Friday's small-cap stocks to watch: Laurentian Bank shares jump on earnings, dividend hike
Brenda BouwGlobe Advisor Reporter
Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news
Laurentian Bank of Canada (LB-T) announced a dividend increase and reported fourth-quarter earnings.
The bank said its adjusted net income for the fourth quarter was $55.7-million or $1.26 per share compared with a net loss of $102.9-million or $2.39 per share a year ago. The expectation was for adjusted earnings of $1.24 per share, according to S&P Capital IQ.
Revenue of $257.1-million compared to $250.4-million a year ago. The expectation was for revenue to come in at $266.6-million.
The company said its provision for credit losses was $17.8-million for the fourth quarter compared with $24.9-million for the fourth quarter of 2021. "The decrease is mainly due to lower provisions on performing loans as the bank had recorded a $19.3-million provision in the fourth quarter of 2021 in relation to its investment loan portfolio, following the bank's strategic review," it stated.
The bank also declared a quarterly dividend of 46 cents per common share, a 2-per-cent increase compared with the dividend declared in the previous quarter.
Roots Corp. (ROOT-T) reported revenue of $69.8-million for its third quarter ended Oct. 29, down from $76.3-million a year earlier. The expectation was for revenue of $77.7-million, according to S&P Capital IQ.
Net income of $2.2-million or 5 cents per share compared to net income of $10.8-million or 25 cents per share a year ago.
Chief executive officer Meghan Roach says the quarter brought "more pronounced" discounting and a focus on lifestyle products instead of casual fleece wear as people returned to offices and events.
"We are continuing to strategically manage our core inventory to maintain our promotional discipline; however, we expect these factors to continue impacting our sales and margins in the near term," she wrote in a news release.
- with files from The Canadian Press
Boston Pizza Royalties Income Fund (BPF-UN-T) announced an increase in its monthly dividend to 10.2 cents per unit for November, a 2-per-cent increase from the previous monthly rate of 10 cents per unit.
On an annualized basis, the new monthly distribution rate equals $1.224 per unit compared to $1.20 per unit for the previous monthly distribution rate. The fund also announced today a special one-time cash distribution to unitholders of 8.5 cents per unit paid on Dec. 30 to unitholders of record at the close of business on Dec. 21.
Major Drilling Group International Inc. (MDI-T) announced revenue of $201.7-million for its second quarter ended Oct. 31, an increase of 18 per cent over the same period last year. The result was ahead of expectations for revenue of $195.1-million in the latest quarter, according to S&P Capital IQ.
Net earnings of $23.6-million or 29 cents per share were ahead of expectations of EPS of 26 cents and compared to net earnings of $14.3-milion or 17 cents a year ago.
Crew Energy Inc. (CR-T) announced a preliminary long-range plan through 2026 to "significantly increase production." The company said it's targeting average annual volumes of approximately 61,000 barrels of oil per day upon completion of the plan by 2026.
It also said the plan "sets the stage for the company to realize further enhanced margins and increased adjusted funds flow, while maintaining conservative leverage metrics ... ."
BTB Real Estate Investment Trust (BTB-UN-T) announced the sale of an office property located in Sainte-Thérèse, Que. for $4.58-million, excluding transaction costs. The company said the 24,925-square-foot building was acquired in November 2007 and renovated in 2017.
"During the strategic repositioning of BTB's portfolio, this property was identified as a potential disposition since that the property did not meet the REIT's asset investment criteria," it said.
The company said the net proceeds will be reinvested in acquisitions of industrial properties.
Rupert Resources Ltd. (RUP-X) announced it has received approval for the listing of its common shares on the Toronto Stock Exchange, effective Dec. 12. The company said its shares will be delisted from the TSX Venture Exchange the same day.
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Brenda Bouw