EDMONTON, Sept. 3, 2015 /CNW/ - McCoy Global Inc. ("McCoy", "McCoy Global" or "the Company") (TSX:MCB; OTCQB:MCCRF) today announced that the Board of Directors has approved the suspension of the quarterly dividend payment, effective the third quarter of 2015. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.
"Given the challenging market environment and uncertainty as to when oil prices will recover, the Board has made the prudent decision to suspend McCoy's quarterly dividend," said Jim Rakievich, President and CEO of McCoy Global. "In addition to ongoing efforts focused on preserving cash, the suspension of the dividend will maintain McCoy's strong balance sheet for M&A opportunities and the ongoing execution of our strategy, which we believe will maximize value for all stakeholders over the long-term."
McCoy Global has also recently executed on cost containment initiatives including reductions in organizational headcount, supply chain costs and discretionary spending; as well as the consolidation of its United States production facilities in Louisiana. These initiatives will enhance McCoy Global's financial capacity to act on opportunities as they arise throughout the current downturn and strategically maintain the Company's position to take advantage of both short and longer term growth opportunities.
McCoy Global provides innovative products and services to the global energy industry. The Company operates internationally through direct sales and distributors, with operations in Canada, the United States of America, the United Kingdom, Singapore and the United Arab Emirates. The Company's corporate headquarters are located in Edmonton, Alberta, Canada.
This News Release contains forward‑looking statements and forward‑looking information (collectively referred to herein as "forward‑looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward‑looking statements. Forward‑looking information is often, but not always, identified by the use of words such as "could", "should", "can", "anticipate", "expect", "objective", "ongoing", "believe", "will", "may", "projected", "plan", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well positioned" or similar words suggesting future outcomes. This New Release contains forward‑looking statements respecting the business opportunities for the Corporation that are based on the views of management of the Corporation and current and anticipated market conditions; and the perceived benefits of the growth strategy and operating strategy of the Corporation are based upon the financial and operating attributes of the Corporation as at the date hereof, as well as the anticipated operating and financial results. Forward‑looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. By their very nature, forward‑looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward‑looking statements will not be achieved. Undue reliance should not be placed on forward‑looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in the forward‑looking statements, including inability to meet current and future obligations; inability to complete or effectively integrate strategic acquisitions; inability to implement the Corporation's business strategy effectively; access to capital markets; fluctuations in oil and gas prices; fluctuations in capital expenditures of the Corporation's target market; competition for, among other things, labour, capital, materials and customers; interest and currency exchange rates; technological developments; global political and economic conditions; global natural disasters or disease; and inability to attract and retain key personnel. Readers are cautioned that the foregoing list is not exhaustive. The reader is further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These judgments and estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes. The information contained in this News Release identifies additional factors that could affect the operating results and performance of the Corporation. We urge you to carefully consider those factors. The forward‑looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward‑looking statements included in this News Release are made as of the date of this New Release and the Corporation does not undertake and is not obligated to publicly update such forward‑looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
SOURCE McCoy Global
For further information: Mr. Peter Watson, McCoy Global Inc., Vice President, Corporate Development & General Counsel, Phone: (832) 303-7410, E-mail: [email protected], Website: www.mccoyglobal.com