Snoop Dogg performs during the 2011 MuchMusic Video Awards in Toronto on Sunday, June 19, 2011.Darren Calabrese/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.
Canaccord Genuity Group Inc. (CF-T) said revenue rose 9 per cent year-over-year in the third quarter to $181.8 million, which missed analysts' expectations of $199.6 million, according to Thomson Reuters.
Excluding "significant items," the company recorded a net loss of $19.1 million or 25 cents per share in the quarter, compared to an adjusted loss of $14.3 million or 19 cents per share a year earlier.
"These results include certain charges for impairment of an investment in Canadian First Financial Group Inc. and a software development impairment charge in the aggregate amount of $6.3 million," the company said in a release late Thursday. "During the quarter the company also recorded, as significant items, an impairment charge to the carrying value of its goodwill and other assets in the amount of $321 million and restructuring charges of $4.3 million."
Canaccord has been laying off staff amid amid a challenging operating environment for independent brokerages.
Including the goodwill and other assets impairment charge, the restructuring expenses and other significant items, Canaccord said it recorded a loss of $346.4 million or $3.91 per share in the quarter ended Dec. 31, compared to a net loss of $21.5 million or 27 cents a year earlier.
"A number of cyclical factors in the broader economy continued to put pressure on revenue and negatively impacted our third quarter performance," stated CEO Dan Daviau. "We are making significant progress to reposition our business, with a strategy that is centered around improving our operational efficiencies and better aligning our core strengths, so that we can return to profitability and steadily improve our bottom-line returns."
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TMX Group Ltd (X-T), which owns and operates the Toronto Stock Exchange, reported a fall in fourth-quarter adjusted profit that missed analyst estimates, as sustained low commodity prices hurt a large portion of its resource-based issuers.
"Economic factors, particularly the prolonged slump in commodity values, continued to weigh heavily on the performance of the Canadian economy and on key elements of our market ecosystem," Chief Executive Lou Eccleston said in a release after markets closed on Thursday.
The company reported a net loss attributable to shareholders of $159 million, or $2.92 per share, compared with a profit of $41.1 million, or 76 Canadian cents per share, a year earlier.
Excluding impairment charges, TMX Group earned 87 Canadian cents per share for the quarter ended Dec. 31, compared with 93 Canadian cents a year earlier. Revenue fell 3 per cent to $177.1 million.
Analysts on average expected TMX to earn 88 Canadian cents a share on revenue of $177.05 million, according to Thomson Reuters I/B/E/S.
The company, which reclassified its revenue categories this quarter, said revenue from capital formation fell to $38.8 million from $44.8 million a year earlier. Capital formation includes revenue from listings on Toronto Stock Exchange, TSX Venture Exchange and other issuer services.
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Canadian Energy Services & Technology Corp. (CEU-T) says it's slashing its dividend by 86 per cent amid a depressed energy price environment where producers are "losing money at every turn."
The oilfield technology company says its dividend will fall to 3 cents on an annualized basis, down from 21.6 cents. It said the cut will save it about $38 million in cash in 2016,
"As commodity prices have continued to weaken, conditions for all oilfield suppliers have deteriorated," stated CEO Tom Simons. "Our E&P customers are losing money at every turn as they drill, complete, produce and transport oil and gas. As a result the profits of their suppliers are understandably being squeezed out of the system. In this difficult market we are significantly reducing the dividend to strengthen the balance sheet."
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Spin Master Corp., (TOY-T) says it has bought the iconic Etch A Sketch and Doodle Sketch brands from The Ohio Art Company.
The Toronto-based entertainment company says the acquisition includes all patents, trademarks, tooling and inventory for the brands.
"Spin Master has built a reputation for acquiring legacy brands and infusing them with unexpected innovation," the company stated in a release after markets closed on Thursday.
It said it plans to increase the distribution of Etch A Sketch and Doodle Sketch by "leveraging its global sales and partnership networks."
The transaction closed on Thursday. The price wasn't disclosed.
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TransForce Inc. (TFI-T) said fourth-quarter revenue rose 19 per cent to $4.03 billion, which was slightly below analysts' expectations of $4.3 billion.
Adjusted net income from continuing operations was $185.6 million, or $1.82 per share, up from $155.9 million, or $1.54 per share in 2014. Including net income from discontinued operations, net income was $163.4 million, or $1.60 per diluted share, compared with $127.9 million, or $1.26 per diluted share in 2014.
"The sudden and rapid decline in the price of oil caught most by surprise in 2015," stated Alain Bédard. "It caused a significant decline in economic activity in Canada and a serious deterioration in the U.S. energy market."
He said the company's "decentralized and diversified business model" helped it adapt to the evolving market conditions.
The company said its geographical revenue distribution was approximately 47 per cent from Eastern Canada, 16 per cent from Western Canada and 37 per cent from the U.S. In 2015
"We also moved proactively to unlock shareholder value by initiating the sale of our Waste Management segment for $800 million," Mr. Bédard noted. "This transaction, completed earlier this month, allowed TransForce to realize the full value of this business which, in our view, had never been fully recognized."
The company also announced has authorized a "substantial" issuer bid to purchase for cancellation up to 10 million common shares for an aggregate purchase price not to exceed $220 million. It said the offer will through a "modified Dutch Auction" where shareholders can tender all or a portion of their shares at a price between $19 and $22 per share, in increments of 10 per share, or without specifying a purchase price, "in which case their shares will be purchased at the purchase price determined in accordance with the offer," the company said in a separate release.
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Merus Labs International Inc. (MSL-T, MSLI-N) widened its loss in the first quarter compared to a year earlier, but revenues rose.
The company reported a net loss of $900,000 compared to a net loss of $200,000 for the prior year period. Adjusted earnings before interest, taxes, depreciation and amortization was of $8.5 million, a 13 per cent increase year-over-year, the company said.
Revenues were $15.9 million, which the company said were "considerably higher" year-over-year due the addition of Salagen and Estraderm brands, "along with a shift to recording most of our Sintrom sales on a gross basis."
It said the first quarter results don't include any earnings from its newly acquired nitrates portfolio.
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Interfor Corp. (IFP-T) reported fourth-quarter revenues of $411.4 million, beating analysts' expectations, and up from $389 million for the same quarter a year earlier.
Interfor also reported a net loss of $3.5 million, or 5 cents per share, compared with a net loss of $5.2 million or 8 cents per share.
Adjusted net earnings in the fourth quarter were $5.5 million, or 8 cents per share, compared with adjusted net earnings of $10.2 million or 15 cents per share a year earlier.
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Tweed Inc., a subsidiary of Canopy Growth Corp. (CGC-T) says it has signed a business partnership with entertainment icon Snoop Dogg.
"Snoop Dogg is one of the world's most respected cannabis icons and pioneers in the industry," the company stated in a release on Friday. "He is recognized as a connoisseur of quality, medical cannabis products and has expanded his entrepreneurial endeavours to provide expertise and strategy to business ventures that, like Tweed, represent the birth of a new industry.
The company also included a quote from the entertainer which stated: "There are real social and medical benefits from the cannabis industry- and the world is seeing this positivity in a whole new way .. Canada has been at the forefront of the business model, and I look forward to being a part of the road ahead."
The deal sees the company and singer partner on a curated content and brand strategy exclusively in Canada. The license agreement is for an initial three-year term with a two-year extension, the company said.
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Taseko Mines Ltd (TKO-T, TGB-N) says it has filed a civil claim in the B.C. Supreme Court against the Canadian federal government, seeking damages related to its February 2014 decision around its multi-billion New Prosperity Project.
The government wouldn't give the authorizations needed to for the project to move forward, the company said at the time.
"The lawsuit claims the Government of Canada and its agents failed to meet the legal duties that were owed to Taseko and that in doing so they caused and continue to cause damages, expenses and loss to Taseko," the company stated in a release on Friday.
"Given the conduct of the Government of Canada and its agents we have no other choice but to defend the interests of our shareholders and to protect their assets," stated CEO Russell Hallbauer.
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Sierra Metals Inc. (SMT-T) reported a positive outcome in the legal dispute between Polo & Ron Minerals and Dia Bras Exploration Inc., (the company's previous name) and Dia Bras Mexicana a subsidiary of Sierra Metals, that holds its Bolivar and Cusi properties in Mexico.
Sierra said a higher court ruled that a previous court "lacked jurisdiction to rule on issues concerning mining title and that no previous rulings by the state courts against the company shall stand."
Added Sierra in a release on Friday: "The federal court has ordered the cancellation of the previous resolution by the state court. The Federal Court's verdict in the amparo is final and non-appealable."
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Valener Inc. (VNR-T) reported adjusted net income of $16.5-million or 43 cents per share in the first quarter, up from $15.7-million or 41 cents per share for the same quarter a year earlier.
It said the increase is due to an increase in Gaz Métro's recurring net income, partly offset by a decrease in the net income generated by its wind farms.
Valener is the public investment vehicle in Gaz Métro Limited Partnership.
The company also reported normalized operating cash flows of $10.4-million for the quarter, compared to $9.9-million for the same time a year earlier.
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Héroux-Devtek Inc. (HRX-T) said third-quarter sales rose 9.3 per cent to $96.6-million, reflecting strength of the commercial aerospace market and a boost from the higher Canadian dollar.
"Year-over-year currency fluctuations had a $6.1-million favourable effect on commercial sales," the company stated.
The sales were below analysts' expectations of $98.2-million, according to Thomson Reuters.
The company reported adjusted net income of $7-million, or 19 cents per share in the quarter, up from $4.4-million, or 12 cents per share a year earlier, "excluding non-recurring charges of $6.3 million, net of taxes."
With a file from Reuters