Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
DHX Media Ltd. (DHX-T) has signed nine new consumer products licensees for its Teletubbies brand in South Korea. “The new consumer products line builds on the strategy to expand the Teletubbies brand throughout Asia and capitalize on the significant opportunity in the region,” the company stated.
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Resolute Forest Products Inc. (RFP-N; RFP-T) reported net income of $72-million or 77 cents per share in the second quarter, compared to a net loss of $74-million or 82 cents per share, in the same period in 2017. Sales were $976-million in the quarter, an increase of $118-million from the year-ago period. Analysts were expecting sales of $1-billion.
Excluding special items, the company reported net income of $66-million or 71 cents per share, compared to a net loss, excluding special items, of $3-million or 3 cents in the second quarter of 2017. Analysts were expecting adjusted EPS of 67 cents.
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Dirtt Environmental Solutions Ltd. (DRT-T) issued a statement late Wednesday regarding an article published by Reuters about the company. “While Dirtt reaffirms its general practice not to comment on market rumour, the company confirms that it is not currently in discussions with respect to any strategic transaction,” it stated in a release.
The company said its board established a special committee of independent directors "in response to an inbound non-binding transaction proposal received shortly after management changes were announced earlier this year."
It said the special committee retained independent financial and legal advisors to help it review the proposal and consider other strategic alternatives, “however, it was determined that no strategic transaction should be pursued at the present time. The special committee was disbanded accordingly.”
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Canaccord Genuity Group Inc. (CF-T) said it generated $274.1-million in revenue in the first quarter an increase of 37 per cent or $74.3 million from $199.8-million a year ago. Net income of $18.6-million compared to a net loss of $2.6-million. Diluted EPS was 14 cents compared to a loss per common share of 5 cents a year ago. Analysts were expecting revenue of $27.9-million and earnings of 14 cents per share.
The company also announced a $115-million in financings, including a $41.5-million bought deal. It said it has an agreement with Canaccord Genuity Corp., Cormark Securities Inc., and TD Securities Inc. as co-lead underwriters and joint bookrunners, to buy 41,500 convertible unsecured senior subordinated debentures for $1,000 each.
The company is also entering into a concurrent non-brokered private placement agreement "with a large Canadian asset manager," to purchase 73,500 convertible unsecured senior subordinated debentures for gross proceeds of $73.5-million.
"The net proceeds from this offering and concurrent non-brokered private placement will support our continued growth plans for our wealth management businesses in Canada and the UK & Europeas ... ," stated CEO Dan Daviau.
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Rogers Sugar Inc. (RSI-T) reported adjusted EBITDA of $20.3-million for its third quarter versus $18.4-million a year earlier. Analysts were expecting its adjusted EBITA to come in at $23.5-million. Total revenues were $199-million, which was in line with expectations and up from $166.4-million a year ago. Net earnings were $11.3-million or 10 cents versus a loss of $448,000 a year ago.
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Slate Office REIT (SOT.UN-T) said it has agreed to acquire a building in downtown Chicago for US$155.5-million. The REIT has also entered into an agreement to sell Water Street Properties in St. John’s, Nfld for $17.5 million. “We are very excited to announce our second U.S. acquisition of 2018,” said Scott Antoniak, the REIT’s CEO. “120 South LaSalle is a landmark downtown Chicago address and is the U.S. headquarters of CIBC, a leading Canadian based global financial institution and a key strategic financial partner of Slate Office REIT.”
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Tahoe Resources Inc. (THO-T; TAHO-N) reported second quarter revenue of $127.1-million down from $209.6-million a year ago. Its net loss was $15.6-mllion or 5 cents per share versus a profit of $33.5-million or 11 cents last year. Analysts were expecting revenue of $129.3-million and a loss of 4 cents per share.
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CRH Medical Corporation (CRH-T; CRHM-N) reported second-quarter revenues of US$27.3-million compared to US$20.9-million last year and ahead of expectations of US$25.4-million. Net income was US$3.2-million, versus US$620,000 a year ago.
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Secure Energy Services Inc. (SES-T) reported second-quarter revenue of $720-million up from $584.3-million a year earlier and ahead of expectations of $640.7-million. Its net loss was $6.9-million or 4 cents per share versus expectations of a loss of 5 cents. Its loss was $13.5-million or 8 cents a year earlier.
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Morguard Real Estate Investment Trust (MRT.UN-T) reported second-quarter net income or $43.4-million versus $52.4-million for the same period last year. Net operating income was $36.9-million versus $38-million a year ago. Diluted funds from operations (FFO) was $24.8-million or 36 cents per unit versus $26-million or 38 cents per unit a year earlier. Analysts were expecting FFO to come in at 37 cents per unit.
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Stingray Digital Group Inc. (RAY.A-T) says it acquired Novramedia, a Toronto-based digital media company. “This strategic acquisition supports Stingray’s business plan and growth strategy,” the company stated.
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CanWel Building Materials Group Ltd. (CWX-T) reported second-quarter revenues of $382.1-million compared to $320-million in the same period in 2017. Analysts were expecting revenue of $382-million.
“Sales increased largely due to the inclusion of the results from the Honsador acquisition, an upward trend in construction material pricing, and the company’s continuing focus on its product mix strategies and target customer base,” it stated. Net earnings increased 50 per cent to a $14.7-million, which was in line with expectations.
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Innergex Renewable Energy Inc. (INE-T) said it has signed a final agreement to acquire TransCanada’s 62-per-cent interest in five wind farms in the Gaspé peninsula in Quebec, as well as its 50-per-cent interest in the operating entities of the Cartier Wind Farms for a total of $630-million.
"By acquiring TransCanada's interest in the Cartier Wind Farms and Cartier Operating Entities, not only do we add 366 MW of net installed capacity to our portfolio, but we look forward to welcoming a team with unique expertise to advance our future growth projects," said Michel Letellier, CEO of Innergex.
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Ballard Power Systems (BLDP-T; BLDP-N) reported revenue of US$26.4-million in the second quarter, which was similar to the year before. Its net loss was US$4.3-mllion or 2 cents versus a loss of $1.2-million or a penny last year.
Analysts were expecting revenue of $24-million and a loss of 4 cents.
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Quarterhill Inc. (QTRH-T; QTRH-N) says its Wi-Lan division was awarded $145.1 million in damages in a patent suit against Apple Inc.
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Coeur Mining, Inc. (CDE-N) says it’s buying Northern Empire Resources Corp. (NM-X) in a deal that values the junior miner at approximately US$90-million, inclusive of the 7.4 million Northern Empire shares currently owned by Coeur.
Coeur said the bid is a 40-per-cent premium to Northern Empire’s 20-day trailing volume-weighted average share price. Each common share of Northern Empire will be exchanged for 0.1850 common shares of Coeur. The transaction values each Northern Empire share at C$1.64.
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Athabasca Oil Corp. (ATH-T) reported a net loss of $19.3-million or 4 cents per share in the second quarter, versus a profit of $24.2-million or 5 cents last year.
Athabasca also increased its 2018 capital budget by $45-million to $185-million, "to reflect continued activity in the Montney" and increased its adjusted funds flow guidance to $165 million from $145 million, "primarily on underlying commodity prices."
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Step Energy Services Ltd. (STEP-T) reported record second quarter consolidated revenue of $184.6-million compared to $105.4-million in the same period of 2017, “primarily attributable to the Tucker Acquisition, increased equipment deployed and higher fracturing intensity.” Analysts were expecting revenue of $174.3-million.
Its net loss of $8.4-million or 13 cents per share in the second quarter compared to net income of $2.6-million or 4 cents for the same period in 2017.