A customer walks through the craft beer section at a Liquor Stores N.A. Ltd.-owned Liquor Depot in Edmonton on Tuesday.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.
Liquor Stores N.A. Ltd. (LIQ-T) is slashing its dividend and announcing staff cuts amid "serious headwinds" in the retail business in Alberta, its largest market.
The company also reported fourth-quarter sales of $214.2 million, an 8.9 per cent from the same time last year. Same-store sales increased by 0.3 per cent in Canada and 0.5 per cent in the U.S., the company said.
It opened six new stores in the fourth quarter.
Adjusted net earnings were $6.6 million, compared to $6.7 million in the year-earlier period. Its net loss was $105.8 million primarily "due to a $130.3 million pre-tax non-cash impairment of goodwill and intangible assets discussed further below." the company said.
"The retail liquor store industry in Alberta faced serious headwinds in 2015 as a result of the decline in energy prices but we still generated growth in overall sales, same-store sales, and adjusted operating margin," stated CEO Stephen Bebis.
"As we look ahead, we're being realistic about Alberta's growth rate. It has taken a serious hit, and with it, the performance of our stores in the province's more resource dependent communities."
The dividend is being cut to 36 cents per share on an annualized basis, down from $1.08.
Liquor Stores said it also cut 20 per cent of the positions at its Edmonton and Louisville offices to save $2.5 million annually.
It expects to record a one-time charge of approximately $700,000 related to restructuring in the quarter ended March 31.
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The Intertain Group Ltd. (IT-T) says it has started a review to "enhance shareholder value" which could include a sale of the company or some of its business units.
"Intertain's board of directors believes that the company's share price is misaligned with its fundamental business results," the company said. "The board has therefore initiated a process to identify, examine and consider a range of strategic options available to the company, with the objective of delivering shareholder value."
Intertain also said it has "received many expressions of interest in acquiring all or material parts of its business."
It said its special committee will consider a broad range of alternatives, "including strategic transactions providing for a sale of the company, one or more business units or partial offers and recapitalizations."
The announcement came as Intertain reported 2015 revenue of $384.5 million, above its previously stated guidance of $365 million to $375 million.
Adjusted net income was $111.6 million, above its previously stated guidance of $104 million to $109 million, the company said.
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An arm of Power Corporation says it now owns nearly 14 per cent of Performance Sports Group Ltd. (PSG-T), which makes Bauer hockey gear, Easton baseball equipment as well as products for lacrosse and soccer players.
Sagard Capital — part of the Montreal-based Power group of companies — says it wishes to "engage in communications" with the aim of nominating at least one representative to the Performance Sports board of directors.
It recently acquired about 1.95 million additional shares of Performance Sports, taking its total holdings to 13.63 per cent.
Performance Sports stock recently plunged to new lows after the New Hampshire-based company slashed its 2016 adjusted earnings estimates by about 80 per cent, in part because of bankruptcy proceedings for The Sports Authority retail chain.
Sagard says it paid an average of $3.35 (U.S.) per share, or $4.43 (Canadian), for the Performance Sports shares it recently purchased on the Toronto and New York stock markets.
In Toronto, Performance Sports stock closed Wednesday at $4.63, after rising 73 cents or about 19 per cent in one day.
The stock is coming off a 52-week low of $3.76 set on Tuesday after the stock lost nearly two-thirds of its value in unusually heavy trading. The shares have been trending down since last May when they were as high as $25.99.
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Ag Growth International Inc. (AFN-T) says it bought Entringer S.A., a Brazilian manufacturer of grain bins, bucket elevators, dryers and cleaners.
It said the deal included a payment of $30 million Brazilian Real ($10.8 million Canadian) upon closing "which represents a multiple of 5.4 times against the previous six year average EBITDA [earnings before interest, taxes, depreciation and amortization]."
It also said the agreement includes a $15 million Brazilian Real ($5.4 million Canadian) earn-out provision based on Entringer meeting certain EBITDA thresholds.
"Despite the economic and political turmoil in Brazil the agriculture sector has remained a positive point for the country," stated CEO Tim Close. "The issues facing the country have had a substantial impact on the currency, creating, what we believe to be, an opportunistic time to enter the market and establish a platform for growth."
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Northview Apartment Real Estate Investment Trust (NVU.UN-T) reported basic funds from operations (FFO) of $24.4 million for the three months ended Dec. 31, up 28 from the same period in 2014.
Basic FFO per unit was 54 cents, compared to 60 cents a year earlier.
In its 2016 "strategic priorities, the REIT said it has identified about $150 million of non-core properties it intends to divest in 2016 and 2017.
"Proceeds from these dispositions will be used to reduce overall debt levels, to fund development activities and repurchase trust units." the company said.
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Enghouse Systems Ltd (ESL-T) is raising its dividend and said first-quarter revenue increased by 18 per cent to $74.4 million.
That was below analysts' expectations of $76.4 million, according to Thomson Reuters.
"Increased revenue in the quarter reflects incremental revenue from acquisitions and the favourable impact of foreign exchange," the company said.
It reported net income for the quarter ended Jan. 31 of $8.5 million or 31 cents per share, compared to $2.5 million or 9 cents a year earlier.
Its board approved a 17-per-cent increase in its quarterly dividend to 14 cents per share.
"Enghouse has now increased its dividend in each of the past eight years," the company said.
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CanWel Building Materials Group Ltd. (CWX-T) is buying Jemi Fibre Corp. (JFI-V) in an all-share deal valued at $11 million.
It also said it was raising $20 million in a bought deal to help finance the transaction.
"Jemi Fibre's issued and outstanding common shares will be exchanged for CanWel shares on the basis of 31.13 Jemi Fibre shares for one CanWel share and approximately 2.53 million common shares of CanWel will be issued to shareholders of Jemi Fibre," CanWel said in a release.
It said the exchange ratio values Jemi Fibre at 13.6 cents per share, based on the closing price of CanWel's common shares on on March 8, and a 29 per cent premium to the closing price of Jemi Fibre stock.
"CanWel also expects to assume total indebtedness of approximately $25 million and refinance approximately $50 million of Jemi Fibre's senior loans through the offering," the company said.
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Great Canadian Gaming Corp. (GC-T) reported fourth-quarter revenues of $121.1 million, up 5 per cent from a year earlier. That is below analysts' expectations of $128 million, according to Thomson Reuters.
Adjusted EBITDA fell 4 per cent to $45.1 million, the company said.
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Tricon Capital Group Inc. (TCN-T) is increasing its dividend by 8.3 per cent The asset manager in the residential real estate industry said the dividend will now be 26 cents on an annualized basis.
The company also said its assets under management increased by 22 per cent year-over-year to $2.7 billion (U.S.) as of Dec. 31. Adjusted earnings before interest, taxes, depreciation and amortization increased by 11 per cent to $109 million compared to 2014.
"With 98 per cent of our balance sheet invested in the United States and the U.S. housing recovery gaining momentum over 2015, we recorded another strong year of growth," stated CEO Gary Berman. "Our decision to increase our dividend underscores our confidence in the future and the strength in our underlying business."
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Veresen Inc. (VSN-T) reported net income attributable to common shares of $14 million or 5 cents per share for the fourth quarter, compared to $21 million or 8 cents per share a year earlier.
The company, which owns and operates energy infrastructure assets across North America, also reported cash from operating activities of $76 million for the fourth quarter, compared to $71 million a year earlier.
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LED lighting company Lumenpulse Inc. (LMP-T) has bought Fluxwerx Illumination Inc., a privately owned company in B.C. for $60-million. Fluxwerx had sales of $25.2-million in 2015, compared to $9.6-million for the prior year, the company said.
"The merging of our organizations represents a major milestone that we believe will be transformational for the Lumenpulse Group, creating one of the most exciting and innovative companies in the LED lighting industry," stated CEO François-Xavier Souvay in a release.
Lumenpulse also said its third-quarter revenues rose 39 per cent to $35.5-million. Analysts were looking for revenues of $38-million.
Adjusted earnings before interest, taxes, depreciation and amortization rose to $3.6-million, or 10 per cent of revenues, which the company said was an improvement of 4.8 percentage points compared to the year-earlier period. Adjusted net income increased to $4.1-million compared to $2.1-million for the same period last year.
"Our results for the third quarter were spearheaded by the impressive performance of our U.S. operations, which grew 88 per cent, well above the industry growth rate, reflecting the traction of our innovative and expanding product portfolio and the strength of our distribution channels," stated Mr. Souvay.
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Transat A.T. Inc. (TRZ-T) says revenues were higher in the first quarter but its cost-cutting initiatives were impacted by the fallout from the Zika virus and the lower Canadian dollar.
Transat reported revenues of $846.9-million for the quarter ended Jan. 31, compared with $788.6-million a year earlier. Analysts were looking for revenues of $832-million in the most recent quarter.
It also reported an adjusted operating loss of $40.6 million, versus $35.8 million a year earlier. Its net loss attributable to shareholders was $61.2-million, or $1.64 per share, compared to $64.3 million or $1.66 per share a year earlier.
Before non-operating items, Transat said it had an adjusted net loss of $37.3 million $1 per share for the first quarter of 2016, compared with $32.4-million, or 84 cent per share, the year before.
"Our organization is significantly more efficient, but the effects of our initiatives have been masked by the drop in value of the Canadian dollar," stated Jean-Marc Eustache in a release. "During the first quarter, the net increase in the cost of packaging all-inclusive Sun destinations vacations was $24 million, and was only partly absorbed by consumers. The dollar, the Zika virus, the possibility of strike action by our pilots, which has now been averted, an economic slowdown and fairly mild weather conditions are all factors that make the current winter season challenging."
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Premium Brands Holdings Corp. (PBH-T) is raising its quarterly dividend by 10 per cent, after reporting record fourth-quarter revenue of $400.3-million, up 26 per cent from a year earlier.
That beat analysts' expectations of $369-million.
The specialty food maker said fourth quarter adjusted earnings before interest, taxes, depreciation and amortization was a record $31.5-million, up 62.7 per cent from a year earlier.
It will increase its dividend by 10.1 per cent to 38 cents per share starting with the April payment.
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Bicycle and home furnishing company Dorel Industries Inc. (DII.B-T, DII.A-T) reported fourth-quarter revenue of $668.9 million down 4.6 per cent from a year earlier.
Analysts were looking for revenues of $701-million, according to Thomson Reuters.
Adjusted net income for the fourth quarter was $14.1-million or 43 cents per share compared to adjusted net income of $11.0-million or 34 cents in the fourth quarter of 2014.
Adjusted net income increased despite a net negative after-tax impact of approximately $9-million, or 28 cents per share, "due to the effect of the appreciation of the US dollar versus the prior year," the company said.
Net income was $6.6-million or 20 cents per share compared to a reported net loss of $80.7-million $2.50 per share in 2014.
"2015 was characterized by good performances in many of our markets overshadowed by challenging currency rates, stated CEO Martin Schwartz. "Overall for the year, these adverse exchange rates impacted our earnings by approximately $43 million pre-tax. Excluding this impact we would have exceeded prior year earnings for the year. Each of our foreign-based divisions responded to these currency challenges over the course of the year, as reflected in our fourth quarter results which exceeded last year."
With files from The Canadian Press