Penn West underreported its operating expenses by about 16 per cent for both 2012 and 2013.The Canadian Press
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Norbord Inc. (NBD-T) reported adjusted earnings before interest, taxes, depreciation and amortization of $122-million in 2015, up from $115-million in 2014.
The forest products company said the increase was due to higher shipment volumes and cost improvements, which offset lower oriented strand board (OSB) prices.
Its adjusted loss for 2015 was $14-million or 17 cents per share, compared to an adjusted loss of $17-million or 20 cents per share in 2014, due to "a number of one-time merger-related expenses," the company said.
"2015 was a significant year in many respects for Norbord, even though our progress is just starting to become visible in our sequential quarterly results," stated CEO Peter Wijnbergen. "We completed our merger with Ainsworth in March to form the world's largest OSB company and have since been focused on delivering the synergies from this combination. We have captured $27-million in annualized synergies to-date and I am confident in our ability to deliver the full $45-million target by the end of 2016."
Norbord also reported record annual production at six mills, with production volume up 4 per cent.
**
Penn West Petroleum (PWT-T) says it board has approved a "highly disciplined" capital budget of $50-million for 2016.
"This budget responds to the significant decline in commodity prices and proposes capital spending levels 90 per cent lower than the 2015 planned capital program," the company stated.
In its production outlook, the company said a deferral of equipment repair or replacement projects will reduce its 2016 annual average production by an additional 2,500 barrels of oil equivalent per day (boe/d).
"As a result of optimizing our operations for the current price environment, including the significant reductions to our capital program, we expect average annual production in 2016 between 60,000 boe/d and 64,000 boe/d," the company said.
Penn West also said it's looking for more ways to reduce costs at its operated properties, and expects a 20-per-cent drop in operating costs in 2016 company to 2015, not including dispositions.
It expects to save approximately $120-million in operating costs in 2016.
**
Performance Sports Group Ltd. (PSG-N, PSG-T) provided guidance on its debt and leverage levels for the next two years.
For 2016, the company said its five-year supply chain initiative is expected to drive $3-million in cost savings.
"Combined with this fiscal year's $30-million net working capital improvement plan, and other changes in working capital, Performance Sports Group expects to reduce total debt by approximately $40-million during the last two quarters of fiscal 2016," the company said.
That would bring its total debt to about $423-million, and its leverage ratio down to 5.8 times as of May 31 versus 6.6 times on Nov. 30.
That doesn't' include its recent acquisition of Easton Hockey.
Performance Sports Group expects to reduce its leverage ratio to below five times by the end of fiscal 2017.
"We have made significant progress on cash generating initiatives as measured by the substantial debt reduction we expect in the back half of fiscal 2016," stated CEO Kevin Davis. "These efforts also underscore our commitment to offsetting the impact of the weakening Canadian dollar on our earnings. Additionally, our supply chain initiative is exceeding our expectations, and we will continue to pursue other opportunities to improve our profitability and add shareholder value during this volatile foreign exchange environment."
**
Celestica Inc. (CLS-T, CLS-N) reported flat revenue of $5.6-billion for the full-year ended Dec. 31, compared to 2014.
Adjusted earnings per share (EPS) was 92 cents, compared to $1 in 2014. The company said the 2015 EPS included an eight cent per share income tax expense from taxable foreign exchange impacts.
Fourth-quarter revenue of $1.5-billion was above the company's guidance range of $1.375-billion to $1.475-billion, and up 6 per cent from the fourth quarter of 2014.
"Celestica delivered revenue above our guidance range in the fourth quarter of 2015, driven primarily by strength in our storage and server markets," stated CEO Rob Mionis in a release.
The company said it expects revenue in the first quarter to be in the range of $1.3-billion to $1.4-billion, and adjusted EPS to be in the range of 19 cents to 25 cents (excluding any impact from taxable foreign exchange).
**
Bankers Petroleum Ltd. (BNK-T) says it re-filed its Management's Discussion and Analysis of financial results for the three and nine months ended Sept. 30 after a review by the Alberta Securities Commission.
It said the review is related to its "ongoing continuous disclosure review program" and includes additional information around financial covenants.
"This was done in an effort to clarify and expand upon its continuous disclosure regarding the financial covenants contained in the company's credit facilities," the company stated.
There's also more disclosure around the availability of funds provided by the International Finance Corp. and European Bank for Reconstruction and Development, the company said.
**
Athabasca Oil Corp. (ATH-T) says it's forming a joint venture with Murphy Oil Company Ltd., a Canadian subsidiary to Murphy Oil Corp. (MUR-N) to develop the Duvernay and Montney in the Kaybob area of Alberta.
As part of the deal, Murphy will pay Athabasca about $250-million in cash and another $225-million in a "capital carry in the Duvernay," where Murphy will fund 75 per cent of Athabasca's share of development capital for up to five years.
Athabasca said its expected gross capital investment over this time period will be approximately $1-billion in the Duvernay, "with flexibility on spending as commodity prices recover."
"The transaction materially progresses Athabasca's strategic goal of transitioning the Duvernay play to commercial development over the mid-term," stated Athabasca CEO Rob Broen.
The company said the transaction also boosts its financial position and will help it achieve a goal of reducing leverage.
The company also said board chair Tom Buchanan, and Gary Dundas will not seek re-election for their positions on the board at the corporation's next annual meeting of shareholders. Ron Eckhardt, current lead director, will become the chair.
**
PolyMet Mining Corp. (POM-T, PLM-N) says it has secured an $11-million (U.S.) loan from a subsidiary of mining and commodity giant Glencore plc.
It said the loan facility includes a debenture due on March 31, 2017.
The initial interest rate is 16.2 per cent per year. The company said the interest will be paid in cash on the loan's due date.
"At PolyMet's discretion, the loan is repayable at any time if it is prudent to do so," the company said.
PolyMet said the money will be used for general corporate purposes and to complete a project and cost update.
"We welcome Glencore's continued financial and technical support through these difficult times … ," stated PolyMet CEO Jon Cherry.