BURNABY, British Columbia (News release) -- Interfor announced that its Board of Directors has declared a one-time special cash dividend of $2.00 per share, which will be paid on or before June 28, 2021 to shareholders of record on May 28, 2021.
Based on the current number of shares outstanding, the special dividend will result in an aggregate distribution of approximately $130 million. The dividend will be funded from cash on hand, which amounted to $750 million as at April 30, 2021, an increase of $137 million from March 31, 2021. Interfor's available liquidity, comprising cash on hand and amounts available under its revolving credit facility totalled $1.1 billion as at April 30, 2021.
"This special dividend reflects a partial distribution of the extraordinary cash flows being generated from record lumber markets" said Ian Fillinger, President and Chief Executive Officer. "We are able to reward our shareholders with this return of capital, while retaining ample financial flexibility to complete our multi-year strategic capital plans, grow significantly through acquisitions and continue to buy back Interfor shares. We are confident that our balanced and disciplined approach to capital allocation will continue to maximize value for our shareholders."
The dividend will be designated an "eligible dividend" for Canadian tax purposes.
The declaration and payment of dividends is at the discretion of the Board of Directors of the Company and any future declaration of dividends will depend on the Company's financial results, market conditions, capital allocation opportunities, cash requirements, and any other factors deemed relevant by the Board of Directors of the Company.