RF Industries (NASDAQ:RFIL)
announced today that its Board of Directors has declared a doubling of the Company's regular quarterly cash dividend from $0.025 per common share to $0.05 per common share. The regular quarterly cash dividend will be payable October 17, 2011 to shareholders of record on September 30, 2011.
RFI also announced today that its Board of Directors has also declared a special one-time cash dividend of $0.25 per common share, payable on September 1, 2011 to shareholders of record on August 15, 2011.
Howard Hill, RFI's CEO, said, "In light of the acquisition of Cables Unlimited, its anticipated cash flow, the continuing growth of our businesses and the historically low interest income earned on our cash, the Board of Directors concluded that, at least for the foreseeable future, our shareholders should benefit from RFI's strong cash position through an increase in the Company's dividend rate."
James Doss, RFI's President and CFO, said, "After our acquisition of Cables Unlimited last June 15, 2011 for $5.6 million, only $2.8 million of which was in cash, the Board decided to return to shareholders, via a special one-time cash dividend, a portion of those excess cash balances which are not anticipated to be necessary for acquisitions or operations in the near future. These funds were accumulated under the assumption that the Company would be required to finance a significant acquisition in cash. RFI's current acquisition candidates and investment opportunities do not require such large cash balances."
At May 31, 2011, RFI reported cash and cash equivalents of $4,607,000 and investments in short and long-term certificates of deposits of $5,624,000 for a total of $10,231,000 in liquid, short-term and long-term capital resources. The Company anticipates that liquid short-term and long-term capital resources, after the Cables Unlimited acquisition and related expenses, but prior to the distribution of the special cash dividend, will be approximately $8.0 million. RFI currently has approximately 7,001,000 shares outstanding.