Thomasville / GA. (ff) The board of directors of Flowers Foods Inc. announced a quarterly dividend of 0,175 USD per share, or 0,70 USD per share on an annualized basis. This represents an increase of 17 percent over the dividend paid previously. The dividend is payable in early July to shareholders of record on June 19, 2009.
George E. Deese, Flowers Foods´ chairman of the board, CEO and president, said the board has a confident view of the company´s future performance even in the midst of economic pressure. «The board believes Flowers Foods is in an excellent position to reward our shareholders with an increased dividend, allowing our investors to participate in the company’s success», he said.
Flowers Foods also has a share repurchase program that authorizes the company to repurchase up to 30 million shares of Flowers Foods common stock. Since 2002, the company has steadily repurchased shares, investing 326,1 million USD in the repurchase of 21,8 million shares. During the first quarter of 2009, the company acquired 944’591 shares of its stock for 21,6 million USD, an average of 22,88 USD per share. Depending on market conditions, the company will continue to repurchase shares on the open market or through privately negotiated transactions. Today, the company has the authority to purchase an additional eight million shares under the share repurchase program. The dividend increase and the share repurchase program are consistent with Flowers Foods´ strategy to create shareholder value over the long term.
Deese said the company will continue to invest its cash to build value for shareholders. «Our business continues to generate substantial cash flow that funds dividends to our shareholders, capital improvements, debt reduction and share repurchases as well as growth through market expansion and strategic acquisitions. Our balance sheet is strong and our operating strengths are evident. We anticipate delivering good results in 2009 and in the years ahead», Deese said.
Some days ago the company announced results for the first quarter of 2009, reporting that sales increased 19,3 percent over last year´s first quarter and that sales of branded products were up 14,8 percent. Solid earnings also were reported for the quarter. Net cash provided by operating activities remained strong at 58,3 million USD for the quarter. The company invested 14,9 million USD in capital expenditure projects during the quarter.
