Why-Invest
TSX:AD  $ 19.49 -0.16 -0.81% Volume: 8,304 Quotes delayed 20 minutes May 18, 2012
Why Invest

Low Volatility

Alaris preferred cash distributions are based on "top-line" results of a Private Company Partner, resulting in low fluctuation in such distributions. Our payments from our Private Company Partners are only behind senior lenders in liquidation and have priority over all other payments. We specifically partner with companies that have low payout ratios; leaving considerable cash flow to service Alaris dividends. As such, Alaris is currently able to allocate more than 80% of our revenue to our shareholders through monthly dividend payments. We have consistently received positive increases to distributions from the vast majority of our Private Company Partners. We put great value on the dependable, sustainable dividend that we are able to provide to our shareholders.

Visibility

Distributions from our Private Company Partners are pre-set annually upon receipt of their audited financial statements. We know 12 months in advance the amount of the distributions we will receive from each of our Private Company Partners and consequently, we are able to determine in advance the monthly dividend our shareholders will receive. This provides unprecedented visibility of our expected revenue for Alaris shareholders.

Throughout the year, we monitor the financial health of our Partners and receive monthly reporting from each Partner, further increasing our forecasting abilities. Furthermore, our partnerships are governed by a series of covenants and consent matters to protect our interest in the businesses of our Private Company Partners.

Diversification

We currently receive revenue from 6 Private Company Partners. Our Private Company Partners operate in diverse industries and serve different markets. Alaris' long-term goal is to have no single dividend source contribute more than 10% of our total revenue.

Liquidity

Increasing Alaris' float will increase shareholder liquidity and open the door to a broader shareholder base. In the last year alone, we successfully participated in two bought deals, and with that, successfully increased liquidity of our shares.

Growth

Alaris' main vehicle for growth is the formation of new Partnerships. Our highly scalable business model allows us to immediately increase our earnings per share each time we enter into an accretive financing transaction with a new (or existing) Private Company Partner. The distributions we receive are adjusted each year only to reflect organic growth rates and changes. In the past 12 months, we have been able to increase our monthly dividend on two separate occasions as a result of accretive new investments, coupled with positive organic royalty growth.