Q2 EPS $0.06 Vs $0.04 adjusted Rev $12.3M vs $10.4M Yr Ago Diversified Royalty Corp Q2 EPS $0.06 Vs $0.04 Year Ago; Adjusted Revenue $12.3 Million Vs $10.4 Million
Diversified Royalty Corp. (DIV.TO), which acquires royalties from multi-location businesses and franchisors in North America, over the weekend reported Q2 net income of $7.1 million, or $0.06 per basic and diluted share, compared with $5.2 million, or $0.04 per share, a year earlier.
Analysts polled by Capital IQ expected EPS at $0.04.
Adjusted revenue for the quarter ended June 30 rose to $12.3 million from $10.4 million a year earlier. Analysts surveyed by Capital IQ expected $11.46 million.
The company said net income rose primarily due to higher adjusted revenue and higher fair value gains on financial instruments. This was partially offset by an increase in income tax expenses, interest expenses on credit facilities, and salaries and benefits.
The company said that distributable cash for Q2 increased to $7.9 million, or $0.0639 per share, compared with $6.8 million, or $0.0556 per share, a year earlier. The payout ratio in Q2 was 86.1%, compared with 89.9% a year earlier.