Bando McGlocklin declares special dividend.PEWAUKEE, Wis.--(BUSINESS WIRE)--Dec. 20, 1996--Directors of Bando McGlocklin Capital Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BMCC BMCC bulk milk cell counts. ) today declared a special dividend of approximately $0.50 per share, payable December 31, 1996, to stockholders of record December 20. George R. Schonath, chairman and chief executive officer, said the timing and size of the dividend result from the restructuring of the company as a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ), which was approved at the annual meeting of shareholders Wednesday. "The special dividend replaces our quarterly dividend that traditionally is paid January 31," said Schonath. "It is larger than past dividends because it distributes a built-in gain from our investment in the Lee Middleton Original Doll Company, Inc. As a result of our decision to become a REIT as of January 1, 1997, we are required to recognize and distribute the gain for tax purposes before the end of 1996." The company cautioned that the special dividend should not be confused with the operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report for the quarter ending December 31, 1996, and investors should not expect that reported income will bear a relationship to the amount of the special dividend. "Because the company is required to distribute the dividend prior to year-end, an adjustment may be required in 1997 following the December 31, 1996, audit," said Schonath. "The adjustment could result in a reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. for tax purposes of a small portion of the dividend as a return of capital or a small dividend early in the first quarter of 1997." Bando McGlocklin acquired its investment in the Lee Middleton Original Doll Company of Belpre, Ohio Belpre is a city in Washington County, Ohio, United States, along the Ohio River. It is a suburb of Parkersburg, West Virginia. The population was 6,660 at the 2000 census. The city was also the second settlement of the Northwest Territory after Marietta, Ohio. , on January 1, 1993, following a bankruptcy reorganization of the Ohio company. "The special dividend reflects the increase in the fair market value of our investment," said Schonath. Founded in 1980, Bando McGlocklin Capital Corporation and its subsidiaries provide long-term secured loans to finance the growth, expansion and modernization of small businesses in Wisconsin and the Midwest. -0- Company news is available 24 hours a day on-line at: http://www.businesswire.com/cnn/bmcc.htm CONTACT: Bando McGlocklin Capital Corporation George R. Schonath or Susan Hauke, 414/523-4300 |
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