Rocky Mountain Dealerships Inc. Announces 6.5% Increase in Annual Dividend
Sep. 04, 2018
CALGARY, Alberta--(BUSINESS WIRE)--Sep 4, 2018--The Board of Directors (the “ Board ”) of Rocky Mountain Dealerships Inc. (TSX:RME, and hereinafter " RME "), Canada's largest agriculture equipment dealer, today announced an increase in RME’s annual dividend to $0.49 per common share (an increase of $0.03 or 6.5%), to be paid in equal quarterly payments. In conjunction with that increase, RME's Board today declared a quarterly dividend of $0.1225 per common share. This dividend is payable on September 28, 2018, to shareholders of record at the close of business on September 14, 2018.
Matthew Campbell, Chairman of the Board, noted, "RME has built its business on dependability to customers, and it is that principle that guides us when it comes to paying dividends to shareholders. We believe that the reliable payment of a dividend to shareholders is a matter of trust. We have never cut or suspended our dividend in our company’s history, and so when we increase the amount, we do so only when we have a high degree of confidence in our ability to meet the obligation for the foreseeable future. With our operations performing well, and our discipline around the fundamentals of strong sales, expense control and inventory management, we believe we are at a point where we can make this decision.”
This will be the 42 nd consecutive quarterly dividend since RME’s IPO. As of today’s close, the increased annual dividend reflects a yield of 4.9%.
This dividend is designated by RME to be an "eligible dividend" for the purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to "eligible dividends" paid to Canadian residents. Please consult with your own tax advisor for advice with respect to the income tax consequences to you from RME designating its dividends as "eligible dividends."
About Rocky Mountain Dealerships Inc. (TSX:RME)
RME is Canada's largest agriculture equipment dealer with branches located throughout Alberta, Saskatchewan, and Manitoba. Through its dealer network, RME sells, rents, and leases new and used agriculture equipment and offers product support and finance to its customers.
Caution regarding forward looking statements
This press release may contain forward-looking statements based on current expectations of management that a stated result or condition will occur. In particular, this press release contains forward-looking statements which include management's expectations on the following: RME's dividend policy and expectations for future dividends; key operating assumptions including results of operations, operating costs and future financial results; economic conditions; continuing to position RME as a high quality investment with sustainable dividends and an attractive yield; the growth and direction of RME and RME's ability to implement adequate succession planning for key personnel; and the future maintenance or increase of RME's current dividend rates. In addition, RME's dividend policy will be reviewed from time to time in the context of RME's earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of RME.
Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of RME and its management, including: general economic conditions; industry conditions; currency fluctuations; taxation; regulation or changes in law; the ability to attract and retain qualified personnel or management; third party risk; and competition.
Readers are cautioned that the foregoing lists of forward-looking statements and risk factors should not be construed as exhaustive. Additional information on risks, uncertainties and other factors that could affect RME's operations or financial results are included in RME's public disclosure documents available on RME's SEDAR profile at www.sedar.com. Although RME believes that the expectations and assumptions on which such forward-looking information is based are reasonable, readers are cautioned not to place undue reliance on such forward-looking statements. These statements speak only as of the date of this release, and RME undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180904005906/en/
CONTACT: For investor and media inquiries:
Rocky Mountain Dealerships Inc.
Tom McMillan, 403-466-7220
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: NATURAL RESOURCES AGRICULTURE OTHER NATURAL RESOURCES PROFESSIONAL SERVICES BANKING FINANCE RETAIL SPECIALTY
SOURCE: Rocky Mountain Dealerships Inc.
Copyright Business Wire 2018.
PUB: 09/04/2018 05:54 PM/DISC: 09/04/2018 05:54 PM