L-3 Increases Quarterly Dividend 10% to $0.55, Announces New $1.5B Share Repurchase Program
L-3 Communications (NYSE: LLL) announced today that its board of directors has increased its regular quarterly cash dividend 10 percent from $0.50 to $0.55 per share. The board has also declared the next dividend payable on March 15, 2013 to shareholders of record at the close of business on March 1, 2013. This action represents L-3's ninth consecutive annual dividend increase.
The board of directors has also authorized a new share repurchase program allowing the company to repurchase up to an additional $1.5 billion of the company's common stock through June 30, 2015. This new share repurchase initiative is effective immediately and represents L-3's sixth repurchase program.
“We are pleased to increase the yield of L-3's dividend and initiate a new repurchase program, which reiterate our confidence in the company's continued solid financial performance going forward,” said Michael T. Strianese, L-3's chairman, president and chief executive officer. “Maintaining L-3's financial strength and delivering value are essential components of our strategy, and we are aware that, especially in this uncertain environment, shareholders appreciate consistent cash returns. We remain focused on shareholder value and deploying our capital in a disciplined and balanced approach that includes cash dividends and share repurchases, modest debt reduction, investment in research and development, and acquisitions.”
Share repurchases under the program will be made from time to time at management's discretion in accordance with applicable federal securities laws. The timing of repurchases and the exact number of shares of common stock to be purchased will depend upon market conditions and other factors. The program is expected to be funded using the company's cash on hand and cash generated from operations. The program may be extended, suspended or discontinued at any time without prior notice.
Headquartered in New York City, L-3 employs approximately 51,000 people worldwide and is a prime contractor in C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems, aircraft modernization and maintenance, and national security solutions. L-3 is also a leading provider of a broad range of electronic systems used on military and commercial platforms. The company reported 2012 sales of $13.1 billion.
To learn more about L-3, please visit the company's website at www.L-3com.com. L-3 uses its website as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company's website and is readily accessible.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” “could” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-Looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.