Performance Sports, formerly known as Bauer Performance Sports Ltd., manufactures equipment for ice hockey, roller hockey and lacrosse, as well as related apparel.Frank Gunn
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Enercare Inc. (ECI-T) says its Enercare Solutions unit is buying SEHAC Holdings Corp., a Dallas-based heating and air conditioning company, for $340.75 million (U.S.).
Enercare also reported fourth-quarter net earnings of $13.7 million or 15 cents per share, up 140 per cent compared to $5.7 million or 7 cents a year earlier.
Total revenues were $141.6 million, up 12 per cent compared to a year earlier. The latest results were in line with analysts' expectations.
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Atlantic Power Corp, (AT-N, ATP-T) reported a projected loss of $104 million in the fourth-quarter, down from a profit of $2.1 million in the same quarter a year earlier.
The company recorded a $128 million non-cash impairment of long-lived assets and goodwill, it said in a release.
Its projected adjusted earnings before interest, taxes, depreciation and amortization is $50 million, compared to $57 million a year earlier.
The company said it reduced overhead costs to $32 million in 2015, from $54 million in 2013, and expects to further reduce them to $27 million in 2016
"In 2015, we made further progress in strengthening our financial position and reducing our risk profile," stated CEO James Moore "Looking ahead, we remain focused on growing the intrinsic value per share of the company. The amount of our discretionary cash flow after debt repayment is growing, and we see ample opportunities to put this to work at good returns."
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Alaris Royalty Corp. (AD-T) says it has redeemed preferred units in LifeMark Health Limited Partnership for $38.4 million.
"The corporation is also pleased to announce that it expects to redeploy the cash proceeds with a contribution to a new partner of approximately $30 million in the coming days," the company stated.
"The net impact of redeploying the cash proceeds at a yield of 15 per cent versus the implied yield of 11.2 per cent on the LifeMark Units will be an increase in revenue of approximately $1 million to Alaris, or $0.03 on a per share basis."
Alaris says it has received $123.4 million on its $67.5 of capital contributed to LifeMark since 2004, "as well as over $77.2 million in distributions from LifeMark over that time period."
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Savanna Energy Services Corp. (SVY-T) says revenue fell by 51 per cent in the fourth quarter to $100.8 million, due to the drop in oil prices.
The results were above analysts' expectation of $89.7 million, according to Thomson Reuters.
Its net loss was $162.6 million or $1.80 per share, compared a loss of $231.3 million or $2.57 per share a year earlier. It said the loss was deeper in the fourth quarter of 2014 due to impairment losses.
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Chinook Energy Inc. (CKE-T) says it's deferring its capital program for the first half of 2016, "as a result of unfavourable commodity pricing."
The spending was earmarked for final commissioning of its recently expanded Birley compressor, the company said.
It said the deferment includes $8 million to drill, complete, equip and tie-in four oil wells in the Grande Prairie area.
"Natural gas pricing in British Columbia will be a key determinant in the amount of capital, if any, dedicated to our Birley/Umbach development in the second half of 2016," the company said.
It also reported a loss of $83.million or 39 cents per share in 2015, as compared to a loss of $50.7 million or 24 cents a year earlier.
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Raging River Exploration Inc. (RRX-T) reported net earnings of $5.1 million or 3 cents per share in the fourth quarter, down from $24.1 million or 13 cents a year earlier
Funds from operations were $40.7 million, or 20 cents per share, down from $57.7 million, or 31 cents per share, a year earlier.
The company also reported a quarterly production record with average production of 14,771 barrels of oil per day (boe/d), an increase of 18 per cent over the same time last year.
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Ensign Energy Services Inc (ESI-T) says revenue for the year ended Dec. 31, fell 40 per cent to $1.4-billion.
That was in line with analysts' expectations, according to Thomson Reuters.
The drop "was a direct result of the decline in oil and natural gas commodity prices that began in the second half of 2014 and continued throughout 2015," the Calgary-based company stated. "Reduced demand for oilfield services resulted in lower equipment utilization rates and revenue rates in 2015 compared to 2014."
Operating earnings were $321.1-million or $2.11 per common share, a 40-per-cent decrease from $537.5-million or $3.52 per share in 2014.
Its net loss for the year was $104-million or 68 cents per common share, compared with net income of $71.1-million or 47 cents per share in 2014.
"The reduction in net income in 2015 was due to lower operating activity and an increase in depreciation expense," the company said.
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Performance Sports Group Ltd. (PSG-N, PSG-T) has reduced its 2016 adjusted earnings per share guidance by 55 cents (U.S.) per share to about 12 to 14 cents.
The manufacturer of sports equipment and apparel says that's down from its previous guidance of 66 to 69 cents per share.
The change is due to a writedown from a U.S. national sporting goods retailer that filed under chapter 11, a reduction in sales from the weaker baseball market and additional bad debt reserves "primarily for certain U.S. hockey customers."
"Offsetting these reductions are anticipated incremental cost savings of 4 cents per diluted share on an adjusted EPS [earnings per share] basis," the company said.
The company also said it expects to report revenues of about $125-million in the third quarter, down 9 per cent compared to the same quarter last year.
"The second half of fiscal 2016 has been impacted by adverse market conditions and related customer credit issues," stated CEO Kevin Davis. "The baseball/softball market is experiencing an unexpected significant downturn in retail sales, including in our important bat category. This weakening of consumer demand, coupled with the chapter 11 filing by one of the largest U.S. national sporting goods retailers, is reducing our sales for baseball and softball products. Additionally, the consolidation of hockey retail in the U.S. has reduced our customers' demand for products more than we previously anticipated as they continue to reduce their inventory levels."
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Kelt Exploration Ltd. (KEL-T) reported revenue of $42.8-million for the quarter ended Dec. 31, down 21 per cent from $54.4 million a year earlier.
Funds from operations came in at $11.2 million or 7 cents per share, down from $29.7-million or 23 cents per share a year earlier.
"Kelt incurred total capital expenditures during the year of $496.4-million, of which $313.5-million was for the acquisition of Artek Exploration Ltd.," the company said. "During the fourth quarter of 2015, the company spent $30.3-million on drilling and completing wells of which a portion of the spending is expected to contribute to 2016 production additions as the wells are brought on-stream."
Kelt also reported record production levels in the fourth quarter of 20,086 barrels of oil per day, up 29 per cent from a year earlier.
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Canyon Services Group Inc. (FRC-T) says it plans to raise $55-million in a bought deal backed by a syndicate of underwriters.
Canyon said the syndicate is led by Peters & Co. Limited and including CIBC World Markets Inc., Cormark Securities Inc., Raymond James Ltd., National Bank Financial Inc., AltaCorp Capital Inc., FirstEnergy Capital Corp, RBC Capital Markets and TD Securities Inc.
They've agreed to buy 13.75 million shares at $4 each. The stock closed at $4.24 on Monday.
"The net proceeds of the offering will be used to temporarily reduce bank indebtedness, increase working capital, fund ongoing capital expenditures and potential acquisition opportunities and for general corporate purposes," the company said.