Our roundup of Canadian small-caps making news and on the move today. This post will be updated through the morning.
Savanna Energy Services Corp. said it has decided to eliminate the quarterly dividend of $0.03 per share on its common shares.
Savanna's net 2015 capital program estimate remains at $45.8-million, but "will continue to be evaluated in light of further changes to anticipated activity levels as 2015 unfolds," the company said.
"Operationally, the first quarter has been unfolding as expected. Operating days in Canadian and US drilling, as well as operating hours in Canadian well servicing, are expected to be 40-50 per cent lower than in Q1 2014, while U.S. well servicing operating hours should remain relatively flat compared to Q1 2014," the company said in a statement.
Raymond James analyst Andrew Bradford commented that he does not expect much reaction in the stock today to the news.
"First, while a dividend cut is usually detrimental to stock performance, we think that anyone selling the stock today based on the news of SVY's dividend cut can't have been paying close attention. SVY has been reducing its dividend and capital spending obligations for at least a couple of months now, and we along with others have been pointing out that regardless of these precautionary measures, SVY's debt ratios will probably still run uncomfortably high by year-end (4.5x EBITDA, by our measures). On the flip-side, some investors might take the view that SVY was in a sufficiently tight spot that cutting its dividend to zero was both prudent and effective. We'd agree with the former, but not necessarily the latter. Cutting the dividend to zero will 'save' SVY $8.1 mln in 2015– not enough to move the needle on its $350 mln debt position," Mr. Bradford said in a research note.
=====
Allana Potash Corp. announced late Thursday it has entered into a definitive agreement with Israel Chemicals Ltd. under which Israel Chemicals will acquire all of the outstanding common shares of Allana that it does not already own for $0.50/share. The proposed deal is an all-cash offer, with one exception: Liberty Metals and Mining, a large shareholder, has elected to take shares in ICL. The 50 cents all-cash offer represents a 51.5 per cent premium to the closing price on Thursday.
Raymond James analyst Steve Hansen is recommending shareholders tender their shares, as he does not expect a competing bid to surface. "While ICL's $0.50 offer price resides below our prior target ($0.80), we're inclined to believe this deal represents the best practical outcome for investors given the challenged market environment for junior potash companies. In short, we don't view going it alone as a viable option, at least not without massive dilution, and we don't expect another strategic party to surface given ICL's existing ownership position (16.4%) and previously secured offtake agreement. In this context, we recommend that investors tender their shares, and collect the healthy 51.5% premium offered," Mr. Hansen said in a note.
======
BRP Inc. reported a quarterly profit compared with a loss a year earlier, helped by the stronger dollar, the introduction of new powersports vehicles and higher shipments of Can-Am off-road vehicles. The company reported net profit attributable to shareholders of $8.5-million (Canadian) in the fourth quarter ended Jan. 31 compared with loss of $6.2-million a year earlier.
The Valcourt, Quebec-based company's revenue rose 18.3 percent to $1.07-billion. That was modestly ahead of the Street consensus of $1.03-billion. EPS of 98 cents appeared to also beat the Street forecast for 79 cents.
BRP also said its board has authorized a normal course issuer bid to purchase for cancellation up to 3,703,442 subordinate voting shares over the 12-month period commencing on March 31, 2015 and ending no later than March 30, 2016, representing approximately 10 per cent of the public float.
======
Glacier Media Inc. said its 2014 revenue fell to $322.7-million from $328.8-million in 2013, while net income before non-recurring items fell to 21 cents from 25 cents. The 2014 reported revenue beat the estimate of one analyst of $313.4-million.
======
Retrocom Real Estate Investment Trust said its adjusted funds from operations per unit fell to 11.8 cents in its latest quarter from 20.8 cents a year earlier.
======
Boyd Group Income Fund said its total sales increased by 48.7 per cent to $239.6-million in the fourth quarter of last year,
Adjusted net earnings for the fourth quarter was $7.4-million or $0.45 per unit compared to adjusted net earnings of $6.4-million or $0.45 per unit for the same period in the prior year.
======
Baylin Technologies Inc. announced that its board has appointed board member Randy Dewey as interim president and CEO, effective immediately. This appointment follows the departure of Ephraim Ulmer as the company's president and CEO.
Mr. Dewey is president of Navistone Financial, a management consulting firm specializing in business development, and financial and operations management.
======
Inovalis Real Estate Investment Trust reported adjusted funds from operations of 23 cents per unit for the fourth quarter of last year, down a penny from a year earlier.
======
Pretium Resources Inc. announced that it has been issued an Environmental Assessment Certificate for its Brucejack project by the British Columbia Minister of the Environment and Minister of Energy and Mines.
"The Ministers issued the certificate with conditions that have given them the confidence to conclude that the project will be constructed, operated and decommissioned in a way that ensures no significant adverse effects are likely to occur. Pretivm will address these conditions in advance of the start of mine construction which it expects to begin this summer," the company said.
======
Partners Real Estate Investment Trust announced fourth-quarter results, with revenues rising 1 per cent to $14.9-million and funds from operations decreasing by 55 per cent.
Darcy Keith