property, plant and equipment 14  72  80  579Additions to property, plant and equipment (3,495)  (10,550)  (14,810)  (27,543)Additions to intangible assets (39)  (143)  (345)  (328)Acquisition of investments - -  - -  - -  (120)Proceeds from disposal of investments - -  1,500  - -  1,503Dividend received from a joint venture 225     225   Decrease in receivables and other assets 590  2,868  752  4,583Increase in receivables and other assets - -  (67)  (52)  (135)Business acquisitions, net of cash acquired - -  (15,601)  - -  (54,285)Cash flows from continuing investing activities (2,705)  (21,921)  (14,150)  (75,746)Effects of changes in foreign exchange rate on cash and cash equivalents (54)  105  189  (583)Net change in cash from continuing operations 10,004  (5,531)  8,970  (40,657)Cash flows from discontinued operations            Operating activities - -  - -  - -  123 Investing activities - -  - -  - -  15  - -  - -  - -  138Cash and cash equivalents - Beginning of period 7,496  22,481  8,530  57,469Cash and cash equivalents - End of period$17,500 $16,950 $17,500 $16,950Supplementary information            Interest paid$2,084 $1,097 $6,018 $3,116 Income taxes paid (recovered), net$184 $(3,960) $(2,937) $(3,363)   For further information: François Bégin Vice President, Communications Tel.: 450-641-4000 Email:   francois.begin@canamgroup.ws   www.canamgroup.ws