Spectrum Brands Holdings, Inc. (NYSE: SPB), a diversified and global consumer products company with market-leading brands, announced today that its Board of Directors approved plans to initiate a regular quarterly common stock dividend starting in fiscal 2013 of $0.25 per share and has declared a one-time, special dividend of $1.00 per share.
Beginning in fiscal 2013, the Company anticipates paying a quarterly dividend in March, June, September and December of each year.
The one-time, special dividend will be paid on Tuesday, September 18, 2012 to shareholders of record as of close of business on Monday, August 27, 2012.
“The initiation of a dividend is in recognition of our Company’s strong, consistent and ongoing ability to generate free cash flow. It also reinforces our commitment to deliver attractive returns to our shareholders,” said Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings. “Going forward, we expect to utilize our cash flow to fund our regular dividend, further reduce leverage and make accretive, value-enhancing acquisitions. In future years after 2013, we expect to evaluate the opportunity to increase our dividend based on the growth of our free cash flow.”
Mr. Lumley continued, “The payment of a one-time, special dividend is in recognition of our strong results in 2012 and meant to allow shareholders to receive a dividend in 2012 that is equivalent to our planned quarterly dividend in 2013. We do not anticipate, and investors should not expect, payment of a special dividend in future years.”
David Maura, Chairman of Spectrum Brands Holdings, commented, “The actions the Company has announced today represent an important milestone for Spectrum Brands and reflect Spectrum Brands’ achievements to transform itself into a financially disciplined company focused on delivering value to its shareholders. Specifically, the Company has demonstrated a consistent ability to generate cash flow, has built a strong balance sheet and has proven its ability to grow the business profitably.” Mr. Maura added, “Initiation of a dividend is evidence of our focus on ensuring shareholders realize value from a total return perspective.”