Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Management teams and boards of directors are being tested like never before by the COVID-19 pandemic, and every day brings a long list of updates ranging from forecast suspensions, to job cuts, and more. And we want to make it easier for you to track those disclosures. So every morning, in this space, you can look forward to a quick snapshot of some of the notable updates from Corporate Canada on how they’re managing COVID-19 uncertainty.

-In a reminder that today’s jump in oil prices is small comfort in the grand scheme of things: Cenovus Energy this morning suspended its dividend and unveiled a deeper cut to this year’s capital spending budget alongside $150 million cuts to operational and G&A costs. It’s also scaling back executive compensation, including a 25-per-cent cut to CEO Alex Pourbaix’s pay. 

-Shopify suspended its full-year financial forecasts late yesterday due to the virus, and also said thousands of its merchants were terminated last month for price gouging and false claims about face masks and hand sanitizer. Shares are slipping pre-market. Should be pointed out however that Shopify also said it expects first-quarter revenue and adjusted profit to be at, or above, the targets it set in February. 

-Vail Resorts, whose properties include Whistler Blackcomb, late yesterday said dividend payments are being halted for the next two quarters in a move that will save the company US$140 million. It’s also furloughing the majority of hourly staff in the U.S. and cut this year’s capital budget by as much as US$85 million. 

-Wheaton Precious Metals has abandoned its production forecast for this year as a result of shutdowns implemented by its partners, including Newmont which late yesterday said it’s ramping down operations at Penasquito in Mexico (on government orders). Wheaton also says its dividend policy “remains intact”.

-Badger Daylighting warned last night the outbreak “could materially disrupt” its operations, and so it’s withdrawing this year’s EBITDA forecast, cutting executive salaries and says it will reduce staffing levels.

-Cineplex has confirmed its cinemas and other venues will remain closed indefinitely as a result of government orders. At the time of the initial shutdown, Cineplex said the closures would be in place until April 2. The company’s shares are down almost 64 per cent since the end of February, and closed yesterday at less than half the value of the $34/share takeout price by Cineworld Plc.