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Press release from CNW Group

First Quarter revenues increase 38% at Canam Group while net loss is reduced to $1.3M

Friday, April 27, 2012

First Quarter revenues increase 38% at Canam Group while net loss is reduced to $1.3M10:33 EDT Friday, April 27, 2012SAINT-GEORGES, QC, April 27, 2012 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced a net loss of $1.3M, or $0.03 per share, for the first quarter ended March 31, 2012, compared with a net loss of $39.7M, or $0.88 per share, for the same quarter in 2011. Consolidated revenue increased by 38% to $208.3M as compared to $150.6M for the year-earlier quarter.Canam Group president and chief executive officer Marc Dutil explained that the sales growth and higher profit margins in the first quarter are encouraging signs given that the winter months are historically the least profitable period of the year in the construction industry. He added that the increase in revenue is mainly attributable to joist and steel deck sales.As at March 31, 2012, Canam Group's backlog of orders stood at $421M, down 9% from $462M as at December 31, 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 Corporation operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has ownership interests in companies located in China and France.Conference callCanam Group will hold a conference call with financial analysts and media representatives on Friday, April 27, 2012 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 11, 2012 by dialing 1-800-408-3053 and entering access code 6765860, followed by the pound key (#).CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)  Periods ended March 31, 2012 and March 26, 2011  (in thousands of Canadian dollars, except per share amounts) Three months(unaudited) 2012 2011Revenues$208,294$150,635Cost of sales, excluding depreciation and amortization (1) 183,810 176,135Selling and administrative expenses 20,408 22,322Profit sharing programs 210 98Depreciation of property, plant and equipment 5,293 4,949Amortization of intangible assets 356 872Other losses (gains) - net (1,755) 301  (28) (54,042)Finance costs 4,500 3,331Finance revenue (1,044) (405)Share of loss (income) of joint ventures and associates (391) 221Loss before income tax (3,093) (57,189)Tax income     Current (recovered) 77 (13,278) Deferred (1,853) (4,174)  (1,776) (17,452)Net loss$(1,317)$(39,737)     Net loss per share     Basic$(0.03)$(0.88) Diluted$(0.03)$(0.88)     Weighted average number of common shares (in thousands of shares)     Basic 43,307 45,237 Diluted 43,413 45,390Number of common shares outstanding (in thousands of shares) 43,195 45,350(1) Cost of sales including depreciation and amortization was $188,319 as at March 31, 2012 and $180,445 as at March 26, 2011.CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS   Periods ended March 31, 2012 and March 26, 2011  (in thousands of Canadian dollars) Three months (unaudited) 2012 2011Net loss$(1,317)$(39,737)Other comprehensive loss:     Change in unrealized losses on translating foreign operations (4,142) (1,804)Available-for-sale assets:     Unrealized gains on available-for-sale assets arising during the period 135 108 Reclassified to statements of income (loss) (274) - Tax expense (recovery) 18 (14)  (121) 94Other comprehensive loss (4,263) (1,710)Comprehensive loss $(5,580)$(41,447)CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS  (in thousands of Canadian dollars)(unaudited)As atMarch 31,2012As atDecember 31,2011Assets    Current assets    Cash and cash equivalents$10,859$7,368Accounts receivable 259,475 304,551Inventories 105,266 111,955Recoverable tax assets 15,840 16,588Prepaid expenses and other assets 4,221 4,063  395,661 444,525Assets held for sale 6,564 1,498  402,225 446,023Non-current assets    Investments 6,110 4,959Ownership interests in joint ventures and associates 56,684 61,954Property, plant and equipment 272,752 279,554Intangible assets 9,285 9,772Goodwill 38,187 38,930Deferred tax assets 26,805 25,149Long-term receivables and other assets 21,286 21,820Total assets$833,334$888,161Liabilities    Current liabilities    Bank loans$25,935$32,761Accounts payable and accrued liabilities 158,688 169,110Current tax liabilities 200 165Current portion of long-term debt 16,629 37,038Current portion of balances of purchase price of businesses 3,564 7,315  205,016 246,389Non-current liabilities    Debt 161,475 163,782Balances of purchase price of businesses 5,700 8,768Convertible debentures 62,209 61,816Provisions 1,640 1,613Deferred tax liabilities 28,650 28,784Other liabilities 14,623 16,242Total liabilities 479,313 527,394Equity    Share capital 173,038 172,869Retained earnings 183,226 184,774Other equity items (2,243) 3,124Total equity 354,021 360,767Total equity and liabilities$833,334$888,161CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY         (in thousands of Canadiandollars) (unaudited) Employeebenefits paid inequityinstrumentsExchangedifferencesresulting fromthe translationof foreignoperationsAvailable-for-sale financialassetsDebentureconversionoptionsTotal other equity itemsShare capitalRetainedearningsTotal equityBalance 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 income  - (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$358,264Balance as at January 1, 2012 $2,928$(6,408)$840$5,764$3,124$172,869$184,774$360,767Net loss for the period  - - - - - - (1,317) (1,317)Comprehensive loss  - (4,142) (121) - (4,263) - - (4,263)Shares acquired by employees  (1,160) - - - (1,160) 1,160 - -Repurchase of shares  - - - - - (991) - (991)Excess of acquisition cost over carrying amount of acquired common shares  - - - - - - (231) (231)Amortization of compensation costs related to the profit sharing program - stock ownership component  56 - - - 56 - - 56Balance as at March 31, 2012 $1,824$(10,550)$719$5,764$(2,243)$173,038$183,226$354,021 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS Periods ended March 31, 2012 and March 26, 2011 (in thousands of Canadian dollars)  Three months (unaudited) 2012 2011Cash flows from the following activities:     Operating activities     Net loss  $(1,317) $(39,737)Adjustments:      Amortization of compensation costs related to the profit sharing program - stock ownership component  56 186 Gain on disposal of investments  (262) - Gain on disposal of property, plant and equipment  (10) (92) Depreciation of property, plant and equipment  5,293 4,949 Amortization of intangible assets  356 872 Amortization of deferred financing expenses  61 112 Provisions  27 21 Interest rate swaps  (73) (117) Imputed interest  657 495 Pension expense  (862) 53 Deferred tax expense  (1,853) (4,174) Share of loss (income) of joint ventures and associates  (391) 221   1,682 (37,211)Net change in non-cash operating working capital item     Decrease in accounts receivable  43,509  38,895Decrease (increase) in inventories  5,591 (14,420)Decrease (increase) in current tax assets  741 (11,508)Increase in prepaid expenses and other assets  (197) (1,097)Increase (decrease) in accounts payable and accrued liabilities  (9,768) 10,564Increase in interest payable  1,248 1,253Increase in current tax liabilities  34 105  41,158 23,792Cash flows from operating activities  42,840 (13,419)Financing activities     Repurchase of shares  (1,222) (156)Proceeds from issuance of shares  - 34Dividends  - (1,796)Increase in debt and bank loans  579 30,402Repayment of debt and bank loans  (28,847) (1,793)Repayment of balances of purchase price of businesses  (6,684) (6,892)Issue expenses related to debt and debenture  - (595)Other liabilities  8 (211)Cash flows from financing activities  (36,166) 18,993Investing activities     Proceeds from sale of property, plant and equipment  11 47Additions to property, plant and equipment  (1,353) (6,206)Additions to intangible assets  (46) (245)Acquisition of investments  (2,620) -Proceeds from disposal of investments  322 -Distribution received from a joint venture  175 -Decrease in receivables and other assets  520 81Increase in receivables and other assets  - (50)Cash flows from investing activities  (2,991) (6,373)Effects of changes in foreign exchange rate on cash and cash equivalents  (192) 29     Net change in cash from operations  3,491 (770)Cash and cash equivalents - Beginning of period  7,368 8,530Cash and cash equivalents - End of period  $10,859 $7,760Supplementary information      Interest paid  $679 $1,290 Income taxes recovered, net  $(690) $(1,067)   For further information: François Bégin Vice President, Communications Tel.: 418-228-8031 Email:  francois.begin@canamgroup.ws www.canamgroup.ws