FT. LAUDERDALE, Fla.,
Aug. 9, 2011 /PRNewswire/ -- SMF
ENERGY CORPORATION (NASDAQ: FUEL),a leading energy logistics
company providing efficient, just in time distribution of petroleum
products and chemicals, today announced that its Board of Directors
has adopted a quarterly cash dividend program for its common stock
effective with the quarter ended June 30,
2011. The Board has declared the first quarterly cash
dividend of $0.0125 per share payable
to holders of record of the Company's common stock at the close of
business on September 28, 2011, to be
paid on October 14, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20090513/SMFENERGYCORPLOGO )
Richard E. Gathright, Chairman of
the Board, Chief Executive Officer and President, commented, "The
Board's adoption of a quarterly dividend program demonstrates its
confidence in the continuing prosperity of our business and its
expectations of success based on our long-term strategy for growth.
The Board's action also reflects its commitment to return
capital to shareholders by distributing a portion of its earnings
to shareholders via dividends. We believe that the dividend
program will also enhance the market perception of our common
stock, and we welcome those new stockholders who respond to this
action by investing in a growing company with a regular and
competitive dividend."
Gathright added, "The Board's action is responsive to the
longstanding wishes of many of our most loyal shareholders.
We moved cautiously, however, because we wanted to be
comfortable that we could continue paying a dividend for the
foreseeable future and possibly even increase it in the future if
there are further improvements in our performance. We also
wanted to be certain that we had sufficient cash resources to
continue investing in our business after paying the dividend."
"In fact," noted Gathright, "we reviewed our preliminary
unaudited financial results for fiscal 2011 and considered the
impact of recent new business additions that are now coming on
line. For fiscal 2011, we currently anticipate reporting
revenues of approximately $236.4
million, net income in excess of $1.1
million, and EBITDA of more than $4.5
million on 71 million gallons sold. With these
results, and the possibility that the newly added business could
improve fiscal 2012 volumes by as much as 7% over fiscal 2011, we
concluded that this is the right time to establish our common stock
as an income generating investment. While there are no
guarantees of future performance or dividends, we believe that we
are adopting a sustainable program that will substantially benefit
our shareholders for the foreseeable future."
The Company also announced that the quarterly dividend program
would replace its previously announced open market stock repurchase
program, which has been terminated. The quarterly dividend
program may be changed or cancelled at the Company's discretion at
any time. The continuation of the program is subject to the
Board's determination each quarter that the declaration and payment
of a dividend is in the best interests of the Company's
shareholders. The Company's principal lender, which
previously approved the Company's open market stock repurchase
program based on the Company's continuing compliance with certain
financial covenants during that program, has now approved the
quarterly dividend program based upon the termination of the stock
repurchase program and subject to the Company's adherence to
similar financial covenants.
ABOUT SMF ENERGY CORPORATION (NASDAQ: FUEL)
The Company is a leading provider of petroleum product
distribution services, transportation logistics and emergency
response services to the trucking, manufacturing, construction,
shipping, utility, energy, chemical, telecommunications and
government services industries. The Company provides its services
and products through 34 locations in the eleven states of
Alabama, California, Florida, Georgia, Louisiana, Nevada, Mississippi, North
Carolina, South Carolina,
Tennessee and Texas. The broad range of services the Company
offers its customers includes commercial mobile and bulk fueling;
the packaging, distribution and sale of lubricants and chemicals;
integrated out-sourced fuel management; transportation logistics
and emergency response services. The Company's fleet of custom
specialized tank wagons, tractor-trailer transports, box trucks and
customized flatbed vehicles delivers diesel fuel and gasoline to
customers' locations on a regularly scheduled or as needed basis,
refueling vehicles and equipment, re-supplying fixed-site and
temporary bulk storage tanks, and emergency power generation
systems; and distributes a wide variety of specialized petroleum
products, lubricants and chemicals to our customers. More
information on the Company is available at
www.mobilefueling.com.
NON-GAAP FINANCIAL MEASURES
EBITDA is a non-GAAP financial measure. EBITDA is defined
as earnings before interest, taxes, depreciation, and amortization,
a non-GAAP financial measure within the meaning of Regulation G
promulgated by the Securities and Exchange Commission. We
believe that EBITDA provides useful information to investors
because it excludes transactions not related to the core cash
operating business activities, allowing meaningful analysis of the
performance of our core cash operations. The Company believes that
net income from operations is the most directly comparable GAAP
measure to EBITDA.
While the estimated minimum EBITDA of $4.5 million and the estimated minimum net income
of $1.1 million for the year ended
June 30, 2011, cited above, are
unaudited estimates and, as such, forward looking statements, a
reconciliation of estimated minimum EBITDA to estimated net income
from operations to EBITDA is nevertheless required by SEC
Regulation G. By necessity, however, the numbers used in such
reconciliation are also estimates, and may not be the same in the
final audited financial statements to be included in the Company's
Annual Report on Form 10-K for the fiscal year ending June 30, 2011, to be filed with the SEC.
The $4.5 million estimated minimum
EBITDA presumes that fiscal 2011 accruals for interest, for income
tax, and for depreciation and amortization (including stock
compensation), will total approximately $3.4
million, resulting in the estimated minimum net income of
$1.1 million. That estimate of
$3.4 million in non-EBITDA expenses
includes approximately $0.9 million
in interest expense, $0.3 in income
tax expense, and $2.2 million in
depreciation and amortization expense (including $0.1 million in stock compensation
amortization)
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within
the meaning of the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. For example, predictions or
statements of belief or expectation concerning the future
performance of the Company, the future trading prices of the
Company's common stock, the Company's ability to declare and pay
future dividends, and the potential for further growth of the
Company are all "forward looking statements" which should not be
relied upon. Such forward-looking statements are based on the
current beliefs of the Company and its management based on
information known to them at this time. Because these statements
depend on various assumptions as to future events, they should not
be relied on by shareholders or other persons in evaluating the
Company. Although management believes that the assumptions
reflected in such forward-looking statements are reasonable, actual
results could differ materially from those projected. In addition,
there are numerous risks and uncertainties that could cause actual
results to differ from those anticipated by the Company, including
but not limited to those cited in the "Risk Factors" section of the
Company's Form 10-K for the year ended June
30, 2010.
Contact: Michael S.
Shore
Chief Financial Officer
954-308-4200
SOURCE SMF Energy Corporation