Diesel-engine motorhome chassis supplier Spartan Motors Inc. plans to begin paying cash dividends to shareholders on a regular basis beginning this year, according to John Sztykiel, president and CEO.
For the last 14 years, Spartan, a Nasdaq Stock Market-listed company, paid dividends only on special occasions when Spartan’s Board of Directors felt it could afford to do so.
“The implementation of a regular dividend reflects the board’s confidence in the future as well as its desire to enhance the value of Spartan shares,” Sztykiel said today (March 26).
“2002 was a very good year, we posted record earnings, improved operations and generated strong cash flow, which helped eliminate long-term debt and strengthen the company’s balance sheet,” Sztykiel continued. “We also made several key investments in the future of our business, including the development of new products and new technologies as well as the expansion of our manufacturing capabilities. In 2003, Spartan’s 750 associates will be focused on leveraging those investments into new opportunities to serve customers and gain market share.”
Spartan’s first regular dividend will amount to 5 cents a share in cash and it will be paid on June 16 to shareholders of record as of May 16. The second regular dividend also will be 5 cents a share and it will be paid during the fourth quarter of this year. The record and payment dates will be announced during the third quarter.
In addition to motorhome chassis, Spartan also owns fire-truck chassis manufacturer Crimson Fire Inc. and ambulance manufacturer Road Rescue Inc.