Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Laurentian Bank (LB-T) increased its quarterly dividend by a penny to 65 cents per share and reported net income of $50.8-million or $1.13 diluted per share for the fourth quarter ended Oct. 31, compared with net income of $58.6-million or $1.42 diluted per share for the fourth quarter of 2017. On an adjusted basis, net income totalled $54.3-million or $1.22 diluted per share for the fourth quarter, compared with $66.5-million or $1.63 diluted per share for the same period in 2017.
Revenue was $255.9-million versus $268-million a year ago.
Analysts were expecting adjusted earnings of $1.26 per share in the latest quarter and revenue of $263.2-million.
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Hudson’s Bay Co. (HBC-T) reported a wider third-quarter loss on Wednesday on higher depreciation and amortization expenses and foreign exchange losses.
The owner of the Saks Fifth Avenue luxury retailer reported a net loss from continuing operations of $124-million, or 52 cents a share, for the three months ended Nov. 3, compared with a loss of $116-million, or 64 cents, a year earlier.
Including Hudson’s Bay’s European operations, which are in a joint venture with Austrian Signa Holding, the company posted a net loss of $164-million, or 69 cents a share, narrowing from $243-million, or $1.33 a share, a year earlier.
Gross margin improved 10 basis points from the same quarter a year earlier.
-Reuters
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Roots Corp. (ROOT-T) lowered its fiscal 2019 sales target range and said third-quarter sales fell 3 per cent to $87-million from $89.7-million a year earlier. Same-store sales fell 13.4 per cent versus sales growth of 10 per cent in the third quarter last year.
Net income was $2.8-million or 7 cents per share, compared to $5-million or 12 cents per share a year ago. Adjusted net income was $4.7-million or 11 cents per share, compared to $9.6-million or 23 cents a year ago. Analysts were expecting revenue of $90.7-million and adjusted earnings of 14 cents in the latest quarter.
Roots said it expects to deliver growth in fiscal 2019. “However, based on the company’s softer sales growth through the first nine months of fiscal 2018, including [third-quarter] results that fell well below the company’s expectations, Roots is revising the fiscal 2019 financial targets it stated at the time of its initial public offering.”
"For the remainder of fiscal 2018 and during fiscal 2019, Roots will continue to execute on its growth strategy with a greater focus on implementing larger scale brand-building marketing campaigns and introducing new innovative and transitional seasonal products into its product line," it stated. "However, the company will operate with a more conservative pace of expansion until it sees meaningful consumer response to, and sustainable momentum around, both its new marketing initiatives and the products the company has tested in fiscal 2018 for larger scale rollout in fiscal 2019."
Roots revised its fiscal 2019 sales target range to $358-million to $375-million from its previously stated target range of $410-million to $450-million, which it said includes an expectation that average annual comparable sales growth across fiscal 2017, 2018 and 2019 will fall below its previously stated 8.3 per cent.
The company also revised its adjusted net income target range to $20-million to $24-million from its previously stated target range of $35-million to $40-million.
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Cominar Real Estate Investment Trust (CUF.UN-T) announced a major change in its board. The REIT said chairman Alban D’Amours will not stand for re-election and that it has entered into a “board refreshment agreement” with FrontFour Capital Group LLC, Westdale Construction Co. Limited and K2 & Associates Investment Management Inc.
"As part of its ongoing board renewal process and following the announcement of the nomination of Heather Kirk as executive vice-president and chief financial officer, Zachary Ryan George, co-founder and portfolio manager at FrontFour will be appointed trustee of Cominar as of January 2, following Ms. Kirk's resignation from the board of trustees," the REIT stated.
It also said Mitchell Cohen, chief operating officer of Westdale, will be nominated by Cominar to fill the vacancy created by Mr. D'Amours' departure "on the slate of persons to be elected as trustees of the REIT, subject to the conditions of the board refreshment agreement."
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Exchange Income Corp. (EIF-T) said its chief financial officer Tammy Schock will be leaving in March "to assume the role of chief accounting officer with one of the largest U.S.-based global insurance and annuities providers.
"During Tammy's tenure with EIC, we completed several acquisitions and financings, consistently growing our business, and Tammy played a big role in each of these transactions," said Mike Pyle, CEO of EIC.
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Cannabis company Planet 13 Holdings Inc. (PLTH-CN) issued a release after markets closed on Tuesday stating that it is “not aware of any fundamental reason for its share price decline over the past two trading sessions.” It also provided a corporate update.
"I am going to keep this short and sweet," stated co-CEO Bob Groesbeck. "There is absolutely no fundamental reason that we are aware of, for PLTH shares to be trading as they have over the past two days. We opened the Superstore on November 1st as promised, and we have barely scratched the surface of what is possible here. Daily sales and average ticket are already above our internal expectations and trending in the right direction with only four weeks of data in the books and ancillary space still under development. Furthermore, we are optimistic on receiving word about significant value-enhancing catalysts for this company both this week and in early 2019."
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Major Drilling Group International Inc. (MDI-T) reported second-quarter revenue was $105.5-million, which was in line with expectations and up 20 per cent from the $88-million recorded for the same quarter last year. “The favourable foreign exchange translation impact for the quarter, when comparing to the effective rates for the same period last year, is estimated at $2-million on revenue, with a negligible impact on net earnings,” the company stated.
Net earnings were $3.3-million or 4 cents per share for the quarter, compared to a net loss of $2.7-million or 3 cents per share for the prior-year quarter. Analysts were expecting earnings to come in at 2 cents in the latest quarter.