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Perhaps the costs are related to the accounting treatment of RSU's that expire on 4/1/2017?
As previously announced, Sun Hydraulics Corporation (the “Company”) has accepted Allen J. Carlson’s resignation as the Company’s President and Chief Executive Officer effective as of the close of business on March 31, 2016. The Company and Mr. Carlson entered into a Transition Agreement (the “Transition Agreement”) on March 14, 2016, pursuant to which Mr. Carlson will provide transition services for a one year period, beginning April 1, 2016. For his services, Mr. Carlson will be paid monthly compensation of $43,000 and receive a lump sum payment of $16,706.26 in lieu of continuing health benefits. Mr. Carlson also will be granted 35,000 restricted shares of Company common stock, the restrictions of which will lapse on April 1, 2017, provided that Mr. Carlson has not breached the restrictive covenants set forth in the Transition Agreement.
0.02 hit to earnings per quarter for the next four quarters. seems a bit rich.
@Profitability was in line with revenue, but was hindered by CEO transition costs of $0.01 per share that were not included in our first quarter estimates and were originally anticipated in Q2." Included in our estimate are CEO transition expenses which will negatively impact EPS by approximately $0.02. The remainder of the expected decline is attributable to decreased volume. The transition costs will continue to reduce earnings through the first quarter of 2017.
Well in 2014 and 2012 they paid out a small special divvy(.12 and then .09) in Q1 but they paid out a $1 special divvy later in the year. This year is far from over lets just wait and see what happens.
Had they paid out more this year I would have believed that. "But only" $0.09 extra dividend this year speaks a different language as they have roughly $ 5 cash per share. My guess is that it will be used for acquisition knowing SNHY normally acts only in a very careful way.
I don't even believe that the new CEO will act quickly. That would be opposed to the character of this company.
"What do you think they are going to do with their growing pile of cash? For sure they won't hand it out directly to shareholders." - Why not they have a history of paying "special dividends". It's one of the reasons I hold the stock. 3/12/16- $ .04 10/29/14 - $1.00 3/12/14- $.09 3/13/13 $.09 12/12/12 - $1.00 3/20/12- $ .12 - Of course, past performance is no guarantee of future results...
With a new CEO, I expect there will be some new developments in fairly short order to 'make his mark'.
Has SNHY ever been approached by a suitor? It would not surprise me to see the company get bought out. I was concerned that might happen near a bottom like when the share price fell into the mid-20's early this year... glad it has recovered.
What do you think they are going to do with their growing pile of cash? For sure they won't hand it out directly to shareholders. Somehow it will be invested in business. Acquisition is the secret word. It's only a question of time and opportunity.