acquisition
ENERFLEX LTD. $14.35 (Toronto symbol EFX; TSINetwork Rating: Extra Risk)(403-387-6377; www.enerflex.com; Shares outstanding: 78.7 million; Market cap: $1.1 billion; Dividend yield: 2.4%) rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration gear and power generators.
On June 30, 2014, Enerflex completed its $431- million U.S. acquisition of two businesses owned by privately held Axip Energy Services: an international contract compression and processing subsidiary and a division that provides aftermarket services.
In the three months ended March 31, 2015, Enerflex’s revenue gained 43.0%, to $475.3 million from $332.4 million a year earlier. Earnings per share jumped sharply, to $0.29 from $0.05.
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On June 30, 2014, Enerflex completed its $431- million U.S. acquisition of two businesses owned by privately held Axip Energy Services: an international contract compression and processing subsidiary and a division that provides aftermarket services.
In the three months ended March 31, 2015, Enerflex’s revenue gained 43.0%, to $475.3 million from $332.4 million a year earlier. Earnings per share jumped sharply, to $0.29 from $0.05.
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TEMPUR SEALY $60.78 (New York symbol TPX; TSINetwork Rating: Speculative)(800-878-8889; www.tempursealy.com; Shares outstanding: 61.0 million; Market cap: $3.8 billion; No dividends paid) completed its $1.3- billion purchase of rival Sealy in 2013. This was a major acquisition for Tempur Sealy (formerly Tempur- Pedic), but it has let the company diversify into traditional spring-coil beds.
In the three months ended March 31, 2015, Tempur Sealy’s earnings rose 4.6%, to $34.1 million from $32.6 million a year earlier. Per-share earnings gained 3.8%, to $0.55 from $0.53, on more shares outstanding. Excluding the effect of a higher U.S. dollar, earnings per share jumped 20%.
Sales gained 5.4%, to $739.5 million from $701.9 million. North American sales (80% of the total) rose 7.5%, but international sales (20% of total revenue) fell 2.6%.
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In the three months ended March 31, 2015, Tempur Sealy’s earnings rose 4.6%, to $34.1 million from $32.6 million a year earlier. Per-share earnings gained 3.8%, to $0.55 from $0.53, on more shares outstanding. Excluding the effect of a higher U.S. dollar, earnings per share jumped 20%.
Sales gained 5.4%, to $739.5 million from $701.9 million. North American sales (80% of the total) rose 7.5%, but international sales (20% of total revenue) fell 2.6%.
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INTACT FINANCIAL $89.80 (Toronto symbol IFC; TSINetwork Rating: Speculative) (416-341-1464; www.intactfc.com; Shares outstanding: 131.5 million; Market cap: $11.8 billion; Dividend yield: 2.4%) is Canada’s largest provider of property and casualty insurance. Its brands include Intact Insurance, Canada BrokerLink and belairdirect.
In the three months ended March 31, 2015, Intact’s revenue rose 5.3%, to $1.57 billion from $1.50 billion a year earlier. The company earned $186 million, or $1.37 a share, up 44.2% from $129 million, or $0.94.
The latest results reflect a $64-million reduction in catastrophic losses, mostly related to weather. That helped Intact report an improved combined ratio, or claims paid out divided by premiums taken in (the lower, the better) of 93.4%, down from 97.1%.
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In the three months ended March 31, 2015, Intact’s revenue rose 5.3%, to $1.57 billion from $1.50 billion a year earlier. The company earned $186 million, or $1.37 a share, up 44.2% from $129 million, or $0.94.
The latest results reflect a $64-million reduction in catastrophic losses, mostly related to weather. That helped Intact report an improved combined ratio, or claims paid out divided by premiums taken in (the lower, the better) of 93.4%, down from 97.1%.
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TEMPUR SEALY INTERNATIONAL INC., $61.35, symbol TPX on New York, makes and distributes mattresses and neck pillows made of its Tempur material, which conforms to the body to provide support and alleviate pressure points. The company is benefiting from its $1.3-billion purchase of rival Sealy in March 2013. The move let it diversify into traditional spring-coil beds. Excluding integration costs, Tempur Sealy’s earnings rose 4.6% in the three months ended March 31, 2015, to $34.1 million from $32.6 million a year earlier. Per-share earnings gained 3.8%, to $0.55 from $0.53, on more shares outstanding. That beat the consensus estimate of $0.48. On a constant-currency basis, earnings per share jumped 20%....
By focusing on retail stores selling fertilizer and seed to farmers—in U.S. dollars—Agrium has made itself the #1 potash stock in Canada.
Parkland Fuel Corp., $26.35, symbol PKI on Toronto (Shares outstanding: 82.6 million; Market cap: $2.2 billion, www.parkland.ca), operates gas stations, convenience stores and a fuel-distribution business, mostly in Western Canada and Ontario. It was called Parkland Income Fund before it converted to a dividend-paying corporation on December 31, 2010. The company owns 143 rural gas stations and convenience stores. Its brands include Fas Gas Plus, Race Trac Gas and Short Stop. Many of Parkland’s stations sell propane in addition to gasoline and diesel fuel. Parkland also operates Esso stations in Western Canada and Ontario under a licensing deal with Imperial Oil (symbol IMO on Toronto). In addition, it has an agreement to use the Chevron brand in B.C....
AGRIUM INC. $132 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 144.0 million; Market cap: $19.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.0%; TSINetwork Rating: Average; www.agrium.com) gets 75% of its sales and 60% of its earnings from its retail stores, which consist of 1,450 locations in North America, South America and Australia. These outlets sell seed, fertilizer and other products to farmers. (All amounts except share price and market cap in U.S. dollars.)
The company gets the remaining 25% of its sales and 40% of its earnings by making nitrogen-based fertilizers from natural gas. It also operates potash and phosphate fertilizer mines. In the past few years, Agrium has built up its retail business through acquisitions. In December 2010, it paid $1.2 billion for AWB Ltd., which operated 220 stores in Australia In October 2013, the company added 210 stores in Western Canada and Australia in a $485-million deal with Viterra Inc.
These acquisitions, along with rising fertilizer prices, pushed up Agrium’s sales by 49.2%, from $10.7 billion in 2010 to $16.0 billion in 2012. Declining fertilizer prices cut its 2013 sales to $15.7 billion, but they improved to $16.0 billion in 2014.
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The company gets the remaining 25% of its sales and 40% of its earnings by making nitrogen-based fertilizers from natural gas. It also operates potash and phosphate fertilizer mines. In the past few years, Agrium has built up its retail business through acquisitions. In December 2010, it paid $1.2 billion for AWB Ltd., which operated 220 stores in Australia In October 2013, the company added 210 stores in Western Canada and Australia in a $485-million deal with Viterra Inc.
These acquisitions, along with rising fertilizer prices, pushed up Agrium’s sales by 49.2%, from $10.7 billion in 2010 to $16.0 billion in 2012. Declining fertilizer prices cut its 2013 sales to $15.7 billion, but they improved to $16.0 billion in 2014.
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Alimentation Couche-Tard (symbol ATD.B on Toronto; www.couche-tard.com) operates 6,314 convenience stores throughout North America. Canadian outlets operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K brand.
In Europe, Couche-Tard operates 2,233 stores across Scandinavia, Poland, the Baltic States (Estonia, Latvia and Lithuania) and Russia.
In the three months ended February 1, 2015, Couche-Tard’s sales rose just 1.7%, to $2.33 billion from $2.29 billion a year earlier. The higher U.S. dollar cut the revenue contribution of its European operations.
However, per-share earnings jumped 64.5%, to $0.51 from $0.31. Couche-Tard saw higher profit margins on merchandise and fuel, and it continues to save on interest costs as it pays down the debt it took on to acquire Norway’s Statoil Fuel & Retail gas station chain, which it bought for $2.7 billion in June 2012.
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In Europe, Couche-Tard operates 2,233 stores across Scandinavia, Poland, the Baltic States (Estonia, Latvia and Lithuania) and Russia.
In the three months ended February 1, 2015, Couche-Tard’s sales rose just 1.7%, to $2.33 billion from $2.29 billion a year earlier. The higher U.S. dollar cut the revenue contribution of its European operations.
However, per-share earnings jumped 64.5%, to $0.51 from $0.31. Couche-Tard saw higher profit margins on merchandise and fuel, and it continues to save on interest costs as it pays down the debt it took on to acquire Norway’s Statoil Fuel & Retail gas station chain, which it bought for $2.7 billion in June 2012.
ALGONQUIN POWER & UTILITIES $9.36 (Toronto symbol AQN; Shares outstanding: 238.9 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.7%; www.algonquinpower.com) reports that its revenue rose 26.3% in the three months ended December 31, 2014, to $259.3 million from $205.3 million a year earlier. Cash flow per share jumped 22.7%, to $0.27 from $0.22.
The gains mostly came from acquisitions, including California’s Park Water for $327 million U.S. in September 2014.
Growth by acquisition adds risk. But Algonquin cuts that risk by buying profitable utilities like Park Water. It also ensures that its renewable energy projects sell their power under long-term government-guaranteed contracts.
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The gains mostly came from acquisitions, including California’s Park Water for $327 million U.S. in September 2014.
Growth by acquisition adds risk. But Algonquin cuts that risk by buying profitable utilities like Park Water. It also ensures that its renewable energy projects sell their power under long-term government-guaranteed contracts.
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MANULIFE FINANCIAL $21.51 (Toronto symbol MFC; Shares outstanding: 2.0 billion; Market cap: $42.2 billion; TSINetwork Rating: Above Average; Dividend yield: 2.9%; www.manulife.ca) sells life and other forms of insurance, as well as mutual funds and investment management services.
In the three months ended December 31, 2014, Manulife’s earnings per share gained 2.9%, to $0.36 from $0.35 a year earlier. Revenue fell slightly, to $7.15 billion from $7.18 billion.
At the end of 2014, Manulife had $691.1 billion of assets under management, up 15.4% from $598.9 billion at the end of 2013. A large part of the increase came from its late 2014 acquisition of U.K.-based Standard Life’s Canadian insurance operations for $4 billion.
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In the three months ended December 31, 2014, Manulife’s earnings per share gained 2.9%, to $0.36 from $0.35 a year earlier. Revenue fell slightly, to $7.15 billion from $7.18 billion.
At the end of 2014, Manulife had $691.1 billion of assets under management, up 15.4% from $598.9 billion at the end of 2013. A large part of the increase came from its late 2014 acquisition of U.K.-based Standard Life’s Canadian insurance operations for $4 billion.
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