Pacer International Declares First Quarterly Cash Dividend
September 07 2005 - 8:00AM
Business Wire
Pacer International, Inc. (Nasdaq:PACR) today announced that its
board of directors declared its first-ever quarterly dividend of
$0.15 per share of common stock and approved a dividend policy that
anticipates an annual dividend of $0.60 per share of common stock,
payable in four quarterly increments of $0.15 per share. "Declaring
a dividend demonstrates the board's confidence in the company's
continued financial strength and commitment to building long-term
shareholder value," said Don Orris, chairman and chief executive
officer. "We are pleased to announce our plans to use our strong
cash flow to return profits to our shareholders, while also
continuing to reduce outstanding debt. During the third quarter, we
have repaid an additional $16 million in debt, bringing our current
debt balance to $108 million. We also expect that the dividend will
make Pacer International more attractive to a broader range of
investors who share our confidence in the company's future." The
initial dividend is payable on October 10 to shareholders of record
at the close of business on September 20. Annually, it is
anticipated that the company would pay out about $23 million per
year in dividends. The declaration and payment of future cash
dividends is subject to approval of the board of directors each
quarter and the execution of an amendment to the company's Credit
Agreement to permit ongoing cash dividends, which the company
expects to be completed during the third quarter. ABOUT PACER
INTERNATIONAL -- Pacer International, a leading non-asset based
North American third-party logistics and freight transportation
provider, offers a broad array of logistics and other services
through its subsidiaries and divisions to facilitate the movement
of freight from origin to destination. Its wholesale services
include Stacktrain (cost-efficient, two-tiered rail transportation
for containerized shipments) and cartage (local trucking) services,
and its retail services include intermodal marketing, truck
brokerage, truck services, warehousing and distribution,
international freight forwarding, and supply-chain management
services. Pacer International is headquartered in Concord,
California. Its business units Pacer Stacktrain and Pacer Global
Logistics are headquartered in Concord, California, and in Dublin,
Ohio, respectively. Web sites: www.pacer-international.com,
www.pacerstack.com, and www.pacerglobal.com. CERTAIN
FORWARD-LOOKING STATEMENTS -- This press release contains or may
contain forward-looking statements (as such term is defined in the
Private Securities Litigation Reform Act of 1995). These
forward-looking statements are based on the company's current
expectations and beliefs and are subject to a number of risks,
uncertainties and assumptions. Among the important factors that
could cause actual results to differ materially from those
expressed or implied in the forward-looking statements are general
economic and business conditions; congestion, work stoppages,
capacity shortages or weather related issues and service
disruptions affecting our rail and motor transportation providers;
industry trends, including changes in the costs of services from
rail and motor transportation providers; changes in our business
strategy, development plans or cost savings plans; the loss of one
or more of our major customers; competition; availability of
qualified personnel; the frequency or severity of accidents,
particularly involving our trucking operations; changes in, or the
failure to comply with, government regulations; changes in interest
rates; difficulties in maintaining or enhancing our information
technology systems; our ability to integrate acquired businesses;
terrorism and acts of war; and increases in our leverage.
Additional information about these and other factors that could
affect the company's business is set forth in the company's various
filings with the Securities and Exchange Commission, including
those set forth in the company's annual report on Form 10-K for the
year ended December 31, 2004 filed with the SEC on March 14, 2005.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions or estimates prove incorrect, actual
results may vary materially from those described herein as
anticipated, believed, expected or intended. Except as otherwise
required by federal securities laws, the company does not undertake
any obligation to update such forward-looking statements whether as
a result of new information, future events or otherwise. Note to
editors: Issued by Steve Potash and Company, tel. 510-865-0800, or
steve@potashco.com
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