Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
New Gold Inc. (NGD-N; NGD-T) reported revenues for the second quarter from continuing operations were US$155-million, an increase over the prior-year quarter “due to an increase in gold ounces sold, offset by a decrease in average realized copper price.”
Its net loss for the quarter was US$36-million or 6 cents US per share versus a net loss of 54 cents US when compared to the prior-year quarter, which included an impairment charge of US$282-million, net of tax, related to the Rainy River Mine, the company stated. The adjusted net loss for the quarter was US$7-million or a penny per share, which was in line with expectations.
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Resolute Forest Products Inc. (RFP-T) reported net income for the quarter ended June 30 of $25-million or 27 cents per share compared to $72-million or 77 cents per share in the same period in 2018.
Sales were $755-million in the quarter, a decrease from $976-million in the year-ago period. Excluding special items, the company reported net income of $11-million or 12 cents per share compared to $66-million or 71 cents per share a year ago.
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ARC Resources Ltd. (ARX-T) reported net income of $94.4-million or 27 cents per share in the second quarter which was ahead of expectations of 15 cents and compared to a loss of $45.9-million or 13 cents a year earlier. ARC recorded funds from operations of $193-million or 54 cents per share in the second quarter compared to $204.4-million a year earlier.
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PHX Energy Services Corp. (PHX-T) reported revenue of $83-million up from $69-million a year ago. Its net loss was $2-million or 4 cents per share versus a loss of $84,000 or nil per share a year earlier. Analysts were expecting a loss of 3 cents in the latest quarter and revenue of $76-million.
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theScore Inc. (SCR-X) announced a “major expansion” of its U.S. mobile sports betting platform through a multi-state market access framework agreement with Penn National Gaming Inc. (PENN-Q), North America’s largest regional gaming operator. In connection with the agreement, Penn National has also agreed to take a strategic equity stake in theScore, the company stated. It said the 20-year agreement provides theScore with the right to obtain market access to offer online and mobile sports betting and i-gaming applications in 11 states where Penn National operates casinos and racetracks.
theScore also announced a US$10-million private placement of Class A subordinate voting shares at a price of 45 cents US (59 cents Canadian). It said Penn National has subscribed for US$7.5-million of Class A Shares as part of the private placement, alongside other investors including John Levy Family Holdings Ltd., the family holding company of theScore Founder and CEO John Levy.
The company said proceeds from the private placement will be used to help expand its sports betting platform in the United States, "including the funding of an upfront market access fee of US$7.5-million due to Penn National under the framework agreement.
“Securing this highly-coveted partnership with Penn National is a major step towards our goal of becoming a leader in mobile sports betting in the United States,” said John Levy, Founder and CEO of theScore.
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Sherritt International Corp. (S-T) reported combined revenue of $144.3-million down from $169.8-million a year ago. Its net loss from continuing operations was $90.4-million or 23 cents per share versus a profit of $2.8-million or 1 cents a year ago. Its adjusted net loss from continuing operations was $41.3-milion or 10 cents per share, which was slightly wider than expectations of a loss of 9 cents and compared to a loss of $7.7-million or 2 cents for the same quarter a year earlier.
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Harvest Health & Recreation Inc. (HARV-CN) announced that it has entered into a term sheet for a secured term loan of up to US$225-million from an investment fund managed by Torian Capital Partners, an investor in the global cannabis industry, along with other parties. The company said the loan will be made available in three tranches of US$75-million. It said financing proceeds “will enable Harvest to expedite its expansion efforts” and will be secured “by certain current and future assets of Harvest, including cannabis-related licenses.”
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Turquoise Hill Resources (TRQ-T) announced second-quarter revenue of US$382.7-million, a 12-per-cent increase on a year-over-year basis, which the company stated was “primarily reflecting the large increase in gold production as Oyu Tolgoi benefitted from the processing and sale of Phase 4 ore in [the second quarter of 2019] that contained higher gold content.” Analysts were expecting revenue to come in at US$347.2-million in the latest quarter.
Its net loss was US$736.7-million compared with income of US$204.4-million a year ago. "The principal reason for this change is the impairment charge of $0.6-billion recorded in [the second quarter of 2019]," the company stated.
See also: Largest cost overrun by Canada's Turquoise Hill haunts mining sector
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Sierra Wireless, Inc. (SWIR-Q; SW-T) reported second-quarter revenue of US$191.4-million, which was in line with expectations of US$192-million and compared to US$201.9-million in the second quarter of 2018.
Its net loss, based on GAAP, was US$28.2 million or 78 cents US per share compared to a net loss of US$11.4 million or 32 cents US per share a year ago. Its non-GAPP net earnings were US$2.5-million or 7 cents per share compared to net earnings of $9.7-million or 27 cents in the second quarter of 2018.
In its full-year outlook, the company said it expects consolidated revenue to be slightly lower year-over-year "due to weaker global demand in automotive combined with delays in the launch of new automotive programs, partly offset by growth in higher-margin IoT Solutions."
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Torc Oil & Gas Ltd. (TOG-T) reported net income of $11.6-million or 5 cents per share in the second quarter, which was in line with expectations and down from net income of $13.3-million or 7 cents a year ago. Adjusted funds flow came in at $81.1-million or 37 cents per share up from $74.6-million or 38 cents a year ago.
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CRH Medical Corp (CRH-T) reported revenue of US$30.5-million in the second quarter, up from US$27.3-million a year earlier and ahead of expectations of US$29.8-million. Net income came in at US$2.6-million versus US$3.2-million a year earlier.
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Ballard Power Systems (BLDP-Q; BLDP-T) reported second-quarter revenue was US$23.7 million, down 11 per cent versus a year ago, “reflecting significantly lower Heavy-Duty Motive and Portable Power/UAV revenues, partially offset by increases in Technology Solutions and Material Handling.”
Its net loss was US$7-million or 3 cents US per share, a decline from US$4.3-million or 2 cents US a year ago. Analysts were expecting a loss of 5 cents US and revenue of US$22.4-million.
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Morguard Real Estate Investment Trust (MRT.UN-T) reported second-quarter revenue decreased 1.5 per cent to $67-million from $68-million for the same period in 2018. “This decrease is primarily due to reduced recoveries of property taxes,” the REIT stated.
Its net loss was $4.7-million or 8 cents per unit versus a profit of $43.4-million or 62 cents a year ago. Funds from operations came in at $22-million or 35 cents per share versus $22.8-million or 36 cents a year earlier. Analysts were expecting FFO per share to come in at 36 cents.
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Painted Pony Energy Ltd. (PONY-T) announced a reduction in capital spending for 2019 — from $95-million to $110-million to $80-milllion to $95-million — to ensure the company “maintains its current financial flexibility in the current low commodity price environment.”
As a result, it said daily production volumes for 2019 are now expected to average 294 MMcfe/d (49,000 boe/d) to 306 MMcfe/d (51,000 boe/d) compared to previous 2019 average daily production guidance of between 324 MMcfe/d (54,000 boe/d) and 336 MMcfe/d (56,000 boe/d).
For the second quarter, adjusted funds flow from operations was $9-million or 6 cents per share compared to adjusted funds flow from operations of $39-million or 24 cents per share during the second quarter of 2018. "The decrease in adjusted funds flow from operations for the second quarter of 2019 compared to the second quarter of 2018 is a result of lower production volumes, and a 13-per-cent decrease in realized natural gas prices (including realized gains on physical hedges)," the company stated.
Its net loss was $14.7-million or 9 cents per share versus a loss of $33.2-million or 21 cents a year ago. Petroleum and natural gas revenue came in at $59.1-million down from $87.7-million a year ago.
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Norbord Inc. (OSB-T; OSB-N) reported adjusted EBITDA of US$36-million in the second quarter compared to US$273-million in the second quarter of 2018. It said the decrease was primarily due to lower North American oriented strand board (OSB) prices.
Sales came in at US$447-million down from US$707-million a year earlier. Its loss was US$14-million or 17 cents US per share versus a profit of US$174-million or US$2 a year ago. Analysts were expecting a loss of 10 US cents per share and revenue of US$466.5-million.
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Hudbay Minerals Inc. (HBM-T; HBM-N) announced that it will appeal an “unprecedented” court decision related to its Rosemont project in Arizona. Late Wednesday, the company said the U.S. District Court for the District of Arizona issued a ruling in the lawsuits challenging the U.S. Forest Service’s issuance of the Final Record of Decision (FROD) for the project. “The Court ruled to vacate and remand the FROD such that Rosemont cannot proceed with construction at this time,” the company stated, adding that it believes the Court has "misinterpreted federal mining laws and Forest Service regulations as they apply to Rosemont.
“We are extremely disappointed with the Court’s decision. We strongly believe that the project conforms to federal laws and regulations that have been in place for decades,” said Peter Kukielski, interim CEO. “We will be appealing the decision as we evaluate next steps for the Rosemont Project.”