Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
WestJet Airlines Ltd. (WJA-T) says it has received an interim certification order from the Canadian Industrial Relations Board confirming the Canadian Union of Public Employees (CUPE) as the certified bargaining agent for WestJet cabin crew members.
The interim certification order does not include members of Encore or Swoop cabin crew within the scope of the bargaining unit, the company stated.
“We are disappointed by this outcome but respect the rights of our employees to choose their representation,” said CEO Ed Sims. “We now shift our focus to working effectively with CUPE in the interest of success for WestJet as a whole.”
Its net loss was $34.4-million or 10 cents per share versus a profit of $8.1-million or 3 cents a year ago. Analysts were expecting a loss of 8 cents.
"The mandate of the JV is to acquire and develop high-quality core Australian healthcare real estate, including hospitals and related medical office buildings," the REIT stated.
The JV will be 70-per-cent owned by the Institutional Investor with the REIT owning the remaining 30-per-cent interest and acting as investment, property, development and asset manager.
Akumin Inc. (AKU.U-T) says it’s buying a diagnostic imaging business in Florida.
"This acquisition is expected to add approximately US$27.5-million of revenue based on the last 12 months of the period ended March 31, 2018," the company stated.
Centerra Gold Inc. (CG-T) reported net earnings of US$43.5-million or 15 cents per common share on revenues of US$243.3-million in the second quarter. Analysts were expecting revenue of US$229.8-million in the quarter.
The results compare to net earnings of US$23.4-million or 8 cents per common share on revenues of US$279.2-million for the same period last year.
Source Energy Services Ltd. (SHLE-T) reported second-quarter sales came in at $132.2-million versus $68.7-million a year earlier. Net income was $9.2-million or 15 cents per share versus a loss of $8.8-million or 24 cents a year earlier.
Analysts were expecting sales of $126.5-million and earnings to be 13 cents per share.
Granite Real Estate Investment Trust (GRT.UN-T; GRP.U-N) reported second-quarter revenue was $62.1-million compared to $60.5-million in the prior year period. “The increase in revenue was primarily due to acquisitions, leasing activity and contractual rent increases, partially offset by a decrease in revenue from property disposals,” the company stated.
Net income was $149.2-million up from $42.8-million a year earlier. Adjusted funds from operations (AFFO) were $29.4-million or 64 cents per unit versus $32.5-million or 69 cents a year earlier. Analysts were expecting adjusted AFFO to come in at 77 cents per unit.
Capstone Mining Corp. (CS-T) reported net income from continuing operations for the second quarter was $8.2-million or 2 cents per share, which was in line with expectations and compared to $11.4-million or 3 cents a year earlier. Revenue from continuing operations was $101.5-million up from $88-million a year earlier. Analysts were expecting revenue of $107.7-million.
Trinidad Drilling Ltd. (TDG-T) says it has concluded a strategic review intended to enhance shareholder value. “The company continues to review certain non-core asset sale opportunities, but has decided to conclude the formal strategic review process,” it stated in a release. “After a comprehensive public process, the proposals that Trinidad received did not fully reflect the value of the company. The board has determined that the best alternative to improve shareholder value is to pursue Trinidad’srevised five-year strategic plan, capitalizing on the company’s operational excellence, strong customer base, geographic diversity and solid financial position. A number of strategic changes made over the past year are now beginning to be reflected in Trinidad’s financial results.”
Torstar Corp. (TS.B-T) reported net income from continuing operations in the second quarter of $4.8-million or 6 cents per share compared to a net loss of $7.5 million or 10 cents per share in the second quarter of 2017.
Operating revenue came in at $143.2-million versus $161.8-million a year earlier. Analysts were expecting revenue of $144-million.
"This groundbreaking partnership unites a highly-regarded consumer packaged goods company with one of Canada’s most trusted licensed producers of medical cannabis," the companies stated. "The partnership will leverage GreenSpace’s expertise in consumer brand development and distribution to launch products infused with Emblem’s CBD extracts across a number of verticals including beauty, health and wellness, supplements, food and beverage."
“Emblem’s partnership with GreenSpace Brands is an industry first and represents an incredible opportunity to capitalize on the growing CBD market in Canada,” said Nick Dean, CEO of Emblem.
Enercare Inc. (ECI-T) says it has an agreement to be bought by Brookfield Infrastructure Partners LP (BIP-N; BIP.UN-T) for $29 per share in a transaction valued at $4.3-billion including debt.
The transaction price represents a 53-per-cent premium to the closing price of Enercare shares on Tuesday.
"We have concluded a transaction with Brookfield that recognizes the value that has been created at Enercare over the last 16 years. Brookfield is recognized as a leading infrastructure investor worldwide and I am confident they will provide opportunity for employees of Enercare and capital to continue growing the business," stated Enercare CEO Jim Pantelidis in a release.
Molson Coors Canada, the Canadian business unit of Molson Coors Brewing Company (TAP-N; TPX-T) and Canadian cannabis producer, The Hydropothecary Corp. (HEXO-T) are forming a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.
The joint venture will be structured as a standalone start-up company with its own board of directors and an independent management team, the companies stated.
Molson Coors Canada will have a 57.5-per-cent controlling interest in the JV, with Hydropothecary having the remaining ownership interest.
“While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages,” stated Frederic Landtmeters, CEO of Molson Coors Canada.
Stelco Holdings Inc. (STLC-T) reported second-quarter revenue of $711-million, up 67 per cent year-over-year and surpassing analysts' expectations of $586.5-million. “The year-over-year revenue increase was due primarily to a 49-per-cent increase in steel shipping volumes and an 8-per-cent increase in average selling price,” the company stated.
Adjusted net income was $153-million versus a loss of $3-million a year ago and beat expectations of $114-million.
"The improvement was largely due to higher revenue and lower finance costs, excluding the adjustment for remeasurement charges related to the employee benefit commitments," the company stated.
Sherritt International Corp. (S-T) reported second-quarter net earnings of $2.8-million or a penny per share versus a net loss of $101.9-million or 35 cents per share a year earlier. Analysts were expecting a loss of a penny per share. Combined revenue fell 13 per cent year-over-year to $201.1-million.
“The effects of rising commodity prices and improved production at our Moa Joint Venture combined to produce our strongest quarterly financial results since Q1 2013,” said David Pathe, CEO of Sherritt International, in a release.
Hudbay Minerals Inc. (HBM-T; HBM-N) reported a profit of US$25-million or 9 cents per share in the second quarter, compared to a profit of US$19-million or 8 cents a year ago. Revenue was US$371.3-million versus US$336-million a year earlier.
Analysts were expecting revenue of $365.4-million and earnings of 13 cents per share.
Painted Pony Energy Ltd. (PONY-T) reported revenue of $87.7-million in the second quarter, up from $66.4-million a year earlier. Its net loss was $33.2-million or 21 cents per share versus a profit of $13.8-million or 10 cents a year earlier.
Adjusted funds flow from operations increased by 116 per cent to $39.1- million or 24 cents per share compared to $18.1-million or 13 cents per share during the second quarter of 2017.
Morguard North American Residential REIT (MRG.UN-T) reported net operating income of $38.3-million for the second quarter, an increase of $3.2-million compared to the same period in 2017. Revenue was $60-million up from $57.2-million a year ago.
Net income of $19.7-million was a decrease of $41.8-million, or 68 per cent compared to 2017. "The decrease was primarily due to lower non-cash changes to fair value on real estate properties of $27.4-million and fair value on Class B LP Units of $14.1-million compared to 2017," the company stated.
Basic funds from operations (FFO) of $15.7-million was a decrease of 3.8 per cent over the same period in 2017. Basic FFO of 31 cents per unit compared to 32 cents per unit in 2017.
Dundee Precious Metals Inc. (DPM-T) reported second-quarter net earnings attributable to common shareholders of $16.4-million or 9 cents per share compared to $11-million or 6 cents per share for the same period in 2017.
Revenue came in at $102.9-million versus $86.9-million a year earlier.
Its profit was $34.6-million or 11 cents per share which was below expectations of 17 cents and compared to $16.1-million or 24 cents per share for the second quarter of 2017.