This could certainly help out those March calls we bought last week. Lots of shorts hiding out in this name.
Outerwall To Explore Strategic And Financial Alternatives To Maximize Shareholder Value
Increases Quarterly Dividend by 100 Percent to $0.60 Per Share
Reaffirms Commitment to Managing Businesses for Profitability and Cash Flow
PR Newswire
BELLEVUE, Wash., March 14, 2016
BELLEVUE, Wash., March 14, 2016 /PRNewswire/ — Outerwall Inc. (Nasdaq: OUTR) today announced that its Board of Directors has initiated a process to explore strategic and financial alternatives to maximize shareholder value. Outerwall has retained Morgan Stanley & Co. LLC as its financial advisor, and Perkins Coie LLP as its legal advisor to assist in this process.
In addition, the Company today reaffirmed the Board and management team’s commitment to managing Outerwall’s businesses for profitability and cash flow and focusing on expense management, operational efficiencies and network optimization, with the continued goal of returning significant free cash flow to investors with a preference for dividends and opportunistic debt retirement.
Consistent with the Company’s focus on returning excess cash to investors and its expectations for cash flow generation in the coming years, the Board also announced today that it has declared an increase in the quarterly dividend payable to its shareholders to $0.60 per share, from $0.30 per share, representing an increase of 100 percent. This dividend is expected to be paid on June 21, 2016 to shareholders of record at the close of business on June 7, 2016.
“The increase of our quarterly dividend to this sustainable level, and the decision to explore strategic and financial alternatives both clearly demonstrate that the Outerwall Board of Directors and management team are committed to acting in the best interests of the Company and all shareholders,” said Erik E. Prusch, Outerwall’s Chief Executive Officer. ” The Board and management team will evaluate all options thoughtfully and carefully with the support of our advisors. Throughout the review process, Outerwall will remain focused on executing on our operational plans, managing our businesses for profitability and cash flow, and continuing to align costs with revenue to create operational efficiencies, while returning significant capital to our investors.”
The Company noted that there can be no assurance that the Board’s exploration of strategic and financial alternatives will result in any particular action or any transaction being pursued, entered into or consummated, or the timing of any action or transaction. The Company does not intend to discuss or disclose developments with respect to this process unless and until the Board has approved a definitive course of action or the process is otherwise concluded.
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