Author: Canadian Press

Lion Electric defaults on debt, plans to seek creditor protection under CCAA

MONTREAL — The Lion Electric Co. says it expects to seek protection from creditors under the Companies’ Creditors Arrangement Act.

The electric school bus maker says it has defaulted on its debt and is in talks with its senior lenders to obtain additional funds for a new debtor-in-possession credit facility.

It says it plans to restructure its business and pursue a formal sales and investment solicitation process.

The company temporarily laid off 400 employees and shut down production at its Illinois plant earlier this month after getting a two-week reprieve from its lenders to explore its alternatives.

The company said at that time that its 300 remaining employees would focus on bus manufacturing, sales and delivery.

Trading in Lion Electric shares on the Toronto Stock Exchange was halted for failure to maintain exchange requirements.

This report by The Canadian Press was first published Dec. 17, 2024.

Companies in this story: (TSX:LEV)

The Canadian Press

Retailer Groupe Dynamite reports Q3 profit and revenue up from year ago

MONTREAL — Clothing retailer Groupe Dynamite Inc. says it earned $40.4 million in its third quarter, up from $34.9 million in the same quarter last year.

Chief executive and chair Andrew Lutfy says that following a strong summer season, the company’s momentum continued into the third quarter with strong revenue and comparable store sales growth.

The company, which made its debut on the Toronto Stock Exchange last month, says the profit amounted to 38 cents per diluted share for the quarter ended Nov. 2, up from 32 cents per diluted share a year earlier.

Revenue for the quarter totalled $258.8 million, up from $220.1 million in the same quarter last year.

Comparable store sales growth for the quarter amounted to 10.1 per cent.

On an adjusted basis, Groupe Dynamite says it earned 41 cents per diluted share, up from an adjusted profit of 33 cents per diluted share a year earlier.

This report by The Canadian Press was first published Dec. 17, 2024.

Companies in this story: (TSX:GRGD)

The Canadian Press

Laurentian Bank reports profits up for the quarter but down for the year

MONTREAL — Laurentian Bank of Canada reported fourth-quarter profits that were up from a year ago, while it reported a loss for 2024 as a whole.

The Montreal-based bank said Friday its quarterly profits amounted to $40.7 million, up from $30.6 million a year ago.

For the fiscal year, it reported a loss of $5.5 million, compared with a net income of $181 million the year before, as it took charges related to its turnaround efforts.

Impairment charges for the year totalled $228.4 million, including a $155.9 million writedown on the value of its personal and commercial banking segment, and $72.5 million in restructuring charges.

In the fourth quarter, the bank reported $7.8 million in severance charges and a $5.7 million writedown in the value of its software and licences, plus impairments on its office space and leases.

The efforts are part of a turnaround that chief executive Éric Provost said in a statement was going well.

“Six months after presenting our strategic plan, I am pleased with the progress we’ve made.”

Profits in the fourth quarter amounted to 88 cents per diluted share for the quarter ended Oct. 31, up from a profit of 67 cents per diluted share in the same quarter last year.

Revenue for the quarter totalled $250.8 million, up from $247.4 million a year earlier.

The bank’s provision for credit losses for the quarter amounted to $10.4 million compared with $16.7 million a year ago.

On an adjusted basis, Laurentian says it earned 89 cents per diluted share in its latest quarter, down from an adjusted profit of $1 per diluted share in the same quarter last year.

The average analyst estimate had been for an adjusted profit of 87 cents per share, according to data provided by LSEG Data & Analytics.

Scotiabank analyst Meny Grauman said the bank’s low provisions for credit loss were impressive, especially given its commercial-heavy loan book as businesses face pressure.

“It should highlight for investors the underlying quality of this bank’s commercial franchise at least from an underwriting perspective,” he said in a note.

Laurentian shares were up nine per cent in early trading Friday on the Toronto Stock Exchange while they were up around 4.6 per cent by late afternoon.

This report by The Canadian Press was first published Dec. 6, 2024.

Companies in this story: (TSX:LB)

The Canadian Press

Canadian Western Bank delays earnings release without saying why

TORONTO — Canadian Western Bank says it has delayed the release of its fourth quarter financial results without saying why.

The bank, which was scheduled to release results Friday, says it will instead put them out in mid-December.

CWB’s shares fell almost 12 per cent in morning trading on the Toronto Stock Exchange and was still down almost five per cent by mid-afternoon.

National Bank is currently working to buy CWB in a deal that’s expected to close by the end of 2025.

The takeover has shareholder and Competition Bureau approval, but still requires the go-ahead from Canada’s banking regulator and the finance minister.

The bank on Friday declared it had raised its quarterly dividend by three per cent from the previous quarter to 36 cents.

This report by The Canadian Press was first published Dec. 6, 2024.

Companies in this story: (TSX:CWB)

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