logo
Share SHARE
FONT-SIZE Plus   Neg

SMF Energy Projects Lower Revenue, Earnings For FY12; Suspends Dividend Program

SMF Energy Corp. (FUEL) said Friday that in light of a substantial reduction in projected sales revenue and earnings for the current fiscal quarter and future periods, its Board of Directors has determined to suspend the company's quarterly dividend program until further notice.

The company also said its lower revenue and earnings are also expected to cause the company to reverse its prior recognition as income, in the quarter ended December 31, 2011, of a realizable net deferred tax asset of approximately $3.7 million.

The company now expects to report a loss for the quarters ending March 31, 2012, and June 30, 2012, and for the year ending June 30, 2012.

SMF Energy noted that the anticipated reduction in sales revenue results from necessary changes to its pricing structure. The company is seeking to mitigate the adverse impact on revenue and earnings by instituting significant expense reductions and revenue enhancement measures but does not believe that those measures will be sufficient to offset the revenue and earnings downturn in the foreseeable future.

The company also said it is considering an overhaul of its business model to permit it to drastically reduce its back office and interest expense in order to better match its total expenses with its revenues.

Resumption of the dividend program, however, is unlikely in the foreseeable future but the Board will continue to evaluate all available means of providing additional value to its shareholders, the company said in a statement.

Additionally, the company said that Mark Smith, who first joined the board as an outside board member on February 7, has submitted his resignation.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Palo Alto Networks, Inc. (PANW) shares are down about 7%, but we think the stock is overreacting. We believe the tidings are not all that bad. Quarterly results and guidance are a mixed bag, in fact. Watch the slide show for more details. Mortgage application volume rose last week, ending two straight weeks of declines, as interest rates held steady. The Market Composite Index, a measure of mortgage loan application volume, increased 2.8 percent on a seasonally adjusted basis for the week ending August 26, from one week earlier, according to the Mortgage Bankers Association or MBA. As part of the launch of "Rogue One: A Star Wars Story," a new toyline was unveiled on Wednesday in a stop motion video created by fans. A series of original animated shorts from Star-war fans starring key toys were used to create the video.
comments powered by Disqus
Follow RTT