Clarke Inc. Announces Special Dividend and Adopts New Dividend Policy

About this update from Clarke Inc.

[{"type":"text","content":"\n\n\n\nClarke Inc. Announces Special Dividend and Adopts New Dividend Policy\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nClarke Inc. Announces Special Dividend and Adopts New Dividend Policy\nCanada NewsWire\nHALIFAX, June 10, 2016\n\n\n\nHALIFAX, June 10, 2016 /CNW/ - Clarke Inc. (\"Clarke\" or the \"Company\") (TSX: CKI) announces that it has adopted a new dividend policy.\n\nRegular Dividend\n\nIn August 2012, Clarke introduced a quarterly dividend of $0.06 per share and subsequently increased its quarterly dividend to $0.08 per share and then $0.10 per share. Clarke's quarterly dividend has remained at $0.10 per share since September 2013, implying an annualized dividend of $0.40 per share. Since the introduction of the dividend, Clarke has returned a total of $25.4 million to shareholders by way of dividends (inclusive of the previously declared July 15, 2016 dividend payment). \n\nDuring much of the period Clarke has paid a dividend, Clarke funded such dividend through internally generated cash flows, including from its former Freight Transportation business. In recent quarters, Clarke has elected to deploy capital in several investments that do not generate recurring cash flow and has also elected to retain a considerable amount of capital in the form of cash pending more attractive investment opportunities. As a result of these investment allocation decisions, Clarke's internally generated cash flow has been insufficient to fully fund recent dividend payments with the result that a portion of Clarke's dividend payments have been funded from Clarke's cash balances.\n\nClarke's board of directors has, therefore, determined to cease paying a regular quarterly dividend. The previously announced first quarter dividend payment (declared on May 5, 2016 and to be paid on July 15, 2016) will be Clarke's last regular quarterly dividend payment. \n\nSpecial Dividend\n\nFollowing the sale of various investments in 2013 and 2014, Clarke has held a considerable amount of cash on hand pending the identification of more attractive investment opportunities. The Company conti...

More updates from Clarke Inc.