Cerner Announces Quarterly Dividend and Increases Share Repurchase Program
KANSAS CITY, Mo., Dec. 13, 2019 (GLOBE NEWSWIRE) -- Cerner Corporation (Nasdaq: CERN), a global health care technology company, today announced that its Board of
Directors declared a cash dividend to stockholders of $0.18 per issued and outstanding share. The cash dividend will be payable on Jan. 9, 2020, to shareholders of record as of the close of
business on Dec. 27, 2019.
Cerner intends to pay regular quarterly cash dividends, with future declarations subject to approval by its Board of Directors and their determination that the declaration of dividends remains in the best interests of Cerner and its shareholders. The decision of whether to pay future dividends and the amount of any such dividends will be based on the company's financial position, results of operations, cash flows, capital requirements, the requirements of applicable law and any other factors the Board of Directors may deem relevant.
Cerner also announced that its Board has approved an amendment to its stock repurchase program, authorizing the repurchase of an additional $1.5 billion of its common stock. Cerner has repurchased $1.3 billion of its shares in 2019 and had $0.2 billion of available authorization remaining prior to the increase announced today. The total authorized amount available for repurchase is now $1.7 billion.
Cerner plans to repurchase shares in the open market, by block purchase, in privately negotiated transactions or possibly through other transactions managed by broker-dealers. No time limit was set for completion of the program, and the timing and amount of repurchases will depend on how much funding is used for other purposes, such as acquisitions. The Company intends to fund its capital allocation program, including share repurchases, dividend payments and other uses, with cash from operations and debt.
"The Board of Directors and our leadership team believe Cerner's shares are an attractive investment, and our expanded repurchase program and quarterly dividend reflect our ongoing commitment to returning capital to shareholders and the company's belief in Cerner’s long-term potential," said Marc Naughton, executive vice president and chief financial officer. "We have a strong balance sheet and expect to continue generating strong cash flow that can support ongoing investments in growth and a balanced capital allocation strategy."