EXTON, Pa., Jan. 3, 2012 /PRNewswire/ -- The board of
directors of Kensey Nash Corporation (Nasdaq: KNSY) announced today
that the board has declared a cash dividend of $0.25 per share of the Company's common stock,
payable to stockholders of record on January
31, 2012. The dividend will be paid on February 29, 2012. This declaration
reflects the initial dividend under a new policy whereby the board
of directors expects to declare a total annual dividend of
$1.00 per share of common stock, to
be paid in equal quarterly installments, commencing with the
dividend announced today. Any decision to pay future cash
dividends will, however, be made by the board of directors and will
depend on the Company's future earnings and financial condition and
other relevant factors.
On an annualized basis, the quarterly dividend announced today
represents a yield of 5.2% based upon the $19.19 per share closing price of the Company's
common stock on the NASDAQ Global Select Market on December 30, 2011.
"The decision to initiate a quarterly cash dividend to our
stockholders at this time reflects the confidence of our board of
directors in our business model, financial strength and future
prospects," commented Joe Kaufmann,
President and CEO of the Company. He added, "We are committed
to our research and development programs and continued pursuit of
complementary acquisitions and believe that we can meet our goals
as a growth-oriented company and also return cash to our
stockholders." Mr. Kaufmann further remarked, "Although we are
optimistic about the ultimate outcome of our dispute with St. Jude
Medical, we believe we can accomplish our objectives and implement
this dividend policy regardless of the resolution of those
matters." Mr. Kaufmann concluded, "We expect that this new dividend
policy will, in the near term, replace stock repurchases as part of
our ongoing efforts to maximize stockholder value and related
return on investment for our stockholders. Since 2008, we
have repurchased approximately $115
million of our common stock."
About Kensey Nash Corporation. Kensey Nash Corporation is
a medical device company primarily focused on regenerative medicine
utilizing its proprietary collagen and synthetic polymer
technology. The Company is recognized as a leader for innovative
product development and unique technology in the field of
resorbable biomaterials. The Company has an extensive range of
products, which are sold through strategic partners in multiple
medical markets, including the cardiology, orthopaedic, sports
medicine, spine, endovascular and general surgery markets. For more
information, visit www.kenseynash.com.
Cautionary Note for Forward-Looking Statements. This
press release contains forward-looking statements that reflect the
Company's current expectations about its prospects and
opportunities and are covered by the "Safe Harbor for
Forward-Looking Statements" provided by the Private Securities
Litigation Reform Act of 1995. The Company has tried to identify
the forward-looking-statements by using words such as "plan,"
"expect," "will," "would," "should," "believe," "guidance" and
similar expressions, but these words are not the exclusive means
for identifying such statements. The Company's expectation that
dividends will be paid on a quarterly basis assumes that the
Company's financial condition will permit payment under
Delaware law, that the Company
will generate sufficient cash flow to warrant the payment of a
dividend, and that the declaration and payment of cash dividends
can be made in accordance with applicable law and agreements of the
Company. The Company also cautions that a number of other
risks, uncertainties and other important factors could cause the
Company's actual results to differ materially from those expressed
in, or implied by, the forward-looking statements, and therefore
impact the board of directors' determination of future dividend
payments, including, without limitation, the Company's mediation
with St. Jude Medical and any other legal proceeding relating to
the Company's disputes with St. Jude Medical (including the
uncertainty of any outcome thereof and the incurrence of expenses,
the diversion of management's time and attention and any disruption
to normal business operations and to the Company's relationship
with St. Jude Medical, in each case in connection therewith), the
Company's success in and the uncertainty of transitioning the
Norian manufacturing operations to the Company and Synthes success
in distributing the Norian products, St. Jude Medical's success in
selling the Angio-Seal device and the extent to which St. Jude
Medical is able to and does in fact rely on its internal
manufacturing to fulfill its requirements for collagen plugs for
the Angio-Seal device, the success of the Company's customers and
partners (including St. Jude Medical, Arthrex, Stryker and Synthes)
in selling Kensey Nash related
products in the marketplace, the Company's success in its research
and development efforts (including in its cartilage repair,
extracellular matrix and adhesive materials programs), the success
of clinical trials in both the U.S. and outside the U.S. to support
regulatory approval of the Company's products, and competition from
other technologies, as well as tax and other risks associated with
healthcare reform, general economic conditions and foreign currency
fluctuations. For a detailed discussion of factors that could
affect the Company's future operating results, please see the
Company's SEC filings, including the disclosures under "Risk
Factors" in those filings. Except as expressly required by the
federal securities laws, the Company undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, changed circumstances or future events
or for any other reason.
SOURCE Kensey Nash Corporation