I read some of your responses to questions from last year. I understand management had an issue and paid a fine and CEO replaced.
A statement I read was that currently their payout ratio is well above 100%.
I get the feeling you are not enamoured by this company.
Can you please confirm I) payout ratio and ii )your feeling is maybe hold off until fundamentals improve.
Thanks
The stock is cheap, and has stabilized. The former 'expense misappropriation' of the CEO was certainly a red flag for us. But he has been replaced, and the company is back on track. Cash flow is decent. Valuation is very low. In the first nine months of 2024, operational cash flow was $117M and cash distributions paid were $29M, for a very low payout ratio. On occasion, it does pay special distributions and we would not see the distribution at risk. It has not ever cut, but was not in existence during the pandemic where many did cut. Royalty revenue is increasing nicely and cash flow nearly tripled in the 9-month period. There has been an improvement here. We would still side with general caution as the new CEO has not been in place long, but we can say we do like it better than before with the changes. It reports full year numbers March 03.