Periods ended April 1, 2017 and April 2, 2016

                 Three months

(in millions of $, except per-share amounts)

2017

2016

Revenues

$

463.5

$

450.7

Selling and administrative expenses

$

31.4

6.8%

$

30.9

6.9

%

Adjusted EBITDA¹

$

10.3

2.2%

$

22.0

4.9

%

Net income (net loss)²

$

(1.6)

$

8.3

Net earnings per share² (basic and diluted)

$

(0.04)

$

0.18

¹ Refer to the section entitled Non-IFRS measures.

² Represents net income (net loss) attributable to shareholders.

CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF INCOME (LOSS)

Periods ended April 1, 2017 and April 2, 2016

(in thousands of Canadian dollars, except per share amounts)

Three months

(unaudited)

2017

2016

Revenues

$

463,451

$

450,736

Cost of sales, excluding depreciation and amortization⁽¹⁾

420,728

396,312

Selling and administrative expenses

31,365

30,944

Profit sharing program

526

1,234

Depreciation of property, plant and equipment

8,250

6,975

Amortization of intangible assets

859

927

Other net losses

511

207

Finance costs

3,305

2,497

Finance revenue

(109)

(151)

Share of loss of a joint venture and associates

6

311

Income (loss) before income tax

(1,990)

11,480

Income tax expense (recovery)

Current

(964)

5,001

Deferred

520

(1,897)

(444)

3,104

Net income (loss)

$

(1,546)

$

8,376

Net income (loss) attributable to:

Shareholders

$

(1,646)

$

8,328

Non-controlling interests

100

48

$

(1,546)

$

8,376

Net earnings per share attributable to shareholders

Basic

$

(0.04)

$

0.18

Diluted

$

(0.04)

$

0.18

Weighted average number of common shares (in thousands of shares)

Basic

45,289

47,491

Diluted

45,289

47,522

Number of common shares outstanding (in thousands of shares)

45,362

47,215

As at April 1, 2017 and April 2, 2016, the cost of sales, including depreciation and amortization, was $427,772 and $402,302, respectively.

CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS

Periods ended April 1, 2017 and April 2, 2016

(in thousands of Canadian dollars)

Three months

(unaudited)

2017

2016

Net income (loss)

$

(1,546)

$

8,376

Other comprehensive loss:

Items that will be reclassified subsequently to profit or loss:

Change in unrealized losses on translating foreign operations

(3,633)

(23,229)

Change in unrealized gain on translating debt designated as hedging item of the net investment in foreign operations

117

1,018

(3,516)

(22,211)

Available-for-sale asset:

Unrealized gains (losses) on available-for-sale financial assets arising during the period

(384)

195

(384)

195

Other comprehensive loss

(3,900)

(22,016)

Comprehensive loss

$

(5,446)

$

(13,640)

Comprehensive loss attributable to:

Shareholders

$

(5,497)

$

(13,688)

Non-controlling interests

51

48

$

(5,446)

$

(13,640)

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(in thousands of Canadian dollars)

(unaudited)

As at
April 1,
2017

As at
December 31,
2016

Assets

Current assets

Cash and cash equivalents

$

6,803

$

13,567

Accounts receivable

321,845

318,149

Costs and estimated profits in excess of billings

262,145

259,363

Inventories

145,620

144,601

Recoverable tax assets

1,581

212

Prepaid expenses and other assets

5,310

5,038

743,304

740,930

Non-current assets

Investments

10,174

9,936

Interests in a joint venture and associates

37,758

37,823

Property, plant and equipment

367,856

374,849

Intangible assets

15,583

16,300

Goodwill

55,792

56,285

Deferred tax assets

32,632

33,410

Long-term receivables and other assets

3,364

3,782

Total assets

$

1,266,463

$

1,273,315

Liabilities

Current liabilities

Accounts payable and accrued liabilities

$

266,719

$

272,339

Billings in excess of costs and estimated profits

86,535

87,066

Current tax liabilities

1,047

6,476

Current portion of balance of purchase price of businesses

646

646

Provisions

8,059

8,137

Current portion of long-term debt

24,675

25,204

387,681

399,868

Non-current liabilities

Debt

297,446

284,446

Balance of purchase price of businesses

1,431

1,442

Provisions

11,028

11,131

Deferred tax liabilities

6,204

6,148

Other liabilities

2,141

2,560

Total liabilities

705,931

705,595

Equity

Share capital

229,268

229,035

Retained earnings

252,868

256,277

Other equity items

72,970

77,033

Total equity attributable to shareholders

555,106

562,345

Non-controlling interests

5,426

5,375

Total equity

560,532

567,720

Total equity and liabilities

$

1,266,463

$

1,273,315

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

Exchange difference resulting from the translation of the debt designated as hedging item

Available-for-sale-financial assets

Total other
equity items

Share capital

Retained earnings

Total share capital attributable to shareholders

Non-controlling interests

Total equity

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 loss

- -

(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

Balance as at January 1, 2017

$

1,791

$

78,878

$

(3,646)

$

10

$

77,033

$

229,035

$

256,277

$

562,345

$

5,375

$

567,720

Purchase obligation

- -

- -

- -

- -

- -

- -

43

43

- -

43

Net loss for the period

- -

- -

- -

- -

- -

- -

(1,646)

(1,646)

100

(1,546)

Comprehensive loss

- -

(3,584)

117

(384)

(3,851)

- -

- -

(3,851)

(49)

(3,900)

Dividends

- -

- -

- -

- -

- -

- -

(1,806)

(1,806)

- -

(1,806)

Shares acquired by employees

(233)

- -

- -

- -

(233)

233

- -

- -

- -

- -

Amortization of compensation costs related to the profit sharing program - stock ownership component

21

- -

- -

- -

21

- -

- -

21

- -

21

Balance as at April 1, 2017

$

1,579

$

75,294

$

(3,529)

$

(374)

$

72,970

$

229,268

$

252,868

$

555,106

$

5,426

$

560,532

CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS

Periods ended April 1, 2017 and April 2, 2016

(in thousands of Canadian dollars)

Three months

(unaudited)

2017

2016

Cash flows from the following activities:

Operating activities

Net income (loss)

$

(1,546)

$

8,376

Adjustments:

Amortization of compensation costs related to the profit sharing program – stock ownership component

21

21

Loss on disposal of property, plant and equipment

9

6

Depreciation of property, plant and equipment

8,250

6,975

Amortization of intangible assets

859

927

Amortization of deferred financing expenses

113

103

Interest rate swaps

16

(65)

Imputed interest

98

188

Pension expense

(560)

(667)

Deferred tax expense (income)

520

(1,897)

Share of loss of a joint venture and associates

6

311

7,786

14,278

Net change in non-cash operating working capital balances

Decrease (increase) in accounts receivable

(5,228)

19,683

Increase in costs and estimated profits in excess of billings

(4,982)

(30,755)

Decrease (increase) in inventories

(1,792)

13,680

Decrease (increase) in current tax assets

(1,385)

1,002

Increase in prepaid expenses and other assets

(308)

(331)

Increase (decrease) in accounts payable and accrued liabilities

(52)

4,579

Increase (decrease) in billings in excess of costs and estimated profits

91

(2,542)

Decrease in interest payable

(905)

(294)

Increase (decrease) in current tax liabilities

(5,405)

537

(19,966)

5,559

Cash flows from operating activities

(12,180)

19,837

Financing activities

Repurchase of shares

- -

(4,314)

Dividends

(3,609)

(3,782)

Increase in debt and bank loans

25,617

50,000

Repayment of debt and bank loans

(12,201)

(44,060)

Issue expenses related to debt

(188)

(378)

Increase in other liabilities

- -

(17)

Cash flows from financing activities

9,619

(2,551)

Investing activities

Proceeds from sale of property, plant and equipment

17

90

Additions to property, plant and equipment

(3,168)

(11,120)

Additions to intangible assets

(259)

(379)

Acquisition of an investment

(621)

(2,308)

Proceeds from disposal of an investment

60

- -

Increase in receivables and other assets

(85)

- -

Decrease in receivables and other assets

43

- -

Cash flows from investing activities

(4,013)

(13,717)

Effects of changes in foreign exchange rate on cash and cash equivalents

(190)

467

Net change in cash and cash equivalents

(6,764)

4,036

Cash and cash equivalents – Beginning of period

13,567

7,050

Cash and cash equivalents – End of period

$

6,803

$

11,086

Supplementary information

Interest paid

$

2,910

$

1,915

Income taxes paid, net

$

5,829

$

4,441