THOMASVILLE, Ga., May 30 /PRNewswire-FirstCall/ -- Flowers Foods'
(NYSE: FLO) board of directors today increased the quarterly dividend rate
three fold. The board also declared a three-for-two split of the company's
stock by means of a 50 percent stock dividend.
Both the dividend and the stock split are payable on June 27, 2003, to
shareholders of record on June 13, 2003. Following the split, the quarterly
dividend rate is $.10 per share, or $.40 per share on an annualized basis.
The company also announced that a dividend reinvestment program will be
available to shareholders later this year. Information regarding the program
will be mailed to shareholders and posted on the company's Web site:
Amos R. McMullian, Flowers Foods' chairman of the board and chief
executive officer, said the board has a confident view of the company's future
financial performance. "Our business is generating substantial cash flow, our
balance sheet is strong, and our operating strengths are evident. The board
believes Flowers Foods is in an excellent position to reward our shareholders
with an increased dividend, allowing our investors to participate in the
company's success without having to sell their shares. In addition, the stock
split will increase the liquidity of our stock and attract new shareholders,"
"We will not establish a pattern of increasing the dividend on a quarterly
basis as our company did in the past. Any decision regarding future dividends
or changes in the dividend rate will be made, as always, following careful
consideration of the best uses for the earnings generated by the company. Our
board has indicated that this level of quarterly dividend is appropriate given
the company's current performance and prospects," McMullian said.
Headquartered in Thomasville, Ga., Flowers Foods is one of the nation's
leading producers and marketers of packaged bakery foods for retail and
foodservice customers. Flowers operates 33 bakeries that produce a wide range
of bakery products that are marketed through the Sun Belt states via an
extensive direct-store-delivery network and nationwide through other delivery
systems. Among the company's top brands are Nature's Own, Cobblestone Mill,
BlueBird, Mrs. Freshley's, and European Bakers. For more information on the
company, visit www.flowersfoods.com .
Statements contained in this press release that are not historical facts
are forward-looking statements. All forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ from those
projected. Other factors that may cause actual results to differ from the
forward-looking statements contained in this release and that may affect the
company's prospects in general include, but are not limited to, (a)
competitive conditions in the baked foods industry including promotional and
price competition, (b) changes in consumer demand for our products, (c) the
success of productivity improvements and new product introductions, (d) a
significant reduction in business with any of our major customers including a
reduction from adverse developments in any of our customer's business, (e)
fluctuations in commodity pricing and (f) our ability to achieve cash flow
from capital expenditures and acquisitions and the availability of new
acquisitions that build shareholder value. In addition, our results and
liquidity may also be affected by general factors such as economic and
business conditions (including the baked foods markets), interest and
inflation rates and such other factors as are described in the company's
filings with the Securities and Exchange Commission.
SOURCE Flowers Foods