Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Home Capital Group Inc. (HCG-T) has secured a smaller, less expensive credit line from two Canadian banks to backstop any unexpected funding needs.
At the end of June, the two-year, $500-million credit facility will replace an existing $2-billion line of credit from Berkshire Hathaway Inc. - the firm run by billionaire investor Warren Buffett, which is Home Capital’s largest shareholder.
As Home Capital continues to recover from a funding crisis sparked by a sudden run on its deposits last year, the company has been looking to negotiate a less costly safety net.
Home Capital currently pays Berkshire a 1-per-cent standby fee on the $2-billion credit line, and would pay 9 per cent interest were it to draw on the funds. And that deal replaced an even more costly line of credit that Home Capital had taken last year from the Healthcare of Ontario Pension Plan (HOOPP), when Home Capital was facing imminent collapse and desperate for funding.
Under the new $500-million arrangement, Home Capital will pay a 0.75-per-cent up-front commitment fee, a 0.6-per-cent annual standby charge on any unused funds, and an interest rate on any funds it draws equal to a Canadian benchmark rate - the Canadian Doller Offered Rate (CDOR) - plus 150 basis points. (100 basis points equal one percentage point.)
Home Capital does not intend to draw on the new credit facility “in the ordinary course of business,” and has not disclosed which Canadian banks are providing it.
Chief financial officer Brad Kotush said in a new release that the new credit facility “is better aligned with our current liquidity and funding profile.”
- James Bradshaw
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Callidus Capital Corp. (CBL-T) reported revenue of $56.2-million in the first quarter up from $31.6-million for the same period in 2017, “primarily due to the consolidation of three additional businesses, partially offset by lower interest and fees in the lending business.” Its net loss of $7-million or 13 cents per share compared to a loss of $3.5-million or 7 cents in the prior-year period.
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Park Lawn Corp. (PLC-T) reported first-quarter revenue of $27.2-million in the first quarter, up from $18.8-million for the same quarter last year. Analysts were expecting revenue of $27.8-million. Net earnings rose to $1.7-million from $1.3-million a year ago, the company said.
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Storagevault Canada Inc. (SVI-X) increased its annual dividend by 2 per cent and reported an increase in first quarter revenue to $20.9-million compared to $10.1-million a year earlier. Analysts were expecting revenue of $20.7-million. It said existing self-storage stores revenue increased 5.7 per cent compared to the same period last year. Its net loss was $7.8-million, versus a net loss of $10.8-million a year ago, after $13.5-million of depreciation and amortization, a non-cash item in the latest quarter.
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Invesque Inc. (IVQ.U-T) reported revenue of US$23-million in the first quarter compared to US$14.4-million a year earlier. The expectation was for revenue to come in at US$31.5-million. Net income was US$2.3-million compared to US$5-million a year ago.
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Automotive Properties Real Estate Investment Trust (APR.UN-T) said property rental revenue was $11.3-million in the first quarter, an increase of 14.4 per cent from the first quarter of 2017. Net Income was $14.5-million, compared to $1.1-million a year ago. “The increase was primarily attributable to the change in the fair value adjustments for Class B LP Units, investment properties, and interest rate swaps, as well as growth in NOI [net operating income],” the company said. Funds from operations increased 12.2 per cent to $6.7-million or 25 cents per unit, which was in line with expectations and compared to $5.9-million or 24 cents a year ago
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Stornoway Diamond Corp. (SWY-T) reported a loss of $11-million or a penny per share in the first quarter compared to net loss of $1.2-million or a penny per share for the same quarter last year. Its adjusted net loss for the quarter was $14-million versus a loss of $2.5-million a year ago. Analysts were expecting a loss of a penny per share. During the quarter, three tender sales totaling 399,135 carats were completed for gross proceeds of $56.6-million at an average price of US$112 per carat, the company said.
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Brio Gold Inc. (BRIO-T) reported revenues from mining operations of US$60.9-million in the first quarter on the sale of 46,565 ounces of gold compared to US$59.5-million on the sale of 49,615 ounces of gold for the comparable period in 2017. “The increase in revenue in the first quarter of 2018 compared to 2017 was driven by a higher gold price as the company’s average realized gold price per ounce sold increased by 10 per cent,” the company said. Its net loss in the first quarter was US$8.7-million or 7 cents per share, compared to a net income of US$3.4 million or 3 cents per share for the first quarter of 2017 “mainly due to lower mine operating earnings, acquisition transaction related expenses and changes in income tax expense.”
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Storm Resources Ltd. (SRX-T) reported revenue of $52.1-million in the first quarter up from $44.4-million a year earlier. Net income was $8.9-million or 7 cents per share which was in line with expectations and a decrease from $20.6-million or 17 cents last year. “The decrease was largely the result of an $18.2-million change in the unrealized gain (loss) on hedges which is a non-cash expense and represents the change in the fair market value of future hedges,” the company stated.
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Canacol Energy Ltd. (CNE-T) recorded net income of US$8.3-million for the three months ended March 31, compared to a net loss of $7.9-million for the same period last year. Revenue increased 24 per cent to US$51.8-million compared to US$41.6-million for the same period in 2017, the company said. Adjusted funds from operations increased 12 per cent to $23.5-million.
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CannTrust Holdings Inc. (TRST-T) says it’s raising $75-million in a bought-deal financing. It has entered an agreement with a syndicate of underwriters to buy 8.4 million units a $9 each. The company said it intends to use the net proceeds for working capital and general corporate purposes.
On Wednesday morning the company increased the offer to 9.7 million units for gross proceeds of $87.3-million. Each unit will include one common share and one-half of one common share purchase warrant. Each warrant will be exercisable to acquire one common share of the company for two years after the offering closes, at an exercise price of $12 per share, “subject to adjustment in certain events.”
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Surge Energy Inc. (SGY-T) says it has a formal agreement to acquire crude oil producing assets in the Sparky area of central Alberta for $28.4-million.
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GreenSpace Brands Inc. (JTR-X) says its chief financial officer Keith Jackson has resigned, effective May 26, “to return to the private equity space.” Cindy Leung, vice president of finance, will serve as interim CFO and an executive search is currently underway, the company said.
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NorthWest Healthcare Properties Real Estate Investment Trust (NWH-UN-T) reported revenue of $88.2-million in the first quarter, up from $72.5-million a year ago, “primarily driven by the acquisition of the Australia REIT and net investment activity in Canada, Germany, and Vital Trust.” Net income was $14.4-million versus $74.5-million a year ago. Funds from operations came in at $23.2-million or 19 cents versus expectations of 22 cents per share and compared to $25.4-million or 24 cents a year ago.
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Héroux-Devtek Inc. (HRX-T) says it has signed a four-year agreement with AAR Corp. that will see the company perform various manufacturing jobs in support of a contract AAR was recently awarded from the U.S. Air Force. The contract’s total value could exceed $65-million, the company said.
“Héroux-Devtek is thrilled to add AAR to its customer portfolio,” said president Martin Brassard. “Our decades of experience with the U.S. government will be put forward into this important contract with the same quality, on-time delivery and customer service as before. ”
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Conifex Timber Inc. (CFF-T) reported first-quarter revenue of $130.8-million, an increase of 30 per cent over the first quarter of 2017. Net income for the first quarter was $2.5-million or 10 cents per share compared to a net loss of $1.4-million or 6 cents per share in the first quarter of 2017. Analysts were expecting earnings of 10 cents per share and revenue of $115-million.
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Acasta Enterprises Inc. (AEF-T) reported revenues of $67-million from continuing operations in the first quarter compared to revenues of $63.8-million for the same quarter a year earlier. Its net loss was $38.9-million or 44 cents per share versus a net loss of $300,000 or nil per share a year ago. Its adjusted net loss was $25.2-million or 28 cents per share versus adjusted net income of $3.1-million or 4 cents per share a year ago