SAINT-GEORGES, QC, April 29, 2016 /CNW Telbec/ - Canam Group Inc. (TSX: CAM) ("Canam Group" or the "Corporation") today published its financial results for the three-month period ended April 2, 2016.
Highlights
- 46% increase in consolidated revenues compared to the first quarter in 2015
- 89% increase in net income compared to the first quarter in 2015
Periods ended April 2, 2016 and March 28, 2015 |
Three months |
|||||||
(in millions of $, except per share amounts) (unaudited) |
2016 |
2015 |
||||||
Revenues |
$ |
450.7 |
$ |
309.1 |
||||
Selling and administrative expenses |
$ |
30.9 |
6.9% |
$ |
24.2 |
7.8% |
||
Adjusted EBITDA1 |
$ |
21.8 |
4.8% |
$ |
17.7 |
5.7% |
||
Net income2 |
$ |
8.3 |
1.8% |
$ |
4.4 |
1.4% |
||
Net earnings per share2 (basic and diluted) |
$ |
0.18 |
$ |
0.10 |
||||
Basic weighted average number of shares |
47,491 |
42,028 |
||||||
Net debt1 |
$ |
196.3 |
$ |
200.4 |
||||
1 Refer to the section entitled Non-IFRS measures. |
||||||||
2 Represents net income attributable to shareholders. |
Results for the first quarter of 2016
Consolidated revenues for the first quarter of 2016 totaled $450.7M, which represents a $141.6M increase, compared to revenues of $309.1M for the same quarter in 2015. The increase is attributable to all of the Corporation's groups of products and services as well as the appreciation of the US dollar.
Selling and administrative expenses totaled $30.9M for the first quarter of 2016 compared to $24.2M in 2015. This variation is particularly attributable to the payroll increase in order to maintain sales growth along with the US dollar's rise against the Canadian dollar.
In the first quarter of 2016, Adjusted EBITDA amounted to $21.8M compared to $17.7M for the same period in 2015. The rise in the first quarter of 2016 can be mainly explained by a higher sales volume in all of the Corporation's groups of products and services, combined with an increase in gross margins for the joist and steel deck as well as structural steel activities. These items were partially offset by the compression of gross margins for the bridges' group and the increase in selling and administrative expenses.
In the first quarter of 2016, net income attributable to shareholders totaled $8.3M, or $0.18 per share, compared to $4.4M, or $0.10 per share, for the corresponding period in 2015. It should be noted that the basic weighted average number of shares increased by 5,463,648 shares, which resulted from the conversion of unsecured subordinated debentures into common shares during the last quarter of 2015.
Equity attributable to shareholders decreased by $19.8M to $604.5M. This variation is mainly due to the depreciation of the US dollar which generated an unrealized exchange loss of $23.2M resulting from the translation of foreign operations, mainly those of the U.S. subsidiaries, offset by a net income of $8.3M in the first quarter of 2016. At the end of the quarter, the carrying amount per share was $12.80 compared to $13.13 as at December 31, 2015.
As at April 2, 2016, the Corporation presented a strong financial position with a net debt of $196.3M and additional borrowing capacity of $122.3M. The ratio of net debt to equity attributable to shareholders was 0.32 as at April 2, 2016, identical to the ratio as at December 31, 2015.
Order backlog
The order backlog stood at $1,159M as at April 2, 2016, compared to $1,183M as at December 31, 2015, and $1,118M as at March 28, 2015.
Dividend
The Board of Directors approved a dividend of $0.04 per share payable on June 30, 2016 to shareholders of record on June 16, 2016.
Unsecured loan
On March 31, 2016, the Corporation finalized the set-up of an unsecured ten-year loan for an amount of $50M. The Corporation must comply with certain financial covenants under this loan agreement. The loan is repayable in one installment on maturity; however, an early repayment mechanism is available from the third year provided that certain conditions are met.
Repurchase of shares
Further to the press release issued on February 26, 2016, announcing that the Toronto Stock Exchange has accepted the Corporation's notice of intention to make a normal course issuer bid pursuant to which it may purchase, when deemed appropriate, through the facilities of and in accordance with the requirements of the TSX, up to 4,089,305 of its outstanding common shares, the Corporation announces that it may also repurchase shares through alternative trading systems, in accordance with the policies of the TSX and exemptions relating to normal course issuer bids as required under applicable securities laws. Common shares may be purchased from March 1st, 2016 to February 28, 2017 inclusively, at the market price of the shares at the time of the purchase plus brokerage fees, or at any other price authorized under applicable rules.
During the first quarter of 2016, under the normal course issuer bid, the Corporation repurchased 316,700 common shares at an average price of $12.85 per share for a total amount of $4.1M. The acquired common shares have been cancelled.
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 and project management services. The Corporation operates 22 plants across North America and employs 4,300 people in Canada, the United States, Romania, India and Hong Kong.
Conference call and presentation
Canam Group will hold a conference call with financial analysts and media representatives on Friday, April 29, 2016 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 13, 2016 by dialing 1-800-408-3053 and entering access code 9218430, followed by the pound key (#).
Non-IFRS measure
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 measure, 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 2015 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 2015 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 STATEMENTS OF INCOME |
|||||
Periods ended April 2, 2016 and March 28, 2015 |
|||||
(in thousands of Canadian dollars, except per share amounts) |
Three months |
||||
(unaudited) |
2016 |
2015 |
|||
Revenues |
$ |
450,736 |
$ |
309,102 |
|
Cost of sales, excluding depreciation and amortization(1) |
396,312 |
267,090 |
|||
Selling and administrative expenses |
30,944 |
24,183 |
|||
Profit sharing program |
1,234 |
489 |
|||
Depreciation of property, plant and equipment |
6,975 |
6,218 |
|||
Amortization of intangible assets |
927 |
690 |
|||
Other losses (gains) — net |
207 |
(264) |
|||
Finance costs |
2,497 |
3,921 |
|||
Finance revenue |
(151) |
(186) |
|||
Share of loss of a joint venture and associates |
311 |
141 |
|||
Income before income tax |
11,480 |
6,820 |
|||
Tax expense (income) |
|||||
Current |
5,001 |
1,788 |
|||
Deferred |
(1,897) |
594 |
|||
3,104 |
2,382 |
||||
Net income |
$ |
8,376 |
$ |
4 438 |
|
Net income attributable to: |
|||||
Shareholders |
$ |
8,328 |
$ |
4,397 |
|
Non-controlling interests |
48 |
41 |
|||
$ |
8,376 |
$ |
4,438 |
||
Net earnings per share attributable to shareholders |
|||||
Basic |
$ |
0.18 |
$ |
0.10 |
|
Diluted |
$ |
0.18 |
$ |
0.10 |
|
Weighted average number of common shares (in thousands of shares) |
|||||
Basic |
47,491 |
42,028 |
|||
Diluted |
47,522 |
42,075 |
|||
Number of common shares outstanding (in thousands of shares) |
47,215 |
42,055 |
(1) |
As at April 2, 2016 and March 28, 2015, the cost of sales, including depreciation and amortization, was $402,302 and $272,441 respectively. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
||||||
Periods ended April 2, 2016 and March 28, 2015 |
||||||
(in thousands of Canadian dollars) |
Three months |
|||||
(unaudited) |
2016 |
2015 |
||||
Net income |
$ |
8,376 |
$ |
4,438 |
||
Other comprehensive income (loss): |
||||||
Items that will be reclassified subsequently to profit or loss: |
||||||
Change in unrealized gains (losses) on translating foreign operations |
(23,229) |
27,105 |
||||
Change in unrealized loss (gain) on translating debt designated as hedging item of the net investment in foreign operations |
1,018 |
(1,737) |
||||
(22,211) |
25,368 |
|||||
Available-for-sale asset: |
||||||
Unrealized gains on available-for-sale financial assets arising during the period |
195 |
- - |
||||
195 |
- - |
|||||
Other comprehensive income (loss) |
(22,016) |
25,368 |
||||
Comprehensive income (loss) |
$ |
(13,640) |
$ |
29,806 |
||
Comprehensive income attributable to: |
||||||
Shareholders |
$ |
(13,688) |
$ |
29,794 |
||
Non-controlling interests |
48 |
12 |
||||
$ |
(13,640) |
$ |
29,806 |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
|||||
(in thousands of Canadian dollars) (unaudited) |
As at |
As at |
|||
Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ |
11,086 |
$ |
7,050 |
|
Accounts receivable |
287,465 |
320,517 |
|||
Costs and estimated profits in excess of billings |
216,134 |
194,298 |
|||
Inventories |
146,801 |
166,833 |
|||
Recoverable tax assets |
478 |
1,573 |
|||
Prepaid expenses and other assets |
3,402 |
3,230 |
|||
665,366 |
693,501 |
||||
Non-current assets |
|||||
Investments |
8,676 |
6,173 |
|||
Interests in a joint venture and associates |
39,063 |
39,370 |
|||
Property, plant and equipment |
341,035 |
348,391 |
|||
Intangible assets |
10,526 |
11,500 |
|||
Goodwill |
52,874 |
56,023 |
|||
Deferred tax assets |
5,781 |
4,007 |
|||
Long-term receivables and other assets |
5,597 |
5,564 |
|||
Total assets |
$ |
1,128,918 |
$ |
1,164,529 |
|
Liabilities |
|||||
Current liabilities |
|||||
Accounts payable and accrued liabilities |
$ |
215,092 |
$ |
223,580 |
|
Billings in excess of costs and estimated profits |
66,894 |
73,465 |
|||
Current tax liabilities |
4,598 |
4,156 |
|||
Current portion of balance of purchase price of businesses |
1,282 |
1,282 |
|||
Current portion of long-term debt |
41,300 |
43,083 |
|||
329,166 |
345,566 |
||||
Non-current liabilities |
|||||
Debt |
166,114 |
164,356 |
|||
Balance of purchase price of businesses |
650 |
650 |
|||
Provisions |
18,435 |
19,485 |
|||
Deferred tax liabilities |
8,925 |
8,897 |
|||
Other liabilities |
1,086 |
1,208 |
|||
Total liabilities |
524,376 |
540,162 |
|||
Equity |
|||||
Share capital |
238,445 |
239,777 |
|||
Retained earnings |
298,288 |
294,458 |
|||
Other equity items |
67,719 |
90,090 |
|||
Total equity attributable to shareholders |
604,452 |
624,325 |
|||
Non-controlling interests |
90 |
42 |
|||
Total equity |
604,542 |
624,367 |
|||
Total equity and liabilities |
$ |
1,128,918 |
$ |
1,164,529 |
CONDENSED INTERIM CONSOLIDATED |
||||||||||||||||||||||
(in thousands of Canadian dollars) (unaudited) |
Employee |
Exchange |
Exchange |
Available-for- |
Debenture |
Total other |
Share capital |
Retained |
Total share capital attributable to shareholders |
Non- |
Total |
|||||||||||
Balance as at January 1, 2015 |
$ |
2,235 |
$ |
29,451 |
$ |
(806) |
$ |
2 |
$ |
5,758 |
$ |
36,640 |
$ |
168,162 |
$ |
252,386 |
$ |
457,188 |
$ |
36 |
$ |
457,224 |
Net income for the period |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
4,397 |
4,397 |
41 |
4,438 |
|||||||||||
Comprehensive income |
- - |
27,134 |
(1,737) |
- - |
- - |
25,397 |
- - |
- - |
25,397 |
(29) |
25,368 |
|||||||||||
Dividends |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
(1,670) |
(1,670) |
- - |
(1,670) |
|||||||||||
Repurchase of shares |
- - |
- - |
- - |
- - |
- - |
- - |
(105) |
- - |
(105) |
- - |
(105) |
|||||||||||
Excess of acquisition cost over carrying amount of acquired common shares |
- – |
- - |
- - |
- - |
- - |
- - |
- - |
(214) |
(214) |
- - |
(214) |
|||||||||||
Shares acquired by employees |
(238) |
- - |
- - |
- - |
- - |
(238) |
238 |
- - |
- - |
- - |
- - |
|||||||||||
Issuance of shares upon the conversion of debentures |
- - |
- - |
- - |
- - |
- - |
- - |
18 |
- - |
18 |
- - |
18 |
|||||||||||
Exercise of options upon the conversion of debentures |
- - |
- - |
- - |
- - |
(1) |
(1) |
1 |
- - |
- - |
- - |
- - |
|||||||||||
Amortization of compensation costs related to the profit sharing program - stock ownership component |
21 |
- - |
- - |
- - |
- - |
21 |
- - |
- - |
21 |
- - |
21 |
|||||||||||
Balance as at March 28, 2015 |
$ |
2,018 |
$ |
56,585 |
$ |
(2,543) |
$ |
2 |
$ |
5,757 |
$ |
61,819 |
$ |
168,314 |
$ |
254,899 |
$ |
485,032 |
$ |
48 |
$ |
485,080 |
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 income |
- - |
(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 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
Periods ended April 2, 2016 and March 28, 2015 |
|||||||||||
(in thousands of Canadian dollars) |
Three months |
||||||||||
(unaudited) |
2016 |
2015 |
|||||||||
Cash flows from the following activities: |
|||||||||||
Operating activities |
$ |
8,376 |
$ |
4,438 |
|||||||
Net income |
|||||||||||
Adjustments: |
|||||||||||
Amortization of compensation costs related to the profit sharing |
21 |
21 |
|||||||||
Loss on disposal of property, plant and equipment |
6 |
23 |
|||||||||
Depreciation of property, plant and equipment |
6,975 |
6,218 |
|||||||||
Amortization of intangible assets |
927 |
690 |
|||||||||
Amortization of deferred financing expenses |
103 |
126 |
|||||||||
Interest rate swaps |
(65) |
(26) |
|||||||||
Imputed interest |
188 |
654 |
|||||||||
Pension expense |
(667) |
(848) |
|||||||||
Deferred tax expense (income) |
(1,897) |
594 |
|||||||||
Share of loss of a joint venture and associates |
311 |
141 |
|||||||||
14,278 |
12,031 |
||||||||||
Net change in non-cash operating working capital balances |
|||||||||||
Decrease in accounts receivable |
19,683 |
59,616 |
|||||||||
Increase in costs and estimated profits in excess of billings |
(30,755) |
(21,665) |
|||||||||
Decrease (increase) in inventories |
13,680 |
(3,285) |
|||||||||
Decrease in current tax assets |
1,002 |
175 |
|||||||||
Increase in prepaid expenses and other assets |
(331) |
(1,345) |
|||||||||
Increase (decrease) in accounts payable and accrued liabilities |
4,579 |
(12,558) |
|||||||||
Increase (decrease) in billings in excess of |
(2,542) |
2,271 |
|||||||||
Increase (decrease) in interest payable |
(294) |
1 |
|||||||||
Increase (decrease) in current tax liabilities |
537 |
(2,690) |
|||||||||
5,559 |
20,520 |
||||||||||
Cash flows from operating activities |
19,837 |
32,551 |
|||||||||
Financing activities |
|||||||||||
Repurchase of shares |
(4,314) |
(319) |
|||||||||
Dividends |
(3,782) |
(1,669) |
|||||||||
Increase in debt and bank loans |
50,000 |
- - |
|||||||||
Repayment of debt and bank loans |
(44,060) |
(28,883) |
|||||||||
Issue expenses related to long-term debt |
(378) |
(97) |
|||||||||
Increase in other liabilities |
(17) |
10 |
|||||||||
Cash flows from financing activities |
(2,551) |
(30,958) |
|||||||||
Investing activities |
|||||||||||
Proceeds from sale of property, plant and equipment |
90 |
386 |
|||||||||
Additions to property, plant and equipment |
(11,120) |
(4,884) |
|||||||||
Additions to intangible assets |
(379) |
(242) |
|||||||||
Acquisition of an investment |
(2,308) |
(150) |
|||||||||
Decrease in receivables and other assets |
- - |
32 |
|||||||||
Cash flows from investing activities |
(13,717) |
(4,858) |
|||||||||
Effects of changes in foreign exchange rate |
467 |
141 |
|||||||||
Increase in cash and cash equivalents |
4,036 |
(3,124) |
|||||||||
Cash and cash equivalents – Beginning of period |
7,050 |
8,261 |
|||||||||
Cash and cash equivalents – End of period |
$ |
11,086 |
$ |
5,137 |
|||||||
Supplementary information |
|||||||||||
Interest paid |
$ |
1,915 |
$ |
1,201 |
|||||||
Income taxes paid, net |
$ |
4,441 |
$ |
4,297 |
SOURCE Canam Group Inc.
![](http://rt.newswire.ca/rt.gif?NewsItemId=C8907&Transmission_Id=201604291034CANADANWCANADAPR_C8907&DateId=20160429)
Media: François Bégin, Vice President, Communications, Canam Group Inc., 450-641-4000, 418-225-1355 (mobile phone),[email protected]; Investors: René Guizzetti, Vice President and Chief Financial Officer, Canam Group Inc., 450-641-4000, [email protected]
Share this article