A Pizza Pizza outlet.The Globe and Mail
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Savanna Energy Services Corp. (SVY-T) says it has an agreement to be bought by Western Energy Services Corp. (WRG-T) to create the second largest drilling and well servicing contractor in Canada.
The proposed deal values Savanna shares at $2.30 each, a 63 per cent premium to Savanna's price on Nov. 23, prior to the announcement Total Energy Services Inc.'s (TOT-T) intention to make an unsolicited bid for Savanna.
Savanna shares closed at $2.01 on Wednesday.
Savanna shareholders will receive, for each Savanna Share held, 0.85 of a Western Share.
The value is about $533-million, including the assumption of approximately $248-million in Savanna net debt, including estimated transaction costs, Western Energy said.
"This transaction, which has received the unanimous support of the special committee and the Savanna board, provides a compelling opportunity for Savanna and its shareholders," said Savanna CEO Chris Strong.
The Savanna board is recommending that its shareholders vote in favour of the deal and reject a hostile bid from Total.
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Magellan Aerospace Corp. (MAL-T) reported fourth-quarter revenue of $247.1-million down from $252.6-million a year earlier.
Net income was $24-million or 41 cents per share compared to $25.5-million or 44 cents a year earlier.
Analysts were expecting earnings of 40 cents and revenue of $250.4-million.
The company also said it secured a multi-year contract with Airbus for the supply of complete crown module assemblies for all variants of the A350 XWB aircraft.
The contract extension is valued at approximately $140-million.
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MacDonald, Dettwiler and Associates Ltd. (MDA-T) signed three contracts valued at a total of $2.5-million with Satellite Applications Catapult Ltd.
MDA said it will use imaging capabilities from the RADARSAT-2 satellite to provide information on maritime surveillance and the detection of Illegal, unreported and unregulated fishing vessels.
"This information is integrated into other data and shared with government and non-government agencies to monitor fishing activities in remote regions," the company said.
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ZCL Composites (ZCL-T) reported fourth-quarter revenue of $46.6-million, up $2.2-million or 5 per cent from $44.4-million a year earlier.
Net income was $5.7-million or 19 cents per share versus $4.8-million or 16 cents per share a year earlier.
Analysts were expecting earnings of 18 cents.
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True North Commercial Real Estate Investment Trust (TNT.UN-T) said revenue in the fourth quarter of 2016 increased to $11.8-million, compared with $9.8-million a year earlier.
Net operating income was $6.9-million, an increase from $6.1-million in the corresponding period of 2015.
"The quarter-over-quarter and year-over-year increases in revenue and NOI are primarily attributable to the REIT's acquisitions," the company said.
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Savanna Energy Services Corp. (SVY-T) reported revenue of $104.2- million in the fourth quarter compared to revenue of $100.8-million a year earlier.
Its net loss attributable to shareholders was $18.9-million or 20 cents per share compared to a net loss of $162.7-million or $1.80 per share a year earlier.
"Improving industry sentiment in the fourth quarter of 2016 did result in improving activity levels relative to the fourth quarter of 2015," the company said. "However, overall increases in fourth-quarter activity levels were not enough to overcome the pricing decreases realized throughout 2016."
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DIRTT Environmental Solutions Ltd. (DRT-T) reported revenue of $78.3-million in the fourth quarter, an increase of $13.3-million or 20.5 per cent over the same quarter a year earlier.
Net income was $4.3-million or 6 cents per share down from net income of $9.1-million or 11 cents a year earlier.
Analysts were expecting earnings of 7 cents and revenue of $71.7-million.
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IBI Group Inc. (IBG-T) reported revenue of $86.8-million in the fourth quarter compared with revenue of $84.9-million in the same period in 2015.
Its net income was $7.6-million or 24 cents per share compared to $14.2-million or 2 cents a year earlier.
Analysts were expecting earnings of 17 cents and revenue of $84-million.
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Chesswood Group Ltd. (CHW-T) reported operating income of $6-million in the fourth quarter, down from $7.5-million a year earlier.
Net income was $5.1-million or 29 cents per share compared to $8.1-million or 21 cents for the same period a year earlier, which included a $4.6-million gain on the sale of Acura Sherway, the company said.
Analysts were expecting earnings of 29 cents.
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Pizza Pizza Royalty Corp. (PZA-T) says sales from the 736 restaurants in the royalty pool increased to $142.7-million in the fourth quarter, from $141.4-million in the prior year comparable quarter when there were 730 restaurants.
Same-story sales increased by 1.8 per cent.
Earnings per share for the quarter came in at 22.1 cents compared to 22.5 cents a year earlier.
Analysts were expecting earnings of 24 cents.
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Aurora Cannabis Inc. (ACB-T) says it's introducing the cannabis industry's "most comprehensive product testing disclosure process."
The company said it has completed the first step in a two-step process that will provide access to a simplified Certificate of Analysis (CoA) for every cannabis product it sells.
"The purpose of the new protocol is to provide clients with secure knowledge that every Aurora product available for purchase has been certified by an independent third-party laboratory as having passed testing for the widest possible range of potential contaminants," the company said.
The new system was developed with Anandia Labs Inc., a cannabis genetics and testing laboratory.
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Cargojet Inc. (CJT-T) reported revenues of $94.1-million in the fourth quarter, an increase of $9.8-million or 11.6 per cent versus the previous year.
Adjusted EBITDA was $27.9-million, an increase of $9.1-million or 48.4 per cent.
Analysts were expecting revenue of $90.1-million.
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