G&K Services Declares Special Cash Dividend of $6.00 Per Share
G&K Services, Inc. (NASDAQ: GKSR) announced today that its Board of Directors declared a special cash dividend of $6.00 per share, payable on April 27, 2012 to shareholders of record at the close of business on April 13, 2012. The stock will begin to trade ex-dividend on April 11, 2012.
Additionally, G&K's Board of Directors announced a 50 percent increase in the company's regular quarterly cash dividend to $0.195 per share. This is G&K's seventh consecutive year with a dividend increase.
Finally, the company will also opportunistically pursue open market share repurchases as another option to improve shareholder returns. The company has approximately $58 million remaining under its existing share repurchase authorization.
“Our Game Plan is working,” said Douglas A. Milroy, Chief Executive Officer. “Since its introduction in fiscal 2010, we've restored organic growth, significantly expanded operating margins, produced strong cash flow, and retired over $100 million in debt. Our improved performance gives us the confidence to increase shareholder returns through today's actions.”
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