CHICAGO, March 27, 2013 /PRNewswire/ -- The Female Health Company (NASDAQ-CM: FHCO), today announced that its Board of Directors has declared a quarterly cash dividend of $0.07 per share, which represents a 17% increase from the previous quarterly dividend payout of $0.06 per share. This will be the Company's 14 th consecutive quarterly dividend and is payable May 8, 2013 to stockholders of record as of May 1, 2013.
The Company also announced that it plans to increase the activity under its stock repurchase program. The Company's stock repurchase program authorizes the repurchase of up to three million shares of FHCO common stock. To date, the Company has repurchased approximately two million shares under the program, leaving approximately one million shares available for potential repurchase under the authorization. The program is currently due to expire on December 31, 2013.
"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's balance sheet remains debt-free. We believe that utilizing some of this excess cash flow to pay a higher rate of cash dividends is in the best interests of our shareholders. Increasing the activity under our stock repurchase program provides another alternative for the allocation of excess cash resources in a manner that directly benefits our shareholders."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 that continued payments of dividends is in the best interests of the Company and its shareholders.