Thanks
Jeff
EPS of 50c beat estimates of 48c; revenue of $43.7M beat estimates by 1.5%. EBITDA of $28.3M missed estimates by 22%. 218,900 units were bought and cancelled in the quarter. Revenue rose 9%. Payout ratio 59%. Per unit distributable cash flow rose nearly 20%. US procurement policy changes are negatively impacting royalty company Federal Management Partners (FMP). Its payments to AD are going to be negatively impacted, and AD will likely write down the value of the investment later this year. AD invested $37M into FMP in late 2023. It is debt-free and is looking to replace government contracts. A writedown would hurt, but against market cap of $900M would be manageable. We would see the decline Friday as largely reflective of the situation and would be OK with AD.UN as a HOLD, with a view to BUY into further weakness (for small cap income investors).