Quarterly dividend increased by 17.2% to $0.17 per share
MONTREAL, Dec. 17, 2014 /CNW Telbec/ - The Board of Directors of TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, has approved a 17.2% dividend increase over its previous quarterly dividend of $0.145 per share and declared a quarterly dividend of $0.17 per outstanding common share of its capital. The dividend is payable on January 15, 2015 to shareholders of record at the close of business on December 31, 2014. This increase reflects TransForce's ability to continue to generate a strong free cash flow in current and projected market conditions and reflects its stated dividend policy whereby approximately 20-25% of annualized free cash flow available would be distributed every year as dividends to shareholders. This level of distribution allows TransForce to maintain sufficient financial resources and flexibility to execute its operating and disciplined acquisition strategies, while providing an adequate return on shareholder's capital. TransForce has increased its dividend in each of the last four years.
Exceptionally, a portion of dividends paid in 2015 will not be eligible dividends as they come from earnings of acquired companies that were taxed at lower rates. Therefore, 40% (around $0.07 per share) of the current dividend will not be designated as an eligible dividend pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.
Following the successful completion of several significant acquisitions in 2014, TransForce has made its 2015 anticipated results available on its website (http://www.transforcecompany.com/investor-relations/financial-documents/presentation).
TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TransForce umbrella, companies benefit from financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:
- Package and Courier;
- Waste Management;
- Logistics and Other Services.
This press release contains "forward-looking statements" within the meaning of applicable securities laws that are intended to be covered by the safe harbours created by those laws, including statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential", or the negative thereof or other variations thereof or comparable terminology. Such forward-looking statements may include, without limitation, statements regarding the completion of the compulsory acquisition and other statements that are not historical facts. While such forward-looking statements are expressed by TransForce in good faith and believed by them to have a reasonable basis, they are subject to important risks and uncertainties including, without limitation, changes in applicable laws or regulations.
Forward-looking statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Reliance on forward-looking statements is at investors' own risk.
SOURCE: TransForce Inc.
For further information: Investors, Alain Bédard, Chairman, President and CEO, TransForce Inc. (647) 729-4079, [email protected]; Media: Rick Leckner, MaisonBrison Communications, (514) 731-0000, [email protected]