CANAM GROUP: 2010 SALES UP 20% TO $751M

Feb. 15, 2011 (Canada NewsWire Group) --

BOUCHERVILLE, QC, Feb. 15 /CNW Telbec/ - Canam Group Inc. (TSX: CAM), a leading construction product fabricator, closed its last financial year ended December 31, 2010 with consolidated sales totaling $751.3 million, up 20% from $625.8 million in 2009. The company posted net earnings of $0.1 million, or $0 per share, compared with $20.4 million, or $0.45 per share, last year.

Fourth-quarter net earnings amounted to $0.8 million, or $0.02 per share, against $5.1 million, or $0.11 per share, for the corresponding quarter in 2009. Consolidated sales for the quarter increased 66%, from $149.7 million in 2009 to $248.4 million in 2010.

Marc Dutil, Canam Group president and chief operating officer, stated that this growth in sales stems primarily from the acquisition of FabSouth in February 2010 whereas the contraction of gross margins reflects the downturn in non-residential construction across North America. Despite a very difficult economic environment, Mr. Dutil is pleased that the company has attained its goal to weather the recession with a strong balance sheet and make the right acquisitions at the right price, while maintaining jobs and profitability in anticipation of the economic recovery.

The gross profit for 2010 amounted to $94.3 million and gross margin stood at 12.5% of sales compared to 19.4% at the end of the previous year. EBITDA went from $49 million at the close of 2009 to $14.8 million one year later. The company's net debt stood at $97.6 million versus $0.3 million a year ago. Shareholders' equity was $406.6 million.

As at December 31, 2010, Canam Group's order backlog totaled $485 million compared to $460 million a year ago.

The board of directors approved the payment of a quarterly dividend of $0.04 per common share on March 31, 2011 to shareholders of record on March 17, 2011.

About Canam Group Inc.
Canam Group is a leader in the design and fabrication of construction products and solutions and a leading provider of design-build and building information modeling (BIM) services. The company operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.

Conference call
Canam Group will hold a conference call with financial analysts and media representatives at 9 a.m. on Tuesday, February 15, 2011. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until March 1, 2011, by dialing 1-800-408-3053 and entering access code 1634675, followed by the pound key (#).

ConsolidatedStatements of Earnings
Periods ended December 31
(in thousands of dollars, except per share amounts)		3 months				12 months
			2010		2009 (restated)		2010		2009 (restated)
Sales		$	248,436	$	149,678	$	751,322	$	625,843
Cost of sales			222,162		121,204		657,066		504,121
Gross profit			26,274		28,474		94,256		121,722
Selling and administrative expenses			21,649		19,399		78,032		71,760
Profit sharing programs			884		1,111		1,658		2,929
Exchange loss (gain)			(386)		(1,155)		78		(2,153)
Gain on disposal of investments			- -		(110)		(448)		(319)
Loss on disposal of property, plant and equipment			154		457		125		402
Impairment of property, plant and equipment held for sale			- -		132		- -		132
			3,973		8,640		14,811		48,971
Depreciation of property, plant and equipment			4,873		4,368		18,678		16,285
Amortization of intangible assets			1,124		256		3,971		1,294
Financial expenses			3,262		458		6,460		2,042
Gain (loss) on revaluation of investment			78		- -		(3,810)		- -
Gain on business acquisition			(7,464)		- -		(7,464)		- -
Earnings (loss) before income tax expense and undermentioned item			2,100		3,558		(3,024)		29,350
Income tax expense (recovery)
	Current		(1,762)		(4,392)		458		4,026
	Future		2,918		3,044		(3,798)		3,207
			1,156		(1,348)		(3,340)		7,233
Earnings before undermentioned items			944		4,906		316		22,117
Share in earnings (loss) of companies subject to significant influence			(189)		149		(282)		(701)
Net earnings from continuing operations			755		5,055		34		21,416
Net earnings (net loss) from discontinued operations			- -		67		60		(984)
Net earnings		$	755	$	5,122	$	94	$	20,432
Net earnings (net loss) per share
Basic
	From continuing operations	$	0.02	$	0.11	$	0	$	0.47
	From discontinued operations		- -		- -		0		(0.02)
	Total	$	0.02	$	0.11	$	0	$	0.45
Diluted:
	From continuing operations	$	0.02	$	0.11	$	0	$	0.47
	From discontinued operations		- -		- -		0		(0.02)
	Total	$	0.02	$	0.11	$	0	$	0.45
Weighted average number of common shares
	(in thousands of shares)
	Basic		45,208		45,047		45,207		45,057
	Diluted		45,394		45,385		45,396		45,385
Number of common shares outstanding							45,366		45,368

Consolidated Statements of Comprehensive Income
Periods ended December 31
(in thousands of dollars)		3 months				12 months
			2010		2009 (restated)		2010		2009 (restated)
Net earnings		$	755	$	5,122	$	94	$	20,432
Other comprehensive income (loss):
	Change in unrealized losses on translating financial statements of self-sustaining foreign operations	$	(7,293)	$	(6,136)	$	(10,838)	$	(25,391)
	Unrealized gains (losses) on available-for-sale financial assets arising during the year	$	81	$	(157)	$	839	$	398
	Reclassification in earnings		- -		- -		(421)		- -
	Income tax expense (recovery)		(12)		24		(70)		(80)
	Change in unrealized gains and losses on available-for-sale financial assets	$	69	$	(133)	$	348	$	318
Other comprehensive loss		$	(7,224)	$	(6,269)	$	(10,490)	$	(25,073)
Comprehensive loss		$	(6,469)	$	(1,147)	$	(10,396)	$	(4,641)

Consolidated Statements of Retained Earnings
Periods ended December 31
(in thousands of dollars)		3 months				12 months
			2010		2009 (restated)		2010		2009 (restated)
Opening balance - As previously reported		$	237,740	$	240,820	$	244,029	$	232,208
	Change in accounting policies		18,366		18,065		18,164		17,782
Opening balance - As restated			256,106		258,885		262,193		249,990
Net earnings			755		5,122		94		20,432
Dividends			(1,789)		(1,814)		(7,157)		(7,261)
Excess of acquisition cost over carrying value of acquired common shares			- -		- -		(58)		(968)
Closing balance		$	255,072	$	262,193	$	255,072	$	262,193

Consolidated Balance Sheets
As at December 31
(in thousands of dollars)		2010		2009 (restated)
Assets
Current assets
	Cash and cash equivalents	$	15,968	$	67,393
	Short-term investment pledged as collateral		9,946		- -
	Accounts receivable		202,963		99,594
	Inventories		139,941		104,540
	Income taxes recoverable		4,092		6,701
	Future income tax assets		2,126		1,008
	Prepaid expenses and other assets		4,170		3,484
	Current assets of discontinued operations		- -		1,230
	Total current assets		379,206		283,950
Investments			48,063		63,503
Property, plant and equipment			280,293		209,204
Property, plant and equipment held for sale			1,465		1,549
Intangible assets			11,242		1,127
Goodwill			49,582		150
Future income tax assets			9,192		363
Long-term receivables and other assets			24,500		21,942
Long-term assets of discontinued operations			- -		8,618
		$	803,543	$	590,406
Liabilities
Current liabilities
	Bank loans	$	8,729	$	- -
	Accounts payable and accrued liabilities		149,206		77,112
	Income taxes payable		56		635
	Future income tax liabilities		409		876
	Current portion of long-term debt		8,943		5,477
	Current portion of balance of purchase price of business		10,043		- -
	Current liabilities of discontinued operations		- -		1,495
	Total current liabilities		177,386		85,595
Long-term debt			105,850		62,212
Balance of purchase price of business			24,173		- -
Convertible debentures			60,408		- -
Deferred credits			4,254		4,749
Future income tax liabilities			24,915		18,918
Long-term liabilities of discontinued operations			- -		1,604
			396,986		173,078
Shareholders' Equity
Share capital			179,102		178,024
Retained earnings			255,072		262,193
Debenture conversion options			5,764		- -
Contributed surplus			4,859		4,862
Accumulated other comprehensive loss			(38,240)		(27,751)
			406,557		417,328
		$	803,543	$	590,406

Consolidated Statements of Cash Flows
Periods ended December 31
(in thousands of dollars)		3 months				12months
			2010		2009 (restated)		2010		2009 (restated)
Cash flows from the following activities:
Operating activities
Net earnings from continuing operations		$	755	$	5,055	$	34	$	21,416
Items not affecting cash and cash equivalents
	Amortization of compensation costs related to the profit sharing program - stock ownership component		345		431		1,383		1,780
	Unrealized loss (gain) on foreign currency forward contracts		- -		579		- -		(743)
	Gain on reevaluation of investments		78		- -		(3,810)		- -
	Gain on a business acquisition		(7,464)		- -		(7,464)		- -
	Gain on disposal of investments		- -		(110)		(448)		(319)
	Impairment of property, plant and equipment held for sale		- -		132		- -		132
	Loss on disposal of property, plant and equipment		154		457		125		402
	Depreciation of property, plant and equipment		4,873		4,368		18,678		16,285
	Amortization of intangible assets		1,124		256		3,971		1,294
	Amortization of deferred financing expenses		55		54		234		214
	Implicit interest on convertible debentures and balance of purchase price businesses		2,021		- -		2,021		- -
	Interest swaps		279		- -		279		- -
	Pension expense		(107)		(298)		73		(322)
	Future income tax expense		2,918		3,044		(3,798)		3,207
	Share in loss of companies subject to significant influence		189		(149)		282		701
			5,220		13,819		11,560		44,047
Net change in non-cash operating working capital items
	Increase in short-term investment pledged as collateral		(9,946)		- -		(9,946)		- -
	Decrease (increase) in accounts receivable		(8,792)		17,935		(58,837)		46,605
	Decrease (increase) in inventories		14,084		15,362		(20,561)		62,179
	Decrease (increase) in income taxes recoverable		(4,083)		(3,180)		977		(1,614)
	Decrease (increase) in prepaid expenses and other assets		(225)		(718)		398		2,689
	Increase (decrease) in accounts payable and accrued liabilities		(25,742)		(15,683)		17,188		(40,928)
	Increase (decrease) in interest payable		(228)		(211)		916		(26)
	Increase (decrease) in income taxes payable		410		(1,920)		(368)		418
			(34,522)		11,585		(70,233)		69,323
Cash flows from continuing operating activities			(29,302)		25,404		(58,673)		113,370
Financing activities
Shares purchased by a trust in employees' name on the secondary market			- -		- -		(364)		(1,871)
Repurchase of shares			- -		- -		(127)		(2,122)
Proceeds from issuance of shares			- -		- -		125		47
Dividends			(3,579)		(3,630)		(7,157)		(7,261)
Increase in long-term debt and bank loans			38,116		- -		112,867		11,977
Repayment of long-term debt and bank loans			(62,865)		(6,679)		(67,234)		(26,403)
Repayment of balance of purchase price of business			(2,587)		- -		(5,217)		- -
Convertible debentures issuance			66,240		- -		66,240		- -
Issue expenses related to long-term debt and convertible debentures			(618)		- -		(618)		- -
Deferred credits			(1,245)		(2)		(2,500)		(237)
Cash flows from continuing financing activities			33,462		(10,311)		96,015		(25,870)
Investing activities
Proceeds from sale of property, plant and equipment			(115)		531		465		923
Additions to property, plant and equipment			(11,534)		(10,729)		(39,134)		(27,791)
Additions to intangible assets			(89)		(51)		(418)		(467)
Acquisition of investments			- -		(16,111)		(120)		(20,704)
Proceeds from disposal of investments			- -		2,428		1,503		3,572
Distribution from companies subject to significant influence			379		167		379		467
Decrease in long-term receivables			624		6,307		5,207		8,807
Increase in long-term receivables			(41)		(93)		(176)		(4,383)
Business acquisitions, net of cash acquired			146		- -		(54,139)		- -
Cash flows from continuing investing activities			(10,630)		(17,551)		(86,433)		(39,576)
Effect of changes in foreign exchange rate on cash and cash equivalents			(1,943)		296		(2,532)		(143)
Net change in cash and cash equivalents from continuing operations			(8,413)		(2,162)		(51,623)		47,781
Cash flows from discontinued operations
	Operating activities		- -		2,957		184		3,598
	Investing activities		- -		17		14		395
			- -		2,974		198		3,993
Cash, beginning of year			24,381		66,581		67,393		15,619
Cash and cash equivalents, end of year		$	15,968	$	67,393	$	15,968	$	67,393
Supplementary information
	Interest paid	$	1,933	$	1,177	$	5,145	$	3,894
	Income taxes paid (recovered), net	$	1,553	$	(428)	$	(1,708)	$	3,271

Jasmin Gosselin     Vice President, Communications Tel.: 450-641-4000
Email:	jasmin.gosselin@canamgroup.ws www.canamgroup.ws