There's two ways to look at your question.
Net Income: The dividend payout ratio is approx 2.4 (The dividend is 2.4x the current year's estimated net income). ($1.00 of dividends divided by $0.41 of net income). This is unsustainable over the long term (multiple years/ life of the enterprise). This metric tries to answer "Are they making enough money this year to cover the dividend without reducing overall retained earnings (compared to last year's ending balance)?" This year (2013) the answer is "No."
Free Cash Flow Payout Ratio: The metric is the dividend as a percentage free cash flow generated by the enterprise. This is a better short and intermediate metric that asks "Is the business able to pay for this year's dividend using cash generated from operations or are they borrowing money to pay the dividend?" The guidance from management for this metric is 61-68%. That means that the dividend consumes 61-68 cents of cash generated by the business. The answer to your question when framed this way is "Yes."
Most analysts look at the Free Cash Flow Payout Ratio as a metric of the company's ability to pay the dividend.
"Thinking" thru the trading pattern(the possibilities are endless)....all those shorts at this point seem to have not read thru the reports from the company....for them to sit here and pay back 0.25cts/shr.....when mgmt has come out so "strongly" in keeping the dividend does not make financial sense(to me)......if they believe the dividend is the problem here and is going to be cut; why not cover today and short again on Oct.01 or at some higher shareprice(which would seem to be the play)? Mgmt has resolved the debt due in Aug......I just do not see the "logic" of keeping a short here in the short term....covering a short now might raise the shareprice which if these investors feel is not deserved then they could always put another short on after the next payout on Sept.30?
Nothing wrong with the term "financial engineering".....#$%$ conf. call has reassured dividend is "safe"....if you have the time you might want to listen to the replay as they give a very good over-view of their operational health.....it is all about the future....what has been spent, will and is going to be paying "dividends" going forward(pardon the pun). The Holding Co. ideal seems to be all about getting or keeping the ratings agencies on-side....simplifies the accounting to make it easier for the agencies to "rate" the firm in its present form....just my thoughts.