Mobile storage company General Finance (NASDAQ:GFN) has released earnings today. We mention this because they have high yield offerings that we have potential interest in.
GFN has a 8.125% senior note maturing in 2021 trading under the ticker GFNSL which is trading in the $25 area. Further info is here.
Additionally GFN has a $100 perpetual preferred with a 9% coupon trading under ticker GDNCP which last changed hands at $101. Further info is here.
The earnings from GFN were satisfactory from a dividend safety perspective as revenue rose and there is reasonable free cash flow, but the company shows a GAAP loss.
Companies like General Finance are fairly dicey companies during difficult economic times, but are able to stay afloat when times are good. The company has a very large chuck of their business tied to oil and gas and thus this heavily influences revenues.
The balance sheet is pretty heavily leveraged–and this is the part that can kill this company in real tough times. Debt is 3X equity, which works during the good times–during a recession not so well.