EPS of $0.03 missed estimates of $0.07 and revenues of $15.54M missed estimates of $16.7M. Its funded volumes were $14.8B, a 32% decrease against the prior year and sales of $15.5M reflected a 29% year-over-year decline. Management noted that the Canadian real estate market faced challenges in the quarter due to rising rates, however, a silver lining is that its Adjusted EBITDA margins improved to 33% from 23% in the previous quarter, driven by a fixed cost structure. It pays a good yield of 5.9%, however, its free cash flow is small and it uses some of its cash balance to fund dividends. Its dividend is largely safe, but it is over a 100% payout ratio, and so maintaining this cash flow generation level will be important to sustain the dividend. Its balance sheet has been contracting for several years now, and without stabilization in its sales or earnings, we would prefer to wait until this name sees more encouraging fundamentals.
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