National Cinemedia, Inc. (NCMI)

[Harry Winston]

They reduced the dividend from 22¢ per share per quarter to 17¢, so the price dropped.

The forward dividend yield is still over 12%, and there are two new members on their Board of Directors.

Here are their Q4 and full-year financial results.

Total revenue for the fourth quarter ended December 28, 2017 decreased 1.3% to $140.7 million from $142.5 million for the comparable quarter last year. Adjusted OIBDA decreased 4.4% to $82.6 million for the fourth quarter of 2017 from $86.4 million for the fourth quarter of 2016. Operating income decreased 2.9% to $70.2 million for the fourth quarter of 2017 from $72.3 million for the fourth quarter of 2016. Net loss for the fourth quarter of 2017 was $5.4 million, or net loss of $0.07 per diluted share, compared to net income as corrected of $13.4 million, or net income as corrected of $0.22 per diluted share, for the fourth quarter of 2016. As adjusted to exclude CEO transition-related costs, certain impacts related to revaluing tax assets and liabilities following recently enacted federal tax legislation and other non-recurring items set forth in the table at the end of this release, net income for the fourth quarter of 2017 would have been $0.27 per diluted share and net income for the fourth quarter of 2016 as corrected would have remained $0.22 per diluted share.

Total revenue for the year ended December 28, 2017 decreased 4.8% to $426.1 million from $447.6 million for the comparable period last year. Adjusted OIBDA decreased 11.1% to $205.1 million for the full year of 2017 from $230.7 million for the full year of 2016. Operating income decreased 11.0% to $153.9 million for the full year of 2017 from $173.0 million for the full year of 2016. Included in Adjusted OIBDA and operating income were $3.1 million and $0.7 million of non-cash impairment charges during 2017 and 2016, respectively, on investments obtained in prior years in exchange for advertising services. Net income for the full year of 2017 was $1.6 million, or income of $0.02 per diluted share, compared to net income as corrected of $20.4 million, or income as corrected of $0.34 per diluted share for the full year of 2016. As adjusted to exclude the CEO transition-related costs, certain impacts related to revaluing tax assets and liabilities following recently enacted federal tax legislation and other non-recurring items set forth in the table at the end of this release, net income for the full year of 2017 would have been $0.40 per diluted share and net income for the full year of 2016 would have been $0.36 per diluted share, as corrected. Adjusted OIBDA and adjusted earnings per share are non-GAAP measures. See the tables at the end of this release for the reconciliations to the closest GAAP basis measurement.

Here's the dividend announcement.

The Company announced today that its Board of Directors has authorized the Company's regular quarterly cash dividend of $0.17 per share of common stock. The dividend will be paid on March 29, 2018 to stockholders of record on March 22, 2018. In line with the Company's intent to pay a regular quarterly dividend for the foreseeable future at the discretion of the Board of Directors consistent with the Company's intention to distribute over time a substantial portion of its free cash flow, this reduction in the quarterly dividend from $0.22 per share of common stock will allow for ongoing reinvestment in the Company's network and its enhanced, integrated digital products while maintaining the Company's history of financial flexibility.

More information.

Commenting on the Company's fourth quarter and full year 2017 operating results, Andy England, NCM's CEO said, "While there is no question that 2017 was a challenging year for NCM, it was really a tale of two halves, with a tough first half of the year followed by a far better second half. Much progress was made this year in many key areas to better position us to deliver on our long-term strategy, including the expansion of our national network, the strengthening of our leadership team, and of course, the launch of our new Noovie pre-show and Noovie Digital ecosystem. Our expanded focus on Digital continued to be a bright spot throughout 2017, and I'm especially excited about our new integrated marketing capabilities that better connect brands with movie audiences."

Forward guidance.

For the full year 2018, the Company expects total revenue to be flat to up 4.5% and Adjusted OIBDA to be down 2.5% to up 4.8% from the full year 2017. The Company expects total revenue in the range of $425.0 million to $445.0 million for the full year 2018, compared to total revenue for the full year 2017 of $426.1 million and Adjusted OIBDA in the range of $200.0 million to $215.0 million for the full year 2018 compared to Adjusted OIBDA for the full year 2017 of $205.1 million. During 2018, the Company expects to record approximately $23.0 million in integration and other encumbered theater payments from Cinemark and AMC associated with the Rave Theatres and Carmike Theatres acquisitions, which are recorded as a reduction of an intangible asset.

IMO, this company is now a pure high-yield stock now, without any significant growth for the forseeable future.

"For the full year 2018, the Company expects total revenue to be flat to up 4.5% and Adjusted OIBDA to be down 2.5% to up 4.8% from the full year 2017."

On the other hand, a 12% forward yield is a very significant yield, and an acquisition cannot be ignored.