Callidus Capital Corporation (TSX:CBL) is a Toronto-based specialty finance company. Shares of Callidus were down 27.17% in early afternoon trading on April 3. Shares have plunged 37.3% in 2018 and are down 64% year over year. The company released its 2017 fourth quarter and full-year results after trading concluded on April 2.
Callidus reported a $131.9 million loss on an energy-sector loan in the fourth quarter. This led to a net loss of $171.6 million or $3.37 per share in the fourth quarter compared to a net loss of $58.5 million or $1.16 per share in the prior year. Although Callidus did not name the borrower, it did state that it was located in a South American country wherein the military had assumed control of the state-run oil company. The country is suggested to be Venezuela.
For the full-year Callidus reported a net loss of $218.5 million compared to a $1.2 million net profit in 2016. Total revenues increased to $165.8 million compared to $160 million in the prior year. In mid-March Callidus announced a monthly dividend of $0.10 per share representing an 18.6% dividend yield.
Callidus leadership has stated that it will continue with a cautious approach going forward. The company has come under fire for the questionable strength of its loans and shares have fallen sharply from the previous year. It offers a substantial dividend yield, but after recent setbacks investors should steer clear as the company seeks to rebound following a disappointing end to 2017.
