Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Sales were $275.6-million up from $247.5-million a year earlier and ahead of expectations of $267-million. Net income was $7-million or 11 cents per share versus a loss of $19.5-million or 30 cents a year ago.
Canfor Corp. (CFP-T) announced first-quarter sales came in at $1.17-billion, up from $1.1-billion a year earlier. Its net loss was $70-million or 56 cents per share versus a loss of $39.1-million or 31 cents a year earlier. Adjusted EPS was a loss of 21 cents versus a loss of 6 cents last year. Analysts were expecting revenue of $1.1-billion and an adjusted loss of 25 cents.
"While we saw a modest improvement in our results at our lumber and pulp and paper operations in the first quarter, these results were significantly overshadowed by the virus outbreak and the extreme market volatility and major economic turmoil it has caused," stated CEO Don Kayne. "We are focused on maintaining a strong balance sheet and believe we are well-positioned to weather the impacts of the pandemic. We continue to actively assess the ongoing situation and remain prepared to take further action if necessary."
Net income decreased to $4.7-million or 4 cents per share down from $11.6-million or 11 cents a year earlier. Adjusted EPS was 9 cents versus 10 cents a year ago. Analysts were expecting adjusted EPS of 7 cents.
The company also reported that it has furloughed and provided temporary layoff notices to approximately 1,000 employees amid the pandemic and has established a $5-million family assistance plan. “We will provide support as required to those most impacted through no fault of their own until we can get them back to work,” stated CEO Murray Mullen. “This is one of my primary responsibilities these days. The other is ensuring the many frontline workers, those deemed essential workers by the various governments, have the appropriate protective gear and safety protocols in place to manage their health and safety as they go about their regular jobs.”
Victoria Gold Corp. (VGCX-T) announced a $20-million bought-deal financing. It has an agreement with a syndicate of underwriters led by BMO Capital Markets and PI Financial Corp. that will purchase 2,615,000 common shares for $7.65 each.
The company said the net proceeds will be used to continue ramp-up of operations of its Eagle gold mine and for general corporate purposes.
Its net loss was $10.4-million or 3 cents per share versus a loss of $3-million or a penny per share a year ago.
The company said it's unable to "definitively quantify" the potential impact of COVID-19 on its business. "In the near-term, given the current disruption to the sports calendar, the company does expect a decline in revenue beginning in [the third quarter] compared to the prior year."
In response, the company said it's taking measures to manage costs, including reducing operating expenses and exploring what government programs it could tap into. It said members of theScore’s management team have agreed to forego 25 per cent of their salary from May 1 to Aug. 31 in exchange for an equivalent grant of restricted stock units in the company, "with a variation of this program also being made available on an optional basis to all full-time staff."
Bluestone Resources Inc. (BSR-X) announced an $80-million bought-deal financing. The company said it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to buy 45,720,000 common shares at $1.75 each. The net proceeds will be used to advance the company’s Cerro Blanco project and for working capital and general corporate purposes.
Clairvest Group Inc. (CVG-T) announced that Digital Media Solutions Holdings, LLC, a portfolio company of Clairvest Group Inc. and Clairvest Equity Partners V, has entered into an agreement to combine with Leo Holdings Corp., a publicly traded special purpose acquisition company. Leo intends to change its name to Digital Media Solutions, Inc.
If the transaction closes on the terms proposed, Clairvest said it will receive cash proceeds and will retain a significant continuing equity interest in new DMS. The percentage ownership will be dependent upon the number of Leo Class A ordinary shares that are redeemed by Leo’s public shareholders in connection with the proposed transaction. Clairvest will continue to have representation on the New DMS board of directors.
It said the Mr. Lube Canada Limited Partnership generated same-store-sales-growth (SSSG) of negative 7.2 per cent compared to SSSG of 4.5 per cent for the same time last year. DIV expects to report that aggregate royalty income and management fees of $3.5-million were generated from Mr. Lube in the quarter, a decrease of $0.2-million from a year ago.
Air Miles reward miles increased by 4.6 per cent benefitting from increased sponsor promotions early in the quarter. Miles redeemed decreased by 8.7 per cent, reflecting the impact of COVID-19 on travel-related redemptions in March. DIV expects to report that royalty income of $1.8-million was generated from the Air Miles licences in the first quarter, an increase of 7.9 per cent compared a year ago.
DIV expects to report a royalty entitlement from Nurse Next Door Professional Homecare Services Inc. of $1.2-million in the first quarter.
The company expects to report that royalty income and management fees of $0.8-million were generated from Sutton Group Realty Services Ltd in the first quarter, compared to $1-million a year ago. The decrease was due to a 50-per-cent waiver of the March 2020 royalty and management fee.
DIV expects to report royalty income and management fees of $0.6-million from Mr. Mikes Restaurants Corp. in the first quarter. The revenue represents the amount from Jan. 1 to Feb. 23 given that the revenue for the remainder of the quarter was waived. As a result, reported revenues from Mr. Mikes were 41-per-cent lower than the $1-million of revenues expected, it stated.
“The management teams of our royalty partners have been doing an excellent job of managing their businesses through these challenging times,” stated Sean Morrison, CEO of DIV. "DIV’s management is in regular discussions with our royalty partners, and together with the board of directors are monitoring developments with a focus on the long-term success of DIV and its royalty partners.”