Wajax could be in for some short-term pain, as slowdowns in the mining and energy sectors could have adverse effects.
Our roundup of Canadian small-caps making news and on the move today.
Wajax Corp. (WJX-T) reported first quarter revenue of $317.2-million decreased 4 per cent from a year earlier. "Reduced activity in the mining, oil and gas and oil sands sectors negatively affected revenue from Western Canada in all three segments. However, in the Industrial Components segment this was more than offset by stronger sales in Ontario and Eastern Canada," the company said. Net earnings for the quarter was $5.7-million, or 34 cents per share, compared to $6.7-million, 40 cents per share a year earlier. Analysts had been estimating revenue of $309-million and net earnings of 43 cents per share.
"As expected, weakness in oil and other commodity prices had a negative effect on our customers in the mining, oil and gas and oil sands markets in western Canada, resulting in lower first quarter revenue and earnings," said CEO Mark Foote.
"The impact was most significant in the Equipment segment, which experienced a 17-per-cent reduction in parts and service revenues as oil sands operators and miners idled portions of their equipment fleets. Conversely, operating results in central Canada improved. This was particularly evident for the Equipment and Industrial Components segments where sales in those regions increased 40 per cent and 12 per cent, respectively.
"Our focus in 2015 continues to be centered on three objectives; cost management; managing our asset base and debt level, and; executing a prudent investment plan to support our 4 Points of Growth strategy."
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Baytex Energy Corp. (BTE-T; BTE-N) reported production of 90,710 barrels of oil equivalent per day in the first quarter of 2015, just below production levels during the first quarter of last year. Sales for the quarter were $285.6-million, down from $385.8-million a year ago. Analysts were expecting sales of $329.8-million for the quarter.
Funds from operations totalled $160.2-million, or 95 cents per share. The net loss for the quarter was $175.9-million, or $1.04 per share, compared to a loss of $361.8-million, or $2.16 per share a year ago.
"The Eagle Ford led our operating results with record production, continued advancement of the multi-zone development potential of our acreage and significant savings in our capital spending program. Corporately, we are focused on initiatives to provide strong levels of liquidity by scrutinizing capital and operating expenditures and deferring development activities in Canada. Additional strength was provided with an equity financing that closed in early April," said CEO James Bowzer.
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Route1 Inc. (ROI-X), a provider of secure access technologies for the mobile workspace that protects businesses and government agencies, reported revenue of $1.54-million for the first quarter ended March 31, compared with $1.76-million a year earlier. The decrease in device revenue from the comparable quarter is a result of a large MobiKEY device order that wasn't repeated in the current quarter, the company said.
Gross profit was $1.27-million, down from $1.41-million a year ago.
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Visual product search platform Slyce Inc. (SLC-X) said it has finalized contract with toy retailer Toys 'R' Us Inc. to power visual search for mobile commerce.
Slyce Inc. will derive revenues from the contract through monthly recurring software licensing and service fees, in line with its current pricing model, over the term of the contract, the company said. It did not disclose a revenue figure.
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Argonaut Gold Inc. (AR-T) reported revenue of $51-million (U.S.) for the first quarter ended March 31, up from $39.1-million a year ago. Net income was $1.5-million or one cent per share, down from $2.8-million or two cents per share a year ago. The company sold 42,418 gold equivalent ounces, up from 30,165 a year ago, at an average realized sales price per gold ounce of $1,211, down from $1,304 a year ago. Analysts were expecting revenue of $45-million and per share earnings of five cents per share.
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Premier Gold Mines Ltd. (PG-T) said it has acquired a stake in South Arturo mine project in Nevada. After Goldcorp Inc. did not exercise its right of first refusal on its 40-per-cent interest in South Arturo, the agreement allowed for Premier to acquire the interest for $20-million (U.S.) at closing, plus a 5-per-cent interest in the Rahill-Bonanza joint venture project between the two companies in Northern Ontario. "The completion of the acquisition of Goldcorp's 40-per-cent interest in the South Arturo Project will bring Premier closer to its stated goal of building a North American-focused gold producer with a pipeline of development projects in several of the nation's major mining districts," the company said.
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Innova Gaming Group Inc. (IGG-T) began trading today on the Toronto Stock Exchange. The supplier of games, systems and tickets to the North American gaming industry raised gross proceeds of $49.1-million, $15-million for Innova and $34.1-million for Amaya Inc. "We're extremely pleased to have completed our IPO," said Innova's CEO Richard Weil. "This is an important milestone that we anticipate will help us accelerate our development of new and innovative products, games and technologies for the large government lottery and gaming industries."
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TVA Group Inc. (TVA.B-T) said it generated a first-quarter loss of $14.7-million, or 57 cents per share, compared with a loss in the same quarter one year prior of $10.2-million or 43 cents per share. The company pegged the loss to its investment in hockey programming. "The broadcasting and production segment's results for the first quarter of 2015 reflect the fact that TVA Sports had to absorb the full cost of its new programming while the growth in the subscriber base has not yet reached its full potential," said Julie Tremblay, TVA's CEO. "However, the subscription revenues of TVA Sports have more than quadrupled compared with the same quarter of 2014 and our advertising revenues continued to grow, increasing by millions of dollars. The channel is setting new ratings records, attracting more than two million viewers for Stanley Cup playoff games."
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Calgary-based Lightstream Resources Ltd. (LTS-T) reported oil and natural gas sales of $121.1-million, down from $325.2-million a year earlier. Funds flow from operations were $51.9-million, down from $175-million a year ago. Adjusted net income was a loss of $127.2-million or 64 cents per share, compared to profits of $14.4-million or seven cents per share. Net capital expenditures totalled $48.9-million, down from $85.6-million a year ago. "This is consistent with our reduced capital program in the current economic environment and our commitment to spend within cash flow in 2015," the company said. Production for the first quarter averaged 35,179 barrels of oil equivalent a day, down 4 per cent from the fourth quarter as the company reduced its capital and drilling programs.
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Foraco International SA (FAR-T), a global provider of mineral drilling services based in Toronto and Marseille, France, reported revenue of $33.3-million (U.S.) for the first quarter of 2015 compared to $45.4-million a year ago, "a decrease of 27 per cent, or 10 per cent excluding the impact of exchange rates," the company said. Earnings before interest, taxes, depreciation and amortization was a loss of $1.25-million compared to earnings of $4.4-million a year earlier. The net loss for the period was $7.9-million compared to a year-ago loss of $4-million.
"Due to the further decline of metal prices late 2014, producing mining companies further reduced exploration spending during Q1 2015 with a direct impact on the demand for mineral drilling, said Daniel Simoncini, chairman and co-CEO.
"The bidding season was again weak due to the ongoing uncertainty. Regarding the company's performance, we faced some operational difficulties mostly linked to exceptional climate conditions and a highly technically challenging project, but also reported generally satisfactory performance and the award and renewal of contracts."