Is the dididend safe?I've held EXE for a long time and bought a lot more in the low $5's. Ive always thought that the dividend was one of the safest around. But, that last business update made me reconsider that assumption. If Paramed Reveunes are down 23%, I dont see how they have the cashflow to pay the dividend. It appears to me there is an $8 milllion per month shortfall in revenues, 25% of $400,000,000 in Paramed revenues. Im guessing that labour expenses are less by about half because the part-timers are not getting paid because they ar enot working. That leaves a 4 million per month loss of cashflow, The company pays out approximately $42 million a year in dividends or about 3.5 million per month.
Do I think this is a longer term problem? No. but it is a short term, possible medium term. Using rough numbers here.