VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2013) - The board of directors of GVIC Communications Corp. (TSX:GCT)(TSX:GCT.C) ("GVIC" or the "Company") announced today that it has adopted a new dividend policy whereby it intends to increase the dividend on its shares to $0.024 annually, payable on a quarterly basis. As a result, the board has declared the payment of a quarterly cash dividend of $0.006 per share payable to shareholders of record of Class B voting common shares and Class C non-voting shares on March 15, 2013. The dividend will be paid on April 5, 2013. The new dividend represents a 33% increase from the previous dividend policy of $0.018 annually.
On an annualized basis, the dividend represents a yield of approximately 4.8% based upon the current market trading price of GVIC's voting common shares and approximately 6.0% based upon the current market trading price of GVIC's Class C non-voting shares.
The new dividend policy is consistent with GVIC's ongoing objective of maximizing shareholder value and related return on investment for shareholders. GVIC generates sufficient cash flow from operations and has available financial capacity to pursue and internally finance acquisition opportunities, invest in operations as required, maintain debt at prudent levels, and pay the increased dividend.
Many growth opportunities continue to be available to GVIC, both organically and through acquisition. While economic conditions have been weak over the past year, the Company's cash flow remains strong, and prospects for future growth in cash flow remain attractive. As such, an increasing portion of GVIC's cash flow can be returned to shareholders in the future through increased dividends while still maintaining ample funding capacity for growth initiatives.
The dividend is an eligible dividend for Canadian tax purposes.
Shares in GVIC can be traded on the Toronto Stock Exchange under the symbol GCT.
About the Company: GVIC Communications Corp. is an information communications company focused on the provision of primary and essential information and related services through print, electronic and online media. GVIC is pursuing this strategy through its core businesses: the local newspaper, trade information and business and professional information markets.
Forward Looking Statements
This news release contains forward-looking statements that relate to, among other things, the Company's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates. These forward-looking statements include, among other things, statements relating to the Company's intention to pay dividends, pursue acquisitions and repurchase shares. These forward looking statements are based on certain assumptions, including continued economic recovery and the realization of cost savings, available financial resources and the declaration of future dividends by the Board of Directors and are subject to risks, uncertainties and other factors which may cause results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, and undue reliance should not be placed on such statements.
Important factors that could cause actual results to differ materially from these expectations are listed in the Company's Annual Information Form under the heading "Risk Factors" and in the Company's MD&A under the heading "Business Environment and Risks", many of which are out of the Company's control. These factors include, but are not limited to, the ability of the Company to sell advertising and subscriptions related to its publications, foreign exchange rate fluctuations, the seasonal and cyclical nature of the agricultural industry, discontinuation of Department of Canadian Heritage, Canada Periodical Fund, general market conditions in both Canada and the United States, changes in the prices of purchased supplies including newsprint, the effects of competition in the Company's markets, dependence on key personnel, integration of newly acquired businesses, technological changes, and financing and debt service risk.
The forward-looking statements made in this news release relate only to events or information as of the date on which the statements are made. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.