Television Company Belo Corp. (BLC) Announces 60% Increase in Quarterly Dividend
DALLAS, March 1, 2012 /PRNewswire/ -- Belo Corp. (NYSE: BLC), one of the nation's largest pure-play, publicly-traded television companies, announced today that its Board of Directors declared a quarterly cash dividend of $0.08 per share, representing a 60 percent increase over the Company's previous quarterly cash dividend rate of $0.05 per share. The dividend is payable on June 1, 2012, to shareholders of record on May 11, 2012 for each outstanding share of Series A common stock and Series B common stock. The new annualized rate of $0.32 per share represents a dividend yield of 4.5 percent based on yesterday's closing price of $7.17.
Commenting on the dividend increase, Dunia A. Shive, Belo Corp.'s president and Chief Executive Officer, said, "This action demonstrates the confidence the Board and management have in the Company's ability to continue its exceptional cash generation, and reflects our commitment to providing an attractive return to shareholders. The Company also has the flexibility to pursue investments or acquisitions, repurchase shares opportunistically or make cash positive open market repurchases of its 2013 bonds."
The Company currently has more than $100 million in cash and $887 million in fixed-rate debt securities, $175 million of which is due in May 2013. The Company has nothing drawn on its $200 million revolving credit facility that expires in August 2016.
About Belo Corp.
Belo Corp. (BLC), one of the nation's largest pure-play, publicly-traded television companies, owns and operates 20 television stations (nine in the top 25 markets) and their associated websites. Belo stations, which include affiliations with ABC, CBS, NBC, FOX, and the CW, reach more than 14 percent of U.S. television households in 15 highly-attractive markets. Belo stations rank first or second in nearly all of their local markets. Additional information is available at www.belo.com or by contacting Paul Fry, vice president/Investor Relations & Treasury Operations, at 214-977-4465.
Statements in this communication concerning Belo's business outlook or future economic performance, anticipated profitability, revenues, expenses, capital expenditures, dividends, investments, future financings, impairments, pension matters, and other financial and non-financial items that are not historical facts, are "forward-looking statements" as the term is defined under applicable federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.
Such risks, uncertainties and factors include, but are not limited to, uncertainties regarding the costs, consequences (including tax consequences) and other effects of the Company's spin-off distribution of its newspaper businesses and related assets to A. H. Belo Corporation and the associated agreements between the Company and A. H. Belo relating to various matters; changes in capital market conditions and prospects, and other factors such as changes in advertising demand, interest rates and programming and production costs; changes in viewership patterns and demography, and actions by Nielsen and its competitors; changes in the network-affiliate business model for broadcast television; technological changes, and the development of new systems and devices to distribute and consume television and other audio-visual content; changes in the ability to secure, and in the terms of, carriage of Belo programming on cable, satellite, telecommunications and other program distribution methods; development of Internet commerce; industry cycles; changes in pricing or other actions by competitors and suppliers; Federal Communications Commission and other regulatory, tax and legal changes, including changes regarding spectrum; adoption of new accounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or other accounting standard-setting bodies or authorities; the effects of Company acquisitions, dispositions, co-owned ventures, and investments; pension plan matters; general economic conditions; and significant armed conflict, as well as other risks detailed in Belo's other public disclosures and filings with the SEC including Belo's Annual Report on Form 10-K.
SOURCE Belo Corp.