United Online Announces Discontinuation of Dividends to Ensure Financial Flexibility to Support Growth Initiatives
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WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Jan. 31, 2014--
United Online, Inc. (Nasdaq: UNTD) announced today that its Board of
Directors has determined to discontinue cash dividend payments in order
to provide financial flexibility to support anticipated long-term growth
initiatives.
“Since I joined United Online nearly three months ago, the company has
started to lay the foundation for a new, growth-oriented strategic
direction,” said Francis Lobo, President and Chief Executive Officer.
“We are undertaking several key initiatives, which include optimizing
our current product offerings to enhance our consumer value proposition;
expanding new product development efforts to drive new revenue growth;
and pursuing new strategic partnerships and other opportunities to
expand our scope and reach. In order to ensure maximum financial
flexibility as these initiatives unfold, the company’s Board of
Directors has determined to discontinue quarterly cash dividend
payments.”
“United Online has a strong balance sheet and will use its existing cash
and free cash flow to support these and other initiatives that are
designed to create long-term stockholder value,” Lobo added. “Also, the
company maintains a stock repurchase plan and would consider using it as
an additional means of creating value for our stockholders.”
United Online will release financial results for its fourth quarter and
full year ended December 31, 2013 on February 19, 2014, and expects to
report approximately $68 million in cash and cash equivalents at
December 31, 2013. On November 30, 2013, United Online paid a quarterly
cash dividend of $0.15 per share, which returned approximately $2.2
million to stockholders.
About United Online®
United Online, Inc. (Nasdaq: UNTD), through its operating subsidiaries,
provides consumer products and services over the Internet, where their
respective brands have attracted a large online audience that includes
more than 100 million registered accounts worldwide. United Online’s
Content & Media segment provides social networking products and services
(Classmates and StayFriends) and online loyalty marketing (MyPoints).
Its primary Communications segment service is Internet access (NetZero
and Juno), including NetZero Mobile Broadband (NetZero Wireless).
Cautionary Information Regarding
Forward-Looking Statements
This release contains forward-looking statements within the meaning of
the “safe harbor” provisions of the Private Securities Litigation Reform
Act of 1995, as amended, based on our current expectations, estimates
and projections about our operations, industry, financial condition,
performance, results of operations, and liquidity. Statements containing
words such as “anticipate,” “expect,” “intend,” “plan,” “estimate,” or
similar expressions constitute forward-looking statements. These
forward-looking statements include statements about our initiatives,
cash, cash equivalents and free cash flow. Potential factors that could
cause actual results to differ materially from those in the
forward-looking statements include, among others: the effect of
competition; the company’s inability to maintain or increase its
advertising revenues; risks associated with the integration or
commercialization of new businesses, products, services, applications or
features or the success of new business models; the severity and
duration of current economic conditions; the company’s inability to
maintain or increase the number of free and pay accounts, visitors to
its websites, and members; risks associated with litigation and
governmental regulations or investigations, including reviews of
business practices such as marketing, billing, renewal, and
post-transaction sales practices; problems associated with the company’s
operations, systems or technologies; changes in marketing conditions and
laws; the company’s inability to retain key customers, vendors and
personnel; as well as the risk factors disclosed in the company’s
filings with the Securities and Exchange Commission (www.sec.gov),
including, without limitation, information under the captions
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” and “Risk Factors.” Readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect
management’s analysis only as of the date hereof. Any such
forward-looking statements are not guarantees of future performance or
results and involve risks and uncertainties that may cause actual
performance and results to differ materially from those predicted.
Except as required by law, the company undertakes no obligation to
publicly release the results of any revision to these forward-looking
statements that may be made to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
Source: United Online, Inc.
United Online, Inc.
Investors:
David Bigelow
818-287-3560
dbigelow@corp.untd.com
or
Media
Inquiries:
Scott Matulis
818-287-3388
pr@untd.com