(Updated - May 1, 2020 7:05 AM EDT)

Compliance Systems Corporation (NASDAQ: OPI) reported Q1 EPS of $0.23, $0.33 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $149.89 million versus the consensus estimate of $155.07 million.

David Blackman, President and Chief Executive Officer of OPI, made the following statement:

“OPI continues to actively monitor the COVID-19 pandemic and resulting impact on our business, stakeholders and communities. We believe the near term impact to our company will not be material due to the strength of our tenant base, with approximately 62.2% of annualized rental income paid by investment grade tenants. More than half of our annualized rental income comes from tenants in essential industries like government, technology and communications, while we have minimal exposure to at risk industries, like retail, food service and office co-working. To date we have granted rent assistance to tenants representing approximately 70 basis points of contractual rents over the period of April through July 2020. Typically rent assistance provides for a 30 day rent deferral that will be repaid over 12 months beginning in the fall of 2020.

Along with our portfolio stability, we believe that our liquidity and low leverage provide safety for our business as we navigate through these uncertain economic times. As announced last month, we were pleased to maintain our regular distribution to shareholders. In addition, today we announced a 56.1% CAD payout ratio for the first quarter, providing cushion to our current distribution as we manage our capital expenditures for the remainder of the year. We have approximately $395 million available under our unsecured revolving credit facility and no significant debt maturities until 2022. Additionally, we sold $85.4 million of properties in the first quarter, maintaining leverage below our target range. Given the current economic conditions, we are carefully considering our capital allocation strategy and believe our company is well positioned to opportunistically deploy capital during 2020.”

For earnings history and earnings-related data on Compliance Systems Corporation (OPI) click here.