SAINT-GEORGES, QC, April 28, 2017 /CNW/ - Canam Group Inc. (TSX:CAM) ("Canam Group" or the "Corporation") today published its financial results for the three-month period ended April 1, 2017.
| Periods ended April 1, 2017 and April 2, 2016 |
Three months |
||||||||
| (in millions of $, except per-share amounts) |
2017 |
2016 |
|||||||
| Revenues |
$ |
463.5 |
$ |
450.7 |
|||||
| Selling and administrative expenses |
$ |
31.4 |
6.8% |
$ |
30.9 |
6.9 |
% |
||
| Adjusted EBITDA1 |
$ |
10.3 |
2.2% |
$ |
22.0 |
4.9 |
% |
||
| Net income (net loss)2 |
$ |
(1.6) |
$ |
8.3 |
|||||
| Net earnings per share2 (basic and diluted) |
$ |
(0.04) |
$ |
0.18 |
|||||
| 1 Refer to the section entitled Non-IFRS measures. |
| 2 Represents net income (net loss) attributable to shareholders. |
Results for the first quarter of 2017
Consolidated revenues for the first quarter of 2017 totalled $463.5M, compared to $450.7M for the same quarter in 2016.
Selling and administrative expenses represented 6.8% of first-quarter revenues in 2017, or $31.4M, compared to 6.9% of revenues in 2016, or $30.9M.
The adjusted EBITDA in the first quarter of 2017 amounted to $10.3M or 2.2% of revenues, as compared with an adjusted EBITDA of $22.0M or 4.9% of revenues for the same quarter in 2016. The decrease is attributable to the compression of gross margins for some of the Corporation's activities.
The net loss attributable to shareholders totalled $1.6M, or $0.04 per share, in the first quarter of 2017, compared to a net income of $8.3M, or $0.18 per share, in 2016.
Pressure on gross margins
"The first-quarter results are affected by cost overruns on U.S. bridge projects and heavy structural steel projects as well as a weaker Canadian non-residential construction market, which has put pressure on the margins," explained Marc Dutil, President and CEO. "The problematic U. S. bridge projects will be completed during the second quarter. Sales of joist and steel deck have grown in the United States, but the pressure on profit margins has remained strong."
Order backlog
The order backlog stood at $1,041M as at April 1, 2017, compared to $1,139M as at December 31, 2016.
Dividend
Due to the transaction announced yesterday, the Board of Directors took the decision to suspend dividend payouts.
About Canam Group Inc.
Canam Group specializes in designing integrated solutions and fabricating customized products for the North American construction industry. Each year, Canam Group takes part in an average of 10,000 building, structural steel and bridge projects, which can also include the supply of preconstruction, project management, and erection services. The Corporation operates 23 plants across North America and employs close to 4,650 people in Canada, the United States, Romania and India.
Conference call, webcast and presentation
Canam Group will hold a conference call with financial analysts and media representatives on Friday, April 28, 2017, at 1:15 p.m. EDT. The call can be accessed via webcast at canamgroupinc.com and newswire.ca.
Please note that the conference call will be accompanied by a complementary presentation in PDF format that can be downloaded from the Corporation's website at canamgroupinc.com. A replay of the conference call will be available until May 12, 2017, by dialing 1-800-408-3053 and entering access code 6329610, followed by the pound key (#).
Non-IFRS measures
Earnings before interest, tax, depreciation and amortization (adjusted EBITDA) and net debt are not defined by International Financial Reporting Standards (IFRS) and cannot be formally presented in the consolidated financial statements. Even though adjusted EBITDA and net debt are non-IFRS measures, they are used by managers, analysts, investors and other financial stakeholders to assess the Corporation's operating performance and management from a financial and operational standpoint. Refer to the section entitled "Non-IFRS measures" of the Corporation's 2016 Annual Report for the definition of this indicator.
Caution regarding forward-looking statements
This press release may contain forward-looking statements, which include, but are not limited to, statements with respect to the Corporation's growth strategy, costs, financial position and financial results, economic and business outlook, prospects and trends of the Corporation's industry segment, expected growth in demand for products and services, the dates of expected or scheduled deliveries, orders and project execution in general, objectives, projects, targets, priorities, business strategy, and the expected impact of legislative and regulatory environment and legal proceedings. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe", "continue" or "maintain", the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require the Corporation to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include in particular the risks and uncertainties described in the Corporation's 2016 Annual Report in the section entitled "Risks and Uncertainties". The forward-looking statements contained herein are made as of the date hereof and are subject to change thereafter, and the Corporation has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities regulations.
| CONDENSED INTERIM CONSOLIDATED |
|||||
| Periods ended April 1, 2017 and April 2, 2016 |
|||||
| (in thousands of Canadian dollars, except per share amounts) |
Three months |
||||
| (unaudited) |
2017 |
2016 |
|||
| Revenues |
$ |
463,451 |
$ |
450,736 |
|
| Cost of sales, excluding depreciation and amortization(1) |
420,728 |
396,312 |
|||
| Selling and administrative expenses |
31,365 |
30,944 |
|||
| Profit sharing program |
526 |
1,234 |
|||
| Depreciation of property, plant and equipment |
8,250 |
6,975 |
|||
| Amortization of intangible assets |
859 |
927 |
|||
| Other net losses |
511 |
207 |
|||
| Finance costs |
3,305 |
2,497 |
|||
| Finance revenue |
(109) |
(151) |
|||
| Share of loss of a joint venture and associates |
6 |
311 |
|||
| Income (loss) before income tax |
(1,990) |
11,480 |
|||
| Income tax expense (recovery) |
|||||
| Current |
(964) |
5,001 |
|||
| Deferred |
520 |
(1,897) |
|||
| (444) |
3,104 |
||||
| Net income (loss) |
$ |
(1,546) |
$ |
8,376 |
|
| Net income (loss) attributable to: |
|||||
| Shareholders |
$ |
(1,646) |
$ |
8,328 |
|
| Non-controlling interests |
100 |
48 |
|||
| $ |
(1,546) |
$ |
8,376 |
||
| Net earnings per share attributable to shareholders |
|||||
| Basic |
$ |
(0.04) |
$ |
0.18 |
|
| Diluted |
$ |
(0.04) |
$ |
0.18 |
|
| Weighted average number of common shares (in thousands of shares) |
|||||
| Basic |
45,289 |
47,491 |
|||
| Diluted |
45,289 |
47,522 |
|||
| Number of common shares outstanding (in thousands of shares) |
45,362 |
47,215 |
|||
| (1) |
As at April 1, 2017 and April 2, 2016, the cost of sales, including depreciation and amortization, was $427,772 and $402,302, respectively. |
||||||||||
| CONDENSED INTERIM CONSOLIDATED |
|||||
| Periods ended April 1, 2017 and April 2, 2016 |
|||||
| (in thousands of Canadian dollars) |
Three months |
||||
| (unaudited) |
2017 |
2016 |
|||
| Net income (loss) |
$ |
(1,546) |
$ |
8,376 |
|
| Other comprehensive loss: |
|||||
| Items that will be reclassified subsequently to profit or loss: |
|||||
| Change in unrealized losses on translating foreign operations |
(3,633) |
(23,229) |
|||
| Change in unrealized gain on translating debt designated as hedging item of the net investment in foreign operations |
117 |
1,018 |
|||
| (3,516) |
(22,211) |
||||
| Available-for-sale asset: |
|||||
| Unrealized gains (losses) on available-for-sale financial assets arising during the period |
(384) |
195 |
|||
| (384) |
195 |
||||
| Other comprehensive loss |
(3,900) |
(22,016) |
|||
| Comprehensive loss |
$ |
(5,446) |
$ |
(13,640) |
|
| Comprehensive loss attributable to: |
|||||
| Shareholders |
$ |
(5,497) |
$ |
(13,688) |
|
| Non-controlling interests |
51 |
48 |
|||
| $ |
(5,446) |
$ |
(13,640) |
||
| CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
||||
| (in thousands of Canadian dollars) (unaudited) |
As at |
As at |
||
| Assets |
||||
| Current assets |
||||
| Cash and cash equivalents |
$ |
6,803 |
$ |
13,567 |
| Accounts receivable |
321,845 |
318,149 |
||
| Costs and estimated profits in excess of billings |
262,145 |
259,363 |
||
| Inventories |
145,620 |
144,601 |
||
| Recoverable tax assets |
1,581 |
212 |
||
| Prepaid expenses and other assets |
5,310 |
5,038 |
||
| 743,304 |
740,930 |
|||
| Non-current assets |
||||
| Investments |
10,174 |
9,936 |
||
| Interests in a joint venture and associates |
37,758 |
37,823 |
||
| Property, plant and equipment |
367,856 |
374,849 |
||
| Intangible assets |
15,583 |
16,300 |
||
| Goodwill |
55,792 |
56,285 |
||
| Deferred tax assets |
32,632 |
33,410 |
||
| Long-term receivables and other assets |
3,364 |
3,782 |
||
| Total assets |
$ |
1,266,463 |
$ |
1,273,315 |
| Liabilities |
||||
| Current liabilities |
||||
| Accounts payable and accrued liabilities |
$ |
266,719 |
$ |
272,339 |
| Billings in excess of costs and estimated profits |
86,535 |
87,066 |
||
| Current tax liabilities |
1,047 |
6,476 |
||
| Current portion of balance of purchase price of businesses |
646 |
646 |
||
| Provisions |
8,059 |
8,137 |
||
| Current portion of long-term debt |
24,675 |
25,204 |
||
| 387,681 |
399,868 |
|||
| Non-current liabilities |
||||
| Debt |
297,446 |
284,446 |
||
| Balance of purchase price of businesses |
1,431 |
1,442 |
||
| Provisions |
11,028 |
11,131 |
||
| Deferred tax liabilities |
6,204 |
6,148 |
||
| Other liabilities |
2,141 |
2,560 |
||
| Total liabilities |
705,931 |
705,595 |
||
| Equity |
||||
| Share capital |
229,268 |
229,035 |
||
| Retained earnings |
252,868 |
256,277 |
||
| Other equity items |
72,970 |
77,033 |
||
| Total equity attributable to shareholders |
555,106 |
562,345 |
||
| Non-controlling interests |
5,426 |
5,375 |
||
| Total equity |
560,532 |
567,720 |
||
| Total equity and liabilities |
$ |
1,266,463 |
$ |
1,273,315 |
| CONDENSED INTERIM CONSOLIDATED |
||||||||||||||||||||
| (in thousands of Canadian dollars) |
Employee benefits paid in equity instruments |
Exchange differences resulting from the translation of foreign operations |
Exchange difference resulting from the translation of the debt designated as hedging item |
Available-for-sale-financial assets |
Total other |
Share capital |
Retained earnings |
Total share capital attributable to shareholders |
Non-controlling interests |
Total equity |
||||||||||
| Balance as at January 1, 2016 |
$ |
2,082 |
$ |
92,088 |
$ |
(4,279) |
$ |
199 |
$ |
90,090 |
$ |
239,777 |
$ |
294,458 |
$ |
624,325 |
$ |
42 |
$ |
624,367 |
| Net income for the period |
- - |
- - |
- - |
- - |
- - |
- - |
8,328 |
8,328 |
48 |
8,376 |
||||||||||
| Comprehensive loss |
- - |
(23,229) |
1,018 |
195 |
(22,016) |
- - |
- - |
(22,016) |
- - |
(22,016) |
||||||||||
| Dividends |
- - |
- - |
- - |
- - |
- - |
- - |
(1,892) |
(1,892) |
- - |
(1,892) |
||||||||||
| Repurchase of shares |
- - |
- - |
- - |
- - |
- - |
(1,708) |
- - |
(1,708) |
- - |
(1,708) |
||||||||||
| Excess of acquisition cost over carrying amount of acquired common shares |
- - |
- - |
- - |
- - |
- - |
- - |
(2,606) |
(2,606) |
- - |
(2,606) |
||||||||||
| Shares acquired by employees |
(376) |
- - |
- - |
- - |
(376) |
376 |
- - |
- - |
- - |
- - |
||||||||||
| Amortization of compensation costs related to the profit sharing program - stock ownership component |
21 |
- - |
- - |
- - |
21 |
- - |
- - |
21 |
- - |
21 |
||||||||||
| Balance as at April 2, 2016 |
$ |
1,727 |
$ |
68,859 |
$ |
(3,261) |
$ |
394 |
$ |
67,719 |
$ |
238,445 |
$ |
298,288 |
$ |
604,452 |
$ |
90 |
$ |
604,542 |
| Balance as at January 1, 2017 |
$ |
1,791 |
$ |
78,878 |
$ |
(3,646) |
$ |
10 |
$ |
77,033 |
$ |
229,035 |
$ |
256,277 |
$ |
562,345 |
$ |
5,375 |
$ |
567,720 |
| Purchase obligation |
- - |
- - |
- - |
- - |
- - |
- - |
43 |
43 |
- - |
43 |
||||||||||
| Net loss for the period |
- - |
- - |
- - |
- - |
- - |
- - |
(1,646) |
(1,646) |
100 |
(1,546) |
||||||||||
| Comprehensive loss |
- - |
(3,584) |
117 |
(384) |
(3,851) |
- - |
- - |
(3,851) |
(49) |
(3,900) |
||||||||||
| Dividends |
- - |
- - |
- - |
- - |
- - |
- - |
(1,806) |
(1,806) |
- - |
(1,806) |
||||||||||
| Shares acquired by employees |
(233) |
- - |
- - |
- - |
(233) |
233 |
- - |
- - |
- - |
- - |
||||||||||
| Amortization of compensation costs related to the profit sharing program - stock ownership component |
21 |
- - |
- - |
- - |
21 |
- - |
- - |
21 |
- - |
21 |
||||||||||
| Balance as at April 1, 2017 |
$ |
1,579 |
$ |
75,294 |
$ |
(3,529) |
$ |
(374) |
$ |
72,970 |
$ |
229,268 |
$ |
252,868 |
$ |
555,106 |
$ |
5,426 |
$ |
560,532 |
| CONDENSED INTERIM CONSOLIDATED |
|||||
| Periods ended April 1, 2017 and April 2, 2016 |
|||||
| (in thousands of Canadian dollars) |
Three months |
||||
| (unaudited) |
2017 |
2016 |
|||
| Cash flows from the following activities: |
|||||
| Operating activities |
|||||
| Net income (loss) |
$ |
(1,546) |
$ |
8,376 |
|
| Adjustments: |
|||||
| Amortization of compensation costs related to the profit sharing program – stock ownership component |
21 |
21 |
|||
| Loss on disposal of property, plant and equipment |
9 |
6 |
|||
| Depreciation of property, plant and equipment |
8,250 |
6,975 |
|||
| Amortization of intangible assets |
859 |
927 |
|||
| Amortization of deferred financing expenses |
113 |
103 |
|||
| Interest rate swaps |
16 |
(65) |
|||
| Imputed interest |
98 |
188 |
|||
| Pension expense |
(560) |
(667) |
|||
| Deferred tax expense (income) |
520 |
(1,897) |
|||
| Share of loss of a joint venture and associates |
6 |
311 |
|||
| 7,786 |
14,278 |
||||
| Net change in non-cash operating working capital balances |
|||||
| Decrease (increase) in accounts receivable |
(5,228) |
19,683 |
|||
| Increase in costs and estimated profits in excess of billings |
(4,982) |
(30,755) |
|||
| Decrease (increase) in inventories |
(1,792) |
13,680 |
|||
| Decrease (increase) in current tax assets |
(1,385) |
1,002 |
|||
| Increase in prepaid expenses and other assets |
(308) |
(331) |
|||
| Increase (decrease) in accounts payable and accrued liabilities |
(52) |
4,579 |
|||
| Increase (decrease) in billings in excess of costs and estimated profits |
91 |
(2,542) |
|||
| Decrease in interest payable |
(905) |
(294) |
|||
| Increase (decrease) in current tax liabilities |
(5,405) |
537 |
|||
| (19,966) |
5,559 |
||||
| Cash flows from operating activities |
(12,180) |
19,837 |
|||
| Financing activities |
|||||
| Repurchase of shares |
- - |
(4,314) |
|||
| Dividends |
(3,609) |
(3,782) |
|||
| Increase in debt and bank loans |
25,617 |
50,000 |
|||
| Repayment of debt and bank loans |
(12,201) |
(44,060) |
|||
| Issue expenses related to debt |
(188) |
(378) |
|||
| Increase in other liabilities |
- - |
(17) |
|||
| Cash flows from financing activities |
9,619 |
(2,551) |
|||
| Investing activities |
|||||
| Proceeds from sale of property, plant and equipment |
17 |
90 |
|||
| Additions to property, plant and equipment |
(3,168) |
(11,120) |
|||
| Additions to intangible assets |
(259) |
(379) |
|||
| Acquisition of an investment |
(621) |
(2,308) |
|||
| Proceeds from disposal of an investment |
60 |
- - |
|||
| Increase in receivables and other assets |
(85) |
- - |
|||
| Decrease in receivables and other assets |
43 |
- - |
|||
| Cash flows from investing activities |
(4,013) |
(13,717) |
|||
| Effects of changes in foreign exchange rate on cash and cash equivalents |
(190) |
467 |
|||
| Net change in cash and cash equivalents |
(6,764) |
4,036 |
|||
| Cash and cash equivalents – Beginning of period |
13,567 |
7,050 |
|||
| Cash and cash equivalents – End of period |
$ |
6,803 |
$ |
11,086 |
|
| Supplementary information |
|||||
| Interest paid |
$ |
2,910 |
$ |
1,915 |
|
| Income taxes paid, net |
$ |
5,829 |
$ |
4,441 |
|
SOURCE Canam Group Inc.
Media: François Bégin, Vice President, Communications Inc., 418-228-8031/ 418-225-1355 (mobile phone), [email protected] ; Investors: René Guizzetti, Vice President and Chief Financial Officer, Canam Group, Canam Group Inc., 450-641-4000, [email protected]
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