Flowers Foods Increases Dividend By 17%

THOMASVILLE, Ga., May 29 /PRNewswire-FirstCall/ -- The board of directors of Flowers Foods (NYSE: FLO) today announced a quarterly dividend of $.175 per share, or $.70 per share on an annualized basis. This represents an increase of 17% over the dividend paid previously. The dividend is payable on July 2, 2009, to shareholders of record on June 19, 2009. George E. Deese, Flowers Foods' chairman of the board, CEO, and president, said the board has a confident view of the company's future performance even in the midst of economic pressure. "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," he said. Flowers Foods also has a share repurchase program that authorizes the company to repurchase up to 30 million shares of Flowers Foods common stock. Since 2002, the company has steadily repurchased shares, investing $326.1 million in the repurchase of 21.8 million shares. During the first quarter of 2009, the company acquired 944,591 shares of its stock for $21.6 million, an average of $22.88 per share. Depending on market conditions, the company will continue to repurchase shares on the open market or through privately negotiated transactions. Today, the company has the authority to purchase an additional 8 million shares under the share repurchase program. The dividend increase and the share repurchase program are consistent with Flowers Foods' strategy to create shareholder value over the long term. Deese said the company will continue to invest its cash to build value for shareholders. "Our business continues to generate substantial cash flow that funds dividends to our shareholders, capital improvements, debt reduction and share repurchases as well as growth through market expansion and strategic acquisitions. Our balance sheet is strong and our operating strengths are evident. We anticipate delivering good results in 2009 and in the years ahead," Deese said. Earlier this week, the company announced results for the first quarter of 2009, reporting that sales increased 19.3% over last year's first quarter and that sales of branded products were up 14.8%. Nature's Own, the nation's leading brand of soft variety bread, drove the increased sales. Solid earnings also were reported for the quarter. Net cash provided by operating activities remained strong at $58.3 million for the quarter. The company invested $14.9 million in capital expenditure projects during the quarter. 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. Among the company's top brands are Nature's Own, Whitewheat, Cobblestone Mill, Blue Bird, and Mrs. Freshley's. Flowers operates 39 bakeries that are among the most efficient in the baking industry. Flowers Foods produces, markets, and distributes fresh bakery products that are delivered to customers daily through a direct-store-delivery system serving the Southeast, Mid-Atlantic, and Southwest as well as select markets in California and Nevada. The company also produces and distributes fresh snack cakes and frozen breads and rolls nationally through warehouse distribution. For more information, 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, (f) our ability to fully integrate recent acquisitions into our business, and (g) 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 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 CONTACT: Mary A. Krier, VP-Communications of Flowers Foods, +1-229-227-2333