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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Markham, Ont.-based Extendicare Inc. (EXE-T) is buying three properties -- one in Tillsonburg, Ont. and two in Saskatchewan -- one in Saskatoon and one in Regina. The company is buying the 64-suite Harvest Retirement Community in Tillsonburg, Ont. for $28.4-million from a partnership owned by Baybridge Seniors Housing and Nautical Lands Group.
Extendicare is also purchasing for $50.2-million from Brightwater Senior Living Group. The 116-suite Stonebridge Senior Living home in Saskatoon and the 68-suite Riverbend Senior Living home in Regina.
The company also reported its third-quarter earnings. It reported revenue of $263.3-million for the third quarter ended Sept. 30, up 26.7 per cent from $207.9-million a year ago. Same-store revenue rose 3.1 per cent. Consolidated net operating income from continuing operations increased by $6.1-million to $34.8-million in the third quarter, up from $28.7-million in the year-earlier period. Adjusted funds from continuing operations was $15.3-million or 17.4 cents per share, up from $9-million or 10.2 cents per share a year ago. Analysts had expected slightly higher revenue of $266.4-million and earnings of 14 cents per share.
"We are pleased to continue our progress in executing on our Canadian-focused strategy following our exit from the U.S. operations," said Tim Lukenda, president and CEO. "The retirement communities that we are acquiring, and those under development, will be great additions to our property portfolio, and are consistent with our strategy to develop our business across the continuum of care. With these transactions, and the home health acquisition, we will have productively deployed approximately $210 million of capital from the U.S. sale proceeds in a value enhancing manner."
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Vancouver-based Premium Brands Holdings Corp. (PBH-T), a producer, marketer and distributor of branded specialty food products, reported record third-quarter revenue of $395.5-million, up 19.7 per cent compared to $330.4-million in the year-earlier quarter. Adjusted EBITDA was $32.7-million, up from $24-million a year ago. Earnings attributable to shareholders was $9.9-million, or 39 cents per share, up from $4.6-million, or 21 cents per share a year ago. Analysts had expected lower revenues of $375.77-million.
"Similar to the year over year trending in our results for the last three quarters, we generated record increases in our sales and operating cash flows during the third quarter. Several factors are driving this with the single most significant being the investments we have made in a number of our businesses over the last three years. These investments have included major capacity expansions, acquisitions and business restructurings," said George Paleologou, president and CEO.
"Product innovation has also been a key driver of our growth with a diverse array of new specialty and artisanal products being successfully launched over the last year. These factors, together with the diversification we have built into our business, have enabled us to continue to generate strong results despite several major challenges including the impact that the weaker Canadian dollar is having on our raw material costs, the oil related economic slowdown in Alberta and interim operating inefficiencies associated with the start-up of our new sandwich plant in Columbus, Ohio," he added.
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Montreal-based Yellow Pages Ltd.(Y-T) reported revenue of $210.6-million for the third quarter ended Sept. 30, down 3.6 per cent from $218.4-million a year ago. However, the company said digital revenues rose 12.5 per cent to $127.8-million for the quarter. Adjusted EBITDA totalled $63.8-million for third quarter down from $75.3-million a year ago, mainly hit by revenue pressure and a change in product mix, partly offset by benefits realized from cost saving initiatives, the company said. Net earnings for the quarter totalled $13.2-million, or 49 cents per share, down from $26.5-million or 98 cents per share a year ago, mainly due to lower adjusted EBITDA and higher restructuring and special charges. Analysts had expected higher revenue of $211.7-million.
"We are on track to returning Yellow Pages to revenue and EBITDA growth in 2018," said Julien Billot, president and CEO of Yellow Pages. "With 246,000 customers purchasing our marketing solutions, Yellow Pages is best positioned to champion Canada's local digital economy. We will continue to actively leverage our unique market positioning to empower Canadian users and merchants and provide them with effective offerings to interact and transact in an evolving digital marketplace."
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Toronto-based Brookfield Real Estate Services Inc. (BRE-T), a provider of services to residential real estate brokers and their realtors, reported cash flow from operations for the third quarter ended Sept. 30 of $8.5-million or 66 cents per share, up 12.3 per cent from $7.5-million or 59 cents per share in the year-earlier period.
Royalties were $11.6-million, up from $10.8-million a year ago. Net earnings totalled $7.8-million, or 31 cents per share, up from $2.2-million, or 23 cents per share in 2014.
"We are very pleased with our financial and operational success this quarter, as we continue to build on the strong results achieved year-to-date," said Phil Soper, Ppesident and CEO of Brookfield Real Estate Services Inc. "Our royalties and cash flow from operations were both up year-over-year as we continue to increase the number of agents in our network."
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BioSyent Inc. (RX-X) reported revenues of $4.6-million for the third quarter ended Sept. 30, up 28 per cent from $3.6-million a year ago. Earnings before interest, taxes, depreciation and amortization was $1.6-million for the third quarter, up 20 per cent from $1.3-million a year ago. Net income was $1.2-million or 8 cents per share, compared to $1-million or 7 cent per share a year ago. The revenue and per share earnings for the quarter matched analysts' expectations.
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Toronto-based Metals Creek Resources Corp. (MEK-X) said it intends to complete a private placement of common shares and flow-through common shares for gross proceeds of $659,000. The company will issue up to 1.75-million shares at 8 cents each and up to 5.77-million flow-through shares at 9 cents each.
Oban Mining Corp. (OBM-T) will participate in the offering and will acquire 19.9 per cent of Metals Creek's shares, and it will have the right to nominate one member to the board of directors of Metals Creek.
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Montreal-based Fiera Capital Corp. (FSZ-T), an independent investment management firm, reported that assets under management rose five per cent to $88.8-billion as of Sept. 30, up from $84.9-billion a year ago. However, AUM fell 2 per cent from $90.3-billion at the end of June.
Revenues for the quarter rose 15 per cent to $60.2-million, up from $52.4-million a year ago. "This increase is primarily due to organic growth as well as a favourable U.S. exchange rate variation," the company said. Base management fees increased by 14 per cent, to $57.8-million for the quarter, versus $50.6-million a year ago. Analysts had expected revenue of $62.52-million.
"Fiera Capital continues to generate growth despite volatile market conditions. Our successful expansion in the U.S., widening distribution channels, and ability to grow organically and attract clients from around the world position us well for continued success," said Jean-Guy Desjardins, Fiera Capital's chairman and CEO.
On investment performance, Mr. Desjardins added: "Although the last quarter was a difficult one for most equity markets, I am very pleased that almost all of our equity teams were nonetheless able to add value relative to their benchmarks."