Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Rona Inc. (RON-T), the hardware store chain being bought by American giant Lowe's Cos. Inc. for $3.2-billion, says 2015 revenues rose 3.3 per cent to $4.23-billion, which was in line with analysts' expectations.
"The change reflects a 7.8 per cent increase in the retail segment, stemming mainly from 3.1 per cent growth in same-store sales and the acquisition of the franchised stores," the company stated Tuesday..
Adjusted earnings before interest, taxes, depreciation and amortization from continuing operations rose 11.2 per cent to $261.7-million, or 6.2 per cent of revenues for the year. That compared to $235.4-million, or 5.8 per cent of revenues in 2014.
"The increase in adjusted EBITDA is due to organic growth and acquisitions," the company said. "The retail segment margin grew 42 basis points, driven by organic growth in sales; the distribution segment margin grew by 19 basis points."
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MTY Food Group Inc. (MTY-T), the company behind quick-service restaurants such as Jugo Juice and Taco Time, said revenues rose 32 per cent in the fourth quarter to $39.5 million, which beat analysts' expectations of $33.5 million for the quarter ended Nov. 30.
Annual revenues grew 26 per cent to $145.2 million during the year. Analysts were forecasting revenues of $140.4 million, according to Thomson Reuters.
The restaurant franchisor and operator also reported a 41-per-cent drop in net income to $3.1 million in the fourth quarter, citing a non-recurring impairment charge on assets related to its Extreme Pita and Croissant Plus brands.
"Despite the $8.1 million in impairment charges, net income attributable to shareholders for the year progressed by 3 per cent," the company stated. "On a normalized basis, net income attributable to shareholders grew by 18 per cent for the year and by 27 per cent during the fourth quarter."
It also said same-store sales fell 1.2 per cent in the fourth quarter and a half a per cent for the year, "with the impact of intense competition and weakness in Western Canada continuing to impact certain stores adversely."
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Paladin Energy Ltd (PDN-T) says interim CEO Alexander Molyneux has been appointed CEO, while also reporting lower sales in the second quarter.
The uranium producer says sales revenue for the quarter ended Dec. 31 fell 7 per cent to $64.4 million (U.S.), compared to $69.6 million a year earlier.
It said the decrease was due to an 11-per-cent drop in sales volume, offset by a 4-per-cent increase in the realized sales price.
Gross profit for the quarter rose to $12.4-million from $2.5-million a year earlier.
EBITDA was $10.6-million, which the company says was a $17.2-million turnaround from a negative EBITDA of $6.6-million a year earlier.
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Essa Pharma Inc. (EPI-T, EPIX-N) reported a wider net loss in the first quarter and higher research and development costs.
The clinical-stage pharmaceutical company, which is focused on prostate cancer treatment, reported a loss of $4 million or 18 cents per share for the three months ended Dec. 31, compared to a net loss of $1.3 million or 8 cents per share for the same period a year earlier.
Essa said research and development (R&D) costs were $3.2 million compared to $600,000 a year earlier.
"The increase in R&D expenditures is primarily due to manufacturing and clinical costs incurred as the company transitions into the clinical development stage with respect to clinical candidate EPI-506," the company stated.
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BTB Real Estate Investment Trust (BTB.UN-T) is buying an office building in downtown Montreal for $11 million.
The REIT says the purchase of 2101 Ste-Catherine West, home to Technicolor Canada Inc., means it now owns 72 properties.
"This acquisition is in line with BTB's strategic review where it is selling smaller properties while purchasing larger properties with better financial performance," the company stated.
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DHX Media Ltd. (DHXM-N, DHX.A-T, DHX.B-T) increased its dividend after reporting a 27-per-cent increase in second quarter revenues.
The kids and family entertainment content company said revenues were $81.5-million in the quarter ended Dec. 31, up from $64.3-million a year earlier. Net income was $11.7-million or 9 cents per share, compared to $5.5-million or 5 cents per share. Adjusted net income was up to $12.6-million or 10 cents a share, up from $9.8-million or 8 cents a share a year earlier.
DHX also declared a dividend for the quarter of 1.6 cents, an increase of 6.7 per cent.
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Penn West Petroleum Ltd. (PWT-T, PWE-N) says it has agreements to settle all class action proceedings in Canada and the U.S. against the company and others.
It said the legal action was started by investors alleging damages in relation to its July 29, 2014 announcement that it intended to restate some past financial statements and related management discussion and analysis.
"The settlement agreements provide for a payment that will be fully funded by insurance coverage maintained by Penn West," the company said, adding that it won't impact the company's cash resources or financial position.
Penn West said the settlement agreements contain no admission of liability or wrongdoing "and include full releases of Penn West, current and former directors and officers of Penn West and others. Penn West is settling the class action proceedings in order to avoid the continuing risks, uncertainties and costs of litigation."
The proposed settlements still await court approvals.
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Cipher Pharmaceuticals Inc. (CPHR-N, CPH-T) says its new drug submission for Sitavig, a cold sore treatment, has been accepted for review by Health Canada.
"If approved, Sitavig will represent an attractive treatment option for the many Canadians who suffer from cold sores and another key addition to our growing Canadian dermatology portfolio," stated CEO Shawn O'Brien.
Sitavig is approved as a single-dose prescription cold sore treatment in the U.S., the company said.
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WestJet Airlines Ltd. (WJA-T) says its common voting and variable voting shares will trade under a single ticker on the Toronto Stock Exchange starting Feb. 18.
The common voting shares currently trade on the TSX under the symbol "WJA" and the variable voting shares currently trade on the TSX under the symbol "WJA.A."
Both will trade as "WJA" and will be designated funder the single designation of "variable voting and common voting shares" the company said.
Westjet said the changed is designed to improve the liquidity for the variable voting shares "which have historically had lower trading volumes."