Alaris Royalty Corporation released their 2016 first quarter results after market close on May 10th.
Considering I currently have a $5,000 position in the income generating company, it’s my duty to look through the earnings. I’ve noticed a couple of my fellow Canadian investors have also picked up shares in the corporation and so it’s in all of our best interests to see what the company has been up to for the last quarter.
Alaris Royalty Corp. has been hard at work investing in new partners and increasing the per share value of the corporation. Both EBITDA and revenue are up double-digits. Not to mention, the company pays a dividend 8.0% larger compared to one year ago. They also reveal that the company’s current payout ratio is a slick 77%, not too shabby for an income-generating corporation. Considering the payout ratio has been much higher in the past, I’m confident that they’ll be able to continue raising dividends into the future.
I’ve marked down the first quarter highlights here so that we can all understand what’s been improved throughout the quarter at a glance, but I invite you to read the full press release to observe the consolidated statements.
2016 First Quarter Highlights:
- Improved diversification by adding new annual revenue streams and follow on contributions to current Partners for a total increase to annualized revenue of $9.3 million USD:
- USD$3.3 million from Sandbox Acquisitions, LLC and Sandbox Advertising, LP (collectively “Sandbox”)
- USD$0.6 million from an affiliate of LMS Limited Partnership (“LMS”)
- Subsequent to March 31, 2016:
- USD$4.5 million from M-Rhino Holdings, LLC, operating as Providence Industries (“Providence”, subsequent to period end on April 1, 2016)
- USD$0.9 million from a subsidiary of Federal Resources Supply Company (“Federal Resources”, subsequent to period end on April 29, 2016)
- The Corporation has now deployed over CAD$250 million in capital over the past twelve months through five new Partners and four follow on transactions
- Paid dividends per share of $0.405 vs $0.375 in 2015, an 8.0% increase compared to the prior year period
- Increased gross revenue by 29.2%, +15.3% on a per share basis
- Increased Normalized EBITDA by 31.3%, +10.0% on a per share basis
- Increased net cash from operating activities by 20.8%, +8.3% on a per share basis
- Redeemed the remaining preferred units in LifeMark Health Limited Partnership (“LifeMark”) in exchange for $38.4 million resulting in an $18.6 million gain.