A roundup of some of the North American equities making moves in both directions
On the rise
Cineplex Inc. (CGX-T) was up in the wake of announcing it lost $103.7-million in its second quarter as it was able to open more theatres as provinces began to reduce mandatory closures and ease capacity restrictions.
CEO Ellis Jacob says that as of July 17 all of the company’s theatres and entertainment venues were open.
The movie theatre company says the loss amounted to $1.64 per diluted share for the quarter ended June 30 compared with a loss of $98.9-million or $1.56 per diluted share a year ago.
Revenue was $64.9 million, up from $22-million in the same quarter last year.
The overall increase came as box office revenue totalled $12.5-million in the quarter compared with a nominal amount a year ago when the company had just six theatres open in Alberta in June 2020. Food service revenue climbed to nearly $13.3-million, up from nearly $3.3-million a year ago.
Meanwhile, media revenue rose to $9.4-million compared with $8.1-million in the same quarter last year, while amusement revenue increased to $22.2-million, up from $3.7-million. Other revenue increased to $7.6-million from $7.1-million a year ago.
Linamar Corp. (LNR-T) was up after saying it swung to a profit in the second quarter as the diversified manufacturer saw key sectors recover from the impacts of COVID-19.
The Guelph, Ont.-based company says it had net earnings of $108-million or $1.65 per diluted share for the quarter ending June 30, compared with a loss of $37.9-million or 58 cents per share last year.
Adjusted net income was $106.9-million, or $1.63 per diluted share, compared with a loss of $22 million or 34 cents per share last year.
Linamar, which manufactures equipment for the automotive, construction and agricultural sectors, says it had revenue of $1.57-billion, up from $923.6-million in the same quarter last year.
Analysts had on average expected adjusted earnings of $93-million, or $1.42 per share, on revenue of $1.61-billion, according to financial data firm Refinitiv.
Linamar chief executive Linda Hasenfratz says there are challenges from supply chain shortages, but that market demand is strong and the company is confident it will remain elevated.
Canadian Tire Corp. Ltd. (CTC.A-T) finished flat with the release of better-than-anticipated second-quarter financial results before the bell on Tuesday.
The retailer reported normalized earnings per share of $3.72 per share, exceeding the Street’s forecast of $2.84. Same-store sales growth at its flagship Canadian Tire stores fell 2 per cent despite significant pandemic-related closures, while e-commerce sales jumped 63 per cent (and 34 per cent across all its chains).
“Outperformance came from both Retail and Financial Services,” said Desjardins Securities analyst Chris Li. “While we expect the stock to outperform today, investors’ focus will be on the 2H outlook as CTC starts to cycle through challenging comps, with an expected decline in earnings.”
U.S. cannabis producer Green Thumb Industries Inc. (GTII-CN) jumped as it almost doubled its revenue in the second quarter and exceeded estimates on Wednesday, as demand soared for its pot-infused products and more people stepped into its stores.
Like the rest of the cannabis industry, Green Thumb has benefited from prospects of federal marijuana legalization in the United States, with its shares climbing nearly 31 per cent this year thanks to a surge in pot use during the pandemic era.
“The great American growth story in cannabis is happening --the momentum is undeniable... there is still incredible untapped potential in all of our operating regions, and we will continue our strategy to invest in high-return initiatives,” Chief Executive Officer Ben Kovler said in a statement.
Headquartered in Chicago, Illinois, Green Thumb has 16 manufacturing facilities, licenses for 111 retail locations and operations across 14 U.S. markets.
Green Thumb’s revenue rose to US$221.9-million in the second quarter ended June 30, beating a Refinitiv IBES estimate of US$207.25-million on the back of growth in its consumer packaged goods and retail businesses in Illinois and Pennsylvania.
“The fundamental driver here is a tidal wave of demand... at the core here, Americans are going to choose cannabis for wellbeing,” Mr. Kovler said in call to Reuters. Green Thumb, which owns the Rise dispensary chains, said retail revenue increased 15 per cent sequentially.
Net income attributable to the company was US$22.1-million, or 10 US cents per share, compared with a net loss of US$12.9-million, or 6 US cents per share, in the prior year. It was Green Thumb’s fourth consecutive quarter of positive net income.
On the decline
Brookfield Asset Management Inc. (BAM.A-T) was lower as it reported a profit in its latest quarter compared with a loss a year ago.
The asset manage reported US$816-million or 49 US cents per share in net income attributable to common shareholders.
The result compared with a loss of US$656-million or 43 US cents per share in the same quarter last year.
Revenue totalled US$18.3-billion, up from US$12.8-billion.
Funds from operations came in at US$1.6-billion or US$1.01 per share for the quarter, up from nearly US$1.2-billion or 73 US cents per share a year ago.
Distributable earnings rose to US$1.2-billion, up from nearly US$1.1-billion in the same quarter last year.
“Growth in our asset management franchise, steady returns on our principal investments and continued momentum on our capital recycling initiatives all contributed to the strong quarter,” Brookfield chief financial officer Nick Goodman said in a statement.
Edmonton-based AutoCanada Inc. (ACQ-T) erased big early gains after topping the Street’s expectations for its second-quarter results, driven by strong demand and inventory shortages for used vehicles.
After the bell on Wednesday, it reported revenue of $1.281-billion and adjusted EBITDA of $68-million, both exceeding the consensus forecasts ($1.06-billion and $52-million). Adjusted earnings per share of $1.24 also blew past estimates (81 cents).
In a research note, ATB Capital Markets analyst Chris Murray said: “ACQ reported a blowout quarter with top and bottom lines both coming in well ahead of consensus with news around potential M&A activity creating an additional near-term catalyst for the stock. Overall, we are positive about the results and expect the stock to react favourably.”
Late Wednesday, the Toronto-based utility reported adjusted EBITDA of $203-million, below the Street’s $216-million forecast. Earnings per share of an 8-cent loss, down from a 13-cent profit a year ago and well below the 25-cent estimate.
“Overall, we view the update as negative given the miss was further dampened by a downward skew to the Company’s previously messaged 2021 guidance,” said ATB Capital Markets analyst Nate Heywood. “Looking forward to H2/21, we expect the business to benefit from its expansion into Spain with the closing of its previously announced 540 MW portfolio acquisition today; however, management is now messaging towards 2022 commercial operations for the La Lucha Solar project (130 MW), which we had previously modelled to enter service in Q3/21. Partially offsetting the challenges in the quarter, NPI announced that it reached financial close on two of its onshore wind projects in New York and the Helios solar project in Colombia.”
Revenue for the Vaughan, Ont.-based personal care company fell 1.8 per cent year-over-year to $29.1-million, below the Street’s projection of $30.2-million, which it attributed to “net distribution decreases across a number of brands.” Adjusted earnings per share dropped almost 55 per cet to 2 cents, missing the consensus estimate by 7 cents.
“While we are disappointed with our top and bottom-line second quarter results, the Board believes there are many reasons to be optimistic about the future,” said Chairman Chris Elshaw. “We have a portfolio of four distinctive brands with good equity that can be built on over time.
“In addition, we also benefit from the operational scale of our platform. Earlier this week we announced, consistent with our continued investment in people, that Serge Jureidini will be joining us as President & CEO on August 17th , and Laurel MacKay-Lee will be joining us as CFO on August 30th .”
With files from staff and wires