Cabot Microelectronics Corporation Doubles Quarterly Cash Dividend and Announces Intention to Distribute at Least 50 Percent ...
2018年3月6日 - 10:15AM
Cabot Microelectronics Corporation (Nasdaq: CCMP), the world’s
leading supplier of chemical mechanical planarization (CMP)
polishing slurries and second largest CMP pads supplier to the
semiconductor industry, today announced an update to its capital
deployment strategy, which includes doubling its regular quarterly
cash dividend, and its intention to distribute at least 50 percent
of prior fiscal year free cash flow to shareholders on an ongoing
basis through a combination of cash dividends and share
repurchases.
Consistent with the company’s demonstrated focus
on distributing cash to its shareholders, today the company’s Board
of Directors declared a quarterly cash dividend of $0.40 per share
on the company’s common stock, representing a 100 percent increase
over the prior regular quarterly cash dividend paid of $0.20 per
share. This would represent a yield of approximately 1.5 percent
based on today’s closing stock price. The dividend will be payable
on or about April 30, 2018 to shareholders of record at the close
of business on March 23, 2018. The $0.40 dividend would represent
an annualized rate of $1.60 per share, or approximately $40 million
in aggregate, equivalent to approximately 33 percent of the
company’s fiscal 2017 free cash flow1.
In addition, the company intends to distribute
at least 50 percent of prior fiscal year free cash flow to
shareholders on an ongoing basis through a combination of cash
dividends and share repurchases. This combination would represent
at least $60 million, based on the company’s fiscal 2017 free cash
flow of approximately $120 million. As of December 31, 2017, the
company had approximately $120 million of authorization remaining
under its existing share repurchase program.
David Li, President and CEO of Cabot
Microelectronics, stated, “Our track record of profitability and
strong cash generation has enabled us to execute a balanced capital
deployment strategy over the years, including organic investments,
dividends, acquisitions and share repurchases. We are pleased to
now significantly increase – by doubling – our regular quarterly
cash dividend, and announce our intention to distribute at least 50
percent of our ongoing annual free cash flow to our shareholders
through a combination of cash dividends and share repurchases. We
believe this clearly demonstrates our confidence in our future
performance and cash generation capabilities, as well as our
continued commitment to delivering ongoing value to our
shareholders. Our capital deployment priorities remain (1)
investing in the organic needs of our business, (2) paying
dividends, (3) executing mergers and acquisitions, and (4)
repurchasing shares.”
Since becoming a public company in 2000, Cabot
Microelectronics has distributed approximately $760 million to
shareholders through a combination of dividends and share
repurchases.
Separately, as a result of the enactment of the
Tax Cuts and Jobs Act (“tax act”) in December 2017 in the United
States, the company intends to repatriate a substantial amount of
its approximately $275 million in overseas cash and short-term
investments, and utilize a portion to repay its existing term loan.
This repayment is expected to save approximately $4 million in
interest expense on an annualized basis.
CONFERENCE CALLCabot
Microelectronics Corporation’s Annual Meeting of Stockholders will
be held Tuesday, March 6, 2018, at 8:00 a.m., Central Time. The
Annual Meeting will be available via live webcast and replay from
the Investor Relations section of the company’s website,
ir.cabotcmp.com, or by phone at (844) 825-4410. Callers outside the
U.S. can dial (973) 638-3236. The conference code for the call is
6181149. A transcript of the formal comments made during the Annual
Meeting will be available in the Investor Relations section of the
company’s website, ir.cabotcmp.com.
ABOUT CABOT MICROELECTRONICS
CORPORATIONCabot Microelectronics Corporation,
headquartered in Aurora, Illinois, is the world's leading supplier
of CMP polishing slurries and second largest CMP pads supplier to
the semiconductor industry. The company’s products play a critical
role in the production of advanced semiconductor devices, helping
to enable the manufacture of smaller, faster and more complex
devices by its customers. The company's mission is to create value
by delivering high-performing and innovative solutions that solve
its customers’ challenges. The company has approximately 1,150
employees on a global basis. For more information about Cabot
Microelectronics Corporation, visit www.cabotcmp.com or contact
Trisha Tuntland, Director of Investor Relations at
630-499-2600.
SAFE HARBOR STATEMENTThis news
release may include statements that constitute “forward looking
statements” within the meaning of federal securities regulations.
These forward-looking statements include statements related to:
future sales and operating results; growth or contraction, and
trends in the industry and markets in which the company
participates; the company’s management; various economic or
political factors and international or national events; regulatory
or legislative activity, including the enactment of the Tax Cuts
and Jobs Act (“tax act”) in December 2017 in the United States;
product performance; the generation, protection and acquisition of
intellectual property, and litigation related to such intellectual
property; new product introductions; development of new products,
technologies and markets; the company’s supply chain; the financial
conditions of the company’s customers; natural disasters; the
acquisition of, investment in, or collaboration with other
entities; uses and investment of the company’s cash balance,
including dividends and share repurchases, which may be suspended,
terminated or modified at any time for any reason by the company,
based on a variety of factors; financing facilities and related
debt, pay off or payment of principal and interest, and compliance
with covenants and other terms; the company’s capital structure;
the company’s current or future tax rate, including the effects of
tax reform in the U.S.; and the operation of facilities by Cabot
Microelectronics Corporation. These forward-looking statements
involve a number of risks, uncertainties, and other factors,
including those described from time to time in Cabot
Microelectronics’ filings with the SEC, that could cause actual
results to differ materially from those described by these
forward-looking statements. In particular, see "Risk Factors" in
the company’s quarterly report on Form 10-Q for the quarter ended
December 31, 2017 and in the company’s annual report on Form 10-K
for the fiscal year ended September 30, 2017, both filed with the
SEC. Cabot Microelectronics assumes no obligation to update this
forward-looking information.
1 Free cash flow is cash provided by operating
activities less capital expenditures.
Trisha Tuntland
Director of Investor Relations
Cabot Microelectronics Corporation
(630) 499-2600
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