Second Quarter Update
AltaGas (TSX: ALA, OTC: ATGFF) reported a strong second quarter driven by growth in its power segment in late 2015 and the addition of the San Joaquin assets and its McLymont Hydro facility.
Normalized EBITDA increased 43% to C$153 million, with its acquired San Joaquin Facilities contributing about C$27 million. Normalized Funds from Operations jumped 68% to C$114 million.
The strong performance resulted in a one cent increase to its monthly dividend, representing 6.1% growth. The annualized dividend is now C$2.10 per share.
Brookfield Real Estate Services (TSX: BRE, OTC: BREUF) announced second-quarter CFFO improved 7% from the prior year to C$8 million, or C$0.63 per share on a diluted basis. Royalties for the period came in at C$10.9 million, compared to C$10.3 million in 2015.
The increased royalties and CFFO increase were driven by strong real estate markets and increase in the number of realtors.
According the Canadian Real Estate Association, the rolling 12-month period saw its transactional dollar volume increase by 20% to C$254.2 billion, driven by higher average selling prices and increased in units sold.
The housing market boom — especially in Toronto and Vancouver — is expected to continue, fueled by historically low interest rates.
DH Corp (TSX: DH, OTC: DHIFF) reported second-quarter revenue increased 14% to C$424 million. EBITDA rose 10% to C$95 million during the quarter. The results include DH’s recent acquisition of Fundtech.
During the quarter, DH announced a strategy to restructure and streamline its business that is expected to save a gross amount of C$53 million, offset by new investments for a net savings of C$25 million. The savings are expected to begin in the middle of the third quarter, with restructuring expenses estimated at between C$30 million and C$32 million.
Market demand for heavy-duty transit buses and motor coaches remains strong in Canada and the U.S. This continues to drive New Flyer Industries’ (TSX: NFI, OTC: NFYEF) already massive backlog. During the second quarter, the company delivered 912 equivalent units (EUs), an increase of 318 EUS, or roughly 50%, versus the same quarter in 2015.
New Flyer generated new orders totaling 1,428 EUs (valued at C$814.5 million) during the quarter. Over the last 12-month period, the company generated a book-to-bill ratio of 159%, meaning it continues to receive more orders than delivers. Its total backlog at the end of the second quarter stood at 10,010 EUs, valued at C$5.24 billion.
Shaw Communications (TSX: SJR/B, NYSE: SJR) announced revenues from continuing operations for the quarter was C$1.28 billion, up 13% year over year. Operating income was C$555 million, up 5.3%. The company reported net income of C$704 million, or C$1.44 per share, up from C$209 million, or C$0.42 per share last year. The increase in net income reflects higher operating income before restricting costs and the addition of its wireless business. It also reflects the gain on the sale of its media division.
Shaw continues to proceed with its strategy of becoming an enhanced connectivity provider, with its wireless division, WIND Mobile, passing one million wireless subscribers.