LOVELAND, Colo., Feb. 24, 2012 /PRNewswire/ -- Heska
Corporation (NASDAQ: HSKA), a provider of advanced veterinary
diagnostic and other specialty veterinary products, today announced
that its board of directors has declared a cash dividend of
$0.10 per share to its stockholders.
The dividend payment will be distributed on April 10, 2012 to stockholders of record as of
March 30, 2012. The Company
intends to pay a regular quarterly dividend of $0.10 per share to its stockholders for the
foreseeable future at the discretion of the board of directors
considering available cash, anticipated cash needs, overall
financial condition, loan agreement restrictions, future prospects
for earnings and cash flows, anticipated tax treatment as well as
other relevant factors.
Dr. Robert Grieve, Heska's
Chairman and CEO, commented, "As we discussed during the last
conference call, the board of directors has been considering the
use of our growing cash reserves. After careful consideration
and evaluation of various options, the board has concluded that a
meaningful dividend is most appropriate. To that end, the
Company is paying what is expected to be its first installment of a
quarterly dividend of 10 cents
($0.10) per share. While there
are no guarantees of future performance or dividends, we believe
that we are adopting a sustainable program that will substantially
benefit our shareholders going forward."
The factors the board considered in making this decision
included, but were not limited to:
- The Company's cash position continues to grow at a pace
management believes will support a regular dividend to
our shareholders. Cash at the end of the fourth quarter was
$6.3 million.
- A dividend of $0.10 per share per
quarter would provide a yield well above the current yield on cash
investments such as certificates of deposit and money market funds,
which the board believes will serve to reward loyal stockholders
and promote positive market perceptions of our stock,
attracting new investors. At a share price of $8.35, a quarterly dividend of this magnitude
would amount to a dividend of $0.40
per share per year, resulting in a yield of 4.79%.
- The board believes a dividend at this level would require less
cash than the Company's projected cash flow, so the board expects
to continue adding to cash reserves.
About Heska
Heska Corporation (NASDAQ: HSKA) sells advanced veterinary
diagnostic and other specialty veterinary products. Heska's
state-of-the-art offerings to its customers include diagnostic
instruments and supplies as well as single use, point-of-care
tests, pharmaceuticals and vaccines. The Company's core focus
is on the canine and feline markets where it strives to provide
high value products and unparalleled customer support to
veterinarians. For further information on Heska and its
products, visit the company's website at www.heska.com.
Forward-Looking Statements
This announcement contains forward-looking statements
regarding Heska's future financial and operating results. These
statements are based on current expectations and are subject to a
number of risks and uncertainties. Investors should note that there
is an inherent risk in using past results, including trends, to
predict future outcomes. In addition, factors that could affect the
business and financial results of Heska generally include the
following: uncertainties regarding Heska's ability to sustain or
successfully implement a routine quarterly cash dividend;
uncertainties related to Heska's ability to maintain a given level
of profitability, or profitability at all; uncertainties regarding
the future tax treatment of dividends and the perceived
desirability of continuing to pay a dividend under various tax
structures which may be implemented through government action or
inaction; uncertainties related to the willingness of new investors
to invest in or existing investors to hold Heska's stock based on
dividend payments; uncertainties related to potential volatility in
Heska's share price, including but not limited to a significant
price decline resulting from heavy selling volume on any given day;
uncertainties regarding Heska's reliance on third parties to whom
Heska has granted substantial marketing rights to certain of
Heska's existing products and who may be large Heska customers,
including Schering-Plough Animal Health Corporation which has
exclusive rights to our heartworm preventive in the United States; uncertainties regarding
Heska's ability to successfully market and sell its products in an
economically sustainable manner; risks related to Heska's reliance
on third parties to develop certain of Heska's future products;
uncertainties regarding Heska's ability to successfully
commercialize new products; risks regarding Heska's reliance on
third-party suppliers such as minimum purchase requirements, which
could have a significant adverse impact on Heska's financial
position; competition; and the risks set forth in Heska's filings
and future filings with the Securities and Exchange Commission,
including those set forth in Heska's Quarterly Report on Form 10-Q
for the quarter ended September 30,
2011.
SOURCE Heska Corporation