Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Well Health Technologies Corp. (WELL-T) reported record second-quarter revenue of $10.6-million compared to revenue of $7.4-million a year ago, driven by digital services revenues. Analysts were expecting revenue of $9.8-million.
Its net loss was $3.4-million or 3 cents per share versus a loss of $1.7-million or 2 cents a year ago. Analysts were expecting a loss of 2 cents.
"Growth was driven by a 16.2% increase in cannabis sales, particularly from ongoing improvement in International Medical, while Manitoba Harvest hemp products sales increased 1.6%," the company stated.
Its net loss was US$81.7-million or 65 cents US per share, compared to a net loss of US$36.3-million or 37 cents US per share a year ago.
The company said the wider loss was partially due to facility closures and inventory adjustments.
The company said its second-quarter revenue decreased 3.2 per cent compared to the first quarter of 2020 “driven by a 15.8% decrease in adult-use sales, a 5.3% decrease in Canada medical sales, and a 5.1% decrease in hemp sales, partially offset by a 43.2% increase in international medical sales.”
"The total decrease in sales was driven by year-over-year decreases in the North America and Europe operating segments, partially offset by an increase in the rest of the world," the company stated.
Its net loss was $146.9-million or $1.84 per share compared to net income of $28.1-million or 34 cents a year ago. Adjusted earnings came in at a loss of 91 cents per share versus a profit of 66 cents a year ago. Analysts were expecting an adjusted loss of 74 cents per share.
“Our second quarter was difficult with lower sales and net income reflecting the effects of the COVID-19 related shutdowns during the quarter,” stated CEO Pat D’Eramo. “In June we saw a return of volumes, a steady ramp-up over the course of the month, and while there were some issues in opening up operations for the industry, overall the restart has gone quite well.... We are looking forward to a strong third quarter, based on anticipated volumes as we see them today, as OEMs replenish currently low vehicle inventory levels.”
Dorel Industries Inc. (DII.B-T, DII.A-T) reported second-quarter revenue was US$724-million compared to US$670-million for the same period a year ago. Analysts were expecting revenue of US$630-million.
Net income was US$11.1-million or 34 US cents per share compared to US$2.8-million or 9 US cents per share a year ago. Adjusted net income was US$15.6-million or 48 US cents per share, compared to US$6.3-million or 19 US cents per share last year.
“Two of our three business segments have benefitted financially during the impact of the COVID-19 pandemic,” stated CEO Martin Schwartz. “Consumers have chosen Dorel for its bicycle and home furnishing purchases, selecting our leading brands and outstanding product value. Our advanced capabilities in e-commerce have allowed us to reliably and efficiently deliver to our end consumers in all three of our segments.”
Mr. Schwartz said this trend should continue in the short term, "but there are many unknowns and risks going forward. The impact of the slowing economy and higher unemployment and how this will impact our consumers is difficult to measure at this time. The possibility of worsening economic conditions brought on by a second coronavirus wave means current shopping habits could change yet again."
Net income was US$6.7-million or 27 US cents per share versus net income of US$3.3-million or 14 US cents per share a year ago.
"The COVID-19 pandemic continues to generate both opportunities and challenges for organizations globally, including AirBoss," the company stated., adding that its strong second-quarter results "were driven by a large personal protective equipment (PPE) award from FEMA in the U.S., with deliveries beginning early in the second quarter and ramping up steadily through the end of July when the contract was completed. This strong performance provided a financial offset to the COVID-19 related impact on the Rubber Solutions and Engineered Products segments."
Its net loss attributed to shareholders was US$2.9-million or 4.1 US cents per share versus a profit of US$1.6-million or 2.3 US cents per share a year ago. Analysts were expecting a loss of 4 US cents per share.
Liminal BioSciences Inc. (LMNL-Q) reported second-quarter revenues were $0.5-million compared to $0.8-million for the second quarter of 2019. “The decrease was principally due to the decrease of $0.2-million in revenues from the sale of normal source plasma inventory,” the company stated.
Its net loss from continuing operations was $27.8-million compared to a loss o $135.9-million for the second quarter of 2019. "This decrease was mainly driven by a $92.3-million loss on extinguishment of liabilities related to the debt restructuring that was recognized in the second quarter of 2019 and a reduction in share-based payments expense of $12.5-million related to the changes made to the company's long-term equity incentive plan in the second quarter of 2019," the company stated.
Lucara Diamond Corp. (LUC-T) reported revenue of US$7.5-million or US$109 per carat from the sale of 68,979 carats in the second quarter, down from US$42.5-million or US$417 per carat from the sale of 101,931 carats a year earlier.
"Only stones in size classes below 10.8 carats were sold during the second quarter of 2020," the company stated. "The achieved price in Q2 2020 for the stones in size classes below 10.8 carats reflects the overall rough market price erosion."
Its net loss of US$13.9-million or 4 cents US per share compared to net income of US$0.7-million or nil per share a year ago.
"A decrease in total revenue, predominantly from deferral of sales of +10.8 carat stones, had the most significant impact on the current quarter's results," the company stated.
"Though our 100% owned Karowe mine continues to operate at full capacity, Lucara made the deliberate decision not to sell any of its +10.8 carat diamond production during the period, in response to a weakened market demand," stated CEO Eira Thomas.
The company also said it has secured a “groundbreaking supply agreement” with the HB Grou. Ms. Thomas said the agreement “will deliver regular revenues on superior pricing terms to those currently being achieved at tender, and helps position Lucara to move forward with key underground expansion activities for Karowe in 2020.”
Net income came in at US$3.4-million or 10 US cents per share compared to US$0.9-million or 3 US cents per share in the same period in 2019.
Earnings came in at $10.5-million or 16 cents per share versus earnings of $8-million or 12 cents a year ago.
The company reported an adjusted net loss of $1.1-million or 2 cents per share versus an adjusted profit of $6-million or 9 cents a year ago.
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