TORONTO, ONTARIO--(Marketwired - March 14, 2017) - Not for distribution to United States newswire services or for dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
Automotive Finco Corp. (TSX VENTURE:AFCC) (the Company) is pleased to announce that as part of the Company's focus on targeting attractive total returns to shareholders as well as a stated commitment to initiate a sustainable dividend, the Company's Board of Directors has approved the implementation of a dividend policy as follows:
- The Board of Directors has declared an annual dividend of $0.168 per common share, which shall be payable monthly.
The initial monthly dividend ($0.014 / common share) will be payable on or about April 28, 2017 to shareholders of record as of March 31, 2017.
Moving forward, the Company expects to target a long term payout ratio to be in the range of 85 - 95% of its distributable cash flow as its business continues to grow over the coming years.
Kuldeep Billan, CEO of Automotive Finance GP Inc., commented: "The implementation of a dividend policy with an initial monthly dividend declared within the first half of 2017 is an important milestone for the Company. Subsequent to closing the change of business transaction, the Company has been focused on growing its business and resultant underlying free cash flow through identifying and pursuing additional transactions.
We view ourselves as a growth oriented company with an extensive potential market opportunity; that said, returning a meaningful portion of the Company's free cash flow will continue to be an important component of our ongoing capital allocation activities."
The declaration, amount and payment of future cash dividends are subject to the board of directors' continuing determination that the payment of dividends are in the best interests of the Company's, its shareholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends.
About Automotive Finco Corp.
Automotive Finco Corp ("AFCC") is a high growth specialty finance company focused exclusively on the auto retail sector. Through its investment in Automotive Finance LP, the Company has exposure to a business providing long term, debt based acquisition financing to auto dealerships across the globe, with an initial focus on Canada. In addition to its interest in Automotive Finance LP, AFCC may also pursue other direct investments and financing opportunities across the auto retail sector. For further information please refer to the Company's website: www.autofincocorp.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws, including statements regarding the future declaration of dividends by the board of directors of the Company. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. In particular and without limitation, this news release contains forward-looking statements pertaining to the following: future payment of dividends by the Company, growth of the business, and the financial and operational performance of the Company .
Information contained in this news release may be considered to be a financial outlook for the purposes of applicable Canadian securities laws. Financial outlook contained in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available, and to become available in the future. Prospective financial information contains forward-looking statements and is based on a number of material assumptions and factors set out above. Actual results may differ significantly from the information presented herein. Readers are cautioned that any such financial outlook contained or referenced herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.
Forward-looking information and statements involve known and unknown risks and uncertainties that may cause actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and, accordingly, undue reliance should not be placed thereon. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause these differences can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward looking information except in accordance with applicable securities laws.