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