The fashion retailer’s jump was driven by same-store sales, it isn’t relying on expansions to juice revenue.Bloomberg
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aritzia Inc. (ATZ-T) said revenue increased 20 per cent to $186.5-million in the third quarter ended Nov. 27, compared to $155.4-million in the third quarter a year earlier.
The Vancouver-based retailer, which recently went public, said comparable sales increased 15.2 per cent.
Artizia said it lost $8.1-million or 8 cents per share due to a charge related to the accounting treatment of its legacy option plan. The loss compared to a profit of $15.6-million or 15 cents per diluted share a year earlier.
Adjusted net income was $27.5-million or 23 cents per share as compared to $19-million or 16 cents per share a year earlier.
Analysts were expecting earnings of 16 cents per share and revenue of $141.1-million.
"We are pleased to have delivered strong financial results for the third quarter, demonstrating the effectiveness of our business model and strategic initiatives," stated CEO Brian Hill. "In addition to delivering another quarter of double-digit comparable sales growth, we continued to make progress on our growth plans, including the expansion of our North American store footprint, and increased penetration of our e-commerce business."
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Osisko Mining Inc. (OSK-T) signed an "earn-in" agreement with Barrick Gold Corp. (ABX-T) on the Kan Property in northern Québec.
The agreement sees Barrick commit $15-million in work expenditures over a four-year period to earn a 70-per-cent interest on Kan, "subject to certain annual work expenditure thresholds, including a guaranteed expenditure threshold of $6-million in the first two years."
The property would then be transferred to a new joint venture entity to be owned 30-per-cent by Osisko and 70 per cent by Barrick.
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Hudson's Bay Co. (HBC-T) cut its full-year revenue forecast for the second time, citing a challenging retail environment in the U.S. and Europe.
HBC said its consolidated comparable sales decreased by 0.7 per cent on a constant currency basis in the nine-week holiday selling period ended Dec. 31.
Hudson's Bay forecast 2016 sales of $14.4-billion to $14.6-billion, compared with its reduced guidance of $14.5-billion to $14.9-billion in November.
"While we were pleased with our performance at Hudson's Bay in Canada, the retail environment has remained challenging in the U.S. and Europe and the significant promotional activity during the holiday period had a negative impact on our margins," Chief Executive Jerry Storch said in a statement.
Reuters
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Paladin Energy Ltd. (PDN-T) announced a proposal to restructure its balance sheet to reduce its debt and extending the maturity of remaining debt.
The proposal includes a number of measures such as bond and equity issues and a share consolidation.
"In the absence of further progress on the potential sale of a 24-per-cent interest in Langer Heinrich Mine, the purpose of the restructure proposal is to address the upcoming maturity of Paladin's outstanding $212-million (U.S.), 6 per cent convertible bonds due April 30, 2017, with a holistic solution that provides a stable and sustainable capital structure for the benefit of all stakeholders and a platform for future growth when the uranium market improves," the company said in a release.
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Chemtrade Logistics Income Fund (CHE.UN-T) is raising $400-million in a bought-deal financing.
It has an agreement with a syndicate of underwriters led by BMO Capital Markets to buy 21.8 million subscription receipts at $18.35 each.
Proceeds will help partially fund Chemtrade's acquisition of Canexus Corp. (CUS-T).
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Serinus Energy Inc. (SEN-T) is raising $25.2-million in an equity financing. It said the offering will be led by GMP FirstEnergy on a "commercially reasonable efforts" agency basis.
Proceeds will be used to fund the development of the Moftinu Gas Plant and pre-work for the 2018 drilling program in the Satu Mare Concession in Romania, production enhancement in the Sabria block in Tunisia, the company said in a release.
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Indigo Books & Music Inc. (IDG-T) said its chief financial officer Laura Carr is returning to the U.K. for personal reasons after the company's third-quarter results announcement in February.
Craig Loudon, Indigo's senior vice president, business finance, will become interim CFO, effective Feb. 9.
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Atlantic Power Corp. (AT-N; ATP-T) said it has revised contractual arrangements for — and operational status of — its Kapuskasing, North Bay and Nipigon facilities in Ontario.
Through an affiliate, it signed Non-Utility Generator (NUG) contracts with the Ontario Independent Electricity System Operator for the three facilities and has agreed to terminate the Power Purchase Agreements (PPAs) with the Ontario Electricity Financial Corp. (OEFC) for the Kapuskasing and North Bay plants, which were scheduled to expire in December. The company said it will suspend for a period the Nipigon PPA, which is scheduled to expire in December, 2022.
The new contracts for Kapuskasing and North Bay provide a fixed monthly payment to the plants until December 31, 2017, the company said.
"Based on its assessment of the Ontario power market, including the estimated impact on plant economics, the company has begun the process of mothballing both plants," it stated in a release.
The contract for Nipigon provides fixed monthly payments to that plant through October 31, 2018, the company said.
"During that period, the plant's PPA with the OEFC will be suspended. At the conclusion of that period, or after that date should that subsequently be agreed to, the arrangement will revert to the existing terms of the PPA. The company also has begun the process of mothballing Nipigon."
Atlantic Power said believes result "provides benefits for ratepayers and contributes to the Province's goal of reducing greenhouse gas emissions."
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Mainstreet Health Investments Inc. (HLP.U-T) appointed Scott White as CEO.
Prior to his appointment, Mr. White served as the company's president and COO.
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UrtheCast Corp. (UR-T) signed a contract to provide engineering services and space hardware for $3.9-million (U.S.). The customer wasn't disclosed in a release.
"This contract highlights the continued success of our Engineering Services business and the market's confidence in our capabilities and expertise in spaceborne hardware," stated CEO Wade Larson.
UrtheCast said expects to deliver the related space hardware in the fourth quarter of 2017 and to receive 70 per cent of the contract price in the first quarter.
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Energy Fuels Inc. (UUUU-N; EFR-T) says the U.S. Bureau of Land Management has issued a final Environmental Impact Statement (EIS) and Record of Decision (ROD) for its Sheep Mountain Project.
"We are obviously pleased that the BLM issued the Final EIS and ROD for the Sheep Mountain Project. We now have all the major government approvals needed to begin mining this project, as we continue to evaluate how best to process the mined resources into finished uranium product," stated CEO Stephen Antony in a release. "While the project is not planned to go into production in the near-term, our costs to hold the property and permits for the Sheep Mountain Project are relatively low. Therefore, it represents an important, low-cost aspect of Energy Fuels' optionality and leverage to rising uranium prices."
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Morneau Shepell (MSI-T) has acquired Longpré, a wellness program provider based in Montreal.
"Longpré's services are focused on promoting a healthy lifestyle to stave off illness and absenteeism, as well as providing support for employees and their families when they face challenges," stated Julien Ponce, Morneau Shepell's executive vice president, Eastern Canada and National Leader of the Consulting Practice. "These services, along with Longpré's strong clinical network, complement the EFAP work Morneau Shepell has been doing in Quebec."
The company said the acquisition represents less than one per cent of its revenue and is not expected to have a material impact on its financial performance.
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DH Corp. (DH-T) says it's offering banks a cloud-based testing environment to simulate connectivity to The Clearing House's (TCH) real-time payments system.
"D+H's service provides an opportunity for banks to utilize D+H's U.S. real-time initiation channels and payment hub solution to quickly and easily simulate the execution and clearing of payments on the TCH network," the company said in a release.
D+H said its testing environment will provide banks with simulated connectivity to the TCH real-time payments network with minimal investment.
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Lionsgate (LGF.A-N; LGF.B-N) says it has invested in eSports franchise Immortals, a competitive video game franchise, joining a consortium of investors that includes financier and philanthropist Michael Milken and previous investors Steve Kaplan, co-founder of Oaktree Capital and co-owner of The Memphis Grizzlies, among others.
"We're delighted to be an early mover in a market that has the potential to transform the face of sports entertainment," said Peter Levin, Lionsgate's president of Interactive Ventures & Games. "Our involvement in eSports creates tremendous opportunities to develop new content and utilize our suite of distribution platforms for a coveted consumer demographic with compelling engagement metrics. Collaborating with an elite group of partners, the combination of the Lionsgate and Immortals brands will be formidable."
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Denison Mines Corp. (DML-T; DNN-N) will increase its ownership of the Wheeler River project to up to approximately 66 per cent, up from 60 per cent by the end of 2018.
"This agreement is of considerable significance to Denison. Following the discovery of the Gryphon deposit in 2014, the Wheeler River project has emerged as the largest high-grade undeveloped uranium project in the eastern portion of the Athabasca Basin," stated CEO David Cates in a release. "It is incredibly unique to have an opportunity to increase our controlling interest, to up to 66 per cent, through the funding of further exploration and development activities at a project as advanced as Wheeler River. "
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Continental Gold Inc. (CNL-T) says it has a senior credit agreement with RK Mine Finance Master Fund I Limited (Red Kite) to provide a secured project debt facility for $250-million (U.S.).
The project debt facility will be used for the development, construction and working capital requirements for the company's Buriticá project in Antioquia, Colombia.
"We are excited to partner with Red Kite to complete the debt financing for the Buriticá project," stated CEO Ari Sussman in a release. "The Red Kite senior secured debt facility best met the company's objectives, providing maximum flexibility and a low cost of capital relative to other private debt deals executed over the past few years, with no hedging, offtake agreements or royalty attached."
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Savanna Energy Services Corp. (SVY-T) says it plans to start a previously announced strategic alternatives process and will open a data room this week for parties potentially interested in a transaction with the company.
"Savanna has continued to receive expressions of interest from potential bidders and the opening of the data room is an important step forward in Savanna's exploration of the full range of strategic alternatives available to the company with a view to maximizing value for all shareholders," stated board chairman Jim Saunders in a release.
The company also reiterated its recommendation that shareholders reject the "unsolicited and opportunistic" takeover offer from Total Energy Services Inc. (TOT-T)
Separately, Total issued a statement saying consolidation within the North American energy services industry "is required in order to better compete in an increasingly global, diversified and competitive energy industry, regardless of whether a sustained industry recovery is underway or not."
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