Gentex Announces Fourteen Percent Increase in Quarterly Cash Dividend Rate from $0.14 to $0.16
Gentex Corporation (NASDAQ: GNTX), the Zeeland, Michigan-based manufacturer of automotive automatic-dimming rearview mirrors, automotive electronics, dimmable aircraft windows, and fire protection products, today announced that its Board Of Directors approved a fourteen percent increase in its quarterly cash dividend rate from $0.14 (14 cents) to $0.16 (16 cents) per share. The Board subsequently declared a quarterly cash dividend of $0.16 per share that will be payable July 18, 2014, to shareholders of record of the common stock at the close of business on July 8, 2014.
"The Company is pleased to announce this significant increase in the dividend rate as a result of our continued success in our operating results due to growth in our core electrochromic mirror business, as well as the early success of the HomeLink integration," said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer. "Our Board believes in returning value to the shareholder and our dividend is an important part of that strategy. We have a history of paying out a significant portion of our earnings in dividends, and have cumulatively paid out approximately $665 million in cash dividends since more favorable tax treatment was implemented in 2003," continued Bauer. "We continue to evaluate all uses of the balance sheet as we work to return value to shareholders in the most sustainable and efficient manner possible, and this dividend increase represents step one in the execution of that strategy," concluded Bauer.
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "goal", "hope", "may", "plan", "project", "will", and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, and could cause the Company's results to differ materially from those described. These risks and uncertainties include, without limitation, changes in general industry or regional market conditions; changes in consumer and customer preferences for our products; our ability to be awarded new business; continued uncertainty in pricing negotiations with customers; loss of business from increased competition; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules; changes in product mix; raw material shortages; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; negative impact of any governmental investigations and associated litigations including securities litigations relating to the conduct of our business; integration of the newly acquired HomeLink business operations; retention of the newly acquired customers of the HomeLink business; and expansion of product offerings including those incorporating HomeLink technology. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the Nasdaq Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading "Risk Factors" in the Company's latest Form 10-K and Form 10-Q filed with the SEC.
About The Company Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is a supplier of automatic-dimming rearview mirrors and electronics to the automotive industry, dimmable aircraft windows for aviation markets, and fire protection products to the fire protection market. Visit the Company's web site at www.gentex.com.
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