insane dividends

[wzebra33]

TORONTO, ONTARIO, Jul 16, 2013 (Marketwired via COMTEX) -- Aastra Technologies Limited - CA:AAH +0.47% today reported its unaudited financial results for the second quarter ended June 30, 2013.
$7.20 per share
Revenue for the three months ended June 30, 2013 was $150.8 million compared to $147.1 million for the same quarter in 2012, an increase of approximately 2.5%. Excluding the impact of foreign exchange, revenue dropped approximately 0.2% from the same period last year. Revenue for the six months ended June 30, 2013 was $284.3 million compared to $294.3 million in the same period last year, a decrease of 3.4%. Excluding foreign exchange, revenue decreased by 5.3% over the same period last year.

Gross margin in the second quarter was down slightly to 43.8% of revenue compared to 44.1% of revenue in the same period in 2012 due mainly to a change in product mix this quarter.

Selling, general and administrative ("SG&A") expenses were $41.8 million or 27.7% of revenue in the second quarter of 2013 compared to $44.5 million or 30.3% of revenue in the second quarter of 2012. SG&A expenses include restructuring expenses of $1.3 million in the second quarter of 2013, compared to $0.8 million in the same quarter of 2012. Excluding restructuring expenses, SG&A expenses would have been $40.5 million or 26.9% of revenue during the second quarter of 2013, compared to $43.7 million or 29.7% of revenue in the same quarter of 2012.

Research and development ("R&D") expenses in the second quarter of 2013 were $17.1 million or 11.3% of revenue, compared to $15.1 million or 10.3% of revenue in the same quarter of 2012. The increase is due to $3.3 million of restructuring expenses incurred in the second quarter of 2013 (2012 - $nil). Excluding restructuring expenses, R&D expenses would have decreased to $13.8 million or 9.1% of revenue. Operating expenses were lower in the second quarter as a result of continued cost control and efficiencies.

Foreign exchange losses of $1.1 million were recognized in the second quarter of 2013, compared to a foreign exchange loss of $0.7 million in the same period last year. Foreign exchange losses on the repatriation of cash from foreign subsidiaries this quarter more than offset the positive movements of the US dollar to the Canadian dollar during the second quarter this year. Amortization expense recorded in operating expenses was $3.7 million in the second quarter of 2013 compared to $3.6 million in the second quarter of 2012.

The Company recorded net finance income of $0.6 million in the second quarter of 2013 compared to $1.0 million in the same period in 2012. Income tax expense of $0.4 million or 13.6% of pre-tax profit compared to $0.4 million or 17.7% of pre-tax profit in the second quarter last year.

As a result of the above, profit increased in the second quarter this year to $2.4 million or $0.21 diluted earnings per share compared to $1.7 million or $0.13 diluted earnings per share in the same period in 2012. Profit for the six months ended June 30, 2013 was $2.5 million or $0.22 diluted earnings per share compared to $3.3 million or $0.25 diluted earnings per share in the first half of 2012.

Included in the income statement this quarter was $4.7 million of restructuring expenses compared to $0.9 million for the same period last year. Excluding restructuring expenses, profit before income taxes would have increased significantly compared to the same period last year for both the six months and three months ended June 30.

Cash and short-term investments totaled $132.5 million at the end of June 2013 compared to $107.4 million at December 31, 2012. During the second quarter of 2013, the Company generated $13.3 million of cash flow in operations. The Company returned $2.3 million in dividends to shareholders during the second quarter. Accounts receivables increased by $7.3 million from $131.4 million at March 31, 2013 as a result of higher revenue.

The Company is pleased to announce that, after a detailed review of its business, the Board of Directors of the Company has approved the payment of a special dividend to its shareholders of $7.20 per share (the "Special Dividend") payable on August 16, 2013 (the "Payment Date") to all shareholders of record on August 6, 2013 (the "Record Date") subject to the "Due Bill" trading requirements mandated by the Toronto Stock Exchange (see below). Contact your financial intermediary should you have any questions regarding how such requirements may affect the trading of the common shares of the Company (the "Common Shares"). The net cash that will be used to pay the Special Dividend on the Payment Date is expected to be $84 million.

Because the amount of the Special Dividend announced today represents a distribution of greater than 25% of the market capitalization of the Company as of the close of markets today, the Toronto Stock Exchange has required that the Common Shares shall trade on a "Due Bill" basis from August 1, 2013 until the close of trading on the Payment Date. This means that sellers of Common Shares during this period (i.e. sellers in trades settled after the Record Date and entered into on or before the Payment Date) shall also sell their entitlement to the Special Dividend to the respective purchasers of such Common Shares. The Common Shares will commence trading on an ex-distribution basis (i.e. without an attached "Due Bill" entitlement to the Special Dividend) from the opening of trading on August 19, 2013 (i.e. the next trading day after the Payment Date)