Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.

Westport Fuel Systems Inc. (WPRT-T; WPRT-Q) reported second-quarter revenues of US$36-million down from US$82.4-million a year earlier. Analysts were expecting revenue of US$31.9-million.

Net income was US$3-million of 2 cents US per share compared to a loss of US$2.3-million or 2 cents US a year ago.

Story continues below advertisement

**

Domtar Corp. (UFS-N; UFS-T) reported second-quarter sales of US$1.01-billion, roughly in line with expectations and down from US$1.3-billion a year earlier.

Net earnings of US$19-million or 34 cents US per share compared to net earnings of US$18-million or 28 cents US per share for the second quarter of 2019. 

The company also announced a "significant cost savings program" with expected annual savings of US$200-million.

**

Héroux-Devtek Inc. (HRX-T) reported sales of $128.3-million for its first quarter ended June 30 down from $143.4-million last year. Analysts were expecting revenue of $129.8-million.

Its net loss was $1.3-million or 4 cents per share versus net income of $6.4-million or 18 cents a year ago. Adjusted EPS was 9 cents versus 19 cents a year ago.

Story continues below advertisement

**

Wajax Corp. (WJX-T) reported second-quarter fell to $356.9-million versus $409.4-million a year ago. Analysts were expecting revenue of $311.6-million.

Net earnings were $10.2-million or 51 cents per share versus $11.9-million or 59 cents a year ago. Adjusted earnings were $9.6-million or 48 cents down from $12.6-million or 63 cents a year ago.

**

Indigo Books & Music Ltd. (IDG-T) has reported wider first-quarter losses and declining revenue as the retailer continues to cope with the impacts of the COVID-19 pandemic.

On Thursday, the Toronto-based company reported a net loss of $31.6-million or $1.15 per share in the 13 weeks ended June 27, compared to a net loss of $19.1-million or 69 cents per share in the same period last year.

Story continues below advertisement

Like many retailers, Indigo temporary closed all of its stores on March 17 as part of public health measures designed to curb the spread of the virus. The company also temporarily laid off 5,200 retail staff, the majority of its roughly 6,000 employees. Its stores across the country remained closed for the majority of the quarter. By late June it had reopened all but one of its 182 locations and re-hired 3,030 employees.

The store closures boosted Indigo’s e-commerce revenue, which more than tripled in the 13-week period. Online order volumes surged in the first quarter to levels comparable to its biggest sales period in the holiday season.

While e-commerce sales were extremely healthy, they did not entirely make up for losses at the store level. Indigo’s revenue fell by 35 per cent in the quarter, to $135.1-million.

Indigo also announced on Thursday that it has secured a $25-million interest-free credit line from its controlling shareholder in order to secure its “financial flexibility.” The company closed its new revolving credit facility, provided by a company controlled by Onex Corp. chairman and CEO Gerald Schwartz, who is married to Indigo chief executive officer Heather Reisman.

“Despite the unparalleled challenges we faced in the first quarter, we are extremely pleased with the way our entire organization adapted to the unprecedented demands to both adjust the business and meet the needs of our customers,” Ms. Reisman said in a statement.

-Susan Krashinsky Robertson

Story continues below advertisement

**

Western Forest Products Inc. (WEF-T) reported revenue of $256.3-million down from $310.3-million a year ago.

Net income of $8.5-million or 2 cents per share compared to a net loss of $700,000 or nil per share a year ago.

"Our results improved from the comparative period but were significantly impacted by market uncertainty and increased costs resulting from COVID-19," the company stated.

**

Interfor Corp. (IFP-T) recorded sales of $396.8-million in the second quarter down from $481.3-million a year ago.

Story continues below advertisement

Net earnings of $3.2-million or 5 cents per share compared to a net loss of $11.2-million or 17 cents per share a year ago. Adjusted net earnings were $10.6-million or 16 cents per share versus an adjusted net loss of $16.2-million or 24 cents a year ago.

Analysts were expecting revenue of $383-million and adjusted earnings of 4 cents per share.

**

Chartwell Retirement Residences (CSH.UN-T) announced second-quarter revenue of $216.4-million versus $213.8-million a year earlier. Analysts were expecting revenue of $240.8-million in the latest quarter.

Its net loss was $1.9-million versus a loss of $1.5-million a year ago.

Funds from operations came in at $39-million or 18 cents per share, which was in line with expectations and compared to $47.1-million or 22 cents a year ago.

Story continues below advertisement

**

Recipe Unlimited Corp. (RECP-T) reported system sales decreased to $389.8-million in the second quarter or 55.3 per cent from 2019 as the company “was deeply impacted by the COVID-19 pandemic and the corresponding restaurant closures.”

Gross revenues for the 13 weeks ended June 28 came in at $140.4-million compared to $311.9-million a year ago.

Its net loss was $40.6-million or 72 cents per share compared to net income of $16.6-million or 26 cents a year ago. Adjusted earnings per share came in at 11 cents compared to 37 cents a year earlier.

**

Sleep Country Canada Inc. (ZZZ-T) reported second-quarter revenues decreased 31 per cent to $114.9-million compared to $166.6-million a year earlier, “mainly as retail stores were temporarily closed for an average of 54 per cent of normal operating days during the quarter.

Analysts were expecting revenue of $89.7-million.

Its net loss was $471,000 or a penny per share versus a profit of $12.2-million a year ago. Adjusted earnings were 14 cents per share versus 33 cents a year earlier.

"The outbreak of the COVID-19 pandemic has had an adverse impact on the company's operations and financial results for Q2 2020 compared to [the] prior year," the company stated.

**

Plaza Retail REIT (PLZ.UN-T) reported second-quarter property rental revenue of $26.8-million down from $26.4-million a year ago. Net operating income was $16.1-million versus $16.4-million a year ago.

Its loss was $31.3-million compared to a profit of $17-million a year ago.

**

Morneau Shepell Inc. (MSI-T) reported second-quarter revenue of $246.2-million up from $212.7-million a year ago, “primarily due to the mid-year 2019 acquisition of Mercer’s standalone, large market, health and defined benefit pension plan administration business in the United States, offset by the divestiture of the company’s benefits consulting business earlier this year.”

Analysts were expecting revenue of $248.2-million.

Adjusted EBITDA increased by 13.5 per cent to $52.1-million from $45.9 million a year earlier. Analysts were expecting adjusted EBITDA of $48.9-million.

**

Sprott Inc. (SII-N; SII-T) reported second-quarter revenues were US$28.3-million, which the company says is an increase of US$13.4-million or 90 per cent from the same time last year.

Net income was US$10.5-million or 43 cents US per share, an increase of US$8.9-million from last year. 

Assets under management were US$13.9-billion as of June 30, up 29 per cent from March 31, the company stated.

"During the first half of 2020, governments and central banks responded to the ongoing COVID-19 pandemic and ensuing economic crisis with unprecedented fiscal and monetary stimulus, flooding the financial system with liquidity," said Peter Grosskopf, CEO of Sprott. 

“The reaction in precious metals has been dramatic... We believe we are in a powerful bull market for precious metals, and that the conditions for their outperformance will continue to intensify.”

**

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies