Communications Systems (JCS) Lowers Quarterly Dividend 75% to $0.04; Enters Amended, Restated Credit Agreement
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Communications Systems (NASDAQ: JCS) declared a quarterly dividend of $0.04 per share, or $0.16 annualized. This is a 75% decrease from the prior dividend of $0.16.
The dividend will be payable on October 3, 2016, to stockholders of record on September 15, 2016, with an ex-dividend date of September 13, 2016.
The annual yield on the dividend is 2.3 percent.
The Company also announced that it has signed an amended and restated credit agreement, replacing a note that matures on November 1, 2016. Under this agreement, the Company has expanded its line of credit from $10 million to $15 million. Also, in addition to other cost cutting initiatives recently announced by the Company, the Board of Directors authorized a number of expense reduction measures, including a reduction in compensation paid to non-employee directors.
“We remain committed to returning cash to our shareholders while maintaining financial flexibility to invest in new product development and the growth of our businesses. Our new product sales have grown significantly over the past year and we aim to build on this success by continuing to invest in the business. We are pursuing a number of compelling opportunities that we believe will accelerate new product sales, deliver strong ROI and enhance long-term shareholder value,” commented Roger H.D. Lacey, Chief Executive Officer of CSI.
“Based on recent trades in the Company’s common stock in the last week, the declared dividend of $0.04 per share represents an annual yield of approximately 2.3%, which is in excess of the average yield of our industry peers. The $4.2 million in annualized cash savings generated by the reduction to our quarterly cash dividend, combined with the $5 million increase in our available credit line, will allow us to fund our growth plan while protecting our strong balance sheet,” Mr. Lacey concluded.
For a dividend history and other dividend-related data on Communications Systems (JCS) click here.
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