GoEasy Shares Plunge 60% After Lender Suspends Dividend

Goeasy shares plunge nearly 60% after guidance withdrawn and dividend suspended

Goeasy Ltd. shares plunged nearly 60% after the non-prime consumer lender suspended its dividend, announced significant fourth-quarter charges and withdrew its forward guidance. The move shook investor confidence and led to a sharp sell-off on the Toronto Stock Exchange.

The company disclosed an expected charge of approximately $178 million for impaired loans tied to its LendCare business, along with a related write-down near $55 million for loan interest and fees. In addition, Goeasy anticipates a net increase in its allowance for credit losses on gross consumer loans receivable of roughly $86 million compared with the balance reported at Sept. 30.

Following the announcement, Goeasy appointed Felix Wu as chief financial officer effective immediately; Wu had been serving as interim CFO since Sept. 30. The company said it plans to publish its fourth-quarter results on March 25.

Algoma Steel’s fourth-quarter loss widens to $364.7M from $66.5M a year earlier

Algoma Steel reported a net loss of $364.7 million for the fourth quarter, a marked deterioration from a $66.5 million loss in the same period last year. The loss translated into $3.36 per common share, compared with a 61-cent loss per share a year prior.

Consolidated revenue for the period ended Dec. 31 stood at $455 million, down from $590.3 million the previous year. The company reported direct tariff-related costs totalling $60.6 million for the quarter.

Shipments fell sharply, with 378,533 tons delivered in the fourth quarter, a 31% decline from 548,802 tons a year earlier. To support the company amid elevated tariff pressures, the federal and Ontario governments provided $500 million in financing—an assistance package the company says will help strengthen its balance sheet.

Transat reports $29.5M Q1 loss as revenue rises five per cent

Transat A.T. Inc. posted a $29.5 million loss for its latest quarter, an improvement from a $122.5 million loss the prior year, while revenue increased 5% year over year. The company reported a loss of $0.73 per diluted share for the quarter ended Jan. 31, compared with a $3.10 per-share loss a year earlier.

Revenue for the quarter was $870.7 million, up from $829.5 million. On an adjusted basis, Transat reported an adjusted loss of $1.18 per share, improved from an adjusted loss of $1.90 per share a year earlier.

The results were released ahead of Transat’s annual meeting. Separately, a boardroom contest is underway as media executive Pierre Karl Péladeau seeks to change the composition of Transat’s board; two prominent proxy advisory firms have recommended shareholders oppose his proposal to install himself and two associates on a reduced board.

RBC acquires fintech Pinch Financial to streamline mortgage processing

Royal Bank of Canada announced the acquisition of Pinch Financial Inc., a fintech firm that helps simplify and accelerate the mortgage application process. Terms of the deal were not disclosed.

Founded in 2017, Pinch operates a digital platform that enables lenders to verify borrower information online and speed up mortgage approvals. RBC said the purchase will support its objective of delivering a faster, more user-friendly mortgage experience and will accelerate the bank’s digital roadmap for home financing.

MDA Space launches U.S. IPO, offering US$300M in common shares

MDA Space Ltd. filed to launch an initial public offering in the United States and to list its common shares on the New York Stock Exchange. The company indicated it intends to make US$300 million in common shares available for sale as part of the offering.

Underwriters for the IPO will be led by J.P. Morgan and RBC Capital Markets, with other firms serving as joint active book runners. MDA said proceeds from the offering would support growth initiatives, expand its customer base, and provide capital for potential acquisitions or investments.

The closing of the IPO remains subject to customary conditions. In its most recent quarter, MDA reported a profit of $24 million, with revenue rising 44% year over year on strength in its satellite business.

Empire Co. posts $385M Q3 loss; sales edge higher year over year

Empire Co. Ltd., the parent of grocery banners including Sobeys, Safeway, Farm Boy and IGA, recorded a $385 million loss in its most recent quarter. The result was driven in part by one-time costs associated with closing Voilà grocery delivery facilities in Alberta and pausing expansion of the online service in the Vancouver area.

The loss equated to $1.68 per diluted share for the 13-week period ended Jan. 31, compared with a $146 million profit, or $0.62 per share, a year earlier. On an adjusted basis, Empire reported earnings of $0.72 per diluted share versus an adjusted $0.62 per share in the prior-year quarter.

Sales for the quarter rose to $7.89 billion from $7.73 billion a year ago. Food sales increased 3.0%, while fuel sales declined 11.4%, largely reflecting lower fuel prices after the removal of the government carbon tax. Same-store sales improved by 1.2%, with same-store food sales up 2.0%.

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