Glacier Declares Initial Semi-Annual Dividend
Vancouver, B.C., March 30, 2011 – The board of directors of Glacier Media Inc. (“Glacier” or the “Company”) announced today that it has declared the payment of a cash dividend of $0.03 per common share payable to shareholders of record on July 15, 2011. The dividend will be paid on or about August 1, 2011. This declaration reflects the initial dividend of a new policy whereby the board of directors expects to declare an annual dividend of $0.06 per common share, payable semi-annually.
On an annualized basis, the dividend represents a yield of approximately 2.5% based upon the current market trading price of Glacier common shares.
The dividend is consistent with Glacier’s ongoing objective of maximizing shareholder value and related return on investment for shareholders. Glacier has reached a stage where it is generating sufficient cash flow from operations and has available financial capacity to pursue and internally finance acquisition opportunities, invest in operations as required, repurchase its shares as deemed attractive, and introduce payment of a dividend.
Glacier’s operations demonstrated strong resilience both before and during the recession and have since resumed growth in both revenue and profitability, as indicated by the Company’s 2010 year-end results which were released separately today. Sustaining capital expenditure requirements remain low. The Company is reviewing a number of attractive acquisition opportunities and more such opportunities are expected to arise given the apparent phase of the business cycle that the Company’s operations are in.
The amount of the dividend is such that the Company can continue to pursue growth and value creation opportunities while returning some capital to shareholders on an ongoing basis. As growth is achieved, the amount of the dividend will be reviewed going forward.
The dividend is an eligible dividend for Canadian tax purposes.
Shares in Glacier can be traded on the Toronto Stock Exchange under the symbol GVC.
For further information please contact Mr. Orest Smysnuik, Chief Financial Officer, at 604-708-3264.
About the Company: Glacier Media Inc. is an information communications company focused on the provision of primary and essential information and related services through print, electronic and online media. Glacier is pursuing this strategy through its core businesses: the local newspaper, trade information and business and professional information markets.
Forward Looking Statements
This news release contains forward-looking statements that relate to, among other things, the Company’s objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates. These forward-looking statements include, among other things, statements relating to the Company’s intention to pay dividends, pursue acquisitions and repurchase shares. These forward looking statements are based on certain assumptions, including continued economic recovery and the realization of cost savings, available financial resources and the declaration of future dividends by the Board of Directors and are subject to risks, uncertainties and other factors which may cause results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, and undue reliance should not be placed on such statements.
Important factors that could cause actual results to differ materially from these expectations are listed in the Company’s Annual Information Form under the heading “Risk Factors” and in the Company’s MD&A under the heading “Business Environment and Risks”, many of which are out of the Company’s control. These factors include, but are not limited to, the ability of the Company to sell advertising and subscriptions related to its publications, foreign exchange rate fluctuations, the seasonal and cyclical nature of the agricultural industry, discontinuation of Department of Canadian Heritage, Canada Periodical Fund, general market conditions in both Canada and the United States, changes in the prices of purchased supplies including newsprint, the effects of competition in the Company’s markets, dependence on key personnel, integration of newly acquired businesses, technological changes, and financing and debt service risk.
The forward-looking statements made in this news release relate only to events or information as of the date on which the statements are made. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.