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Press release from CNW Group

Canam Group Posts a Net Income of $3M for the First Quarter of 2013

Thursday, April 25, 2013

Canam Group Posts a Net Income of $3M for the First Quarter of 2013

09:49 EDT Thursday, April 25, 2013

SAINT-GEORGES, QC, April 25, 2013 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), specialized in the design and fabrication of construction products, today announced at the close of its 29th Annual General Meeting of Shareholders that the Corporation recorded a net income of $3M, or $0.07 per share, for the first quarter ended March 30, 2013, compared with a net loss of $1.3M, or $0.03 per share, for the same period last year. Consolidated sales totaled $209.8M compared with $208.3M in 2012.

Canam Group President and Chief Executive Officer Marc Dutil stated the increased profit margins and the level of sales during the first quarter of 2013 were encouraging signs given that the winter months are historically the least profitable period of the year in the construction industry. Moreover, results for the first quarter of 2012 included a non-recurring gain of $1.8M, which illustrates the extent of the turnaround between these two quarters. He added that the improved results are largely attributable to joist and steel deck sales, but also to bridge and light structural steel activities.

As at March 30, 2013, Canam Group's backlog of orders stood at $575M compared with $493M as at December 31, 2012, representing an increase of 17%.

About Canam Group Inc.
Canam Group is the largest fabricator of steel components in North America. Specialized in designing construction solutions and fabricating customized products since 1961, Canam Group takes part in an average of 10,000 construction projects each year in three activity sectors: buildings, structural steel and bridges. The Corporation operates 20 plants across North America and employs 3,400 people in Canada, the United States, Romania, India and Hong Kong. 

Conference call
Canam Group will hold a conference call with financial analysts and media representatives on Thursday, April 25, 2013 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 9, 2013 by dialing 1-800-408-3053 and entering access code 1115138, followed by the pound key (#).

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)

Periods ended March 30, 2013 and March 31, 2012

(in thousands of Canadian dollars)
(unaudited)
  Three months
  2013     2012
Revenues $ 209,752   $ 208,294
Cost of sales, excluding depreciation and amortization(1)   176,469     183,810
Selling and administrative expenses   20,108     20,408
Profit sharing program   250     210
Depreciation of property, plant and equipment   5,306     5,293
Amortization of intangible assets   377     356
Other gains — net   (119)     (1,755)
    7,361     (28)
Finance costs   3,749     4,500
Finance revenue   (306)     (1,044)
Share of income of joint ventures and associates   (304)     (391)
Income (loss) before income tax   4,222     (3,093)
Tax expense (income)          
  Current   1,117     77
  Deferred   132     (1,853)
    1,249     (1,776)
Net income (loss) $ 2,973   $ (1,317)
           
Net earnings (loss) per share          
  Basic $ 0.07   $ (0.03)
  Diluted $ 0.07   $ (0.03)
           
Weighted average number of common shares (in thousands of shares)          
  Basic   41,939     43,307
  Diluted   42,085     43,413
Number of common shares outstanding (in thousands of shares)   42,073     43,195

(1)   Cost of sales, including depreciation and amortization, was $181,182 as at March 30, 2013 and $188,319 as at March 31, 2012.



CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Periods ended March 30, 2013 and March 31, 2012

(in thousands of Canadian dollars)
(unaudited)
  Three months
  2013     2012
Net income (loss) $ 2,973   $ (1,317)
Other comprehensive income (loss):          
  Items that may be reclassified subsequently to net income          
  Change in unrealized gains (losses) on translating foreign operations   4,064     (4,142)
           
  Available-for-sale assets:          
    Unrealized gains on available-for-sale assets arising during the period   27     135
    Reclassified to statements of income (loss)   (39)     (274)
    Tax expense   2     18
    (10)     (121)
Other comprehensive income (loss)   4,054     (4,263)
Comprehensive income (loss) $ 7 027   $ (5,580)



CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(in thousands of Canadian dollars)
(unaudited)
  As at
March 30,
2013
  As at
December 31,
2012
Assets          
Current assets          
Cash and cash equivalents $ 3,641   $ 6,787
Accounts receivable   281,425     273,383
Inventories   113,472     113,217
Recoverable tax assets   124     122
Prepaid expenses and other assets   5,242     3,040
    403,904     396,549
Property, plant and equipment classified as held for sale   1,497     1,466
    405,401     398,015
Non-current assets          
Investments   5,724     6,036
Ownership interests in joint ventures and associates   42,777     44,316
Property, plant and equipment   283,026     282,556
Intangible assets   9,892     9,563
Goodwill   38,088     38,088
Deferred tax assets   7,941     7,897
Long-term receivables and other assets   17,304     17,656
Total assets $ 810,153   $ 804,127
Liabilities          
Current liabilities          
Accounts payable and accrued liabilities $ 157,204   $ 148,202
Current tax liabilities   2,807     6,942
Current portion of long-term debt   10,510     10,382
Current portion of balances of purchase price of businesses   6,009     8,988
    176,530     174,514
Non-current liabilities          
Debt   173,637     175,605
Convertible debentures   63,879     63,446
Provisions   2,148     2,156
Deferred tax liabilities   8,628     8,629
Other liabilities   16,730     17,592
Total liabilities   441,552     441,942
Equity          
Share capital   168,057     168,529
Retained earnings   200,105     197,148
Other equity items   439     (3,492)
Total equity   368,601     362,185
Total equity and liabilities $ 810,153   $ 804,127



CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands of Canadian dollars)
(unaudited)
  Employee
benefits paid
in equity
instruments
Exchange
differences
resulting from
the translation
of foreign
operations
Available-for-
sale financial
assets
Debenture
conversion
options
Total other
equity items
Share capital Retained
earnings
Total equity
Balance as at January 1, 2012   $ 2,928 $ (6,408) $ 840 $ 5,764 $ 3,124 $ 172,869 $ 184,774 $ 360,767
Net 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   - -   - -   56
Balance as at March 31, 2012   $ 1,824 $ (10,550) $ 719 $ 5,764 $ (2,243) $ 173,038 $ 183,226 $ 354,021
Balance as at January 1, 2013   $ 1,994 $ (11,941) $ 691 $ 5,764 $ (3,492) $ 168,529 $ 197,148 $ 362,185
Net income for the period     - -   - -   - -   - -   - -   - -   2,973   2,973
Comprehensive income     - -   4,064   (10)   - -   4,054   - -   - -   4,054
Shares purchased by a trust in employees' name on the secondary market     - -   - -   - -   - -   - -   (651)   - -   (651)
Shares acquired by employees     (202)   - -   - -   - -   (202)   202   - -   - -
Repurchase of shares     - -   - -   - -   - -   - -   (23)   - -   (23)
Excess of acquisition cost over carrying amount of acquired common shares     - -   - -   - -   - -   - -   - -   (16)   (16)
Amortization of compensation costs related to the profit sharing program - stock ownership component     79   - -   - -   - -   79   - -   - -   79
Balance as at March 30, 2013   $ 1,871 $ (7,877) $ 681 $ 5,764 $ 439 $ 168,057 $ 200,105 $ 368,601



CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

Periods ended March 30, 2013 and March 31, 2012

(in thousands of Canadian dollars)   Trois mois
(unaudited)   2013     2012
Cash flows from the following activities:          
Operating activities          
Net income (loss) $ 2,973   $ (1,317)
Adjustments:          
  Amortization of compensation costs related to the profit sharing program - stock ownership component   79     56
  Loss on revaluation of balances of purchase price of businesses   65     - -
  Gain on disposal of investments   (39)     (262)
  Loss (gain) on disposal of property, plant and equipment   3     (10)
  Depreciation of property, plant and equipment   5,306     5,293
  Amortization of intangible assets   377     356
  Amortization of deferred financing expenses   82     61
  Provisions   (8)     27
  Interest rate swaps   (92)     (73)
  Imputed interest   589     657
  Pension expense   (804)     (862)
  Deferred tax expense   132     (1,853)
  Share of income of joint ventures and associates   (304)     (391)
    8,359     1,682
Net change in non-cash operating working capital items          
Decrease (increase) in accounts receivable   (2,751)     43,509
Decrease in inventories   980     5,591
Decrease in current tax assets   - -     741
Increase in prepaid expenses and other assets   (2,152)     (197)
Increase (decrease) in accounts payable and accrued liabilities   5,197     (9,768)
Increase in interest payable   1,136     1,248
Increase (decrease) in current tax liabilities   (4,138)     34
    (1,728)     41,158
Cash flows from operating activities   6,631     42,840
Financing activities          
Shares purchased by a trust in employees' name on the secondary market   (651)     - -
Repurchase of shares   (39)     (1,222)
Increase in debt and bank loans   2,150     579
Repayment of debt and bank loans   (5,330)     (28,847)
Repayment of balances of purchase price of businesses   (3,326)     (6,684)
Increase in other liabilities   - -     8
Cash flows from financing activities   (7,196)     (36,166)
Investing activities          
Proceeds from sale of property, plant and equipment   47     11
Additions to property, plant and equipment   (2,817)     (1,353)
Additions to intangible assets   (655)     (46)
Acquisition of investments   - -     (2,620)
Proceeds from disposal of investments   337     322
Distributions received   - -     175
Decrease in receivables and other assets   339     520
Cash flows from investing activities   (2,749)     (2,991)
Effects of changes in foreign exchange rate on cash and cash equivalents   168     (192)
Net change in cash   (3,146)     3,491
           
Cash and cash equivalents - Beginning of year   6,787     7,368
Cash and cash equivalents - End of year $ 3,641   $ 10,859
Supplementary information          
  Interest paid $ 1,455   $ 679
  Income taxes paid (recovered), net $ 5,268   $ (690)

 

 

SOURCE: CANAM GROUP INC.

For further information:


François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: 418-225-1355
Email: francois.begin@canamgroup.ws

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