Originally Posted by
winner69
Gap between EPS and Dividends - I think percy used the term tooth fairy
Over the past 5 years MVN have actually generated more cash (operating less investment) the they have paid out in dividends. Just that cash flows are choppy and are either very good or very bad while dividends have been pretty steady. In the good years they repay some borrowings and in bad years they borrow a bit more to pay the dividend.
This is how things have panned out. First number is FCF and 2nd is dividend paid $000
2009 13,909 / 8,159
2010 13,974 / 7,327
2011 5,949 / 7,327
2012 12,676 / 5,993
2013 898 / 6,661
So over 5 years they have managed OK (only borrowed 2 out of the last 3 to pay the dividend) but goodness knows what this years cash flow is going to be like - need $6.6m to pay that dividend
Had it covered in the first half so I predict that this years divie is SAFE (bit worried about that statement that they might reduce debt this year but maybe another bit of confirmation)
See Birman - I have no barrow to push, neither do I have any need to be vindicated as you said yesterday.
Just wish they would stop raving on about being a growth company