Gentex Announces Increase in Quarterly Cash Dividend and Additional Share Repurchase Authorization
March 08 2019 - 8:00AM
Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital
vision, connected car, dimmable glass, and fire protection
products, today reported that its Board of Directors recently
authorized an increase of 5% to the quarterly cash dividend to
$0.115 (11.5 cents) per share.
Also, at its most recent meeting, the Board of Directors
authorized the purchase of an additional 25 million shares of its
common stock. This new share repurchase authorization is in
addition to those shares that were previously authorized for
repurchase. The Company may vary the level of share repurchases
from time to time, depending on macroeconomic issues, market trends
and other factors that the Company deems appropriate.
“In early 2018, we announced our first formal capital allocation
strategy, which included increased dividends and more consistent
share repurchases as an integral piece in the Company’s overall
strategy of creating value for shareholders. This recent board
approved increase in dividends and share repurchase authorization
is a logical next step in our capital allocation strategy,” said
Steve Downing, the Company’s President and CEO. “While the
automotive market certainly has some challenges, we are focused on
continuing our strategy to use the cash flow generated from our
technology platforms to invest in new product development, deploy
new equipment and processes, increase dividends, and continue our
significant share repurchase program, all of which are designed to
help the Company achieve above market returns.”
The next dividend will be paid at the new quarterly cash
dividend rate and will be payable on April 24, 2019 to shareholders
of record of the common stock at the close of business on April 10,
2019.
Safe Harbor for Forward-Looking StatementsThis
news release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The statements contained in this communication
that are not purely historical are forward-looking statements.
Forward-looking statements give the Company’s current expectations
or forecasts of future events. These forward-looking statements
generally can be identified by the use of words such as
“anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”,
“goal”, “hope”, “may”, “plan”, “project”, “will”, and variations of
such words and similar expressions. Such statements are subject to
risks and uncertainties that are often difficult to predict and
beyond the Company’s control, and could cause the Company’s results
to differ materially from those described. These risks and
uncertainties include, without limitation: changes in general
industry or regional market conditions; changes in consumer and
customer preferences for our products (such as cameras replacing
mirrors and/or autonomous driving); our ability to be awarded new
business; continued uncertainty in pricing negotiations with
customers; loss of business from increased competition; changes in
strategic relationships; customer bankruptcies or divestiture of
customer brands; fluctuation in vehicle production schedules;
changes in product mix; raw material shortages; higher raw
material, fuel, energy and other costs; unfavorable fluctuations in
currencies or interest rates in the regions in which we operate;
costs or difficulties related to the integration and/or ability to
maximize the value of any new or acquired technologies and
businesses; changes in regulatory conditions; warranty and recall
claims and other litigation and customer reactions thereto;
possible adverse results of pending or future litigation or
infringement claims; changes in tax laws; import and export duty
and tariff rates in or with the countries with which we conduct
business; and negative impact of any governmental investigations
and associated litigations, including securities litigations
relating to the conduct of our business. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date they are made. The Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law or the rules of the NASDAQ
Global Select Market. Accordingly, any forward-looking statement
should be read in conjunction with the additional information about
risks and uncertainties identified under the heading “Risk Factors”
in the Company’s latest Form 10-K and Form 10-Q filed with the
SEC.
About the CompanyFounded in 1974, Gentex
Corporation (The NASDAQ Global Select Market: GNTX) is a
leading supplier of digital vision, connected car, dimmable glass
and fire protection technologies. Visit the Company’s web site
at www.gentex.com.
Contact Information:Gentex Investor & Media ContactJosh
O'Berski(616)772-1590 x5814
Gentex (NASDAQ:GNTX)
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