BOUCHERVILLE, QC, Aug. 6, 2013 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), specialized in the design and fabrication of construction products, today recorded a net income of $7.4M, or $0.18 per share, for the second quarter of 2013, compared with a net income of $4.5M, or $0.10 per share, for the corresponding quarter in 2012 which included a gain on disposal of investment in the amount of $2.1M. Consolidated sales for the second quarter of 2013 increased by 8.7% to $251.9M compared with $231.7M for the year-earlier period.
For the first six months of 2013, net income totaled $10.4M, or $0.25 per share, compared with a net income of $3.2M, or $0.07 per share, for the corresponding period in 2012. Consolidated sales for the first six months of the year totaled $461.6M compared to $440M during the same period in 2012.
The increase in sales recorded in the second quarter is mainly attributable to light structural steel activities in the United States. The Corporation's three groups of products and services, i.e. buildings, structural steel and bridges, each saw an improvement in their profit margins.
As at June 30, 2013, the backlog of orders stood at $619M compared to $575M as at March 30, 2013 and $503M at the end of the second quarter of 2012.
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 the following activity sectors: buildings, structural steel and bridges. The Corporation operates 21 plants across North America and employs 3,500 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 Tuesday, August 6, 2013 at 4:30 p.m. EDT. A podcast will be available at www.canamgroupinc.com and www.newswire.ca. A replay of the conference call will be available until August 20, 2013 by dialing 1-800-408-3053 and entering access code 2317621, followed by the pound key (#).
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
Periods ended June 29, 2013 and June 30, 2012
(in thousands of Canadian dollars, except per share amounts) | Three months | Six months | |||||||
(unaudited) | 2013 | 2012 | 2013 | 2012 | |||||
Revenues | $ | 251,850 | $ | 231,741 | $ | 461,602 | $ | 440,035 | |
Cost of sales, excluding depreciation and amortization(1) | 209,787 | 199,082 | 386,256 | 382,892 | |||||
Selling and administrative expenses | 23,215 | 20,610 | 43,323 | 41,018 | |||||
Profit sharing program | 1,286 | 148 | 1,536 | 358 | |||||
Depreciation of property, plant and equipment | 5,471 | 5,259 | 10,777 | 10,552 | |||||
Amortization of intangible assets | 401 | 352 | 778 | 708 | |||||
Other gains — net | (1,668) | (2,929) | (1,787) | (4,684) | |||||
13,358 | 9,219 | 20,719 | 9,191 | ||||||
Finance costs | 3,571 | 4,277 | 7,320 | 8,777 | |||||
Finance revenue | (311) | (365) | (617) | (1,409) | |||||
Share of income of joint ventures and associates | (36) | (29) | (340) | (420) | |||||
Income before income tax | 10,134 | 5,336 | 14,356 | 2,243 | |||||
Tax expense (income) | |||||||||
Current | 1,725 | 1,534 | 2,842 | 1,611 | |||||
Deferred | 984 | (692) | 1,116 | (2,545) | |||||
2,709 | 842 | 3,958 | (934) | ||||||
Net income | $ | 7,425 | $ | 4,494 | $ | 10,398 | $ | 3,177 | |
Net earnings per share | |||||||||
Basic | $ | 0.18 | $ | 0.10 | $ | 0.25 | $ | 0.07 | |
Diluted | $ | 0.18 | $ | 0.10 | $ | 0.25 | $ | 0.07 | |
Weighted average number of common shares (in thousands of shares) | |||||||||
Basic | 41,957 | 42,856 | 41,953 | 43,087 | |||||
Diluted | 42,088 | 42,950 | 42,084 | 43,182 | |||||
Number of common shares outstanding (in thousands of shares) | 42,073 | 42,105 |
(1) | As at June 29, 2013 and June 30, 2012, the cost of sales, including depreciation and amortization, totaled $214,442 and $203,551, respectively, for the three-month period and $395,624 and $391,870, respectively, for the six-month period. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Periods ended June 29, 2013 and June 30, 2012
(in thousands of Canadian dollars) | Three months | Six months | ||||||||
(unaudited) | 2013 | 2012 | 2013 | 2012 | ||||||
Net income | $ | 7,425 | $ | 4,494 | $ | 10,398 | $ | 3,177 | ||
Other comprehensive income (loss): | ||||||||||
Items that will be reclassified subsequently to profit or loss | ||||||||||
Change in unrealized gains (losses) on translating foreign operations | 7,134 | 3,818 | 11,198 | (324) | ||||||
Available-for-sale assets: | ||||||||||
Unrealized gains (losses) on available-for-sale financial assets arising during the period | 14 | (88) | 41 | 47 | ||||||
Realized gains reclassified to statements of income | (828) | - - | (867) | (274) | ||||||
|
Tax expense | 135 | 11 | 137 | 29 | |||||
(679) | (77) | (689) | (198) | |||||||
Other comprehensive income (loss) | 6,455 | 3,741 | 10,509 | (522) | ||||||
Comprehensive income | $ | 13,880 | $ | 8,235 | $ | 20,907 | $ | 2,655 |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars) (unaudited) |
As at June 29, 2013 |
As at December 31, 2012 |
||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 5,959 | $ | 6,787 | ||
Accounts receivable | 316,183 | 273,383 | ||||
Inventories | 113,607 | 113,217 | ||||
Recoverable tax assets | 147 | 122 | ||||
Prepaid expenses and other assets | 4,667 | 3,040 | ||||
440,563 | 396,549 | |||||
Property, plant and equipment classified as held for sale | 1,550 | 1,466 | ||||
442,113 | 398,015 | |||||
Non-current assets | ||||||
Investments | 4,699 | 6,036 | ||||
Ownership interests in joint ventures and associates | 41,453 | 44,316 | ||||
Property, plant and equipment | 291,980 | 282,556 | ||||
Intangible assets | 10,057 | 9,563 | ||||
Goodwill | 38,088 | 38,088 | ||||
Deferred tax assets | 7,207 | 7,897 | ||||
Long-term receivables and other assets | 17,293 | 17,656 | ||||
Total assets | $ | 852,890 | $ | 804,127 | ||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | $ | 184,853 | $ | 148,202 | ||
Current tax liabilities | 2,294 | 6,942 | ||||
Current portion of long-term debt | 11,373 | 10,382 | ||||
Current portion of balances of purchase price of businesses | 9,715 | 8,988 | ||||
208,235 | 174,514 | |||||
Non-current liabilities | ||||||
Debt | 171,695 | 175,605 | ||||
Convertible debentures | 64,321 | 63,446 | ||||
Provisions | 1,850 | 2,156 | ||||
Deferred tax liabilities | 8,494 | 8,629 | ||||
Other liabilities | 15,734 | 17,592 | ||||
Total liabilities | 470,329 | 441,942 | ||||
Equity | ||||||
Share capital | 168,057 | 168,529 | ||||
Retained earnings | 207,530 | 197,148 | ||||
Other equity items | 6,974 | (3,492) | ||||
Total equity | 382,561 | 362,185 | ||||
Total equity and liabilities | $ | 852,890 | $ | 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 income for the period | - - | - - | - - | - - | - - | - - | 3,177 | 3,177 | |||||||||
Comprehensive loss | - - | (324) | (198) | - - | (522) | - - | - - | (522) | |||||||||
Shares acquired by employees | (1,160) | - - | - - | - - | (1,160) | 1,160 | - - | - - | |||||||||
Repurchase of shares | - - | - - | - - | - - | - - | (5,395) | - - | (5,395) | |||||||||
Excess of acquisition cost over carrying amount of acquired common shares | - - | - - | - - | - - | - - | - - | (1,317) | (1,317) | |||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 113 | - - | - - | - - | 113 | - - | - - | 113 | |||||||||
Balance as at June 30, 2012 | $ | 1,881 | $ | (6,732) | $ | 642 | $ | 5,764 | $ | 1,555 | $ | 168,634 | $ | 186,634 | $ | 356,823 | |
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 | - - | - - | - - | - - | - - | - - | 10,398 | 10,398 | |||||||||
Comprehensive income | - - | 11,198 | (689) | - - | 10,509 | - - | - - | 10,509 | |||||||||
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 | 159 | - - | - - | - - | 159 | - - | - - | 159 | |||||||||
Balance as at June 29, 2013 | $ | 1,951 | $ | (743) | $ | 2 | $ | 5,764 | $ | 6,974 | $ | 168,057 | $ | 207,530 | $ | 382,561 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended June 29, 2013 and June 30, 2012
(in thousands of Canadian dollars) | Three months | Six months | |||||||
(unaudited) | 2013 | 2012 | 2013 | 2012 | |||||
Cash flows from the following activities: | |||||||||
Operating activities | |||||||||
Net income | $ | 7,425 | $ | 4,494 | $ | 10,398 | $ | 3,177 | |
Adjustments: | |||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 80 | 57 | 159 | 113 | |||||
Loss on revaluation of balances of purchase price of businesses | - - | - - | 65 | - - | |||||
Gain on disposal of investments | (828) | (2,099) | (867) | (2,361) | |||||
Loss on decline in value of an investment | 431 | - - | 431 | - - | |||||
Loss (gain) on disposal of property, plant and equipment | (110) | 5 | (107) | (5) | |||||
Loss on revaluation of property, plant and equipment | (943) | - - | (943) | - - | |||||
Depreciation of property, plant and equipment | 5,471 | 5,259 | 10,777 | 10,552 | |||||
Amortization of intangible assets | 401 | 352 | 778 | 708 | |||||
Amortization of deferred financing expenses | 83 | 61 | 165 | 122 | |||||
Provisions | (298) | (111) | (306) | (84) | |||||
Interest rate swaps | (243) | 109 | (335) | 36 | |||||
Imputed interest | 555 | 559 | 1,144 | 1,216 | |||||
Pension expense | (804) | (738) | (1,608) | (1,600) | |||||
Deferred tax expense (income) | 984 | (692) | 1,116 | (2,545) | |||||
Share of income of joint ventures and associates | (36) | (29) | (340) | (420) | |||||
12,168 | 7,227 | 20,527 | 8,909 | ||||||
Net change in non-cash operating working capital balances | |||||||||
Decrease (increase) in accounts receivable | (29,226) | (25,400) | (31,977) | 18,109 | |||||
Decrease in inventories | 5,508 | 6,528 | 6,488 | 12,119 | |||||
Decrease (increase) in current tax assets | (18) | 13,793 | (18) | 14,534 | |||||
Decrease (increase) in prepaid expenses and other assets | 659 | 348 | (1,493) | 151 | |||||
Increase (decrease) in accounts payable and accrued liabilities | 24,281 | 6,346 | 29,478 | (3,422) | |||||
Decrease in interest payable | (1,227) | (1,258) | (91) | (10) | |||||
Increase (decrease) in current tax liabilities | (524) | 30 | (4,662) | 64 | |||||
(547) | 387 | (2,275) | 41,545 | ||||||
Cash flows from operating activities | 11,621 | 7,614 | 18,252 | 50,454 | |||||
Financing activities | |||||||||
Shares purchased by a trust in employees' name on the secondary market | - - | - - | (651) | - - | |||||
Repurchase of shares | - - | (5,490) | (39) | (6,712) | |||||
Increase in debt and bank loans | 2,811 | - - | 4,961 | 579 | |||||
Repayment of debt and bank loans | (6,102) | (11,134) | (11,432) | (39,981) | |||||
Repayment of balances of purchase price of businesses | - - | - - | (3,326) | (6,684) | |||||
Issue expenses related to long-term debt | (30) | - - | (30) | - - | |||||
Increase in other liabilities | - - | 47 | - - | 55 | |||||
Cash flows from financing activities | (3,321) | (16,577) | (10,517) | (52,743) | |||||
Investing activities | |||||||||
Proceeds from sale of property, plant and equipment | 131 | 2 | 178 | 13 | |||||
Additions to property, plant and equipment | (4,908) | (1,145) | (7,725) | (2,498) | |||||
Additions to intangible assets | (288) | (45) | (943) | (91) | |||||
Acquisition of investments | - - | - - | - - | (2,620) | |||||
Proceeds from disposal of investments | 2,406 | 4,850 | 2,743 | 5,172 | |||||
Distributions received | - - | 90 | - - | 265 | |||||
Decrease in receivables and other assets | 152 | 576 | 491 | 1,096 | |||||
Increase in long-term receivables | (27) | - - | (27) | - - | |||||
Acquisition of business assets | (3,586) | - - | (3,586) | - - | |||||
Cash flows from investing activities | (6,120) | 4,328 | (8,869) | 1,337 | |||||
Effects of changes in foreign exchange rate on cash and cash equivalents | 138 | (208) | 306 | (400) | |||||
Net change in cash | 2,318 | (4,843) | (828) | (1,352) | |||||
Cash and cash equivalents - Beginning of period | 3,641 | 10,859 | 6,787 | 7,368 | |||||
Cash and cash equivalents - End of period | $ | 5,959 | $ | 6,016 | $ | 5,959 | $ | 6,016 | |
Supplementary information | |||||||||
Interest paid | $ | 4,500 | $ | 3,777 | $ | 5,955 | $ | 4,456 | |
Income taxes paid (recovered), net | $ | 2,292 | $ | (12,275) | $ | 7,560 | $ | (12,965) |
SOURCE: CANAM GROUP INC.
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François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: 450-641-4000 / 418-228-8031
Email: [email protected]
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