Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news
Dye & Durham Limited (DND-T) issued a statement early Wednesday in response to the United Kingdom’s Competition and Markets Authority (CMS) final report following its review of the company’s acquisition of TM Group (UK) Limited.
The CMA has found that Dye & Durham’s acquisition of TMG, which closed in July 2021, “would substantially lessen competition in the supply of property search report bundles in England and Wales,” the company stated.
“The CMA also asserts that the only effective way to address the issues it has identified would be for Dye & Durham to sell the entirety of TMG to a third party.”
The Toronto-based company said it “strongly disagrees” with the decision and “continues to believe that the acquisition of TMG would be beneficial for the search report market and its customers.”
It’s reviewing the report and stated that it will “carefully consider its options and next steps, including potentially appealing the decision.”
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Dream Impact Trust (MPCT-UN-T) reported net income of $623,000 or a penny per unit in the second quarter versus a loss of $1.5-mllion or 2 cents in the year-ago quarter.
“The improvement in earnings was driven by the composition of fair value changes on income properties and financial and equity instruments across our segments, the impact of foreign exchange on our investment in the Virgin Hotels Las Vegas, and growth in our recurring income segment,” the trust stated in a release.
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Canaccord Genuity Group Inc. (CF-T) announced plans to acquire Results International Group LLP, an independent advisory firm headquartered in London, U.K., focused on the technology and health care sectors. The company provides M&A and corporate finance services to entrepreneurs, corporates, private equity firms and investors.
Results has done more than 60 strategic advisory transactions in the past three years, Canaccord stated in a release.
“This transaction complements recent investments by the Company to expand its global Advisory business with the acquisitions of Petsky Prunier (2019) and Sawaya Partners (2021) in the United States and expands its European domain expertise in the health care and technology sectors,” it stated.
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NFI Group Inc. (NFI-T) reported second-quarter revenue of $398-million down from $582.8-million a year ago. The expectation was for revenue to come in at $426.8-million, according to S&P Capital IQ.
Its net loss was $56.7-million or 74 cents per share compared to a profit of $2.6-million or 4 cents a year ago. Its adjusted net loss came in at 64 cents per share, which was in line with expectations and compared to an adjusted EPS of 12 cents a year ago.
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Recipe Unlimited Corp. (RECP-T) reported second-quarter revenue came in at $336.6-million, compared to $207.6-million in the same quarter of 2021, which it said was driven by higher system sales in both its corporate and franchise segments. The expectation was for revenue to come in at $298-million, according to S&P Capital IQ.
Total system sales for the quarter ended June 26 were $873.1-million, compared to $561.8-million a year ago. The increases were largely driven by the return to in-restaurant dining, the company noted. Same restaurant sales growth was 60.9 per cent compared to 2021.
Net earnings were $16.6-million or 28 cents per share, compared to net earnings of $19.4-million or 34 cents a year ago. The company said the decrease was due primarily to the increase in deferred income taxes, among other factors.
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5N Plus Inc. (VNP-T) reported second quarter revenue of US$72.4-million, compared to US$47.7-million for the same period last year. The result was ahead of expectations of US$63.7-million.
The company said the increase was supported by higher demand in specialty semiconductors, as well as pharmaceutical and health in performance materials.
Its net loss was US$2.1-million or 2 US cents per share versus a profit of US$2.2-million or 3 US cents a year ago.
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Stingray Group Inc. (RAY.A-T; RAY.B-T) reported revenue of $78.1-million for its first quarter ended June 30, up from $64.3-million a year ago. The expectation was for revenue to come in at $77.8-million.
“The increase was primarily due the acquisition of InStore Audio Network, growth in radio revenues due to the gradual easing of COVID-19 restrictions and return to normal commercial operations, higher subscription revenues as well as enhanced equipment and installation sales related to digital signage,” the company stated.
Net income came in at $9.4-million or 13 cents per share compared to $4.2-million or 6 cents per share a year ago.
Adjusted net income of $13.2-million or 19 cents per share, which was in line with expectations and compared to $11.2-million or 16 per share in the same period last year.
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Sierra Wireless, Inc. (SW-T) which announced Tuesday it has an agreement to be acquired by California chip maker Semtech Corp. US$31 a share, also reported preliminary second-quarter results, including revenues that are expected to be between US$185-million and $189-million. The expectation is for revenue of $168.2-million, according to S&P Capital IQ.
Adjusted EBITDA is expected to be between US$21-million and US$23-million, as compared to first quarter adjusted EBITDA of US$15.8-million, the company stated.
Sierra Wireless said it will publish its full second-quarter results on Aug. 11 and will not be providing financial guidance for the third quarter.
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Slate Grocery REIT (SGR-UN-T) reported second-quarter rental revenue of US$39.5-million up from US$33.4-million a year ago.
Net operating income came in at US$32.9-million versus US$24-million a year ago. Net income of US$59.4-million compared to a net loss of US$3.1-million last year.
Funds from operations (FFO) came in at US$16.1-million or 26 US cents per unit versus US$12.5-million or 26 US cents a year ago. Adjusted FFO came in at 22 US cents versus 21 US cents a year ago. The expectation was for adjusted FFO to come in at 24 US cents.
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Andrew Peller Ltd. (ADW.A-T; ADW.B-T) reported its sales increased 5.7 per cent to $97.7-million in its first quarter ended June 30 versus a year ago.
“Our sales growth and strengthening gross margins in the quarter indicate that we are on track towards a more stable year and improved performance compared to last year,” stated CEO John Peller.
“Supply chain issues created by the pandemic continue to impact our growth through component and wine shortages that have caused stock-outs and unfulfilled orders. Without these challenges, our sales growth would have been even higher. On a positive note, we believe these logistics challenges are short-term in nature and we are already seeing improvements.”
The company said its net earnings decreased to $2.9-million or 7 cents per Class A share compared to $3.3-million or 8 cents per Class A share in the first quarter of the prior year.
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Hammond Power Solutions Inc. (HPS-A-T) reported second-quarter sales came in at a record $137-million compared to $88.3-million a year ago. The result was ahead of expectations of $109.6-million.
Net earnings of $6.5-million or 55 cents per share compared to earnings of $4.7-million or 40 cents in the year-ago quarter.
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