Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Hudson's Bay Co (HBC-T) reported a 2.9-per-cent decline in quarterly sales, saying fewer customers shopped in its stores, which include Saks Fifth Avenue and Lord & Taylor, amid a continuing shift toward online shopping.
The Toronto-based retailer disclosed the sales slump after Macy's and Kohl's reported bigger-than-expected declines in their sales early on Thursday, causing retail stocks to fall on concerns about the ongoing struggle by retailers to attract customers.
Hudson's Bay shares were among those that fell, dropping 5.6 per cent to $10.69 in trading that closed before it released its sales figures.
The Toronto-based company said same-store sales fell 2.4 per cent at its department store group, which includes Lord & Taylor, while comparable sales at Saks declined 4.8 per cent.
Its discount banners, which include Saks Off 5th, fell 6.8 per cent. Comparable sales were flat in Europe. The figures are for the quarter ended April 29, on a constant currency basis.
Home Capital Group Inc. (HGC-T) reported a decline in first-quarter profit on Thursday and said the damage to its reputation that the business has sustained in recent weeks had resulted in "material uncertainty" about its ability to secure funding in the future.
The alternative mortgage lender's profits fell to $58-million, or 90 cents a share, in the first three months of the year. That was down from $64.2-million, or 92 cents a share one year earlier. The company had delayed releasing its earnings by more than a week and said results were prepared on a "going-concern basis," but added that issues such as regulatory proceedings, credit-rating downgrades and vacancies in the roles of CEO and CFO had "understandably shaken the confidence of the company's stakeholders."
"Potential future impact resulting from reputational concerns is inherently difficult to predict," Home Capital said. "Therefore management believes that material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern."
These issues have resulted in a hit to Home Capital's liquidity position and its ability to fund mortgages, the company said.
"We are taking the steps required to regain the full confidence of Home's stakeholders, most notably by adding four outstanding new directors with considerable expertise in governance and business," said Brenda Eprile, chair of Home Capital, in a statement. "We will continue to look at every opportunity to strengthen Home as we move ahead."
Home Capital said new traditional single-family residential mortgages hit a record in the first quarter of the year, up 3.6 per cent in that period to a total of $11.42-billion. But the company has already signalled to the market that the volume of new mortgage transactions and renewals will likely shrink in the coming months as the company tightens its lending standards and cuts back on some broker incentive programs.
On Friday, the company updated its liquidity position. It said its liquid assets stood at approximately $962-million as of the end of day Thursday.
"Combined with the undrawn amount of $600-million under the company's $2-billion credit facility led by HOOPP, the company's aggregate available liquidity and credit capacity totalled approximately $1.56-billion."
It said its high-interest savings deposits were expected to have fallen to about $125-million following the completion of Thursday's settlements.
Total GIC deposits and Oaken savings accounts stood at $155-million as of May 10.
-- Niall McGee, Jacqueline Nelson and Brenda Bouw
The Second Cup Ltd. (SCU-T) reported a net loss of $475,000 or 4 cents per share for the first quarter compared with a net loss of $606,000 or 5 cents per share a year earlier.
Same-store sales fell 0.2 per cent and were up 0.9 per cent excluding Alberta.
Enercare Inc. (ECI-T) reported first-quarter revenue of $278-million, an increase of 95 per cent compared to the same period in 2016, primarily as a result of the acquisition of Service Experts.
The company reported a net loss of $3-million or 3 cents per share versus net income of $8.2-million or 9 cents a year earlier.
Analysts were expecting earnings of 8 cents and revenue of $271-million.
Gamehost Inc. (GH-T) reported operating revenue of $16.7-million in the first quarter down from $18.1-million a year ago.
Profit was $4.1-million or 16 cents per share versus $4.6-million or 17 cents a year ago.
Boyd Group Income Fund (BYD.UN-T) says first-quarter sales increased by 8.2 per cent to $378.9-million from $350.4-million in 2016.
Adjusted net earnings1 increased 8.6 per cent to $13.9-million compared with $12.8-million in 2016.
Net earnings were $15-million or 69.9 cents per share versus $282,000 or a loss of 10 cents a year ago.
Alterra Power Corp. (AXY-T) reported revenue of $18.2-million for the first quarter, up 22 per cent from a year ago "predominantly due to increased retail sales, an increase in aluminum prices during the quarter at HS Orka and favourable exchange rate movements."
Its net loss of $300,000 compared to a loss of $2-million a year ago.
Chorus Aviation Inc. (CHR-T) reported net income of $26.7-million in the first quarter, down 52 per cent from the first quarter of 2016.
Revenue was $320.6-million, similar to a year ago. Analysts were expecting revenue of $334-million.
Savaria Corp. (SIS-T) reported first-quarter revenue of $31.1-million up 19 per cent from a year earlier.
Net income was $3.3-million or 9 cents per share compared to $2.4-million or 7 cents a year ago.
Analysts were expecting earnings of 10 cents and revenue of $32.9-million.
Crius Energy Trust (KWH.UN-T) reported first-quarter revenue of $177.4-million (U.S.) versus $180.8-million in the first quarter of 2016, "partially due to a lower electricity price environment during the first quarter of 2017 in our core markets."
Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] was $14.5-million, an increase from $13-million in the first quarter of 2016.
Canadian Energy Services & Technology Corp. (CEU-T) generated revenue of $252.4-million during the first quarter compared to $137.1-million a year earlier.
Net income was $7.8-million or 3 cents per share compared to a loss of $23.6-million or 11 cents per share a year earlier.
Analysts were expecting earnings of 2 cents and revenue of $216.6-million.
Boardwalk Real Estate Investment Trust (BEI.UN-T) reported funds from operations of $25.7-million, or 51 cents per unit in the first quarter compared to $39.1-million or 77 cents a year earlier.
Adjusted funds from operations decreased 38 per cent to 42 cents year over year.
Park Lawn Corp. (PLC-T) said its revenue increased year-over-year by 66.7 per cent to $18.8-million in the first quarter.
Net earnings attributable to shareholders decreased to $1.3-million from $1.4-million.
Net earnings per share came in at 11.7 cents versus 21.7 cents a year ago.
"PLC continued to show strong operating results for the first quarter of 2017. We expect to see the short-term dilution of our per share metrics improve as we deploy the remaining cash from our 2016 bought deal financing," said CEO Andrew Clark.
Analysts were expecting earnings of 13 cents and revenue of $20-million.
Automotive Properties Real Estate Investment Trust (APR.UN-T) reported property rental revenue of $9.9-million in the first quarter, up from $8.1-million a year earlier.
Net operating income was $8.3-million, up 14.2 per cent versus a year earlier.
Adjusted funds from operations increased by 24 per cent to $5.4-million, or 21.9 cents per unit, from $4.3 million, or 23.9 cents.
BMTC Group Inc. (GBT -T) reported revenues of $162-million in the first quarter compared to $155-million a year earlier.
Same-store revenues grew by 4.1 per cent during the same period.
Net earnings were $57,000 or nil per share compared to a net loss of $958,000 or 2 cents a year earlier.
Analysts were expecting a loss of 3 cents and revenue of $158-million.
True North Commercial Real Estate Investment Trust (TNT.UN-T) said revenue from property operations grew 32 per cent in the first quarter to $13-million from $9.9-million a year earlier.
Net operating come increased 32 per cent to $7.8-million.
Basic funds from operations decreased to 15 cents compared with 16 cents a year earlier.
Westport Fuel Systems Inc. (WPRT-T; WPRT-Q) reported revenue of $60-million (U.S.) in the first quarter compared with $24-million for the same period last year "mainly due to the addition of Fuel Systems revenue as a result of the merger and improving market outlook in key regions."
Its net loss from continuing operations for the quarter ended March 31, was $12.8-million or 2 cents per share, compared with a loss of $24.5-million or 38 cents per share in the same period last year.
Analysts were expecting a loss of 16 cents and revenue of $77.7-million.
The Westaim Corp. (WED-T) recorded net income of $2-million (U.S.) or a penny per share for the first quarter compared to net income of $1.4-million or a penny
per share a year earlier. Revenues were about $700,000 in both quarters.