Rand Capital Announces $0.29 per Share Cash Dividend for Third Quarter 2024
Rand Capital (Nasdaq: RAND), a business development company providing alternative financing for lower middle market companies, has announced a quarterly cash dividend of $0.29 per share. The dividend will be distributed on or about September 13, 2024, to shareholders of record as of August 30, 2024. Rand has approximately 2.6 million shares outstanding.
The company's Board of Directors reviews estimates of taxable income available for distribution when declaring dividends. These estimates may differ from consolidated net income under GAAP due to changes in unrealized appreciation and depreciation, temporary and permanent differences in income and expense recognition, and spillover income from previous years. The final determination of taxable income and tax attributes for distributions will be made after the close of the tax year.
Rand Capital (Nasdaq: RAND), una società di sviluppo aziendale che fornisce finanziamenti alternativi per le aziende di dimensioni medio-basse, ha annunciato un dividendo in contanti trimestrale di $0,29 per azione. Il dividendo sarà distribuito intorno al 13 settembre 2024, agli azionisti registrati il 30 agosto 2024. Rand ha circa 2,6 milioni di azioni in circolazione.
Il Consiglio di Amministrazione dell'azienda esamina le stime del reddito imponibile disponibile per la distribuzione al momento della dichiarazione dei dividendi. Queste stime possono differire dall'utile netto consolidato secondo i principi contabili GAAP a causa di variazioni nei guadagni e nelle perdite non realizzati, differenze temporanee e permanenti nel riconoscimento di redditi e spese, e reddito da spillover degli anni precedenti. La determinazione finale del reddito imponibile e delle caratteristiche fiscali per le distribuzioni sarà effettuata dopo la chiusura dell'anno fiscale.
Rand Capital (Nasdaq: RAND), una empresa de desarrollo empresarial que ofrece financiamiento alternativo para empresas del mercado medio-bajo, ha anunciado un dividendo en efectivo trimestral de $0.29 por acción. El dividendo se distribuirá aproximadamente el 13 de septiembre de 2024, a los accionistas que estén registrados a partir del 30 de agosto de 2024. Rand tiene aproximadamente 2.6 millones de acciones en circulación.
La Junta Directiva de la empresa revisa las estimaciones de ingresos imponibles disponibles para distribución al declarar dividendos. Estas estimaciones pueden diferir de los ingresos netos consolidados bajo GAAP debido a cambios en la apreciación y depreciación no realizadas, diferencias temporales y permanentes en el reconocimiento de ingresos y gastos, y ingresos acumulados de años anteriores. La determinación final de los ingresos imponibles y atributos fiscales para distribuciones se llevará a cabo después del cierre del año fiscal.
랜드 캐피탈 (Nasdaq: RAND)은 중소기업을 위한 대체 금융을 제공하는 사업 개발 회사로, 주당 $0.29의 분기 현금 배당금을 발표했습니다. 이 배당금은 2024년 9월 13일경에 유통되며, 2024년 8월 30일 기준 주주에게 분배됩니다. 랜드는 약 260만 주의 발행 주식을 보유하고 있습니다.
회사의 이사회는 배당금을 선언할 때 분배 가능한 과세 소득의 추정치를 검토합니다. 이러한 추정치는 GAAP에 따라 통합된 순이익과 차이가 있을 수 있으며, 이는 실현되지 않은 평가 및 감가상각의 변화, 소득 및 비용 인식의 임시 및 영구 차이, 및 이전 년도의 누적 소득 때문입니다. 분배에 대한 과세 소득 및 세금 속성의 최종 결정은 세무 연도 종료 후에 이루어집니다.
Rand Capital (Nasdaq: RAND), une société de développement commercial fournissant un financement alternatif pour les entreprises de taille intermédiaire inférieure, a annoncé un dividende trimestriel en espèces de 0,29 $ par action. Le dividende sera distribué vers le 13 septembre 2024, aux actionnaires enregistrés au 30 août 2024. Rand a environ 2,6 millions d'actions en circulation.
Le conseil d'administration de l'entreprise examine les estimations de revenu imposable disponibles pour distribution lors de la déclaration des dividendes. Ces estimations peuvent différer de l'ing revenu net consolidé selon les GAAP en raison de changements dans l'appréciation et la dépréciation non réalisées, des différences temporaires et permanentes dans la reconnaissance des revenus et des dépenses, et des revenus de reports des années précédentes. La détermination finale du revenu imposable et des attributs fiscaux pour les distributions sera effectuée après la clôture de l'année fiscale.
Rand Capital (Nasdaq: RAND), ein Unternehmen für Geschäftsentwicklung, das alternative Finanzierungen für kleine und mittelständische Unternehmen bereitstellt, hat eine vierteljährliche Bar-Dividende von 0,29 $ pro Aktie angekündigt. Dividenden werden voraussichtlich am 13. September 2024 an Aktionäre ausgezahlt, die am 30. August 2024 im Aktienregister stehen. Rand hat ungefähr 2,6 Millionen ausstehende Aktien.
Der Vorstand des Unternehmens prüft die Schätzungen des steuerpflichtigen Einkommens, das für die Ausschüttung verfügbar ist, bei der Erklärung von Dividenden. Diese Schätzungen können sich von dem konsolidierten Nettogewinn gemäß GAAP unterscheiden, aufgrund von Veränderungen in der nicht realisierten Wertsteigerung und -minderung, temporären und permanenten Unterschieden in der Ertrags- und Aufwandsanerkennung sowie von Überschusseinkommen aus den Vorjahren. Die endgültige Festlegung des steuerpflichtigen Einkommens und der Steuereigenschaften für Ausschüttungen erfolgt nach Abschluss des Steuerjahres.
- Declared quarterly cash dividend of $0.29 per share
- Consistent dividend payout indicates financial stability
- None.
Insights
Rand Capital's announcement of a
Analyzing the dividend in context:
- With approximately 2.6 million shares outstanding, this dividend represents a total payout of about
$754,000 . - For a business development company (BDC) like Rand, maintaining consistent dividends is important for attracting income-focused investors.
- The ability to declare this dividend suggests that Rand's investment portfolio is generating sufficient income to support shareholder distributions.
However, investors should note the cautionary language regarding future distributions. The Board's review process, which considers factors beyond GAAP net income, indicates a prudent approach to dividend sustainability. This transparency is commendable but also hints at the potential variability of future payouts.
From a valuation perspective, without knowing Rand's current share price, it's challenging to calculate the dividend yield. Investors should compare this yield to other BDCs and consider it in the context of Rand's overall financial performance and growth prospects.
In conclusion, while this dividend announcement is positive, it's essential for investors to monitor Rand's upcoming financial reports to assess the sustainability of this payout level and the company's overall financial trajectory.
The announcement of Rand Capital's
Key market implications:
- The consistent dividend suggests stability in Rand's portfolio companies, potentially indicating resilience in the lower middle market segment.
- BDCs like Rand often serve as a barometer for small business health, making this dividend a positive signal for the broader economy.
- The timing of the dividend, set for September 2024, shows confidence in near-term market conditions and portfolio performance.
However, it's important to contextualize this within the broader BDC market. Investors should compare Rand's dividend yield and consistency with its peers to gauge its relative attractiveness. Additionally, the emphasis on the Board's discretion in determining future dividends underscores the need for ongoing monitoring of market conditions and Rand's financial performance.
From a market research perspective, this dividend announcement, while positive, should be viewed as one piece of a larger puzzle. Investors would benefit from analyzing Rand's portfolio composition, sector exposure and historical dividend trends to form a comprehensive view of its market position and future prospects.
Additional Information Regarding Dividend Distributions
The amount and timing of dividend distributions, including future dividend distributions, are subject to the discretion of Rand’s Board of Directors. When declaring distributions, Rand’s Board of Directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year.
The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the strategy of the Company and its outlook; statements regarding maintaining or increasing the Company’s dividend; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time to time in Rand’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand’s current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731608954/en/
Company:
Daniel P. Penberthy
President and CEO
716.853.0802
dpenberthy@randcapital.com
Investors:
Deborah K. Pawlowski / Craig P. Mychajluk
Kei Advisors LLC
716-843-3908 / 716-843-3832
dpawlowski@keiadvisors.com / cmychajluk@keiadvisors.com
Source: Rand Capital Corporation
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