SAINT-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 call
Canam 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 (#).
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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 | 2011 | |||
| Revenues | $ | 208,294 | $ | 150,635 | |
| Cost of sales, excluding depreciation and amortization (1) | 183,810 | 176,135 | |||
| Selling and administrative expenses | 20,408 | 22,322 | |||
| Profit sharing programs | 210 | 98 | |||
| Depreciation of property, plant and equipment | 5,293 | 4,949 | |||
| Amortization of intangible assets | 356 | 872 | |||
| Other losses (gains) - net | (1,755) | 301 | |||
| (28) | (54,042) | ||||
| Finance costs | 4,500 | 3,331 | |||
| Finance revenue | (1,044) | (405) | |||
| Share of loss (income) of joint ventures and associates | (391) | 221 | |||
| Loss 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 | 45,390 | |||
| Number 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.
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
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| Periods ended March 31, 2012 and March 26, 2011 | ||||||
| (in thousands of Canadian dollars) | Three months | |||||
| (unaudited) | 2012 | 2011 | ||||
| Net 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) | 94 | |||||
| Other comprehensive loss | (4,263) | (1,710) | ||||
| Comprehensive loss | $ | (5,580) | $ | (41,447) | ||
| CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | ||||
|
(in thousands of Canadian dollars) (unaudited) |
As at March 31, 2012 |
As at December 31, 2011 |
||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 10,859 | $ | 7,368 |
| Accounts receivable | 259,475 | 304,551 | ||
| Inventories | 105,266 | 111,955 | ||
| Recoverable tax assets | 15,840 | 16,588 | ||
| Prepaid expenses and other assets | 4,221 | 4,063 | ||
| 395,661 | 444,525 | |||
| Assets held for sale | 6,564 | 1,498 | ||
| 402,225 | 446,023 | |||
| Non-current assets | ||||
| Investments | 6,110 | 4,959 | ||
| Ownership interests in joint ventures and associates | 56,684 | 61,954 | ||
| Property, plant and equipment | 272,752 | 279,554 | ||
| Intangible assets | 9,285 | 9,772 | ||
| Goodwill | 38,187 | 38,930 | ||
| Deferred tax assets | 26,805 | 25,149 | ||
| Long-term receivables and other assets | 21,286 | 21,820 | ||
| Total assets | $ | 833,334 | $ | 888,161 |
| Liabilities | ||||
| Current liabilities | ||||
| Bank loans | $ | 25,935 | $ | 32,761 |
| Accounts payable and accrued liabilities | 158,688 | 169,110 | ||
| Current tax liabilities | 200 | 165 | ||
| Current portion of long-term debt | 16,629 | 37,038 | ||
| Current portion of balances of purchase price of businesses | 3,564 | 7,315 | ||
| 205,016 | 246,389 | |||
| Non-current liabilities | ||||
| Debt | 161,475 | 163,782 | ||
| Balances of purchase price of businesses | 5,700 | 8,768 | ||
| Convertible debentures | 62,209 | 61,816 | ||
| Provisions | 1,640 | 1,613 | ||
| Deferred tax liabilities | 28,650 | 28,784 | ||
| Other liabilities | 14,623 | 16,242 | ||
| Total liabilities | 479,313 | 527,394 | ||
| Equity | ||||
| Share capital | 173,038 | 172,869 | ||
| Retained earnings | 183,226 | 184,774 | ||
| Other equity items | (2,243) | 3,124 | ||
| Total equity | 354,021 | 360,767 | ||
| Total equity and liabilities | $ | 833,334 | $ |
888,161 |
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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, 2011 | $ | 4,035 | $ | (11,133) | $ | 798 | $ | 5,764 | $ | (536) | $ | 179,102 | $ | 222,877 | $ | 401,443 | |
| Net 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 | - | 34 | |||||||||
| Shares 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 | - | - | 186 | |||||||||
| Balance as at March 26, 2011 | $ | 2,402 | $ | (12,937) | $ | 892 | $ | 5,764 | $ | (3,879) | $ | 180,869 | $ | 181,274 | $ | 358,264 | |
| 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 | |
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS |
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| Periods ended March 31, 2012 and March 26, 2011 | |||||
| (in thousands of Canadian dollars) | Three months | ||||
| (unaudited) | 2012 | 2011 | |||
| Cash 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 | 38,895 | |||
| Decrease (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) | 10,564 | |||
| Increase in interest payable | 1,248 | 1,253 | |||
| Increase in current tax liabilities | 34 | 105 | |||
| 41,158 | 23,792 | ||||
| Cash flows from operating activities | 42,840 | (13,419) | |||
| Financing activities | |||||
| Repurchase of shares | (1,222) | (156) | |||
| Proceeds from issuance of shares | - | 34 | |||
| Dividends | - | (1,796) | |||
| Increase in debt and bank loans | 579 | 30,402 | |||
| Repayment 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) | 18,993 | |||
| Investing activities | |||||
| Proceeds from sale of property, plant and equipment | 11 | 47 | |||
| Additions 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 | 81 | |||
| Increase 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 | 8,530 | |||
| Cash and cash equivalents - End of period | $ | 10,859 | $ | 7,760 | |
| Supplementary information | |||||
| Interest paid | $ | 679 | $ | 1,290 | |
| Income taxes recovered, net | $ | (690) | $ | (1,067) | |
François Bégin
Vice President, Communications
Tel.: 418-228-8031
Email: francois.begin@canamgroup.ws
www.canamgroup.ws
