Interactive Data Announces Special Dividend of $0.80 Per Share and Initiates New One Million Share Repurchase Program
June 01 2005 - 8:15AM
Business Wire
Interactive Data Corporation (NYSE: IDC) today announced that its
Board of Directors has declared a special dividend of $0.80 per
share of common stock. The dividend is payable on July 7, 2005 to
stockholders of record on June 15, 2005. In addition, Interactive
Data announced it has completed its one million share buyback
program, which was originally authorized in September 2004. With
the completion of this most recent program, Interactive Data's
Board of Directors has authorized a new buyback program for the
repurchase of up to one million shares of its common stock. In
combination, the special dividend and stock repurchase program
would return close to $100 million to stockholders (assuming the
new buyback program is completed based on the current market value
of Interactive Data's common stock). "Returning nearly $100 million
to our stockholders through the combination of a special dividend
and our buyback program reflects the strength of our balance sheet
while maintaining the financial flexibility necessary to achieve
key business objectives such as continuing to grow our business
organically and pursue strategic acquisitions," stated Stuart
Clark, Interactive Data's president and chief executive officer.
Interactive Data has historically generated strong cash flow from
operations, and ended the first quarter of 2005 with $226.1 million
in cash, cash equivalents and marketable securities, and no debt.
During the second quarter of 2005, Interactive Data acquired
465,400 shares under the stock buyback program initiated in
September 2004 at an average purchase price of $21.08 per share.
The average price for all common stock repurchased under the stock
buyback program initiated in September 2004 was $21.06 per share.
Repurchases made under the new one million share buyback program
will be made in the open market or in privately negotiated
transactions from time to time, subject to market conditions and
other factors and in compliance with applicable legal requirements.
Repurchases of common stock may also be made under a Rule 10b5-1
plan, which would permit shares to be repurchased when Interactive
Data might otherwise be precluded from doing so under insider
trading laws. Interactive Data intends to use cash on hand to fund
any purchases. While the Company anticipates completing this
program within one year, it is not obligated to acquire any
particular amount of common stock as a result of the plan, which
may be suspended or discontinued at any time. Forward-looking and
Cautionary Statements This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and is subject to the
safe-harbor created by such Act and laws. These statements include
our statements related to any potential future stock repurchase
transactions, including our intention to repurchase shares of our
common stock from time to time under, and the source of funding
for, the repurchase program as well as the timing, nature and
financial impact of any such transactions related to the stock
buyback program; statements related to the special dividend,
including the timing, nature and financial impact of issuing any
such dividend; and statements related to our cash flow and the
financial flexibility associated with achieving organic growth and
pursuing strategic acquisitions. These statements are subject to
known and unknown risks, uncertainties and other factors that may
cause actual results to be materially different from those
contemplated by the forward-looking statements. Such factors
include, but are not limited to: (i) the relative performance of
the economy and the U.S. stock markets as a whole; (ii) market
price of our common stock and other market conditions; (iii) the
difficulty of predicting our future cash needs; (iv) the nature of
other investment opportunities available to us from time to time;
(v) our operating cash flow; and (vi) and other factors identified
in our most recent Annual Report on Form 10-K and Quarterly Report
on Form 10-Q filed with the Securities and Exchange Commission. We
undertake no obligation to update these forward-looking statements.
About Interactive Data Corporation Interactive Data Corporation is
a leading global provider of securities pricing, financial
information, and analytic tools to institutional and individual
investors. The Company supplies time-sensitive pricing (including
evaluated pricing), dividend, corporate action, and descriptive
information for more than 3.5 million securities traded around the
world, including hard-to-value instruments. Many of the world's
best-known financial service and software companies subscribe to
the Company's services in support of their trading, analysis,
portfolio management, and valuation activities. Interactive Data
Corporation is headquartered in Bedford, Massachusetts. Through its
branded businesses, FT Interactive Data, ComStock, CMS BondEdge,
and eSignal, Interactive Data Corporation has approximately 1,800
employees in offices located throughout North America, Europe,
Asia, and Australia. Pearson plc (NYSE: PSO), an international
media company, whose businesses include the Financial Times Group,
Pearson Education, and the Penguin Group, owns approximately 60
percent of the outstanding common stock of Interactive Data
Corporation.
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