Business News
Glacier Declares Initial Semi-Annual Dividend
Thursday 31. March 2011 - The board of directors of Glacier Media Inc. ("Glacier" or the "Company") (TSX:GVC) announced today that it has declared the payment of a cash dividend of $0.03 per common share payable to shareholders of record on July 15, 2011. The dividend will be paid on or about August 1, 2011. This declaration reflects the initial dividend of a new policy whereby the board of directors expects to declare an annual dividend of $0.06 per common share, payable semi-annually.
On an annualized basis, the dividend represents a yield of approximately 2.5% based upon the current market trading price of Glacier common shares.
The dividend is consistent with Glacier’s ongoing objective of maximizing shareholder value and related return on investment for shareholders. Glacier has reached a stage where it is generating sufficient cash flow from operations and has available financial capacity to pursue and internally finance acquisition opportunities, invest in operations as required, repurchase its shares as deemed attractive, and introduce payment of a dividend.
Glacier’s operations demonstrated strong resilience both before and during the recession and have since resumed growth in both revenue and profitability, as indicated by the Company’s 2010 year-end results which were released separately today. Sustaining capital expenditure requirements remain low. The Company is reviewing a number of attractive acquisition opportunities and more such opportunities are expected to arise given the apparent phase of the business cycle that the Company’s operations are in.
The amount of the dividend is such that the Company can continue to pursue growth and value creation opportunities while returning some capital to shareholders on an ongoing basis. As growth is achieved, the amount of the dividend will be reviewed going forward.
The dividend is an eligible dividend for Canadian tax purposes.
Shares in Glacier can be traded on the Toronto Stock Exchange under the symbol GVC.