Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aecon Group Inc. (ARE-T) reported third-quarter revenue of $1.03-billion, which the company said was $6-million, or 1 per cent, higher compared to the same period in 2018. Profit was $42.1-million or 60 cents per share versus a profit of $42-million or 60 cents a year ago. Analysts were expecting earnings of 58 cents and revenue of $1.02-billion.
Adjusted EBITDA $91.1-million (margin of 8.9 per cent) improved by $1.6-million compared to adjusted EBITDA of $89.5-million (margin of 8.8 per cent) for the third quarter of 2018, the company stated. Reported backlog as at Sept. 30 of $6.6-billion compares to backlog of $7-million a year earlier.
Sleep Country Canada Inc. (ZZZ-T) said its third-quarter revenue increased by 14.2 per cent to $210-million from $183.9-million a year ago. Same-store sales increased by 0.5 per cent. Net Income decreased to $21.5-million or 58 cents per share compared to $23.7-million or 64 cents per share a year ago. Adjusted net income decreased to $22.4-million or 60 cents per share from $24.7-million or 66 cents in the same quarter last year. Analysts were expecting revenue to come in at $214.6-million and adjusted earnings of 68 cents.
Kinaxis Inc. (KXS-T) said its third-quarter revenue increased 29 per cent to US$47.1-million versus US$36.6-million a year earlier. Profit came in at US$4.5-million or 17 cents US per share versus a profit of US$9.4-million or 10 cents US a year ago. Analysts were expecting revenue of US$44.8-million and earnings of 11 cents.
Eldorado Gold Corp. (ELD-T) said its third-quarter revenues increased to US$172.3-million from US$81.1-million in the third quarter of 2018. Analysts were expecting revenue to come in at US$173.4-million. The increase was a result of higher sales volumes and a higher average realized gold price of US$1,513 per ounce in the third quarter of 2019 compared to US$1,177 per ounce in the third quarter of 2018, the company said.
Net earnings attributable to shareholders of US$4.2 million or 3 cents US per share improved from a net loss attributable to shareholders in the third quarter of 2018 of US$128-million or 81 cents US per share.
"The improvement was primarily a result of higher sales volumes in the third quarter and an impairment charge in the third quarter of 2018 of US$117.6-million... relating to the Kisladag heap leach pad," the company stated.
Adjusted net earnings came in at 5 cents US per share compared to a loss of 14 cents US per share a year ago and below expectations of 9 cents US.
Private equity fund Catalyst Capital Group Inc. claims to have gathered enough votes to block the planned $1.1-billion buyout of Hudson’s Bay Co. (HBC-T) and is pushing HBC’s board of directors to put the retailer up for sale.
Toronto-based Catalyst announced late Thursday that investors holding a 28.2-per-cent stake in HBC plan to oppose a bid to take the company private from a group led by HBC executive chairman Richard Baker. HBC owns real estate and more than 300 department stores under the Saks Fifth Avenue and Hudson’s Bay banners.
Mr. Baker’s buyout offer was approved last week by the HBC board after it was sweetened to $10.30 a share, and needs the support of the majority of minority investors. Mr. Baker’s group, which includes several private equity funds, controls 57 per cent of HBC’s shares, so a majority of the remaining 43 per cent is any shareholder group voting more than 21.5 per cent of the shares. Mr. Baker’s group and HBC could not be reached for comment late Thursday.
Wayland Group (WAYL-C) announced that it has agreed to terminate the transactions relating to the sale of its international portfolio of assets to ICC International Cannabis Corp.
"Pursuant to this termination agreement, ICC will no longer have any right to acquire any of Wayland’s portfolio of international assets and Wayland will cease to hold the common shares of ICC previously received by it," the company stated.
It also said the termination agreement sees Wayland retain certain assets it previously transferred to ICC, “together with a mutual release.”
Wayland also said that it continues its discussions with Cryptologic Corp. regarding the previously announced plan to sell of Wayland’s Canadian business, including its Langton, Ontario production facility, to Cryptologic in exchange for common shares of Cryptologic. “We have been working daily with the Cryptologic team, and believe that their professional approach, experience and financial discipline provide a platform for unlocking additional value in the Canadian business. We look forward to continuing to work toward completion of this transaction with them,” CEO Matt McLeod stated.
Horizon North Logistics Inc. (HNL-T) reported revenue of $116.6-million down from $100-million a year ago. Its net loss increased to $3.4 million or 2 cents per share versus $112,000 or nil per share a year ago.
Tucows Inc. (TCX-Q; TC-T) announced that it plans to acquire Cedar Holdings Group, a telecommunications provider serving multiple markets in the Western Slope of Colorado and northwestern New Mexico, through its Ting Fiber subsidiary for $9-million in cash and $2-million in restricted stock upon closing.
"There are additional contingent payments of up to $4-million in total that are subject to meeting specific benchmarks, and that would be paid at 24 and 36 months from closing," the company stated. It said the cash component of the purchase price will be funded through Tucows’ existing credit facility.
The acquisition of Cedar adds approximately 1,400 customers and 6,400 addresses passed by fiber to the Ting Internet footprint.
Baytex Energy Corp. (BTE-N; BTE-T) reported adjusted funds flow of $213-million or 38 cents per share in the third quarter up from $171.2-million or 45 cents a year ago. Sales came in at $424.6-million versus $436.7-million a year ago and ahead of expectations of $416.9-million.
Net income of $15.5-million or 3 cents per share compared to net income of $27.4-million or 7 cents a year ago. Analysts were expecting EPS of 4 cents.
Baytex also said it expects to exceed its 2019 full-year annual production guidance of 97,000 barrels of oil equivalent per day (boe/d). 2019 exit production is forecast at 95,000-97,000 boe/d, the company stated.
Namaste Technologies Inc. (N-X) appointed Annie Holmes as chief financial officer. succeeding Ken Ngo who will be leaving Namaste “to pursue another opportunity,” the company stated.
Ms. Holmes has held the position of chief financial officer for a number of private companies and senior financial roles with publicly traded Smart Employee Benefits Inc. and Katanga Mining Inc.
Namaste also announces that Kenneth Jones has resigned from the company's board, while Baran Dilaver has been appointed to the board.
With a file from Andrew Willis