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Press release from CNW Group

Canam Group Posts a Net Income of $17M in 2012

Wednesday, February 20, 2013

Canam Group Posts a Net Income of $17M in 201214:47 EST Wednesday, February 20, 2013BOUCHERVILLE, QC, Feb. 20, 2013 /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, 2012 with a net income of $17M, or $0.40 per share, compared with a net loss of $32.5M, or $0.72 per share, in 2011. Consolidated sales totaled $905.4M, up 2.8% from $881M in 2011. The 2011 financial results contained a $25M after-tax provision that was recognized in the first quarter for the BC Place project.In the fourth quarter of 2012, net income totaled $7.4M, or $0.18 per share, compared with $3.3M, or $0.07 per share, for the corresponding period in 2011. Consolidated sales in the fourth quarter came to $238.5M.As at December 31, 2012, Canam Group's backlog of orders stood at $493M compared with $462M at the end of 2011.Canam Group President and Chief Executive Officer Marc Dutil explained that the increase in sales in 2012 is primarily attributable to joist and steel deck activities in Canada and the United States, and to FabSouth. Enhanced profit margins in joist, steel deck, structural steel and bridge activities largely account for the improved results in 2012.Sale of ownership interests in joint ventures At the very end of 2012, Canam Group sold its ownership interest held since 2007 in Chinese company United Steel Structures Limited (USSL) for a total consideration of US$13.5M. This transaction is in line with the Corporation's strategy to dispose of certain investments in order to focus on its core activities in North America. It follows the sale of its ownership interest in the Canadian joint venture, Amcan-Jumax, and the Canam Asia joint venture in 2012.Repurchase of sharesIn 2012, Canam Group took advantage of the share buyback program authorized by the Toronto Stock Exchange to acquire 1,346,588 common shares at an average price of $5.04 per share. A total of 3,258,488 common shares have been acquired and cancelled since the start of the program on November 1, 2011. As at December 31, 2012, the book value of the Corporation's 42,079,145 outstanding common shares was $8.61 per share.About Canam Group Inc.Canam Group is a manufacturing company that operates 20 plants across North America. Specialized in designing construction solutions and fabricating customized products since 1961. Canam Group takes part in close to 10,000 construction projects each year in three activity sectors: buildings, structural steel and bridges. The Corporation employs close to 3,500 people in Canada, the United States, Romania, India and Hong Kong. Conference callCanam Group will hold a conference call with financial analysts and media representatives on Wednesday, February 20, 2013 at 4:30 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 March 7, 2013 by dialing 1-800-408-3053 and entering access code 3303467, followed by the pound key (#).CONSOLIDATED STATEMENTS OF INCOME (LOSS)Periods and Years ended December 31 Three-month periodsYears(in thousands of Canadian dollars, except per share amounts) 2012 2011 2012 2011Revenues$238,471$286,319$905,400$881,028Cost of sales, excluding depreciation and amortization (1) 194,395 248,211 767,917 821,835Selling and administrative expenses 23,217 24,249 83,094 86,557Profit sharing program 1,963 707 3,123 932Depreciation of property, plant and equipment 5,262 5,205 20,952 20,322Amortization of intangible assets 357 359 1,449 1,986Other losses (gains) — net (1,480) 449 (5,935) (11,117)  14,757 7,139 34,800 (39,487)Finance costs 3,899 4,844 16,746 18,322Finance revenue (383) (422) (2,144) (1,881)Impairment of goodwill - - 2,346 - - 11,326Gain on revaluation of balances of purchase price of businesses - - (2,155) - - (11,282)Share of loss (income) of joint ventures and associates 468 (1,007) 120 (1,464)Income (loss) before income tax 10,773 3,533 20,078 (54,508)Tax expense (income)         Current (recovered) 2,209 (827) 5,541 (15,120) Deferred 1,179 1,072 (2,497) (6,880)  3,388 245 3,044 (22,000)Net income (loss)$7,385$3,288$17,034$(32,508)         Net earnings (loss) per share         Basic$0.18$0.07$0.40$(0.72) Diluted$0.18$0.07$0.40$(0.72)         Weighted average number of common shares (in thousands of shares)         Basic 42,012 44,710 42,562 45,097 Diluted 42,085 44,825 42,633 45,218Number of common shares outstanding (in thousands of shares)     42,079 43,440(1)As at December 31, 2012 and 2011, the cost of sales, including depreciation and amortization, totaled $198,760and $252,655, respectively, for the three-month periods, and $785,673 and $839,292, respectively, for the years.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)Periods and years ended December 31 Three-month periodsYears(in thousands of Canadian dollars) 2012 2011 2012 2011Net income (loss)$7,385$3,288$17,034$(32,508)Other comprehensive income (loss):         Change in unrealized gains (losses) on translating foreign operations 3,379 (3,245) (5,533) 4,725          Defined benefit plans:          Actuarial losses of the defined benefit plan (4,502) (4,648) (4,502) (4,648)  Tax income 1,183 1,217 1,183 1,217  (3,319) (3,431) (3,319) (3,431)Available-for-sale assets:         Unrealized gains on available-for-sale assets arising during the periods and years 40 90 103 50 Reclassified to statements of income (loss) - - - - (274) - - Tax income (expense) (6) (12) 22 (7)  34 78 (149) 43Other comprehensive income (loss) 94 (6,598) (9,001) 1,337Comprehensive income (loss)$7,479$(3,310)$8,033$(31,171)CONSOLIDATED BALANCE SHEETS(in thousands of Canadian dollars)As atDecember 31,2012As atDecember 31,2011Assets    Current assets    Cash and cash equivalents$6,787$7,368Accounts receivable 273,383 304,551Inventories 113,217 111,955Recoverable tax assets 122 16,588Prepaid expenses and other assets 3,040 4,063  396,549 444,525Property, plant and equipment classified as held for sale 1,466 1,498  398,015 446,023Non-current assets    Investments 6,036 4,959Ownership interests in joint ventures and associates 44,316 61,954Property, plant and equipment 282,556 279,554Intangible assets 9,563 9,772Goodwill 38,088 38,930Deferred tax assets 7,897 4,472Long-term receivables and other assets 17,656 21,820Total assets$804,127$867,484Liabilities    Current liabilities    Bank loans$- -$32,761Accounts payable and accrued liabilities 148,202 169,110Current tax liabilities 6,942 165Current portion of long-term debt 10,382 37,038Current portion of balances of purchase price of businesses 8,988 7,315  174,514 246,389Non-current liabilities    Debt 175,605 163,782Balances of purchase price of businesses - - 8,768Convertible debentures 63,446 61,816Provisions 2,156 1,613Deferred tax liabilities 8,629 8,107Other liabilities 17,592 16,242Total liabilities 441,942 506,717Equity    Share capital 168,529 172,869Retained earnings 197,148 184,774Other equity items (3,492) 3,124Total equity 362,185 360,767Total equity and liabilities$804,127$867,484CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (in thousands of Canadian dollars)Employeebenefits paidin equityinstrumentsExchangedifferencesresulting fromthe translationof foreignoperationsAvailable-for-sale financialassetsDebentureconversionoptionsTotal otherequity itemsShare capitalRetainedearningsTotalequityBalance as at January 1, 2011$4,036$(11,133)$797$5,764$(536)$179,102$222,877$401,443Net loss for the year - - - - - - - - - - - - (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 acquisition cost over carrying amount 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$360,767Balance as at January 1, 2012$2,928$(6,408)$840$5,764$3,124$172,869$184,774$360,767Net income for the year - - - - - - - - - - - - 17,034 17,034Comprehensive loss - - (5,533) (149) - - (5,682) - - (3,319) (9,001)Shares acquired by employees (1,160) - - - - - - (1,160) 1,160 - - - -Repurchase of shares - - - - - - - - - - (5,500) - - (5,500)Excess of acquisition cost over carrying amount of acquired common shares - - - - - - - - - - - - (1,341) (1,341)Amortization of compensation costs related to the profit sharing program - stock ownership component 226 - - - - - - 226 - - - - 226Balance as at December 31, 2012$1,994$(11,941)$691$5,764$(3,492)$168,529$197,148$362,185CONSOLIDATED STATEMENTS OF CASH FLOWSPeriods and years ended December 31 Three-month periods Years(in thousands of Canadian dollars) 2012 2011 2012 2011Cash flows from the following activities:        Operating activities        Net income (loss)$7,385$3,288$17,034$(32,508)Adjustments:         Amortization of compensation costs related to the profit sharing program - stock ownership component 56 186 226 746 Impairment of goodwill - - 2,346 - - 11,326 Gain on revaluation of balances of purchase price of businesses - - (2,155) - - (11,282) Loss (gain) on disposal of investments 102 - - (2,259) - - Loss (gain) on disposal of property, plant and equipment 41 16 17 (214) Depreciation of property, plant and equipment 5,262 5,205 20,952 20,322 Amortization of intangible assets 357 359 1,449 1,986 Amortization of deferred financing expenses 80 99 276 466 Provisions 521 201 543 288 Interest rate swaps (15) (69) 32 474 Imputed interest 576 617 2,356 3,125 Pension expense (178) (1,045) (2,419) (662) Deferred tax expense (income) 1,179 1,072 (2,497) (6,880) Share of loss (income) of joint ventures and associates 468 (1,007) 120 (1,464)  15,834 9,113 35,830 (14,277)Net change in non-cash operating working capital items        Decrease in the investment pledged as collateral - - 2,449 - - 10,170Decrease (increase) in accounts receivable 16,527 (49,004) 36,524 (78,087)Decrease (increase) in inventories (10,213) 22,085 (2,507) (3,741)Decrease (increase) in current tax assets 223 (1,668) 16,460 (12,390)Decrease (increase) in prepaid expenses and other assets 658 (574) 976 (347)Increase (decrease) in accounts payable and accrued liabilities (11,978) 3,721 (18,497) 29,961Decrease in provisions - - (2,740) - - (6,500)Increase (decrease) in interest payable 151 (1,222) (9) (2)Increase in current tax liabilities 5,858 62 6,782 154  1,226 (26,891) 39,729 (60,782)Cash flows from operating activities 17,060 (17,778) 75,559 (75,059)Financing activities        Shares purchased by a trust in employees' name on the secondary market - - (318) - - (318)Repurchase of shares - - (6,229) (6,841) (6,385)Proceeds from issuance of shares - - - - - - 44Dividends - - - - - - (3,592)Increase in debt and bank loans 4,372 20,870 9,323 128,456Repayment of debt and bank loans (20,453) (2,584) (67,781) (17,665)Repayment of balances of purchase price of businesses (284) (1,689) (7,213) (8,866)Issue expenses related to debt and debenture (103) (8) (360) (850)Increase (decrease) in other liabilities - - (174) 63 (744)Cash flows from financing activities (16,468) 9,868 (72,809) 90,080Investing activities        Proceeds from sale of property, plant and equipment 44 12 278 92Additions to property, plant and equipment (3,463) (3,144) (8,706) (17,954)Additions to intangible assets (444) (61) (1,343) (406)Acquisition of investments (205) (468) (2,974) (468)Proceeds from disposal of investments 6,145 - - 11,317 - -Distributions received 380 150 645 375Decrease in receivables and other assets 2,798 1,130 5,092 1,882Increase in receivables and other assets - - - - - - (52)Business acquisitions, net of cash acquired (6,936) - - (6,936) - -Cash flows from investing activities (1,681) (2,381) (2,627) (16,531)Effects of changes in foreign exchange rate on cash and cash equivalents 389 159 (704) 348Net change in cash (700) (10,132) (581) (1,162)         Cash and cash equivalents - Beginning of periods and years 7,487 17,500 7,368 8,530Cash and cash equivalents - End of periods and years$6,787$7,368$6,787$7,368Supplementary information         Interest paid$3,348$6,327$9,171$12,345 Income taxes paid (recovered), net$(4,078)$70$(17,684)$(2,867)  SOURCE: CANAM GROUP INC.For further information: François Bégin Vice President, Communications Canam Group Inc. Telephone: 450-641-4000 Email:  francois.begin@canamgroup.ws