FOOTHILL RANCH, Calif., Aug. 12, 2003 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced that its Board of Directors had initiated an annual dividend policy and declared the Company's initial regular annual cash dividend of $0.14 per share, payable October 31, 2003, to shareholders of record at the close of business on October 15, 2003. Any future dividends are at the discretion of and subject to the approval of Oakley's Board of Directors.
"In light of the recent tax law changes that provide investors with the same federal tax rates for share appreciation and dividends, and given our sound cash flow generating business model, we believe it is appropriate to return value to our shareholders by commencing a regular annual dividend. Additionally, we expect to continue returning value to our shareholders through our share repurchase program," commented Chief Operating Officer Link Newcomb.
"We view the declaration of a dividend as another way for Oakley to deliver value to shareholders. Our business strategy has resulted in solid cash flows, a strong market position, and what we believe is a sustainable business model. We remain excited about our continued potential for growth and believe that initiation of a cash dividend will make Oakley stock attractive to a broader range of investors as we continue to build value for customers, employees and shareholders," Newcomb concluded.
As of June 30, 2003, cash and equivalents totaled $21.1 million, short-term debt totaled $15.0 million and long-term debt totaled $13.9 million. On September 10, 2002, the company's Board of Directors authorized the repurchase of up to $20 million of the company's stock, to occur from time to time as market conditions warrant. Since then, the company has repurchased 829,600 shares for $8.6 million at an average share price of $10.37. The company intends to continue to make repurchases under the outstanding share repurchase program at appropriate times.
About Oakley, Inc.
Oakley: a world brand, driven to ignite the imagination through the fusion of art and science. Building on its legacy of innovative, market-leading, premium sunglasses, the company also offers an expanding line of premium performance footwear, apparel, accessories, watches and prescription eyewear to consumers in more than 70 countries. Trailing-12-month revenues through June 30, 2003 totaled $489.9 million and generated net income of $34.2 million. Oakley, Inc. press releases, SEC filings and the company's Annual Report are available at no charge through the company's Web site at www.oakley.com.
Safe Harbor Disclaimer
This press release contains certain statements of a forward-looking nature. Such statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: risks related to the company's ability to manage rapid growth; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the ability of those manufacturing partners and the company's internal production operations to increase production volumes on raw materials and finished goods in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Sunglass Hut which is owned by a major competitor and, accordingly, could materially alter or terminate its relationship with the company; the company's ability to expand distribution channels and its own retail operations in a timely manner; unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; continued weakness of economic conditions could continue to reduce or further reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; further terrorist acts, or the threat thereof, could continue to adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials and could, as a result, adversely affect the company's operations and financial performance; the ability of the company to integrate acquisitions without adversely affecting operations; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of the company's new products and changes in consumer preferences; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the potential effect of periodic power crises on the company's operations including temporary blackouts at the company's facilities; foreign currency exchange rate fluctuations; earthquakes or other natural disasters concentrated in Southern California where substantially all of the companies operations are based; the company's ability to identify and execute successfully cost control initiatives; the company's ability to maintain its annual dividend, which is subject to its ability to continue to generate or have access to sufficient capital in excess of its needs for operations and its growth strategies and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 2002 and other filings made periodically by the company. The company undertakes no obligation to update this forward-looking information.