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Vizrt Ltd. announces dividend distribution
Vizrt Ltd. decides for ordinary net dividend payout of NOK 0.66 (USD 0.12) and additional special net dividend pay-out of NOK 1.68 (USD 0.29) per share, due to strong cash generation
Martin Burkhalter, CEO of Vizrt, stated, "We believe the proposed special dividend, in addition to the ordinary dividend, is an appropriate use of funds in a time where we continue to have strong cash generation. In this way, shareholders will participate in the operational performance of the Company, which continues to benefit from our undisputed leadership in the market. Following the distribution, we retain a strong balance sheet and continue to have the financial resources for implementation of our growth strategy. We also retain ample funds to pursue opportunities in the market as they may arise."
Gross ordinary dividend will be NOK 0.79 (USD 0.14) per outstanding share, for a total of approximately NOK 53.1 million (USD 9.24 million). The Company shall withhold 16% tax at source, with the tax withholding level based on the sources of funds for distribution. The net dividend to be received per ordinary share of the Company shall be NOK 0.66 (USD 0.12). In 2012, Vizrt has paid a net dividend of NOK 0.69 (approx. USD 0.12 based on exchange rate as of March 15, 2012) per share, amounting to a total of NOK 57.0 million (USD 10.2 million).
The ordinary cash dividend will be payable on May 3, 2013 to shareholders of record as of the close of the Oslo Børs on April 25, 2013. The shares will trade ex-dividend from and including April 23, 2013.
This year's ordinary dividend equals two thirds of Vizrt's 2012 normalized profits, at the upper limit of the range provided for in the Company's dividend policy.
In addition, the Board of Directors has resolved, to file for a capital reduction approval from the Israeli District Court for the distribution of an additional special dividend, in a gross amount of approximately NOK 143.6 million (USD 25.0 million). After corporate tax, approximately NOK 133.0 million (USD 23.2 million) shall remain for distribution to the shareholders, representing a special dividend of NOK 1.99 (USD 0.35) per share. As for the ordinary dividend, the tax withholding of 16% is based on the sources of funds for distribution, resulting in a net dividend to be received of NOK 1.68 (USD 0.29) per common share. The amount in NOK is based on the exchange rate as of April 17, 2013.
The proposed special dividend distribution does not meet the Profits Test, as defined under the Israeli Companies Law, and accordingly is subject to the approval of the Israeli District Court. Upon the approval of the application by the Israeli District Court, the Company shall provide all relevant information, including the applicable record date and distribution date of the additional dividend.
Copyright © Vizrt. All rights reserved. This press release contains forward-looking statements with respect to the business, financial condition and results of operations of Vizrt and its affiliates. These statements are based on the current expectations or beliefs of Vizrt's management and are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company's concentration on one industry, decline in demand for the company's products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. Vizrt undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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