CALGARY, ALBERTA--(Marketwire - Oct. 11, 2011) - Dividend Increase: Alaris Royalty Corp. ("Alaris" or the "Corporation") (TSX:AD) is pleased to announce that effective immediately, the Board of Directors of the Corporation has determined to increase the monthly dividend on the Corporation's outstanding common shares by $0.01 per share to $0.095 per share (or $1.14 on an annualized basis) from $0.085 per share (or $1.02 on an annualized basis). The new dividend of $.095 per month will be payable on November 15, 2011, to holders of record at the close of business on October 31, 2011, subject to the Chief Financial Officer of the Corporation confirming that the monthly dividend conditions, which are outlined in the Corporations dividend policy, have been met. Confirmation of the dividend conditions is expected by October 18, 2011. This is the third dividend increase by Alaris since April 2010.
"This 12% increase in our monthly dividend reflects the visibility and confidence that Alaris has in its operations as well as its future growth opportunities", said Steve King, President and CEO of Alaris Royalty Corp. "Through our contributions to the Killick and KMH partnerships totaling nearly $50 million over the past three months, Alaris has more than replaced the revenue stream that was sold as part of the LifeMark Health transaction, while still leaving us with unused credit capabilities. In addition, this dividend increase reflects the continuing strong operating results of our underlying partners. We are very pleased with the stability of our current cash flow streams as well as the prospects for additional diversification and earnings growth from new partnerships".
Alaris' dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
The Company invests in a diversified group of private businesses ("Private Company Partners") in exchange for royalties or distributions from the Private Company Partners, with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Royalties or distributions to Alaris from the Private Company Partners are structured as a percentage of a "top line" financial performance measure such as gross margin, same clinic sales, gross revenues and same-store sales and rank in priority to the owners' common equity position.
This news release contains forward-looking statements. Statements other than statements of historical fact contained in this news release may be forward-looking statements, including, without limitation, management's expectations, intentions and beliefs concerning when the dividend will be declared and that the dividend conditions will be satisfied. Many of these statements can be identified by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward looking statements are based will occur.
Statements containing forward-looking information by their nature involve numerous assumptions and significant known and unknown facts and uncertainties of both a general and a specific nature. Key assumptions include, but are not limited to assumptions that: the Canadian and U.S. economies will not fall into deep recession in 2012; interest rates will not rise in a material nature over the next 12 months; that the Company's private company partners will continue to be able to pay their distributions to the Company as and when expected, and more private companies will require access to alternative sources of capital. In determining the Company's expectations for economic growth, management primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.
The forward-looking statements contained herein are subject to numerous known and unknown risks that may cause actual results to vary from those set forth in the forward-looking statements, including, but not limited to risks associated with: general economic conditions and changes in the financial markets; risks associated with the Company and its business; and a change in the ability of the Company's private company partners to continue to pay Alaris' preferred distributions. In addition, the information set forth under the heading "Risk Factors" in the Company's Annual Information Form dated March 25, 2011 (a complete copy of which can be found on SEDAR at www.sedar.com) identifies additional factors that could affect the operating results and performance of the Company and may cause the actual results of the Company to differ materially from those anticipated in forward-looking statements.
As forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and Alaris does not undertake or assume any obligation to update or revise such statements to reflect new events or circumstances except as expressly required by applicable securities legislation.
Manager of Investor Relations & Business Analyst