Consolidated-Tomoka Land Co. Announces Authorization of Stock Repurchase Program and Change in Dividend Policy
November 20 2008 - 11:39AM
PR Newswire (US)
DAYTONA BEACH, Fla., Nov. 20 /PRNewswire-FirstCall/ --
Consolidated-Tomoka Land Co. (Amex: CTO; NYSE Alternext US: CTO)
(the "Company") today announced that its Board of Directors has
authorized a program to repurchase shares of the Company's common
stock having an aggregate value of up to $8,000,000. The Company
anticipates reducing its quarterly dividend to $0.025 per share,
effective for the 2009 first quarter dividend to fund the program.
William H. McMunn, President and Chief Executive Officer stated,
"In light of the Company's current stock price, the Board has
determined that it is prudent to reallocate a portion of capital
used to pay dividends towards a stock repurchase program. While we
recognize the importance of a dividend to certain of our
shareholders, the Board strongly believes that given the existing
market price, a stock repurchase program will provide more
shareholder value than maintaining the current level of dividends.
Based on current economic conditions, the Company has no plans to
increase Company debt to fund this repurchase plan." Mr. McMunn
further emphasized, "The Company expects to continue paying a
dividend at a reduced rate." The Board authorization permits the
Company to effect the repurchases from time to time through a
variety of methods including open market repurchases and privately
negotiated transactions. There can be no assurance as to the
amount, timing or prices of repurchases. The specific timing and
amount of repurchases will vary based on market conditions and
other factors. The stock repurchase program may be suspended,
modified, extended or terminated by the Board at any time and has
no expiration date. About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based company primarily
engaged in converting Company owned agricultural lands into a
portfolio of net lease income properties strategically located in
the Southeast, through the efficient utilization of 1031
tax-deferred exchanges. The Company has low long-term debt and
generates over $9 million in annual before tax cash flow from its
real estate portfolio. The Company also engages in selective self-
development of targeted income properties. The Company's adopted
strategy is designed to provide the financial strength and cash
flow to weather difficult real estate cycles. Visit our website at
http://www.ctlc.com/. "Safe Harbor" Certain statements contained in
this press release (other than statements of historical fact) are
forward-looking statements. The words "believe," "estimate,"
"expect," "intend," "anticipate," "will," "could," "may," "should,"
"plan," "potential," "predict," "forecast," "project," and similar
expressions and variations thereof identify certain of such
forward-looking statements, which speak only as of the dates on
which they were made. Forward-looking statements are made based
upon management's expectations and beliefs concerning future
developments and their potential effect upon the Company. There can
be no assurance that future developments will be in accordance with
management's expectations or that the effect of future developments
on the Company will be those anticipated by management. The Company
wishes to caution readers that the assumptions which form the basis
for forward-looking statements with respect to or that may impact
earnings for the year ended December 31, 2008, and thereafter
include many factors that are beyond the Company's ability to
control or estimate precisely. These risks and uncertainties
include, but are not limited to, the strength of the real estate
market in the City of Daytona Beach in Volusia County, Florida; our
ability to successfully execute acquisition or development
strategies; any loss of key management personnel; changes in local,
regional and national economic conditions affecting the real estate
development business and income properties; the impact of
environmental and land use regulations; the impact of competitive
real estate activity; variability in quarterly results due to the
unpredictable timing of land sales; the loss of any major income
property tenants; and the availability of capital. Additional
information concerning these and other factors that could cause
actual results to differ materially from those forward-looking
statements is contained from time to time in the Company's
Securities and Exchange Commission filings, including, but not
limited to, the Company's Annual Report on Form 10-K. Copies of
each filing may be obtained from the Company or the SEC. While the
Company periodically reassesses material trends and uncertainties
affecting its results of operations and financial condition, the
Company does not intend to review or revise any particular
forward-looking statement referenced herein in light of future
events. DATASOURCE: Consolidated-Tomoka Land Co. CONTACT: Bruce W.
Teeters, Sr. Vice President, Consolidated-Tomoka Land Co., Phone:
+1-386-274-2202, or Facsimile: +1-386-274-1223 Web site:
http://www.ctlc.com/
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