The Directors of Wolverine World Wide, Inc. have declared a quarterly cash dividend of 6.5 cents per share of common stock. The dividend is payable on February 1, 2006, to stockholders of record on January 2, 2006. The dividend is equal to the last quarterly dividend and represents a 26 cents per share annual dividend.
The Company also announced that its Board of Directors authorized the repurchase of an additional three million shares of common stock, reflecting confidence in the Company's growth prospects. Share repurchases are authorized to be made over a two-year period at times and amounts considered appropriate by the Company based on factors including price and market conditions. Since 2000, the Company has repurchased approximately 12 million shares (split adjusted) pursuant to four previously approved repurchase programs.
“Our active stock buyback program and continued dividend payout underscore the confidence we have in our business model, which is based on a portfolio of strong global brands,” said Timothy J. O'Donovan, Chairman and CEO. “We continue to consistently generate solid operating results and significant cash flow. This permits us to invest in new business initiatives, such as Patagonia Footwear and Merrell Apparel, while continuing our share repurchase activities and twelve-year record of increasing dividends.”
The Company also intends to repatriate foreign earnings to take advantage of tax relief under the American Jobs Creation Act of 2004. The Board of Directors has approved a one-time repatriation of approximately $41.5 million in 2005. The impact of this transaction will increase income taxes by approximately $1.4 million ($.025 per share) in the fourth quarter of 2005.
Additionally, the Board of Directors accelerated the vesting of employee stock options awarded under the Company's stock incentive plans. As a result of this action, options to purchase approximately one million shares of common stock became exercisable immediately, effective December 13, 2005. Additional information relating to this action is available in the Company's Form 8-K filed with the Securities and Exchange Commission. Following this accelerated vesting, the Company expects the implementation of Financial Accounting Standards Board Statement No. 123®, equity based compensation, to reduce the Company's earnings per share by $.04 to $.05 in 2006.
