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Heska Announces Quarterly Dividend of $0.10 per Share

 

LOVELAND, Colo., Feb. 24, 2012 /PRNewswire/ -- Heska Corporation (NASDAQ: HSKA), a provider of advanced veterinary diagnostic and other specialty veterinary products, today announced that its board of directors has declared a cash dividend of $0.10 per share to its stockholders.  The dividend payment will be distributed on April 10, 2012 to stockholders of record as of March 30, 2012.  The Company intends to pay a regular quarterly dividend of $0.10 per share to its stockholders for the foreseeable future at the discretion of the board of directors considering available cash, anticipated cash needs, overall financial condition, loan agreement restrictions, future prospects for earnings and cash flows, anticipated tax treatment as well as other relevant factors.

Dr. Robert Grieve, Heska's Chairman and CEO, commented, "As we discussed during the last conference call, the board of directors has been considering the use of our growing cash reserves.  After careful consideration and evaluation of various options, the board has concluded that a meaningful dividend is most appropriate.  To that end, the Company is paying what is expected to be its first installment of a quarterly dividend of 10 cents ($0.10) per share. While there are no guarantees of future performance or dividends, we believe that we are adopting a sustainable program that will substantially benefit our shareholders going forward."

The factors the board considered in making this decision included, but were not limited to:

  • The Company's cash position continues to grow at a pace management believes will support a regular dividend to our shareholders.  Cash at the end of the fourth quarter was $6.3 million.
  • A dividend of $0.10 per share per quarter would provide a yield well above the current yield on cash investments such as certificates of deposit and money market funds, which the board believes will serve to reward loyal stockholders and promote positive market perceptions of our stock, attracting new investors.  At a share price of $8.35, a quarterly dividend of this magnitude would amount to a dividend of $0.40 per share per year, resulting in a yield of 4.79%.
  • The board believes a dividend at this level would require less cash than the Company's projected cash flow, so the board expects to continue adding to cash reserves.

About Heska

Heska Corporation (NASDAQ: HSKA) sells advanced veterinary diagnostic and other specialty veterinary products.  Heska's state-of-the-art offerings to its customers include diagnostic instruments and supplies as well as single use, point-of-care tests, pharmaceuticals and vaccines.  The Company's core focus is on the canine and feline markets where it strives to provide high value products and unparalleled customer support to veterinarians.  For further information on Heska and its products, visit the company's website at www.heska.com.

Forward-Looking Statements

This announcement contains forward-looking statements regarding Heska's future financial and operating results. These statements are based on current expectations and are subject to a number of risks and uncertainties. Investors should note that there is an inherent risk in using past results, including trends, to predict future outcomes. In addition, factors that could affect the business and financial results of Heska generally include the following: uncertainties regarding Heska's ability to sustain or successfully implement a routine quarterly cash dividend; uncertainties related to Heska's ability to maintain a given level of profitability, or profitability at all; uncertainties regarding the future tax treatment of dividends and the perceived desirability of continuing to pay a dividend under various tax structures which may be implemented through government action or inaction; uncertainties related to the willingness of new investors to invest in or existing investors to hold Heska's stock based on dividend payments; uncertainties related to potential volatility in Heska's share price, including but not limited to a significant price decline resulting from heavy selling volume on any given day; uncertainties regarding Heska's reliance on third parties to whom Heska has granted substantial marketing rights to certain of Heska's existing products and who may be large Heska customers, including Schering-Plough Animal Health Corporation which has exclusive rights to our heartworm preventive in the United States; uncertainties regarding Heska's ability to successfully market and sell its products in an economically sustainable manner; risks related to Heska's reliance on third parties to develop certain of Heska's future products; uncertainties regarding Heska's ability to successfully commercialize new products; risks regarding Heska's reliance on third-party suppliers such as minimum purchase requirements, which could have a significant adverse impact on Heska's financial position; competition; and the risks set forth in Heska's filings and future filings with the Securities and Exchange Commission, including those set forth in Heska's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.

SOURCE Heska Corporation

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