Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aeroplan’s parent company, Aimia Inc. (AIM-T), rejected a hostile takeover bid from Air Canada and three financial partners after the two sides exchanged counteroffers but could not agree on a price.
Aimia walked away from the talks late on Thursday.
During the negotiations, Air Canada and its partners raised their initial bid for the loyalty plan to $325-million, from $250-million. But Aimia demanded $450-million, according to the loyalty rewards company.
Even though Air Canada and its partners raised their takeover price to $325-million, Aimia argued that neither the original bid nor the higher offer “reflects the value of the Aeroplan business to members and stakeholders,” according to a statement.
The takeover bid, which was launched eight days ago, was to expire on Thursday.
-Tim Kiladze
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On Friday, Aimia reported second-quarter revenue of $375.4 million., up from $361.3-milion a year ago and below expectations of $394-millin. Net earnings were $11.1 million or 4 cents per share versus a loss of $25.1-million or 22 cents a year ago. Aimia also announced a “comprehensive partnership” designating Porter Airlines as a preferred Canadian airline to issue Aeroplan Miles on Porter routes effective July 2020.
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Sleep Country Canada Holdings Inc. (ZZZ-T) said its second-quarter revenue came in at $143.7-million up from $132.9-million a year earlier. Same-stores sales growth was 4.4 per cent. Net income increased 9 per cent to $12.3-million or 33 cents per share. Analysts were expecting revenue of $146.1-million and earnings of 34 cents.
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Artis Real Estate Investment Trust (AX.UN-T) reported revenue of $126-1-million in the second quarter ended June 30 down from $129.5-million a year earlier.
Total income was $103.2-million versus $8.5-million a year ago. "The change was primarily due to the impact of changes in foreign currency translations and fair values on investment properties," the company stated.
Funds from operations came in at $48.8-million or 32 cents per unit versus $54.4-million or 36 cents a year ago. Analysts were expecting FFO of 34 cents per share and revenue of $133.5-million.
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Kinaxis (KXS-T) reported second-quarter revenue of $40-million up from $32.9-million a year ago. Profit was $4.4-million or 17 cents per share up versus $5.6-million or 21 cents per share a year ago. Analysts were expecting revenue of $37.4-million and earnings of 14 cents.
Under newly adopted IFRS, the revenue was $39-million and profit was $4.3-million or 16 cents in the second quarter.
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Paramount Resources Ltd. (POU-T) says it acquired ownership and control of 41.4 million common shares of Claim Post Resources Inc. (CPS-X) at a price of 10 cents per share in connection with a Claim Post private placement. Paramount said it now owns and controls approximately 13 per cent of the outstanding Claim Post and did not own or control any shares before.
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Newfoundland Capital Corp. Ltd. (NCC.A-T) reported second-quarter revenue of $43.5-million down slightly from $43.6-million a year ago. Analysts were expecting revenue of $45.9-million. Profit for the period of $7.7-million or 7-per-cent lower than the same quarter last year.
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Atlantic Power Corp. (ATP-T) reported project revenue of US$66.2-million in the second quarter down from US$124-million a year ago. Analysts were expecting revenue of US$74-million. Income was US$13.6-million versus a loss of US$12.1-million a year ago. The net loss attributable to the corporation was $600,000 versus a loss of $21.9-million a year ago.
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Sierra Wireless Inc. (SWIR-Q; SW-T) reported second-quarter revenue of US$201.9-million, an increase of 16.4 per cent compared to US$173.4-million in the second quarter of 2017. Analysts were expecting revenue of US$199.2-million. Its net loss was US$17.9-million or 32 cents per share versus a profit of US$13.2-million or 21 cents a year ago.
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Interfor Corp. (IFP-T) reported second-quarter earnings of $63.8-million or 91 cents per share, compared to $24.5-million or 35 cents per share a year ago. Adjusted net earnings were $68.9-million or 98 cents per share compared to $28.7-million or 41 cents per share a year ago. Sales were $619.9-million versus $511.4-million a year ago and ahead of expectations of $586.7-million.
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TransAlta Corp. (TA-T) reported a net loss attributable to common shareholders of $105-million of 36 cents per share in the second quarter, compared to a net loss of $18 -million of 6 cents last year.
Revenue was $446-million versus $503-million a year ago. Analysts were expecting revenue of $501.3-million.
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The Second Cup Ltd. (SCU-T) reported net Income of $577,000 or 3 cents per share for the second quarter compared with a net loss of $315,000 or 2 cents per share in the prior year. Total revenue was $5.6-million down from $6.2-million a year ago. Same-cafe sales were down 1 per cent.
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Supremex Inc. (SXP-T) says its second-quarter revenue increased by 13.8 per cent year-over-year to $46.8-million from $41.1 million, which was in line with expectations of $46.3-million. Net earnings increased by 10.6 per cent to 3.1 million or 11 cents per share compared with $2.8-million or 10 cents per share. Analysts were expecting EPS of 12 cents in the latest quarter.
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GMP Capital Inc. (GMP-T) reported revenue of $43.8-million in second quarter down 1 per cent compared with the same period a year ago. Net income was $500,000 or a loss per share of a penny, compared with a net loss of $54.2-million or 79 cents per share in second quarter 2017.
"The improvement largely reflects a $52-million non-cash goodwill impairment charge recorded in second quarter 2017," the company stated. Adjusted net income was $4-million and 4 cents per share.
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Stingray Digital Group Inc. (RAY. A-T; RAY.B-T) says it has made an unsolicited offer to buy Music Choice, a general partnership which produces music programming and music-related content for digital cable television, mobile phone and cable modem users, for US$120-million and “vendor-friendly term and conditions.”
"The offer was presented to Music Choice’s management and communicated to each of the unitholders which include Charter Communications, Comcast, Cox Communications, Sony Corporation of America, WarnerMedia, Arris, and Microsoft," the company stated.
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Pengrowth Energy Corp. (PGF-T) reported oil and gas sales of $146.4-million in the second quarter versus $197.9 per cent a year ago. Its net loss was $27.5-million or 5 cents per share versus a loss of $242.4-million or 44 cents a year ago. Analysts were expecting a loss of 3 cents.
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Western Forest Products Inc. (WEF-T) reported total revenue of $327.8-million in the second quarter versus $287.4-million a year ago and below expectations of $341.5-million. Net income for the period was $27.1-million or 7 cents per share versus net income of $25.6-million or 6 cents a year ago. Analysts were looking for earnings of 8 cents per share.
Adjusted EBITDA of $50.2-million compared to adjusted EBITDA of $47.1-million in the second quarter of 2017.
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Dorel Industries Inc. (DII.B-T; DII.A-T) reported second-quarter revenue of US$623.2-million up from US$611.3-million a year ago. Its net loss was US$14.8-million or 46 cents per share compared to net income of US$11.4-million or 35 cents in the second quarter of 2017.
Adjusted net income increased 1.7 per cent to US$12.7-million or 39 cents per diluted share. Analysts were expecting revenue of $612.4-million and adjusted earnings of 27 cents per share.