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Exchange Income Corporation (EIF.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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44.75+0.40 (+0.90%)
At close: 4:00PM EDT
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  • j
    jim-bag
    I thought it would be good to place something here regarding EIF dividend payout ratio.
    Some lazy sites often calculate payout ratio incorrectly using earnings instead of cash flow, stupidly making the dividend look like it's on shaky ground. You have to know where the dividend is coming from.
    EIF's current 62% Payout Ratio is pretty healthy.

    This is from the 'CEO's Message' preamble of the Exchange Income Corp.'s First Quarter Report for the three months ended March 31, 2021. The report is up there on their site easily accessible.
    ---------------------- start of blurb -------------------------------
    Highlights from EIC’s first quarter financial performance include:
    • EBITDA of $64 million, an increase of 12% over the prior period
    • Revenue of $301 million, a decrease of 2% from the prior period
    • Adjusted Net Earnings of $11 million or $0.30 per basic share, an increase of 413% and 400%, respectively, over the prior period
    • Free Cash Flow of $42 million or $1.17 per basic share, an increase of 7% and 4%, respectively, over the prior period
    • Free Cash Flow less Maintenance Capital expenditures improved to $0.55 per basic share, from $0.07 in the prior period
    • Free Cash Flow less Maintenance Capital Expenditures payout ratio strengthens to 62% on a trailing twelve-month basis, improving from 68% at March 31, 2020
    EIC’s payout ratio on a Free Cash Flow less Maintenance Capital Expenditures basis is a strong indicator of our ability to navigate the
    pandemic and manage cash flow. The Company has maintained a healthy 62% payout ratio, stronger than the 68% recorded in the twelve
    months ending March 31, 2020, despite a full year of operation in the pandemic environment.
    ---------------------- end of blurb -------------------------------
  • G
    Gizmo
    New ATH today?
  • A
    A different J
    I'm doing a little window shopping here. Looking to save a touch of time. Would someone care to address the listed 200% payout ratio with EIF. Thank you in advance of your response.
  • R
    REC
    Earnings today and crickets here. C'mon folks, stop spending the generous dividends for a minute and impart on us your wisdom for us lesser mortals.
  • R
    REC
    I just read in today's Globe a list of the top ten lending rates of stocks to short on the TSX. I was surprised to see EIF as no. 10. While the latest stats on shorted stocks should be published in coming days, would anyone like to chime in as to why there seems to be a high fee or interest in shorting this stock?
  • R
    REC
    Is this a neutral, bearish or bullish announcement? Seems to me like they are incurring newer debt to pay off older debt but it's not indicated what interest rate the old debt was at. "Exchange Income Corporation Announces $125,000,000 Bought Deal Financing of 5.25% Convertible Unsecured Subordinated Debentures."
  • j
    jim
    Good day to buy, below 40
  • j
    jim-bag
    As per Globe and Mail May 13 https://tgam.ca/2T39soR (behind paywall):
    "Exchange Income Corp. (EIF-T) said its first-quarter revenue grew 3 per cent to $307-million year-over-year. Analysts were expecting revenue of $326.6-million.
    Its net loss was $5.3-million, or 15 cents per share, versus a profit of $7.5-million, or 24 cents per share, a year earlier. Adjusted earnings were $2.1-million, or 6 cents, versus $12.7-million, or 41 cents, a year ago.
    The company said its Alberta operations have been heavily impacted by both the COVID-19 pandemic and record low oil prices, "which have caused many companies to delay or cancel large capital projects." As a result, the corporation recorded a $6.1-million impairment charge against intangible assets related to the Alberta operations during the quarter."
  • C
    Chris
    This is the most important quote in the annual report:

    “From a financial perspective, the Corporation generated sufficient cash flow since the onset of the pandemic to cover its Maintenance Capital Expenditures, invest in the future through Growth Capital Expenditures and complete the acquisition of Window Installation Specialists Inc. ("WIS"), pay its dividend and reduce its debt, net of cash."
  • C
    Chris
    Government of Canada just announced up to $174 million in funding for the next year in support of small Northern air carriers. This is good news for this company and it’s subsidiaries. https://www.google.com/amp/s/www.cbc.ca/amp/1.5676323
  • C
    Chris
    Market expected .35/share, here we have .59/share. Should be a nice bump tomorrow. Huge cash flow on the quarter as well. It's hard to believe a company in the aerospace sector primarily is this well managed and performing this well under pressure. Hats off to the management team. If there was anyone left nervous about their ability to fund the dividend they should sleep easy.
  • G
    Ginger
    Just started a small position of 100 shares. Maybe bad time to join since it has been steadily climbing. Will start doing more intensive DD. Just wanted to get in before end of month.
  • N
    Noah
    I bought today. Company is in good condition and with this type of management at the helm, their u drawn capital may be used to make an acquisition. Even in 2008, they increased their dividends. I wouldn't bet against this team pulling something off here! Besides, their northern airlines are deemed essential. So while travel may have stalled, supply movement becomes essential!
  • P
    Pete
    Got only 200 shares on this puppy, wished I bought more months back!
  • R
    REC
    I appreciate the reply to my earlier comment on dividends. I am reading more about EIF to see if it's safe as the dividend is quite high. Analysts tracked by Refinitiv give it a 1 year target of 44.70, that's a more than 10% potential gain from here. Do you wish to share your own experience with this stock over the years, i.e. surprises good and bad, disappointment, whatever with me and others who may be reading this post? Thanks again!
  • R
    Rob
    Is there some news that explains the stock high volume and outperformance today?
  • H
    Hieu
    I am looking to purchase this stock for long term.
    Any concern of the negative cash flow?
  • P
    Pete
    Very rarely do I see company trade around their bought deal offering, it's usually quite lower. This puppy remains solid.
  • p
    prabhat
    What happened today!
  • L
    Lucas
    Hoping Index will drop next week so that It can back to 18 CAD - 15 CAD range, will double huge position there