The TSE Index was up 3.8% in the month of March, 5.8 % YTD and 5.5% over the past year. Canadian GDP was up 0.2% in the 4^th quarter of 2023 and 1.1% for the full year; in the USA the GDP was up 3.3% for the 4^th  quarter and 6.3% for the full year. Canadian inflation rate was 2.9% annually in March 2024 and the US annual rate was 3.5% in March 2024. With this background, the following Table presents the highest and lowest performers for the month of March, 2024.

Pason Systems Inc (PSI)

The top performer was Pason Systems Inc (PSI)whose stock price was up 13% on the month,  down 1% YTD , and up 32% over the past year. A year ago the stock was at an intermediate low, at $$10.94 in Mid June 2023 from which it sprang to $16.17 on December 25^th , fell to $13.53 on March 15,2024 only to close at $15.64 and move higher later.

It is a leading global provider of specialized data management systems for oil and gas drilling around the world. It also provides products and services for the solar power and energy storage industry through its subsidiary, Energy Toolbase. It was the thitd worst performer in January 2023.

For the 4^th quarter of 2023 revenue was $93.3 million, down 1% against the 4^th quarter of 2022, outpacing a 19% decrease in North American industry activity and swallowing a $14.2 million foreign exchange loss largely due to a significant devaluation of the Argen tine Peso. Adjusted EBITDA at $8.9 million was  down 21% and net income at $8.5 million was down 77%. For the full year 2023 revenue at $369.3 million was up 10%; adjusted EBITDA was $171.5 million, up 7%; net income at $97.5 million was down 9%. In 2023. PSI returned $66.5 million in dividends (including increasing the regular quarterly dividend to $0.13 per share).

 Management notes that its efforts to provide automation and data aggregation technologies are supported by a best in class field service; Energy toolbase stands to benefit from demand for energy storage; with its increasing exposure to end markets not directly tied to drilling activity it is on the road to diversifying its business.

Prime Water Corporation (PRMW)

The second best performer was Prime Water Corporation (PRMW) whose stock price was up 12% on the month, 24% YTD and 24% over the past year. It is a leading direct provider of bottled water to consumers and water filtration services in North America and Europe, having withdrawn from Russia in the 2^nd quarter of 2022.

The low for the stock price during the  past year was $16.58 in mid June 2023 from where it rose strongly  near the close to $24.64. The stock ranked no 3 performer in August 2033

Management notes that 2023 was a year of transformation and strong financial performance. PRMW continued to execute against its transformational strategy to become a pure-play North American company, achieving a major milestone as it completed the sale of a significant portion of the international businesses. On December 29, 2023 the European business was sold for $575 million. This plus cash on hand enabled PRMW to redeem in full $750 million of 5.5% senior notes. Cash on hand at year end was $507.9 million

Year end results were announced on February 28,2023: Revenues at $1.772 billion up 4.7%; net income at $238.1 million was up $208.5 million, of which $174.3 million came from discontinued operation.

CAE Inc (CAE)

The third best performer was CAE Inc (CAE) whose stock price was up 10% on the month, but down 2% YTD and 3% over the past year. The stock price peaked in late August 2023 at $32.94 and deteriorated in saw tooth fashion to close at $27.97. It was the third worst performer in November 2023.

CAE is a technology company which digitalizes the physical world by deploying simulation training and critical operations support solutions. It is managed through three segments: Civil Aviation, which provides comprehensive training solutions for flight and other personnel; Defense and Security, which provides global training to ensure mission readiness; Healthcare, which provides virtual education and training solutions.

For the third quarter of fiscal 2024 Revenue of $1094.5 million was up 12.8%; Operating income at $121.6 million was down 14% and net income at $56.5 million ($0.18 per share)was down 28% ($0.24). Adjusted order intake at $1273.9 million was up 7% leading to adjusted backlog of $11,746.3 million, up 9%. Civil service segment margins were a bit light with product mix being a factor;  defense revenue margins were low in part due to legacy contracts. Management remains confident in the future.

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Telus International (Cda) Inc (TIXT)

The third worst performer was Telus International (Cda) Inc (TIXT) whose stock price was down 18% on the month, up 1% YTD and down 58% over the past year. The stock price has been sinking since the start of the year when it hit $27.36 in mid April, 2023 dropped to $8.62 at the end of October, spiked to $15.26 in mid February 2024, to close at  $11.47. It was the third best performer in February 2024.

TIXT is a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including artificial intelligence (AI) and content moderation, for global and disruptive brands. It employs 75,347 people. It is controlled by Telus.

Revenue for the year ended December 31, 2023 was $2.708 billion, up 9.7%; Operating income at $$183 million was down 35.6% (Salaries and benefits were up19.45%); Net Income at $54 million ($0.20 per share) was down 70.5%; Adjusted EBITDA was $583 million, down 3.95%.

Enghouse Systems Limited (ENGH)

The second worst performer was Enghouse Systems Limited (ENGH) whose stock was down14 % on the month; 13% YTD; and down 20% over the past year. The stock price opened at $39.51on April 17, 2023, the high for the past month, and dropped gently from there to $38.18 and fell toclose at $30.53. It was the second best performer in October 2023.

ENGH is a leading global telecommunications technology and IPTV SaaS platform solutions provider. It provides vertical enterprise software solutions focused on contact centers, video communications, healthcare, telecommunications networks, public safety and the transit market.

Results for the 3 months ended January 31, 2024 were strong: Revenue at $120.5 million was up 13.2% reflecting increased SaaS and maintenance to 70.2% of total;  Adjusted EBITDA at $34.7 million was up7.4%; Net Income at $18.13 million, ($0.33 per share) was up 6.5%. There was a favourable foreign exchange gain of $1.6 million included in these results. Cash on hand was $246.8 million. Subsequent to quarter end ENGH announced acquisition of Mediasite assets for US$15.5 million.

Park Lawn Corporation (PLC)

The worst performer was Park Lawn Corporation whose stock was down 12% on the month,15% YTD and down 40% over the past year. The stock hit $21, on April 17, 2023 and fell precipitously to $12 on October/23/2023, whence it rose to the close at $16.70. It was the 3^rd best performer in December 2023.

PLC is the largest publicly traded Canadian-owned funeral, cremation and cemetery provider. PLC and its subsidiaries own and operate businesses including cemeteries, crematoria, funeral homes, chapels and event centers throughout Canada and the United States which provide a full range of services and merchandise to fulfill the desires of individuals and families seeking to honor their loved ones.

During the 4^th quarter of 2023, revenue  at $88 million was up 2.3% primarily due to acquired operations (Christy Smith assets) off set by a decrease in comparable operations. During the quarter, PLC completed the disposition of 72 cemeteries in Kentucky, Michigan and North and South Carolina for $70 million plus deferred compensation. Adjusted EBITDA at $20.6 million was up 4%; fully diluted Earnings per share reflect a loss as a result of the disposition of certain legacy assets.

Company outlook  for 2024 has Adjusted EBITDA running between $70million and $80 million; adjusted earnings per share running between $0.90 and  $0.80.

Take Care,

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in the securities mentioned.