Thanks for the update Boon.
It is pretty impressive with EPS of $0.78 and yet they are only paying out $0.22 in 2Q 2012. There is plenty of room to grow the dividend if they choose to. The share price has rallied today which have a positive impact on GIL NAV in the long run. Ultimately, an additional $0.08 dividends for the year works out to S$0.10 million cash economic income.
GIL RECORDED HIGHER PROFIT OF S$8.0 MILLION FOR THE FIRST QUARTER OF 2012
http://www.globalinvestmentslimited.com/...1Q2012.pdf [Press Release]
http://www.globalinvestmentslimited.com/...1Q2012.pdf [Asset Review Slides]
http://www.globalinvestmentslimited.com/...1Q2012.pdf [SGX Report]
GIL generated $1.865 million core profit after excluding forex gains and disposal gains. This amounts to 0.226 SG cents per share based on the enlarged share float of 825.3 million shares. The reduction in core profit is attributed to the decline in interest income as coupons from legacy assets were suspended though partially offset by interest income from its 14% yielding Sealane Note. There was no distribution income from Ascendos this quarter though the pre-2009 impairment was partially reversed as GIL wrote back $5.045 million in its equity investment. Ascendos was fairly profitable by generating EU 3.9 mil earnings in FY 2012. Further growth in Ascendos earnings (if it materializes) and higher cash dividends from FLY Leasing would have a positive impact in the cash economic income from the operating lease segment. In 1Q 2012, GIL generated $1.563 million FCF after accounting for debt repayment which reduces its total debt to $15.9 million. Cash stood at $40.6 million at the end of the quarter. The rights issue proceeds of $35 million will further boost its net cash position to $60 million. While STAM did provide a 1H 2012 dividend guidance of 0.75 SG cents, it is quite difficult for GIL to meet this without dipping into its cash hoard as it has yet to deploy the cash raised into new investments.
GIL share price closed at 13.4 cents giving rise to a dividend yield of 11.2%.
(Vested)
FLY Leasing has announced a couple of corporate developments recently.
FLY Leasing Sells Three Aircraft
http://www.flyleasing.com/contentDetail.asp?id=9177
FLY Leasing Declares 10% Increase in Quarterly Dividend to $0.22 Per Share
http://www.flyleasing.com/contentDetail.asp?id=9179
GIL owns 1,051,010 or 4.07% stake in FLY Leasing. The second announcement is a positive one for GIL shareholders as it will boost 3Q 2012 revenue contribution from FLY Leasing (1Q 2012: S$0.263 million) by 10% or approx S$26k per quarter. It will be difficult to maintain its guided 0.75 cents semi annual distribution payout if they do not make new investments.
GIL closed at $0.138 yesterday and there has been no news of it utilizing the recent rights proceed of $35 million or its cash hoard of $40 million since the last result announcement.
(Vested)
Nick,
What do you think ? 3.98 million out of the 35 million from the right issue has been invested in listed equities !
http://info.sgx.com/webcoranncatth.nsf/V...600366DB3/$file/22_20120725_UseOfProceedsFromRightsIssue.pdf?openelement
“FLY Laesing reports a very strong second quarter"
Second Quarter 2012 Highlights
Adjusted net income of $30.9 million, $1.19 per share
Net income of $25.7 million, EPS of $0.99
Sold three aircraft for a pre-tax gain of $8.5 million
Launched a $395 million term loan to refinance near-term debt maturities
Q2 dividend increased to $0.22 per share, $0.88 annually
http://www.flyleasing.com/layouts/54/upl...s/9183.pdf
Until the 2Q Current Asset Review is out (which reveals the name of the companies), it will be difficult to ascertain how this investment will pan out for GIL. If they are investing in a 8% yielding stock, it will generate 0.038 cents earnings per unit. If they are buying a high grower / asset play / exploration coy etc, it's a whole different ball game. Essentially, they still have $31 million raised from the recent rights issue and a further $40 million cash at hand to invest with. Throw in the proceeds from the sale of the aircraft in April 2013, I would expect plenty of M&A over the next 12 months.
Hmmm Another SGD5.50m invested in listed equities... seems like they are rather bullish on the equity markets now?
Cant wait for the H1 results to come out.
I hope they reveal what type of companies are they investing in during their 1H Current Asset Review (ie reits, biz trust, growth, local, international etc). I also wonder whether have they invested the $30 million cash-hoard which they already have prior the recent rights issue.
http://seekingalpha.com/article/775131-f...art=single [FLY Leasing 2Q Earnings Transcript]
(Vested)
From to the announcement made today, seems like they only just started utilizing the cash from the rights issue. Hope before that they have been using the previous cash or cash earned. Or else it would seem like they havent been doing much.
Any idea when earnings will be out?
(Vested too)
the more i see this the more i think they are making wrong moves. hardly a good time to go in now. unless they are buying europe distress equities.
and they waited so long. perhaps they failed in most of their auction ventures? seems like they are forced to make these temperory investments or else they will not have enough earnings.