FT. LAUDERDALE, Fla.
March 16, 2012
SMF ENERGY CORPORATION
(Nasdaq: FUEL), a leading energy logistics company, today announced that, in light of a substantial reduction in projected sales revenue and earnings for the current fiscal quarter and future periods, its Board of Directors has determined to suspend the Company's quarterly dividend program until further notice. The Company's lower revenue and earnings are also expected to cause the Company to reverse its prior recognition as income, in the quarter ended
December 31, 2011
, of a realizable net deferred tax asset of approximately
. The Company now expects to report a loss for the quarters ending
March 31, 2012
June 30, 2012
, and for the year ending
June 30, 2012
The anticipated reduction in sales revenue results from necessary changes to the Company's pricing structure. The Company is seeking to mitigate the adverse impact on revenue and earnings by instituting significant expense reductions and revenue enhancement measures but does not believe that those measures will be sufficient to offset the revenue and earnings downturn in the foreseeable future. The Company is also considering an overhaul of its business model to permit it to drastically reduce its back office and interest expense in order to better match the Company's total expenses with its revenues.
The Company's Board of Directors has appointed a committee to examine the discontinued pricing structure and will report its findings to the shareholders when that examination is complete. Resumption of the dividend program, however, is unlikely in the foreseeable future but the Board will continue to evaluate all available means of providing additional value to its shareholders.
The Company also announced that
Mark W. Smith
, who first joined the Board as an outside Board member on
February 7, 2012
, has submitted his resignation. While the Company is grateful to Mr. Smith for his service, however brief, on the Board and on the Audit Committee, it acknowledges the unfairness of burdening him with the additional time and effort that Board service will entail over the next several months as the Board seeks to offset the anticipated downturn in revenue and earnings.
ABOUT SMF ENERGY CORPORATION (NASDAQ: FUEL)