Chemed Declares Fourth Quarter Dividend of 53 Cents and Announces Change in Future Dividend Policy, Coupled with Exchange Offer for High-Yielding Convertible Trust Preferred.CINCINNATI--(BUSINESS WIRE)--Nov. 3, 1999-- Chemed Corporation (NYSE NYSE See: New York Stock Exchange :CHE) announced today that the Board of Directors has declared a quarterly cash dividend of 53 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on its capital stock, payable December 10, 1999, to stockholders of record on November 19, 1999. The Board also adopted a new dividend policy for the Year 2000 and beyond. The Board expects to declare quarterly dividends in 2000 in the range of 10 cents per share, down from the current rate of 53 cents. Commenting on the change in dividend policy, Chemed Chairman and Chief Executive Officer Edward L. Hutton said, "The issue of the proper rate of dividends on Chemed stock has been a perplexing per·plex tr.v. per·plexed, per·plex·ing, per·plex·es 1. To confuse or trouble with uncertainty or doubt. See Synonyms at puzzle. 2. To make confusedly intricate; complicate. one since the early 1990s when the DuBois Chemicals subsidiary was sold. Since that time, Chemed has maintained a slightly increasing annual dividend payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. while repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. its assets dramatically, as a growth-oriented provider of essential services through our Roto-Rooter Inc., Service America Systems Inc., and Patient Care Inc. subsidiaries. "At this time, exceptional proven internal opportunities are available within the Chemed subsidiaries to aggressively build their respective businesses. Roto-Rooter, alone, expects to complete several large franchise repurchases within the next three months requiring an investment exceeding $12 million. Furthermore, Service America and Patient Care are pursuing several exciting acquisition opportunities. "Clearly, the investment opportunities available to Chemed have helped the company to achieve a 35 percent increase in core earnings through the first nine months of 1999, and with the new dividend policy, we hope to take full advantage of the growth possibilities that are within our grasp." The Board of Directors also adopted a plan to commence, as soon as practicable practicable adj. when something can be done or performed. , an exchange offer for a new class of high-yielding convertible trust preferred. Commenting on this plan, Mr. Hutton said, "The Board realizes that some Chemed stockholders embrace both confidence in our growth possibilities, along with a desire for a high current cash return on investment. Accordingly, the company is preparing an exchange offer under which shareholders may exchange up to a total of two million shares of common stock for shares in convertible trust preferred. The convertible trust preferred will have an annual cash payout of approximately $2.00 per share and will be convertible into Chemed common stock at an appropriate conversion premium. A detailed description of the exchange offer will be mailed to each stockholder as soon as practicable. "I am confident that the Board has hit on a winning combination of increasing the company's commitment to an already succeeding growth strategy, while giving our current yield-oriented stockholders an opportunity to maintain their high yield with an appropriate participation in the upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar of our various businesses," concluded Mr. Hutton. Chemed Corporation (www.chemed.com), headquartered in Cincinnati, is a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Stock Exchange-listed corporation with strategic positions in plumbing plumbing, piping systems inside buildings for water supply and sewage. The Romans had a highly developed plumbing system; water was brought to Rome by aqueducts and distributed to homes in lead pipes—hence the name plumbing from the Latin word plumbum and drain cleaning; home healthcare services; and residential appliance and air-conditioning repair. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion