Mullen reported 1Q16 EBITDAS of $46 mm, below our forecast of $50 mm due to higher than expected G&A costs. The Company reduced its monthly dividend by 63% to $0.03/share (prior: $0.08 share). The new dividend implies a yield of 2.6% while our 2016e payout ratio is 51%. Mullen received covenant waivers in 1Q16 which allowed it to change its net debt formula, which we view positively. Additionally, Mullen paid off its $70 mm Series C notes in the quarter.
22 Apr 2016
Reports 1Q16 Results Below Expectations, Dividend Reduced, and Covenant Waiver Obtained
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Reports 1Q16 Results Below Expectations, Dividend Reduced, and Covenant Waiver Obtained
Mullen Group Ltd. (MTL:TSE) | 0 0 0.0% | Mkt Cap: 1,516m
- Published:
22 Apr 2016 -
Author:
Ian B. Gillies -
Pages:
6
Mullen reported 1Q16 EBITDAS of $46 mm, below our forecast of $50 mm due to higher than expected G&A costs. The Company reduced its monthly dividend by 63% to $0.03/share (prior: $0.08 share). The new dividend implies a yield of 2.6% while our 2016e payout ratio is 51%. Mullen received covenant waivers in 1Q16 which allowed it to change its net debt formula, which we view positively. Additionally, Mullen paid off its $70 mm Series C notes in the quarter.