Franchise Group, Inc. Announces Approval of a Quarterly Dividend

Rhea-AI Summary

Franchise Group (NASDAQ: FRG) announced a quarterly cash dividend of $0.25 per share, payable on July 22, 2020, to stockholders of record by June 22, 2020. This initiative reflects the Company’s commitment to providing returns to its investors while continuing its operations within its franchises, which include Liberty Tax Service, Buddy’s Home Furnishings, American Freight, and The Vitamin Shoppe. The Company operates over 4,400 locations primarily in the U.S. and Canada.

Positive

• Quarterly dividend of $0.25 per share supports shareholder income.
• Commitment to consistent cash generation for future dividends.

Negative

• Risks associated with forward-looking statements, including uncertainty in achieving projected cash flow.

VIRGINIA BEACH, Va., June 09, 2020 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the “Company”) today announced that its Board of Directors approved a quarterly dividend to stockholders of $0.25 per share. The cash dividend will be paid on or about July 22, 2020 to holders of record of the Company’s common stock on the close of business on June 22, 2020.

About Franchise Group, Inc.

Franchise Group, Inc. (NASDAQ: FRG) is an operator of franchised and franchisable businesses and uses its operating expertise to drive cost efficiencies and grow its brands. Franchise Group’s business lines include Liberty Tax Service, Buddy’s Home Furnishings, American Freight and The Vitamin Shoppe. On a combined basis, Franchise Group currently operates over 4,400 locations predominantly located in the U.S. and Canada that are either Company-run or operated pursuant to franchising agreements.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results and are not statements of historical fact. Such statements include the Company’s strategy to generate cash to continue to issue dividends in the future. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company or its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, many of which are beyond the control of the Company. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Transition Report on Form 10-K/T for the transition period ended December 28, 2019, and comparable sections of the Company’s Quarterly Reports on Form 10-Q and other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its business or operations. Readers are cautioned not to rely on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

INVESTOR RELATIONS CONTACT:
Andrew F. Kaminsky
EVP & Chief Administrative Officer
Franchise Group, Inc.
akaminsky@franchisegrp.com
(914) 939-5161

FAQ

What is the dividend amount for Franchise Group (FRG)?

Franchise Group (FRG) has announced a dividend of $0.25 per share.

When will Franchise Group's dividend be paid?

The dividend will be paid on or about July 22, 2020.

Who is eligible to receive the dividend from Franchise Group (FRG)?

Stockholders on record as of June 22, 2020, are eligible for the dividend.

Is the dividend from Franchise Group sustainable?

Franchise Group stated its strategy aims to generate cash for future dividends, but risks exist.