Stock news for investors: Goeasy shares plunge nearly 60% after lender suspends dividend

Goeasy shares sink nearly 60% after it withdraws guidance, suspends dividend

Shares in Goeasy Ltd. sank nearly 60% after the non-prime consumer lender suspended its dividend, announced it would take more than $200 million in charges in its fourth quarter, and withdrew its financial guidance.

Goeasy shares were down $65.90 or 57% at $49.65 in afternoon trading on the Toronto Stock Exchange. The company said it expects to take a $178-million charge for bad loans related to its LendCare business in its fourth quarter and a related writedown of about $55 million for loan interest and fees. It also expects a net increase in allowance for credit losses on gross consumer loans receivable in the quarter of $86 million compared with the amount reported at Sept. 30.

Goeasy also announced Felix Wu has been appointed chief financial officer, effective immediately. Wu has been in the job on an interim basis since Sept. 30.

The company expects to release its fourth-quarter results on March 25.

Algoma Steel’s fourth quarter loss widens to $364.7M from $66.5M last year

Algoma Steel Group Inc. reported a net loss of $364.7 million in the fourth quarter compared with a net loss of $66.5 million during the same period a year earlier. That amounted to a net loss per common share of $3.36 compared with a net loss of 61 cents in the prior year quarter. 

The Sault Ste. Marie-based steel producer says its consolidated revenue came in at $455 million during the period ended Dec. 31, down year over year from $590.3 million. 

Algoma says its direct tariff costs totalled $60.6 million during the fourth quarter. 

The company says its shipments during the fourth quarter were 378,533 tons, falling 31% annually from 548,802 tons.

The federal and Ontario governments have provided Algoma with $500 million in financing to help support the company deal with U.S. President Donald Trump’s steel tariffs, which Algoma chief financial officer Michael Moraca says will help strengthen its balance sheet.

Transat reports $29.5M Q1 loss, revenue up five per cent from year ago

Travel company Transat A.T. Inc. reported a loss of $29.5 million in its latest quarter compared with a loss of $122.5 million a year earlier as its revenue rose 5%. The company says the loss amounted to 73 cents per diluted share for the quarter ended Jan. 31, compared with a loss of $3.10 per diluted share last year.

Revenue totalled $870.7 million for what was Transat’s first quarter, up from $829.5 million a year earlier. On an adjusted basis, Transat says it lost $1.18 per share in its latest quarter compared with an adjusted loss of $1.90 per share a year earlier.

The results come ahead of the company’s annual meeting today.

Media magnate Pierre Karl Péladeau is trying to overhaul Transat’s board but Glass Lewis and Institutional Shareholder Services (ISS) have both recommended that shareholders vote against the Quebecor CEO’s proposal to install himself and two associates on a slimmed-down board.

RBC acquires fintech company Pinch Financial, terms not immediately available

Royal Bank of Canada says it has acquired financial technology firm Pinch Financial Inc. Terms of the agreement were not immediately available.

Pinch was founded in 2017 and helps simplify the mortgage application process. It operates a platform that helps banks and lenders verify borrower information online and speed mortgage applications.

RBC says the acquisition will help the bank offer a faster, simpler mortgage experience for borrowers. Janet Boyle, senior vice-president of home equity financing at RBC, says the technology will help the bank accelerate its digital road map to deliver a quicker, more streamlined mortgage experience for Canadians.

MDA Space launches U.S. initial public offering, with US$300M in common shares

MDA Space Ltd. says it is launching an initial public offering in the U.S. with an application to list its common shares on the New York Stock Exchange. The company says a total of US$300 million in common shares will be for sale. 

Underwriting for the IPO will be led by J.P. Morgan and RBC Capital Markets and others will act as joint active book runners.

The Toronto-based robotics, satellite, and geointelligence firm says the proceeds will allow it to pursue growth strategies, including expanding its customer base and solutions, as well as possible acquisitions or investments. 

Closing of the IPO is subject to customary conditions.   

Last week, MDA reported a fourth-quarter profit of $24 million as its revenue rose 44% compared with a year earlier, boosted by its satellite business.

Sobeys parent company Empire reports $385M Q3 loss, sales up from year ago

Empire Co. Ltd. reported a loss of $385 million in its latest quarter, hit by one-time costs related to the closing of its Voilà grocery delivery facilities in Alberta and pausing the online service’s expansion in the Vancouver area.

The company, whose banners include Sobeys, Safeway, Farm Boy, and IGA, says its loss amounted to $1.68 per diluted share for the 13-week period ended Jan. 31 compared with a profit of $146 million or 62 cents per share a year earlier.

On an adjusted basis, Empire says it earned 72 cents per diluted share in its latest quarter compared with an adjusted profit of 62 cents per diluted share in the same quarter last year.

Sales in what was the company’s third quarter amounted to $7.89 billion, up from $7.73 billion a year earlier. 

Food sales rose 3.0%, while the company says fuel sales fell 11.4% primarily due to lower prices due to the removal of the government carbon tax. Empire says same-store sales were up 1.2%, while same-store food sales gained 2.0%.

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