Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Stelco Holdings Inc. (STLC-T) reported fourth-quarter revenue of $648-million, up 43 per cent compared to the same quarter last year and below expectations of $680.5-million.
Net income was $108-million up from $16-million a year earlier.
The company said it benefited from an increase in operating income of $62-million, higher finance and other income of $9-million and a decrease in restructuring and other costs of $4-million in the most recent quarter.
Stelco also announced a special cash dividend of $100-million ($1.13 per share), in addition to its regular quarterly dividend of 10 cents per share.
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Aritzia Inc. (ATZ-T) announced a $330-million secondary offering of subordinate voting shares and a concurrent share repurchase of $107-million of subordinate voting shares and multiple voting shares from Berkshire Partners.
The retailer said after markets closed Tuesday that the selling shareholders, "including an investment vehicle managed by Berkshire Partners LLC, a Boston-based private equity firm and 8317640 Canada Inc., an entity indirectly controlled by Aldo Bensadoun, a director of Aritzia and together with the Berkshire shareholder," have an agreement with a syndicate of underwriters to purchase 19.5 million subordinate voting shares an offering price of $16.90 per share. The stock closed at $17.93 on the TSX on Tuesday. The stock was halted after hours. Aritzia said it will not receive any proceeds from the offering.
The company also said it has agreed to purchase the equivalent of 6.3 million shares for cancellation from the Berkshire shareholder at the same purchase price as the offering price, for gross proceeds to the Berkshire shareholder of $107-million.
"Following these transactions, the Berkshire shareholder will have no remaining equity interest in Aritzia," the company stated.
Aritzia CEO and founder Brian Hill siad the transactions "mark a significant milestone after a successful 14 year-long relationship between Aritzia and Berkshire Partners." He added, "the repurchase of shares from Berkshire Partners represents a compelling opportunity to deploy Aritzia’s capital in a manner that is accretive to shareholders. Aritzia maintains ample financial flexibility to continue to invest in and execute on our strategic growth initiatives.”
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Sienna Senior Living Inc. (SIA-T) said revenue increased by 15.8 per cent to $169.5-million in the fourth quarter versus the same time last year and ahead of expectations of $165.8-million. Net operating income increased by 27.5 per cent to $38.9-million.
Net income was $302,000 down from $4.2-million a year earlier. "The decrease is primarily attributable to incremental interest expense and depreciation and amortization incurred from the properties acquired in 2018 and a fair value loss on interest rate swap contracts in [the fourth quarter of ] 2018, partially offset by income generated from these acquisitions and lower transaction costs in the quarter," the company stated.
Adjusted funds from operations per share came in at 33 cents, which was slightly below expectations of 34 cents.
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Savaria Corp. (SIS-T) announced preliminary unaudited results for the fourth quarter and full year 2018.
Savaria said it expects fourth-quarter revenue to be approximately $93-million, ahead of expectations of $90.6-million, while adjusted EBITDA is expected be approximately $13-million, which is in line with expectations.
“While revenues were ahead of the full year guidance, Savaria’s adjusted EBITDA in 2018 fell short of its expectations, primarily owing to a challenging operating environment in Europe for the Garaventa Lift group and significant cost inflation within the Span segment,” the company stated.
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Hudbay Minerals Inc. (HBM-T; HBM-N) reported revenue of $351.8-million in the fourth quarter down from $424.4-million a year ago. Its loss was $3.5-million or a penny per share versus a profit of $94.3-million or 36 cents a year ago. Analysts were expecting revenue of $306.8-million and profit of a penny per share.
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Lundin Gold (LUG-T) recorded a derivative loss of $28.5-million in the fourth quarter compared to a derivative loss of $14.1-million in the fourth quarter of 2017 “relating to its long-term debt which is measured at fair value on a quarterly basis.”
Its net loss for the period was $23.5-million or 11 cents per share versus a loss of $19.5-million or 16 cents a year ago.
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Park Lawn Corp. (PLC-T) announced an agreement to acquire Cress Funeral Service, Inc., funeral business in Madison, Wisconsin, for US$20.3-million.
"This is an excellent opportunity for Park Lawn to enter a highly attractive market, by acquiring an attractive business with a leading market share," stated Andrew Clark, chairman and CEO of PLC.
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Vistra Energy (VST-N) has agreed to increase its acquisition price for Crius Energy Trust (KWH.UN-T) to $8.80 per trust unit, an increase of $1.23 per trust unit from the parties’ prior agreement.
“Vistra and Crius Energy negotiated the amendment in response to the receipt by the Crius Energy Board of Directors of an unsolicited acquisition proposal from a third party bidder dated Feb. 14, 2019 that was higher than the purchase price previously agreed by Vistra and Crius Energy,” the company stated.
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Osisko Mining Inc. (OSK-T) announced it will spin out non-core assets to Chantrell Ventures Corp. As part of a reverse-takeover transaction, Osisko will transfer certain non-core assets of Osisko with a value of approximately $99.9-million to Chantrell in exchange for shares of Chantrell. In addition the shares of Chantrell will be subject to a consolidation on a 40:1 basis, subject to adjustment, the company stated.
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Uni-Select Inc. (UNS-T) reported consolidated sales for the fourth quarter were $419.5-million, a 1.1-per-cent increase compared to the same quarter last year. Analysts were expecting revenue of $420.9-million.
Its net loss was $2.4-million or 6 cents per share million compared to a profit of $8.7-million or 21 cents a year ago.