Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aphria Inc. (APHA-T; APHA-N) announced that it has entered into privately negotiated agreements “with a limited number of holders outside of Canada” of its convertible senior notes. It will repurchase about $127.5-million worth of notes for approximately 18.7 million of common shares and approximately $2.9-million in cash for accrued and unpaid interest.
The company said it agreed to repurchase a portion of its notes at a 25-per-cent discount to their face value, using shares issued at a 31-per-cent premium its most recent closing market price. “The purpose of the transaction was to reduce the company’s debt and eliminate $6.7-million in annual cash interest costs,” it stated.
Net earnings were $41.2-million for the 13 weeks ended Mar. 29, compared to $22.7-million in 2019. Adjusted EPS was 13 cents compared to 30 cents a year ago.
On March 5, Recipe increased its quarterly dividend by 5 per cent to 11.77 cents per share. "However, since the release of Q4 2019 results on March 5, 2020 and the subsequent government-mandated COVID-19 shutdown of its restaurant dining rooms, the company feels that it is prudent to suspend dividends and conserve cash flow until the medium and long term business impacts of the COVID-19 shutdown are better understood," it stated.
Morneau Shepell Inc. (MSI-T) reported first-quarter revenue of $243-million, an increase of 18.7 per cent over the same period last year. “The increase is primarily due to the Mercer acquisition, net of the divestiture of our benefits consulting business and strong organic growth in the United States,” the company stated.
Profit was $38.9-million or 56 cents per share compared to $8.7-million or 13 cents per share a year ago. Analysts were expecting revenue of $244.2-million and earnings of 15 cents per share.
K-Bro Linen Inc. (KBL-T) reported first-quarter revenue of $57.3-million, a decrease of 0.9 per cent over the comparable 2019 period. “This reflects a period of significant growth through the end of February, with a significant decline in March after the COVID-19 restrictions began in Canada and the UK,” the company stated. Analysts were expecting revenue of $56-million.
Its net loss was $3.4-million or 32 cents per share compared to a profit of $500,000 or 4.7 cents a year earlier.
"While the COVID-19 pandemic will have a significant negative impact on our hospitality revenue, management believes the prospects for the corporation's healthcare business remain strong in the medium-to-long-term," the company said in its outlook
Net income of $11.4-million compared to $15-million a year earlier. "The decrease in net income was primarily due to higher direct property operating expenses, finance costs, depreciation and amortization expenses, a remeasurement gain recorded in Q1 2019 and impairment losses, partially offset by higher revenues and deferred tax benefit," the company stated.
Funds from operations came in at $45.3-million or 21 cents per unit compared to $47.1-million or 22 cents a year ago. Analysts were expected FFO of 22 cents.
Profit was $5.1-million or 15 cents per share versus $6-million or 16 cents a year ago.
The company said it has taken a number of cost-cutting measures to minimize the financial impact of COVID-19 on its business, including salary and related compensation reductions for the senior leadership team, the operations and administrative teams and the board and a reduction in headcount across the business, both temporary and permanent.
The company also announced a supplemental $100-million credit facility on May 7. "The facility is available for general corporate purposes, providing the company with additional liquidity and financial flexibility should it be required," it stated.
Net income increased to $5.6-million or 15 cents per basic share versus $2.4-million or 6 cents a year ago. Analysts were expecting revenue of $95.3-million and earnings of 12 cents.
Net income was $2.9-million or a penny per share, down from $19.2-million or 8 cents a year ago. Adjusted net income of $21.1-million or 9 cents per share compared to $72.5-million or 30 cents per share in the first quarter of 2019. Analysts were expecting adjusted EPS of 5 cents.
"The year-over-year decrease in adjusted funds flow and adjusted net income was due to lower crude oil and natural gas prices in the first quarter of 2020," the company stated.
Dorel Industries Inc. (DII.B-T, DII.A-T) reported first-quarter revenue was US$580.8-million, down 7.2 per cent compared to US$625.6-million a year ago. Analysts were expecting revenue of US$607-million.
Its net loss was US$57.8-million, or US$1.78 per share, compared to US$8.3-million or 26 cents US per share last year. Its adjusted net loss was US$13.6-million or 42 cents US per share compared to an adjusted net income of US$5.8-million or 18 cents US per share.
Sprott Inc. (SII-T) reported first-quarter revenues (net of commission expenses, trailer fees and sub-advisor fees, carried interest and performance fee payouts) were $15-million, a decrease of 1 per cent from the same quarter last year.
Net income was $1.1 million or a penny per share down from net income of $2.8-million a year ago.
Adjusted EBITDA was $8.2-million or 3 cents per share, an increase from $6.9-million a year earlier.
TMAC operates the Hope Bay gold project in Canada’s far-north territory of Nunavut, which started commercial production in 2017 and had proven and probable mineral reserves totalling around 3.54 million ounces of gold at the end of 2019, according to the company’s website.
Shandong Gold will pay roughly US$149-million in cash to acquire all of TMAC’s shares at a price of $1.75 (Canadian) per share, TMAC said in a separate statement, and will also purchase another 12 million shares at the same price in a private placement for around US$15-million.
The key shareholders in TMAC, Resource Capital Funds and gold miner Newmont Corp, which together hold a combined 58.6 per cent in the company, “have entered into voting support agreements to support the transaction,” the TMAC statement said.
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