Finally, am I correct that in the last 18 months Alaris has considerably de-risked this equity as an income investment?
EPS of 69c rose from 61c last year and beat estimates of 53c; revenue of $42.1M was marginally ahead of estimates. EBITDA fell 16% to $33.5M and was marginally below estimates. With a royalty company, the main concerns are the sustainability of the dividend, the quality of its portfolio (AD has at times had investments that stopped paying it its royalties) and its ability to continue to add royalties. The company has had a long, and generally successful, history. Payout ratio is fine at 53% and it has managed to de-risk its business with improving debt ratios. It is still a fairly small entity and with companies at times paying 15%+ there are to be problems on occasion. But we think it is priced well to reflect these concerns and would consider it a decent small cap income stock.