CHICAGO, Jan. 3, 2013 /PRNewswire/ -- The Female Health Company (NASDAQ-CM: FHCO) today announced that its Board of Directors has declared a quarterly cash dividend of $0.06 per share. The dividend is payable February 6, 2013 to stockholders of record as of January 30, 2013. In January 2010, the Company announced the initiation of a cash dividend program and has subsequently paid twelve consecutive quarterly dividends.
The Board of Directors also extended the Company's stock repurchase program through December 31, 2013. The program was previously due to expire at the end of calendar year 2012 and has a repurchase cap of 3 million shares of common stock. The Company has repurchased approximately two million shares under the program, and approximately one million shares remain for potential repurchase.
"The Company's Board of Directors and management team believe that the payment of cash dividends allows shareholders to participate directly in the Company's success," stated O.B. Parrish, Chairman and Chief Executive Officer of The Female Health Company. "The Company's profitability has generated cash from operations that exceeds the Company's capital spending requirements, and the Company remains debt-free. We believe that utilizing some of this excess cash flow to pay cash dividends is in the best interests of our shareholders. Extending the stock repurchase program provides another alternative for allocation of excess cash resources."Any future quarterly dividends and the record date for any such dividends must be approved each quarter by the Company's Board of Directors and announced by the Company. Payment of future dividends is at the discretion of the Board of Directors, which will base its decisions on operating cash flows, capital spending and other cash requirements, and other factors that may affect whether or not it believes the continued payment of dividends is in the best interests of the Company and its shareholders.