Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Killam Apartment REIT (KMP.UN-T) announced plans to raise $100-million in a bought-deal offering. The REIT said a syndicate of underwriters has agreed to buy about five million trust units for $19.90 each. The units closed at $20.65 on Tuesday.
Killam said it intends to use the net proceeds to fully repay its credit facility (current outstanding balance of approximately $41-million), to fund future acquisitions and developments and for general trust purposes.
Revenue increased by 17.4 per cent to $241.2-million versus the same quarter last year, "with positive performance across all geographies and all channels," the company stated.
Net income increased by 18.6 per cent to $17.9-million year over year. Adjusted net income increased by 8 per cent to $19.8-million, while adjusted EPS increased by 12.5 per cent to 18 cents versus the year-ago period.
Analysts were expecting revenue of $229.8-million and adjusted EPS of 13 cents.
Valens GroWorks Corp. (VGW-X) said its third-quarter revenue came in at $16.5-million up from $14,575 a year earlier. Net income of $5.9-million or 5 cents per share compared to a loss of $2.3-million or 3 cents per share, according to the company’s documents filed on Sedar.com
David Rain, a director of the company and former CFO, has been appointed interim CEO while it searches for a permanent replacement.
A&W Revenue Royalties Income Fund (AW.UN-T) reported same-store sales growth of 1.2 per cent for the third quarter. Gross sales came in at $370.4-million up from $350.2-million a year earlier. Royalty income was $11.1-million up from $10.5-million. Net income was $8.6-million, up from $8.4-million a year ago, the company stated.
SIR Royalty Income Fund (SRV.UN-T) announced the reduction of its monthly cash distributions to unitholders by 1.75 cents “due to the recent and ongoing decline in SIR Corp.'s food and beverage sales.” The fund’s monthly cash distributions will be reduced from 10.5 cents per unit to 8.75 cents per unit, effective the November distribution.
“SIR has advised the trustees of the fund that same-store sales for its fiscal 2019 fourth quarter and year ended August 25, 2019 declined by 5.9% and 3.1%, respectively,” the company stated. “SIR has further advised the trustees of the fund that its same-store sales performance has not improved in the first four weeks of its fiscal 2020 first quarter. The trustees believe that the reduction in monthly cash distributions will position the fund to meet its target payout ratio of 100% per annum over the long term.”