RE:RE:RE:Dividend of 4 cents declared.Mauriceopp wrote: tinytot wrote: Mauriceopp wrote: This is the dumbest thing I have heard. We lost 3 cents a share for the 6 month perriod and are declaring a dividend. The better not make it taxable since it will be a distribution from what we paid in in equity. A dividend is a distribution of PROFITS.
This:
- Adjusted EBITDA1 of $40.7 million and $73.3 million in Q2 2018 and H1 2018 respectively.
EBITDA is not profit since there is Interest, Depreciation and if any taxes. These are real costs. Look at the financials they say the 6 month numbers show a net loss of 3 cents a share.
Here's a little hypothetical:
You're a one man consulting company. You buy a computer for $10 mil cash, you can depreciate it at $2 mil per year.
Your consulting sales income for the year is $1 mil.
All your cash costs for the year are $0.2 mil.
Your EBIDTA is $800,000
Using accrual accounting, your loss is $1.2 mil.
Can you afford a dividend? Should you?