Oakley, Inc. announced that its Board of Directors had initiated an annual dividend policy and declared the Company's initial regular annual cash dividend of $0.14 per share, payable October 31, 2003, to shareholders of record at the close of business on October 15, 2003. Any future dividends are at the discretion of and subject to the approval of Oakley's Board of Directors.
“In light of the recent tax law changes that provide investors with the same federal tax rates for share appreciation and dividends, and given our sound cash flow generating business model, we believe it is appropriate to return value to our shareholders by commencing a regular annual dividend. Additionally, we expect to continue returning value to our shareholders through our share repurchase program,” commented Chief Operating Officer Link Newcomb.
“We view the declaration of a dividend as another way for Oakley to deliver value to shareholders. Our business strategy has resulted in solid cash flows, a strong market position, and what we believe is a sustainable business model. We remain excited about our continued potential for growth and believe that initiation of a cash dividend will make Oakley stock attractive to a broader range of investors as we continue to build value for customers, employees and shareholders,” Newcomb concluded.
As of June 30, 2003, cash and equivalents totaled $21.1 million, short-term debt totaled $15.0 million and long-term debt totaled $13.9 million. On September 10, 2002, the company's Board of Directors authorized the repurchase of up to $20 million of the company's stock, to occur from time to time as market conditions warrant. Since then, the company has repurchased 829,600 shares for $8.6 million at an average share price of $10.37. The company intends to continue to make repurchases under the outstanding share repurchase program at appropriate times.
