Outdoor Channel Issues One-Time Dividend

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Shareholders of Outdoor Channel Holdings stock got an early Christmas present from management Thursday, after the company issued a 25 cents-per share special dividend.
The outdoor lifestyle network said the dividend is a one-time offering and is being made because of its strong financial performance. In the first nine months of 2011, revenue is down 16% to $48.3 million, but cash flow is up 3.5% to $2.9 million and the programmer reported net income of $390,000 compared to a loss of $229,000 last year. Outdoor has also maintained it cash levels compared to 2010. As of Sept. 30, Outdoor Channel had current assets -including $28.1 million in cash - worth about $86.7 million, compared to $87.3 million at the end of 2010.
With about 25.6 million shares outstanding, the dividend will cost the channel about $6.4 million. The distribution will be payable on Dec. 30, to shareholders of record as of Dec. 24, Outdoor Channel said in a statement.
"Our strong financial condition gives us the opportunity to once again reward our stockholders for their ongoing support," Outdoor CEO Roger Werner said in a prepared statement. "We continue to have a healthy balance sheet and believe this distribution is an appropriate use of our capital. In the coming year we are looking forward to increased investment in our franchise and its category leadership position."
This is the second year in a row that Outdoor has issued a special dividend. In 2010 I also distributed 25 cents per share to stockholders
According to Street Insider, the dividend yield is about 3.6%, making it one of the better cash return offerings in the industry. For example, according to the Wall Street Journal online, Time Warner Cable's $1.92 per share annual dividend represents a 3.1% yield and Comcast's 45-cent per share annual payout represents a 1.92% yield.

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