SAINT-GEORGES, QC, Oct. 29, 2015 /CNW Telbec/ – Canam Group Inc. (TSX: CAM) (“Canam Group” or the “Corporation”) today published its financial results for the three-month and nine-month periods ended September 26, 2015.
Highlights
Results for the third quarter and first nine months of 2015
Consolidated revenues for the third quarter of 2015 totaled $432.1M, which represents a $102.9M or 31.3% increase, compared to revenues of $329.2M for the same quarter in 2014. Consolidated revenues after the first nine months of fiscal 2015 totaled $1,113.1M, representing a $263.9M or 31.1% increase, compared to revenues of $849.2M for the corresponding period in 2014. These increases are attributable to all of the Corporation’s groups of products and services, primarily structural steel and buildings, as well as to the favorable impact of the US dollar’s rise against the Canadian dollar since the beginning of 2015.
Selling and administrative expenses totaled $27.3M, or 6.3% of revenues, for the third quarter of 2015 compared to $22.9M, or 6.9% of revenues, in 2014. After the first nine months of fiscal 2015, selling and administrative expenses totaled $77.5M, or 7% of revenues, compared to $66.9M, or 7.9% of revenues, for the corresponding nine-month period in 2014. These variations are attributable to the increase in salary charges in order to maintain sales growth as well as the US dollar’s rise against the Canadian dollar.
Adjusted EBITDA in the third quarter of 2015 amounted to $33.6M, or 7.8% of revenues, compared to $24.7M, or 7.5% of revenues, for the same quarter in 2014. After the first nine months of 2015, Adjusted EBITDA totaled $78.2M, or 7% of revenues, compared to $50.5M, or 5.9% of revenues, for the corresponding period in 2014. These increases in Adjusted EBITDA since the beginning of 2015 are mainly attributable to the higher sales volume combined with a rise in the Adjusted gross margins of certain groups of products and services. These items were offset, however, by the compression of gross margins for the bridges’ group of products and services and the increase in selling and administrative expenses.
In the third quarter of 2015, net income attributable to shareholders totaled $14.5M, or $0.35 per share, compared to $10.5M, or $0.25 per share, for the corresponding period in 2014. After the first nine months of fiscal 2015, net income attributable to shareholders totaled $29M, or $0.69 per share, compared to $15.5M, or $0.37 per share, for the same nine-month period in 2014.
Performance through execution
“With this fifth consecutive quarterly increase, we are demonstrating our ability to translate the growth in non-residential construction into higher revenues and earnings,” explains Marc Dutil, President and Chief Executive Officer of Canam Group. “We plan to maintain this disciplined approach in all our areas of activity, particularly bridges, in order to continue to improve our bottom line.”
Order backlog
The order backlog stood at $1,234M as at September 26, 2015, compared to $1,058M as at June 27, 2015 and $1,007M as at December 31, 2014.
Dividend
The Board of Directors approved a dividend of $0.04 per share payable on January 4, 2016 to shareholders of record on December 17, 2015.
Acquisition of assets of Montacier International Inc.
On August 15, 2015, a subsidiary of the Corporation finalized the purchase of assets of Montacier International Inc., a company located in Boisbriand, Quebec, that specializes in erecting steel structures. This transaction is in line with the Corporation’s goal to enhance and integrate its product and service offering in the construction industry. The company will henceforth operate under the corporate name St. Lawrence Erectors Inc.
Conversion of unsecured subordinated debentures
As at October 23, 2015, $66M out of $69M of convertible debentures bearing interest at 6.25% and maturing on October 31, 2015 have been converted into 5,503,658 common shares of the Corporation. At any time prior to October 24, 2015, each debenture was convertible at the holder’s option into common shares at a conversion price of $12 per common share. The number of common shares outstanding as at October 28, 2015 is 47,551,043 shares. The $3M balance of outstanding debentures will be reimbursed in cash at maturity.
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 on average in 10,000 building, structural steel and bridge projects each year. The Corporation operates 22 plants across North America and employs close to 4,100 people in Canada, the United States, Romania, India and Hong Kong.
Conference call, webcast and presentation
Canam Group will hold a conference call with financial analysts and media representatives on Thursday, October 29, 2015 at 9:00 a.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.
Non-IFRS measure
Earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) is not defined by International Financial Reporting Standards (IFRS) and cannot be formally presented in the consolidated financial statements. Even though Adjusted EBITDA is a non-IFRS measure, it is used by managers, analysts, investors and other financial stakeholders to assess the Corporation’s operative performance and management from a financial and operational standpoint. Refer to the section entitled “Non-IFRS measures” of the Corporation’s 2014 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 2014 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.
NOTICE
The Corporation’s independent auditors have not performed a review of the accompanying condensed interim consolidated financial statements.
