Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news
Transat A.T. Inc. (TRZ-T) announced an agreement with Canada Enterprise Emergency Funding Corporation, a federal Crown corporation, to obtain $100-million in additional liquidity.
In connection with the funding, through the Large Employer Emergency Financing Facility, Transat has reached an agreement with all lenders to defer the April 2023 maturities to April 2024, as well as to defer from October 2022 to October 2023 the date by which the corporation must meet certain financial covenants.
“This complementary financing and the changes to the existing agreements strengthen our treasury position and reinforce our financial resilience,” stated CEO Annick Guérard. “This important financing milestone, combined with sales that have been doing well in recent months, will give us the financial flexibility to deploy our strategic plan with optimism and confidence.”
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Aecon Group Inc. (ARE-T) reported second-quarter revenue of $1.12-billion, compared to $971-million in the same period last year. The expectation was for revenue of $1.02-billion, according to S&P Capital IQ.
The Toronto-based construction company saw a net loss of $6.4-million, or diluted loss per share of 10 cents, for the three months ended June 30, compared to a net profit of $17.6-million, or diluted earnings per share of 27 cents, during the same period in 2021, before adjusting for the impact of the Canada Emergency Wage Subsidy program.
The expectation was for a profit of 20 cents per share in the latest quarter, according to S&P Capital IQ.
New contract awards of $1.31-billion were booked in the second quarter of 2022 compared to $1.58-billion in the same period in 2021.
In a news release, Aecon Group’s chief executive Jean-Louis Servranckx said “demand for Aecon’s services across Canada continues to be strong, particularly in smaller and medium-sized projects.”
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TVA Group Inc. (TVA.B-T) reported revenues came in at $147.5-million in the second quarter of 2022, down from $159.4-million a year ago.
Its net loss attributable to shareholders was $3.2-million or 7 cents per share, compared with net income attributable to shareholders of $3.9 -million or 9 cents per share a year ago.
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Cardinal Energy Ltd. (CJ-T) reported second-quarter revenue of $228.9-milion versus $99.1-million a year ago. Earnings came in at $98.6-million or 63 cents per share versus earnings of $9.1-million or 6 cents a year ago.
Adjusted funds flow was $128.3-million or 84 cents per share compared to $25.3-million or 16 cents per share.
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Sleep Country Canada Holdings Inc. (ZZZ-T) reported second-quarter revenue of $227.6-million, up from $192.2-million a year ago and ahead of expectations of $208.2-million. The company said same-store sales grew 15 per cent year over year.
Net income attributable to the company increased to $22.7-million or 61 cents per share from $17-million or 46 cents last year. Adjusted EPS came in at 69 cents versus 48 cents last year and was ahead of expectations of 57 cents.
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Canfor Pulp Products Inc. (CFX-T) reported second-quarter sales of $287.5-million, which beat expectations of $261.1-mllion and was below sales of $334.3-million a year ago.
Its net loss was $5.7-million or 9 cents per share versus a loss of $19.9-million or 31 cents a year ago.
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Western Forest Products Inc. (WEF-T) announced that it has appointed Steven Hofer as its president and CEO and a member of the company’s board, effective Sept. 7.
Mr. Hofer succeeds Don Demens, who will remain at Western in an advisory capacity until March 31, 2023. Mr. Demens will step down from the board effective Sept. 7.
Mr. Hofer joins Western from Bid Group, a wood processing technologies and solutions company.
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Eldorado Gold Corp. (ELD-T) reported second-quarter revenue of US$213.4-million versus US$233.2-million a year ago. The expectation was for revenue of US$244-million, according to S&P Capital IQ.
Its net loss of US$22.7-million or 12 US cents per share compared to a profit of US$31-million or 17 US cents a year ago. Adjusted net earnings of US$13.8-million or 8 US cents per share compared to adjusted net earnings of US$29.1-million or 16 US cents a year ago. The expectation was for adjusted EPS of 11 US cents per share.
“Adjusted net earnings in Q2 2022 removed a US$23.3-million loss on foreign exchange due to translation of deferred tax balances, a US$14.4-million loss on the non-cash revaluation of the derivative related to redemption options in our debt and included a US$1.2-million partial reversal of Stratoni equipment write-downs,” the company stated.
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Uranium Energy Corp. (UEC-A) announced that Denison Mines Corp. has put forward a competing offer for UEX Corp, a company it announced in June it planned to buy. Uranium Energy (UEC) has the right to match the offer.
“While the competing offer for UEX validates the merits of this acquisition, since announcing the transaction, there has been significant market deterioration in the sector and this has created a broader set of growth opportunities that would be highly accretive and strategic in nature,” stated UEC CEO Amir Adnani. “We continue to be in the driver’s seat with our acquisition of UEX, however, we have made no determination as to whether we will choose to match the competing offer. UEC will do a careful analysis to determine whether this or other opportunities we are considering provide the most compelling value for our shareholders.”
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Journey Energy Inc. (JOY-T) announced an agreement to buy producing petroleum and natural gas assets in Alberta from a senior producer for $140-million. The assets are currently producing approximately 4,400 boe/d primarily in the Medicine Hat, Kaybob, Ferrier, and Ante Creek areas of Alberta.
The company also reported second-quarter revenue of $68-million up from $27.5-million a year ago. Net income of $28.2-million or 47 cents per share compared to a loss of $353,000 or a penny per share a year ago.
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With a file from The Canadian Press
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