Connection (CNXN) Announces a Special Dividend to Shareholders

Rhea-AI Summary

Connection (NASDAQ: CNXN) has declared a special cash dividend of $.32 per share, totaling approximately $8.4 million, payable on January 29, 2021. Shareholders of record as of January 12, 2021 will benefit from this dividend. The board emphasized that future dividends will depend on the company’s financial health and market conditions. Timothy McGrath, CEO, highlighted the company’s robust balance sheet throughout 2020, reinforcing their commitment to returning cash to shareholders.

Positive

• Declaration of a special cash dividend of $.32 per share, totaling approximately $8.4 million.
• Strong balance sheet maintained throughout 2020 supports shareholder returns.
• Demonstrates commitment to capital allocation and returning cash to shareholders.

Negative

• None.

Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, and education markets, today announced that its Board of Directors declared a special cash dividend of $.32 per share payable on January 29, 2021, to shareholders of record at the close of business on January 12, 2021. The total amount of the special dividend payment will be approximately $8.4 million based on the current number of shares outstanding. While Connection is pleased to be in a position to pay a special dividend again this year, any declaration of future cash dividends will depend upon its financial position, strategic plans, and general business conditions at the time.

"2020 has been an unprecedented period in many respects. We have maintained a strong balance sheet throughout the year and are pleased to be able to announce this special cash dividend. The dividend demonstrates our commitment to returning cash to shareholders as part of our capital allocation plan," said Timothy McGrath, President and Chief Executive Officer.

About Connection

PC Connection, Inc. and its subsidiaries, dba Connection, (www.connection.com; NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH. With offices throughout the United States, Connection delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, OH. In addition, the Company has over 2,500 technical certifications to ensure that it can solve the most complex issues of its customers. Connection also services international customers through its GlobalServe subsidiary, a global IT procurement and service management company. Investors and media can find more information about Connection at http://ir.pcconnection.com.

Connection–Business Solutions (800.800.5555) is a rapid-response provider of IT products and services serving primarily the small-and medium-sized business sector. It offers more than 425,000 brand-name products through its staff of technically trained sales account managers, publications, and its website at www.connection.com.

Connection–Enterprise Solutions (561.237.3300), www.connection.com/enterprise, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and access to over 425,000 products and 1,600 vendors through TRAXX™, a proprietary cloud-based eProcurement system. The team’s engineers, software licensing specialists, and project managers help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.

Connection–Public Sector Solutions (800.800.0019), is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, publications, and online at www.connection.com/publicsector.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20201229005428/en/

FAQ

What is the amount of the special cash dividend declared by CNXN?

Connection declared a special cash dividend of $.32 per share.

When will the special dividend be paid to CNXN shareholders?

The special dividend will be paid on January 29, 2021.

Who is eligible to receive the special dividend from CNXN?

Shareholders of record as of January 12, 2021, will receive the special dividend.

What is the total amount of the special dividend payment for CNXN?

The total amount of the special dividend payment will be approximately $8.4 million.

Does CNXN plan to issue future dividends after this special dividend?

Future cash dividends depend on CNXN's financial position and general business conditions.