BOUCHERVILLE, QC, Oct. 23, 2013 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced a net income of $10M, or $0.24 per share, for the third quarter of 2013 compared with a net income of $6.5M, or $0.15 per share, for the corresponding period in 2012. Consolidated sales for the third quarter of 2013 totaled $285M compared with $226.9M for the year-earlier period.
For the first nine months of 2013, net income totaled $20.4M, or $0.49 per share, compared with a net income of $9.6M, or $0.23 per share, for the same period in 2012. Consolidated sales for the first nine months of the year increased by 12%, from $666.9M in 2012 to $746.6M in 2013.
The growth in net income for the third quarter of 2013 as compared with the corresponding period in 2012 is mainly attributable to the increase in light structural steel revenues combined with improved profit margins in the Corporation's three groups of products and services, i.e. buildings, structural steel and bridges.
Net debt, excluding convertible debentures, totaled $147.6M, which represents a $31.6M decrease compared with December 31, 2012. As at September 28, 2013, the net debt, excluding convertible debentures, to equity ratio was 0.38 compared to 0.49 as at December 31, 2012 and 0.63 as at December 31, 2011.
As at September 28, 2013, the backlog of orders stood at $636M compared to $619M as at June 29, 2013. "Both the volume and quality of the orders constitute encouraging signs," explained Marc Dutil, President and Chief Executive Officer. "Our backlog reflects the gradual improvement seen in the heavy structural steel market."
Reinstatement of dividend
The Board of Directors approved a quarterly dividend of $0.04 per common share payable on January 3, 2014 to shareholders of record on December 15, 2013. "We are pleased to reinstate the payment of a dividend that had been suspended in 2011," continued Marc Dutil. "Conditions are now in place to pay a dividend without sacrificing our ability to continue investing and take advantage of timely opportunities."
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 Wednesday, October 23, 2013 at 4:45 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 November 6, 2013 by dialing 1-800-408-3053 and entering access code 1650511, followed by the pound key (#).
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
Periods ended September 28, 2013 and September 29, 2012
(in thousands of Canadian dollars, except per share amounts) | Three months | Nine months | |||||||
(unaudited) | 2013 | 2012 | 2013 | 2012 | |||||
Revenues | $ | 285,022 | $ | 226,894 | $ | 746,624 | $ | 666,929 | |
Cost of sales, excluding depreciation and amortization(1) | 238,422 | 190,630 | 624,678 | 573,522 | |||||
Selling and administrative expenses | 21,180 | 18,859 | 64,503 | 59,877 | |||||
Profit sharing program | 2,123 | 802 | 3,659 | 1,160 | |||||
Depreciation of property, plant and equipment | 5,550 | 5,138 | 16,327 | 15,690 | |||||
Amortization of intangible assets | 398 | 384 | 1,176 | 1,092 | |||||
Other losses (gains) — net | (42) | 229 | (1,829) | (4,455) | |||||
Finance costs | 3,638 | 4,070 | 10,958 | 12,847 | |||||
Finance revenue | (366) | (352) | (983) | (1,761) | |||||
Share of income of joint ventures and associates | (155) | 72 | (495) | (348) | |||||
Income before income tax | 14,274 | 7,062 | 28,630 | 9,305 | |||||
Tax expense (income) | |||||||||
Current | 4,106 | 1,721 | 6,948 | 3,332 | |||||
Deferred | 180 | (1,131) | 1,296 | (3,676) | |||||
4,286 | 590 | 8,244 | (344) | ||||||
Net income | $ | 9,988 | $ | 6,472 | $ | 20,386 | $ | 9,649 | |
Net earnings per share | |||||||||
Basic | $ | 0.24 | $ | 0.15 | $ | 0.49 | $ | 0.23 | |
Diluted | $ | 0.24 | $ | 0.15 | $ | 0.49 | $ | 0.23 | |
Weighted average number of common shares (in thousands of shares) | |||||||||
Basic | 41,972 | 42,013 | 41,968 | 42,737 | |||||
Diluted | 42,079 | 42,096 | 42,075 | 42,820 | |||||
Number of common shares outstanding (in thousands of shares) | 42,073 | 42,079 |
(1) | As at September 28, 2013 and September 29, 2012, the cost of sales, including depreciation and amortization, totaled $243,143 and $195,042 respectively, for the three-month period and $638,767 and $586,913 respectively, for the nine-month period. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Periods ended September 28, 2013 and September 29, 2012
(in thousands of Canadian dollars) | Three months | Nine months | ||||||||
(unaudited) | 2013 | 2012 | 2013 | 2012 | ||||||
Net income | $ | 9,988 | $ | 6,472 | $ | 20,386 | $ | 9,649 | ||
Other comprehensive income (loss): | ||||||||||
Items that will be reclassified subsequently to profit or loss | ||||||||||
Change in unrealized gains (losses) on translating foreign operations | (3,958) | (8,588) | 7,239 | (8,912) | ||||||
Available-for-sale assets: | ||||||||||
Unrealized gains on available-for-sale financial assets arising during the period | - - | 16 | 41 | 63 | ||||||
Realized gains reclassified to statements of income | - - | - - | (867) | (274) | ||||||
Tax income (expense) | - - | (1) | 137 | 28 | ||||||
- - | 15 | (689) | (183) | |||||||
Other comprehensive income (loss) | (3,958) | (8,573) | 6,550 | (9,095) | ||||||
Comprehensive income | $ | 6,030 | $ | (2,101) | $ | 26,936 | $ | 554 |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars) (unaudited) |
As at September 28, 2013 |
As at December 31, 2012 |
|||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 12,886 | $ | 6,787 | |
Accounts receivable | 318,374 | 273,383 | |||
Inventories | 112,088 | 113,217 | |||
Recoverable tax assets | 242 | 122 | |||
Prepaid expenses and other assets | 3,184 | 3,040 | |||
446,774 | 396,549 | ||||
Property, plant and equipment classified as held for sale | 1,518 | 1,466 | |||
448,292 | 398,015 | ||||
Non-current assets | |||||
Investments | 4,197 | 6,036 | |||
Ownership interests in joint ventures and associates | 41,606 | 44,316 | |||
Property, plant and equipment | 287,861 | 282,556 | |||
Intangible assets | 9,696 | 9,563 | |||
Goodwill | 38,088 | 38,088 | |||
Deferred tax assets | 6,880 | 7,897 | |||
Long-term receivables and other assets | 11,442 | 17,656 | |||
Total assets | $ | 848,062 | $ | 804,127 | |
Liabilities | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | $ | 203,317 | $ | 148,202 | |
Current tax liabilities | 5,472 | 6,942 | |||
Current portion of long-term debt | 12,612 | 10,382 | |||
Current portion of balances of purchase price of businesses | - - | 8,988 | |||
221,401 | 174,514 | ||||
Non-current liabilities | |||||
Debt | 147,921 | 175,605 | |||
Convertible debentures | 64,775 | 63,446 | |||
Provisions | 1,848 | 2,156 | |||
Deferred tax liabilities | 8,494 | 8,629 | |||
Other liabilities | 14,951 | 17,592 | |||
Total liabilities | 459,390 | 441,942 | |||
Equity | |||||
Share capital | 168,057 | 168,529 | |||
Retained earnings | 217,518 | 197,148 | |||
Other equity items | 3,097 | (3,492) | |||
Total equity | 388,672 | 362,185 | |||
Total equity and liabilities | $ | 848,062 | $ | 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 | - - | - - | - - | - - | - - | - - | 9,649 | 9,649 | ||||||||
Comprehensive loss | - - | (8,912) | (183) | - - | (9,095) | - - | - - | (9,095) | ||||||||
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 | 170 | - - | - - | - - | 170 | - - | - - | 170 | ||||||||
Balance as at September 29, 2012 | $ | 1,938 | $ | (15,320) | $ | 657 | $ | 5,764 | $ | (6,961) | $ | 168,529 | $ | 193,082 | $ | 354,650 |
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 | - - | - - | - - | - - | - - | - - | 20,386 | 20,386 | ||||||||
Comprehensive income | - - | 7,239 | (689) | - - | 6,550 | - - | - - | 6,550 | ||||||||
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 | 241 | - - | - - | - - | 241 | - - | - - | 241 | ||||||||
Balance as at September 28, 2013 | $ | 2,033 | $ | (4,702) | $ | 2 | $ | 5,764 | $ | 3,097 | $ | 168,057 | $ | 217,518 | $ | 388,672 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended September 28, 2013 and September 29, 2012
(in thousands of Canadian dollars) | Three months | Nine months | |||||||
(unaudited) | 2013 | 2012 | 2013 | 2012 | |||||
Cash flows from the following activities: | |||||||||
Operating activities | |||||||||
Net income | $ | 9,988 | $ | 6,472 | $ | 20,386 | $ | 9,649 | |
Adjustments: | |||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component | 82 | 57 | 241 | 170 | |||||
Loss on revaluation of balances of purchase price of businesses | - - | - - | 65 | - - | |||||
Gain on disposal of investments | - - | - - | (867) | (2,361) | |||||
Loss on decline in value of an investment | - - | - - | 431 | - - | |||||
Loss (gain) on disposal of property, plant and equipment | 36 | (19) | (71) | (24) | |||||
Gain on revaluation of property, plant and equipment | - - | - - | (943) | - - | |||||
Depreciation of property, plant and equipment | 5,550 | 5,138 | 16,327 | 15,690 | |||||
Amortization of intangible assets | 398 | 384 | 1,176 | 1,092 | |||||
Amortization of deferred financing expenses | 83 | 74 | 248 | 196 | |||||
Provisions | (2) | 106 | (308) | 22 | |||||
Interest rate swaps | (31) | 11 | (366) | 47 | |||||
Imputed interest | 551 | 564 | 1,695 | 1,780 | |||||
Pension expense | (737) | (641) | (2,345) | (2,241) | |||||
Deferred tax expense (income) | 180 | (1,131) | 1,296 | (3,676) | |||||
Share of income of joint ventures and associates | (155) | 72 | (495) | (348) | |||||
15,943 | 11,087 | 36,470 | 19,996 | ||||||
Net change in non-cash operating working capital balances | |||||||||
Decrease (increase) in accounts receivable | (5,507) | 1,888 | (37,484) | 19,997 | |||||
Decrease (increase) in inventories | 188 | (4,413) | 6,676 | 7,706 | |||||
Decrease (increase) in current tax assets | (99) | 1,703 | (117) | 16,237 | |||||
Decrease (increase) in prepaid expenses and other assets | 1,434 | 167 | (59) | 318 | |||||
Increase (decrease) in accounts payable and accrued liabilities | 19,888 | (3,097) | 49,366 | (6,519) | |||||
Increase (decrease) in interest payable | 1,132 | (150) | 1,041 | (160) | |||||
Increase (decrease) in current tax liabilities | 3,184 | 860 | (1,478) | 924 | |||||
20,220 | (3,042) | 17,945 | 38,503 | ||||||
Cash flows from operating activities | 36,163 | 8,045 | 54,415 | 58,499 | |||||
Financing activities | |||||||||
Shares purchased by a trust in employees' name on the secondary market | - - | - - | (651) | - - | |||||
Repurchase of shares | - - | (129) | (39) | (6,841) | |||||
Increase in debt and bank loans | 2,959 | 4,372 | 7,920 | 4,951 | |||||
Repayment of debt and bank loans | (24,333) | (7,347) | (35,765) | (47,328) | |||||
Repayment of balances of purchase price of businesses | (6,232) | (245) | (9,558) | (6,929) | |||||
Issue expenses related to long-term debt | (166) | (257) | (196) | (257) | |||||
Increase in other liabilities | - - | 8 | - - | 63 | |||||
Cash flows from financing activities | (27,772) | (3,598) | (38,289) | (56,341) | |||||
Investing activities | |||||||||
Proceeds from sale of property, plant and equipment | 192 | 221 | 370 | 234 | |||||
Additions to property, plant and equipment | (4,583) | (2,745) | (12,308) | (5,243) | |||||
Additions to intangible assets | (200) | (808) | (1,143) | (899) | |||||
Acquisition of investments | - - | (149) | - - | (2,769) | |||||
Proceeds from disposal of investments | - - | - - | 2,743 | 5,172 | |||||
Distributions received | 503 | - - | 503 | 265 | |||||
Decrease in receivables and other assets | 5,911 | 1,198 | 6,402 | 2,294 | |||||
Increase in long-term receivables | - - | - - | (27) | - - | |||||
Acquisition of business assets | (3,467) | - - | (7,053) | - - | |||||
Cash flows from investing activities | (1,644) | (2,283) | (10,513) | (946) | |||||
Effects of changes in foreign exchange rate on cash and cash equivalents | 180 | (693) | 486 | (1,093) | |||||
Net change in cash | 6,927 | 1,471 | 6,099 | 119 | |||||
Cash and cash equivalents - Beginning of period | 5,959 | 6,016 | 6,787 | 7,368 | |||||
Cash and cash equivalents - End of period | $ | 12,886 | $ | 7,487 | $ | 12,886 | $ | 7,487 | |
Supplementary information | |||||||||
Interest paid | $ | 374 | $ | 1,367 | $ | 6,329 | $ | 5,823 | |
Income taxes paid (recovered), net | $ | 1,149 | $ | (641) | $ | 8,709 | $ | (13,606) |
SOURCE: Canam Group Inc.
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François Bégin
Vice President, Communications
Canam Group Inc.
Telephone: 450-641-4000 / 418-225-1355 (cel.)
Email: [email protected]
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