DALLAS, May 15, 2019 /PRNewswire/ -- Southwest
Airlines Co. (NYSE: LUV) (the "Company") announces the Southwest
Airlines Board of Directors, at its meeting held today, increased
the Company's quarterly dividend by 12.5 percent and authorized a
new $2.0 billion share repurchase
program. The quarterly dividend will increase to $.18 per share from $.16 per share, beginning with the
171st consecutive quarterly dividend declared today to
Shareholders of record at the close of business on June 5, 2019, on all shares then issued and
outstanding. The dividend will be paid on June 26, 2019.
Gary C. Kelly, Chairman of the
Board and Chief Executive Officer, stated: "We have consistently
produced strong margins, returns on capital, and cash flows. I'm
pleased to announce the Board's decision today to increase our
quarterly dividend by 12.5 percent to $.18 per share, or $.72 per share annualized, which amounts to
approximately $391
million1, and an approximate 1.4 percent dividend
yield2. I am also pleased that the Board authorized a
new $2.0 billion share repurchase
program upon the completion of the remaining $400 million under the May
2018 $2.0 billion share
repurchase authorization.
"This share repurchase authorization, combined with our annual
dividends, continues our consistent track record of Shareholder
returns. Since 2010, we have returned more than $11 billion of value to Shareholders through
share repurchases and dividends. Our long-term financial goals
remain unchanged: maintain a strong balance sheet, investment-grade
credit ratings, and ample liquidity; generate robust operating and
free cash flows; grow earnings, margins, and capital returns; and
maintain healthy Shareholder returns."
The Company has repurchased approximately 21.7 million shares
under the May 2018 $2.0 billion share repurchase authorization
through March 31, 2019. During second
quarter 2019, the Company has made share repurchases totaling
$450 million, which includes a
$400 million accelerated share
repurchase program ("Second Quarter 2019 ASR Program") launched on
April 29, 2019. The specific number
of shares that the Company ultimately will repurchase under the
Second Quarter 2019 ASR Program will be determined based generally
on a discount to the volume-weighted average price per share of the
Company's common stock during a calculation period to be completed
no later than July 2019. Subsequent
to the launch of the Second Quarter 2019 ASR Program, the Company
has $400 million remaining under the
May 2018 $2.0
billion share repurchase authorization. The Company also
entered into an additional open market share repurchase plan for
the purchase of up to an additional $50
million of its shares of common stock depending on market
prices.
The Company's future share repurchases under today's
$2.0 billion repurchase authorization
will be made in accordance with applicable securities laws in open
market, private, or accelerated repurchase transactions from time
to time, depending on market conditions, but may be discontinued at
any time.
1Based on approximately 543 million shares of common
stock outstanding on May 13,
2019.
2Based on the closing stock price of $51.65 on May 14,
2019.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Specific forward-looking statements include,
without limitation, statements related to (i) the Company's
expectations and goals with respect to the return of value to
Shareholders and (ii) the Company's financial outlook, position,
strategies, goals, and expectations. These forward-looking
statements are based on the Company's current intent, expectations,
and projections and are not guarantees of future performance. These
statements involve risks, uncertainties, assumptions, and other
factors that are difficult to predict and that could cause actual
results to vary materially from those expressed in or indicated by
them. Factors include, among others, (i) the impact of
governmental regulations and other governmental actions related to
the Company and its operations, in particular with respect to the
Boeing 737 MAX aircraft, and any related changes in consumer
behavior; (ii) the Company's dependence on third parties and the
impact on the Company's operations and results of operations of any
related third party delays or non-performance; (iii) the impact of
changes in consumer behavior, economic conditions, actions of
competitors (including without limitation pricing, scheduling,
capacity, and network decisions, and consolidation and alliance
activities), extreme or severe weather and natural disasters, fears
of terrorism or war, and other factors beyond the Company's
control, on the Company's business decisions, plans, strategies,
and results; (iv) the Company's ability to timely and effectively
implement, transition, and maintain the necessary information
technology systems and infrastructure to support its operations and
initiatives; (v) the impact of fuel price volatility, volatility of
commodities used by the Company for hedging jet fuel, and any
changes to the Company's fuel hedging strategies and positions, on
the Company's business plans and results of operations; and (vi)
other factors, as described in the Company's filings with the
Securities and Exchange Commission, including the detailed factors
discussed under the heading "Risk Factors" in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2018 and in the Company's Quarterly
Report on Form 10-Q for the fiscal quarter ended March 31, 2019.
SW-DSR
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SOURCE Southwest Airlines Co.