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Press release from CNW Group

Canam Group Reports a Net Income of $3.3M in the Fourth Quarter of 2011

Wednesday, February 15, 2012

Canam Group Reports a Net Income of $3.3M in the Fourth Quarter of 201106:30 EST Wednesday, February 15, 2012BOUCHERVILLE, QC, Feb. 15, 2012 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), which specializes in the design and fabrication of construction products, closed its recent financial year ended December 31, 2011 with consolidated sales totaling $881M, up 20.2% from $732.7M in 2010.The Corporation incurred a net loss of $32.5M, or $0.72 per share, compared with a net income of $1.1M, or $0.02 per share, in 2010.Fourth-quarter net income totaled $3.3M, or $0.07 per share, compared with a net income of $1M, or $0.02 per share, for the corresponding period in 2010. Consolidated sales in the fourth quarter increased by 17.4%, from $243.8M in 2010 to $286.3M in 2011.Canam Group president and chief executive officer, Marc Dutil, explained that the increase in sales registered in 2011 is primarily attributable to Canam's activities in Canada and the integration of the activities of United Steel Deck. However, weak non-residential construction in the United States exerted downward pressure on profit margins on both sides of the border. Mr. Dutil added that the Corporation's 2011 financial results were mainly curtailed by the losses on the BC Place project, a non-recurring event.As at December 31, 2011, Canam Group's backlog of orders stood at $462M, compared with $485M at the end of 2010.As at December 31, 2011, pursuant to its normal course issuer bid that was authorized by the Toronto Stock Exchange (TSX), Canam Group had purchased 1,911,900 common shares at an average price of $3.26 per share. The book value per share as at December 31, 2011 was $8.30, whereas the closing price at the TSX on this same date was $4.10.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 Corporation operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has a manufacturing joint venture in China.Conference callCanam Group will hold a conference call with financial analysts and media representatives on Wednesday, February 15, 2012 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 February 29, 2012 by dialing 1-800-408-3053 and entering access code 6765860, followed by the pound key (#).Consolidated Statements of Income (Loss) Periods ended December 31 3 months 12 months(in thousands of Canadian dollars, except per share amounts) 2011 2010 2011 2010         Revenues$286,319$243,790$881,028$732,674Cost of sales, excluding depreciation and amortization 248,211 218,445 821,835 641,565Selling and administrative expenses 24,249 20,682 86,557 74,911Profit sharing programs 707 884 932 1,658Depreciation of property, plant and equipment 5,205 4,792 20,322 18,317Amortization of intangible assets 359 1,122 1,986 3,968Other losses (revenues) - nets 449 (273) (11,117)        (337)  7,139 (1,862) (39,487)   (7,408)Finance costs 4,844 3,689 18,322 8,709Finance incomes (422) (421)     (1,881) (2,280)Impairment of goodwill 2,346 - 11,326 -Gain on revaluation of balances of purchase price of businesses (2,155) - (11,282) -Gain (loss) on revaluation of investments - 78 -    (3,810)Gain on business acquisition - (7,464) -    (7,464)Share of income of joint ventures and associates (1,007)          123 (1,464)       (264)Income (loss) before income tax   3,533       2,133 (54,508)     (2,299)Tax expense (income)         Current (recovered) (827)   (1,837) (15,120)         290 Deferred    1,072      2,971 (6,880)    (3,657)        245 1,134 (22,000)    (3,367)Net income (loss) $3,288$999$(32,508)$     1,068         Net income (loss) per share         Basic$0.07$0.02$(0.72)$0.02 Diluted$0.07$0.02$(0.72)$0.02         Weighted average number of common shares (in thousands of shares)         Basic 44,710 45,208 45,097 45,207 Diluted 44,825 45,394 45,218 45,396Number of common shares outstanding     43,440 45,366                  Consolidated Statements of Comprehensive Income (Loss)         Periods ended December 31  3 months 12 months(in thousands of Canadian dollars) 2011 2010 2011 2010Net income (loss)$3,288$999$(32,508)$1,068Other comprehensive income (loss):         Change in unrealized gains (losses) on translating foreign operations (3,245) (7,257) 4,725 (11,133) Defined benefit pension plan:          Actuarial losses of the defined benefit pension plan (4,648) (2,395) (4,648) (2,395)  Tax income 1,217 621 1,217 621  (3,431) (1,774) (3,431) (1,774) Available-for-sale financial assets:          Unrealized gains on available-for-sale financial assets arising during the period 90 81 50 839  Reclassification in earnings - - - (421)  Tax expense (12) (12) (7) (70)  78 69 43 348Other comprehensive income (loss) (6,598) (8,962) 1,337 (12,559)Comprehensive loss $(3,310)$(7,963)$(31,171)$(11,491)Consolidated Balance Sheets         (in thousands of Canadian dollars)As atDecember 31,2011 As atDecember 31,2010 As atJanuary 1,2010         Assets        Current assets        Cash and cash equivalents$7,368 $8,530 $57,469Investment pledged as collateral -  9,946  -Accounts receivable 304,551  224,304  120,462Inventories 111,955  107,187  79,166Current tax assets 16,588  4,190  6,701Prepaid expenses and other assets 4,063  3,675  3,363Current assets of discontinued operations -  -  1,230  444,525  357,832  268,391Property, plant and equipment held for sale 1,498  1,465  1,549  446,023  359,297  269,940Non-current assets        Investments 4,959  4,895  16,677Ownership interests in joint ventures and associates 61,954  59,913  58,845Property, plant and equipment 279,554  280,292  211,956Intangible assets 9,772  11,156  1,127Goodwill 38,930  49,366  150Deferred tax assets 25,149  13,788  3,362Long-term receivables and other assets 21,820  24,020  21,389Non-current assets of discontinued operations -  -  8,618Total assets$888,161 $802,727 $592,064         Liabilities        Current liabilities        Bank loans$32,761 $8,454 $-Accounts payable and accrued liabilities 169,110  138,853  74,060Provisions -  6,500  -Current tax liabilities 165  56  580Current portion of long-term debt 37,038  8,855  5,477Current portion of balances of purchase price of businesses 7,315  10,043  -Current liabilities of discontinued operations -  -  1,495  246,389  172,761  81,612Non-current liabilities        Debt 163,782  104,388  62,212Balances of purchase price of businesses 8,768  24,173  -Convertible debentures 61,816  60,408  -Provisions 1,613  1,325  3,335Deferred tax liabilities 28,784  25,623  20,329Other liabilities 16,242  12,606  9,661Non-current liabilities of discontinued operations -  -  1,604Total liabilities 527,394  401,284  178,753         Equity        Share capital 172,869  179,102  178,024Retained earnings 184,774  222,877  230,800Other equity items 3,124  (536)  4,487Total equity 360,767  401,443  413,311Total equity and liabilities$888,161 $802,727 $592,064Consolidated Statements of Changes in Equity                        (in thousands of Canadian dollars)Employeebenefits paidin equityinstruments Exchangedifferencesresultingfromthe translationof foreignoperations Available-for-salefinancialassets Debentureconversionoptions Totalotherequityitems Sharecapital Retainedearnings TotalequityBalance as at January 1, 2010$4,038 $- $449 $- $4,487 $178,024 $230,800 $413,311Net income for the period -  -  -  -  -  -  1,068  1,068Comprehensive loss -  (11,133)  348  -  (10,785)  -  (1,774)  (12,559)Dividends -  -  -  -  -  -  (7,157)  (7,157)Issuance of shares pursuant to options (3)  -  -  -  (3)  129  -  126Shares 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 -  -  -  -  -  -        (60)  (60)Amortization of compensation costs related to the profit sharing program - stock ownership component 1,383  -  -  -  1,383  -  -  1,383Debenture conversion options -  -  -  5,764  5,764  -  -  5,764Balance as at December 31, 2010$4,036 $(11,133) $797 $5,764 $(536) $179,102 $222,877 $401,443Balance as at January 1, 2011$4,036 $(11,133) $797 $5,764 $(536) $179,102 $222,877 $401,443Net loss for the period -  -  -  -  -  -  (32,508)  (32,508)Comprehensive income -  4,725  43  -  4,768  -  (3,431)  1,337Dividends -  -  -  -  -  -  (3,592)  (3,592)Issuance of shares pursuant to options (13)  -  -  -  (13)  57  -  44Shares purchased by a trust in employees' name on the secondary market -  -  -  -  -  (318)  -  (318)Shares acquired by employees (1,841)  -  -  -  (1,841)  1,841  -  -Repurchase of shares -  -  -  -  -  (7,813)  -  (7,813)Excess of carrying amount over acquisition cost of acquired common shares -  -  -  -  -  -  1,428  1,428Amortization of compensation costs related to the profit sharing program - stock ownership component 746  -  -  -  746  -  -  746Balance as at December 31, 2011$2,928 $(6,408) $840 $5,764 $3,124 $172,869 $184,774 $360,767Consolidated Statements of Cash Flows            Periods ended December 31            3 months 12 months(in thousands of Canadian dollars)2011 2010 2011 2010Cash flows from the following activities:           Operating activities           Net earnings (loss)$3,288 $999 $(32,508) $1,068Adjustments:            Amortization of compensation costs related to the profit sharing program - stock ownership component 186  345  746  1,383 Impairment of goodwill 2,346  -  11,326  - Gain on revaluation of balances of purchase price of businesses (2,155)  -  (11,282)  - Gain on revaluation of investments -  78  -  (3,810) Gain on business acquisition -  (7,464)  -  (7,464) Gain on disposal of investments -  -  -  (448) Loss (gain) on disposal of property, plant and equipment 16  152  (214)  117 Depreciation of property, plant and equipment 5,205  4,792  20,322  18,317 Amortization of intangible assets 359  1,122  1,986  3,968 Amortization of deferred financing expenses 99  55  466  234 Provisions 201  405  288  (683) Interest rate swaps (69)  279  474  279 Imputed interest 617  1,067  3,125  2,021 Pension expense (1,045)  (378)  (662)  (964) Deferred tax expense 1,072  2,971  (6,880)  (3,657) Share of loss of joint ventures and associates (1,007)  123  (1,464)  (264)  9,113  4,546  (14,277)  10,097Net change in non-cash operating working capital items            Decrease (increase) in the short-term investment pledged as collateral 2,449  (9,946)  10,170  (9,946) Increase in accounts receivable (49,004)  (8,589)  (78,087)  (60,687) Decrease (increase) in inventories 22,085  14,724  (3,741)  (16,451) Decrease (increase) in current tax assets (1,668)  (4,180)  (12,390)  814 Decrease (increase) in prepaid expenses and other assets (574)  31  (347)  755 Increase (decrease) in accounts payable and accrued liabilities 3,721  (33,910)    29,961  9,095 Increase (decrease) in provisions (2,740)  6,500  (6,500)  6,500 Increase (decrease) in interest payable (1,222)  (228)  (2)  916 Increase (decrease) in current tax liabilities 62  475  154  (247)  (26,891)  (35,123)  (60,782)  (69,251)Cash flows from continuing operating activities (17,778)  (30,577)  (75,059)  (59,154)Financing activities           Shares purchased by a trust in employees' name on the secondary market (318)  -  (318)  (364)Repurchase of shares (6,229)  -  (6,385)  (127)Proceeds from issuance of shares -  -  44  125Dividends -  (3,579)  (3,592)  (7,157)Increase in debt and bank loans 20,870  38,116  128,456  112,742Repayment of debt and bank loans (2,584)  (62,643)  (17,665)  (66,279)Repayment of balances of purchase price of businesses (1,689)  (2,587)  (8,866)  (5,217)Issuance of debenture -  66,240  - -   66,240Issue expenses related to debt and debenture (8)    (618)  (850)  (618)Other liabilities (174)  (756)  (744)  (923)Cash flows from continuing financing activities 9,868  34,173  90,080  98,422Investing activities           Proceeds from sale of property, plant and equipment 12  (115)  92  464Additions to property, plant and equipment (3 144)  (11,269)  (17,954)  (38,812)Additions to intangible assets (61)  (88)  (406)  (416)Acquisition of investments (468)  -  (468)  (120)Proceeds from disposal of investments -  -  -  1,503Distributions received from a joint venture and an associate 150  529  375  529Decrease in receivables and other assets 1,130  624  1,882  5,207Increase in receivables and other assets -  (41)  (52)  (176)Business acquisitions, net of cash acquired -  146  -  (54,139)Cash flows from continuing investing activities (2,381)  (10,214)  (16,531)  (85,960)Effects of changes in foreign exchange rate on cash and cash equivalents 159  (1,802)  348  (2,385)Net change in cash from continuing operations (10,132)  (8,420)  (1,162)  (49,077)Cash flows from discontinued operations            Operating activities -  -  -  124 Investing activities -  -  -  14  -  -  -  138Cash and cash equivalents - Beginning of period 17,500  16,950  8,530  57,469Cash and cash equivalents - End of period$7,368 $8,530 $7,368 $8,530Supplementary information            Interest paid$6,327 $1,898 $12,345 $5,014 Income taxes paid (recovered), net$70 $1,510 $(2,867) $(1,853)  For further information: François Bégin Vice President, Communications Telephone: 450-641-4000 Email:  francois.begin@canamgroup.ws Website: www.canamgroup.ws