BOULDER, CO – New Frontier Media Inc. (NOOF on Nasdaq) announced today that its Board of Directors has declared a “special dividend of $0.60 per share payable on February 14th 2007, to shareholders of record as of January 15th 2007.”In addition, New Frontier also announced a “semi-annual dividend program in the amount of 60-percent of the Company’s free cash flow, defined as cash flows from operations less capital expenditures.”
According to the press release, the first payment of the ongoing dividend program is “intended to be payable to shareholders of record as of September 30, 2007.”
“The Company believes that based on the present share price, and present free cash flow, that this program will provide a larger dividend yield than that of almost every media company in America,” the New Frontier press release states.
“The adoption of this new dividend policy is evidence of our ongoing commitment to creating long-term shareholder value,” said Michael Weiner, CEO of New Frontier Media, in the press release.
“We have built a solid business with sufficient free cash flow to both fuel our growth and provide an on-going return to investors,” added Weiner. “Whether it’s a strategic acquisition, a stock buy-back, or an enhanced dividend, New Frontier Media will continue to make prudent moves at the right moments to benefit shareholders.”
New Frontier is the parent company to The Erotic Networks (TEN), and in February, completed its acquisition of MRG Entertainment Inc. and its related subsidiary, Lifestyles Entertainment, Inc. The company operates in three market segments, the Internet Group, the Pay TV Group, and the Film Production Group.
As of 2:06 pm Eastern time today, New Frontier’s stock was trading at $9.36 a share, with a previous close of $8.98.
