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    Sam Schaefer

    Research Analyst at Global Value Research Company

    Sam Schaefer's questions to MIL leadership

    Sam Schaefer's questions to MIL leadership • Q3 2015

    Question

    Sam Schaefer of Global Value Research Company questioned the potential for a return of capital from asset sales, the reasons for the recent impairment charge on those assets, and the timing for releasing more information about the bank acquisition.

    Answer

    CEO Gerardo Cortina explained that any return of capital is uncertain and depends on the asset rationalization process. CFO Sam Morrow attributed the non-cash impairment to the deteriorating energy market and a lower long-term price curve, stating that a return of capital is not currently anticipated. Morrow also confirmed that details about the bank would only be released after the deal closes, which is expected by year-end.

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    Sam Schaefer's questions to MIL leadership • Q2 2015

    Question

    Sam Schaefer of Milwaukee Private Wealth Management sought clarification on the expected shareholder distribution amount from energy assets, the timeline for the sale, and whether the 15% ROE target applies to the new bank specifically or the entire company.

    Answer

    CFO Sam Morrow clarified that of the energy assets, approximately $103 million is targeted for shareholder distribution, with the remainder being reallocated. He expressed confidence in achieving this value and the 12-15 month timeline via an 'innovative transaction.' CFO Morrow and IR Rene Randall confirmed that the 15% return on equity is a minimum threshold target for the entire MFC Industrial corporation, not just the bank.

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