Trican Well Service employees walk towards liquid nitrogen storage tanks at a hydraulic fracturing operation near Bowden, Alta., in this file photo.
Our roundup of Canadian small-caps making news and on the move today.
Calgary-based Trican Well Service Ltd. (TCW-T) said it has cut 2,000 jobs and is suspending its dividend due to the challenging economic climate for the oil and gas services company brought on by low oil prices.
"Given the weak economic outlook and the need to preserve liquidity, Trican's Board of Directors has suspended the dividend to shareholders, effective immediately," the company said.
"Both our Canadian and U.S. operations initiated significant cost cutting measures in late 2014 and throughout the first quarter of 2015," the company said. The job cuts resulted in severance costs of $5.5-million in Canada, $2.9-million in the U.S. and $1-million in its corporate division. "The lower employee base combined with salary reductions are expected to result in annualized consolidated fixed cost savings of approximately $115-million," the company said.
The company reported revenue of $476.1-million for the first quarter, down from $643.2-million a year ago. That resulted in a loss of $35.7-million or 24 cents per share, compared to a loss of $8.5-million or 6 cents a share in the year-earlier period.
The company also said that after receiving an unsolicited offer, it is in negotiations to sell its Russian and Kazakhstan pressure pumping business, however, there's no guarantee a deal will go through.
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Salaberry-de-Valleyfield, Que.-based Noranda Income Fund (NIF.UN-T) reported earnings before income taxes of $15.4-million for the first quarter, up from $11.1-million a year earlier.
Zinc metal production was 67,804 tonnes compared to 59,544 tonnes in the first quarter of 2014. Zinc metal sales totalled 52,497 tonnes compared to 60,509.
"With our major capital projects behind us, the facility is running well. In the first quarter, we met our processing and production targets and have established a good run rate moving forward. In terms of revenues, while zinc sales were off to a slow start, we benefitted from higher by-product revenues and a weaker Canadian dollar. A gradual improvement in demand is expected during the second half of the year," said Eva Carissimi, president and CEO of Canadian Electrolytic Zinc Ltd., Noranda Income Fund's Manager.
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Montreal-based investment firm Fiera Capital Corp. (FSZ-T) reported assets under management (AUM) rose by $10.5-billion, or 13 per cent, to $90.9-billion during the first quarter ended March 31, compared to $80.4-billion as at March 31, 2014, and by $4.3 billion from $86.6-billion as at Dec. 31, 2014.
Revenues for the quarter were up 16 per cent to $58.1-million compared to $50-million for the same period a year ago. This increase is primarily due to market appreciation, favourable U.S. exchange rate variation, as well as organic growth, the company said.
"2015 is off to a strong start with year-over-year growth across all our key financial metrics. On the strength of our distribution capabilities and long-term client focus, we are well on our way to reaching our objective of $150-billion in [assets under management] AUM by the end of 2018," said Jean-Guy Desjardins, the company's chairman and CEO.
"Looking at our investment performance this quarter, 83 per cent of our actively managed equity portfolios outperformed their benchmark in Canada and globally. With stock markets reaching historical levels, Fiera Capital's equity portfolio managers are still finding solid opportunities. Our strategies are well positioned to leverage the U.S. economic recovery while maintaining our focus on high-quality companies," he said.
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Toronto-based pharmaceutical company BioSyent Inc. (RX-X) reported that first quarter sales for 35 per cent from a year ago to $3.3-million. Earnings before interest, taxes, depreciation and amortization rose 92 per cent to $1.3-million compared to a a year ago. Net income was $962,712, or 7 cents a share, up 88 per cent from the year-earlier quarter.
"Our first quarter results were powered by our Canadian pharma business" said Rene Goehrum, president and CEO of BioSyent. "In Canada, both FeraMAX 150 and RepaGyn had their best quarter of shipments ever. This was backed up with strong year over year growth for Cathejell at +107 per cent and FeraMAX Powder at +122 per cent versus [the first quarter of 2014.] Our growing order backlog for FeraMAX international customers points to good progress in that business as well."
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Winnipeg-based Kane Biotech Inc. (KNE-X), a biotechnology company currently focus is on the animal oral care market, said it has signed a joint development agreement with a global animal health company. Initial revenue from the agreement of $100,000 (U.S.) will be included in the company's second quarter, Kane Biotech said. Terms of the agreement are confidential, the company said.
"This opportunity has great potential for Kane Biotech. Industry leading partners that can provide Kane with global market access are key to the long-term value of our company," said CEO Mark Ahrens-Townsend. "I'm personally very excited and optimistic about the opportunity in front of us."
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Toronto-based BitGold Inc. (XAU-X), an Internet platform for acquiring, holding, and making payments in gold, said it has completed its amalgamation with Loma Vista Capital Inc. (LOV-CN). The common shares of BitGold start trading Wednesday on the TSX Venture Exchange under the trading symbol, XAU. Loma Vista's shares will be delisted.
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Waterdown, Ont.-based Opta Minerals Inc. (OPM-T) reported revenues of $29.5-million (U.S.) for the first quarter of 2015, down from $34.5-million a year ago. The company had a loss of of $757,000 compared to a year-earlier loss of $254,000.
"Since the fall of 2014 we have been engaged in cost reductions including headcount in order to streamline the business and improve results," said CEO David Kruse.
"Unfortunately, the steel industry after a good fourth quarter in 2014 has softened considerably due to the cascading effect of lower oil prices. We have felt this impact, combined with exchange rate movements when we consolidate our results and the very cold winter and its impact on our Infrastructure business. We believe the steel industry will improve in the back half of 2015 and we have not lost any significant customers through this downturn. Our priorities are to continue to reduce costs, simplify the business and improve cash flow through working capital management. We are also working on a number of revenue growth opportunities in the steel segment of our business," he said.
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Toronto-based Spectral Medical Inc. (EDT-T), which is developing a treatment for patients with septic shock, reported first-quarter revenue of $877,000 compared to $844,000 for the same period last year. "First quarter revenues were consistent with prior year levels and this trend is expected to continue for the remainder of the year," the company said.
The loss for the quarter was $2.3-million or 1 cent per share, compared to a loss of $3.2-million or 2 cents per share a year ago. The company said with a recent financing it has cash of $13.2-million.
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Polaris Infrastructure Inc. (formerly Ram Power Corp.) (RPG-T)announced that, in accordance with the terms of the private placement agreement between the company and Goodwood Inc., the company has changed its name from "Ram Power Corp." to "Polaris Infrastructure Inc." The company's shares will no longer trade under the symbol RPG but will now trade under the symbol PIF, effective Tues., May 19.
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Montreal-based SEMAFO Inc. (SMF-T) reported that after a planned five-week shutdown of the SAG mill, it had first quarter production of 65,200 ounces, an 86-per-cent increase compared to a year ago, at a total cash cost of $528 (U.S.) per ounce sold and all-in sustaining cost of $646 (U.S.) per ounce sold at its Mana Mine. Gold sales for the quarter were $74-million (U.S.), up 92 per cent from a year ago. Cash flow from operations was $32.6-million. The net loss for the quarter was $8.1-million or 3 cents per share, compared to a net loss from continuing operations of $12.9-million or 4 cents per share a year ago.