Cricut, Inc. Declares Special Cash Dividend of $1.00 Per Share

SOUTH JORDAN, Utah, May 22, 2023 (GLOBE NEWSWIRE) -- Cricut, Inc. (NASDAQ: CRCT) (“Cricut,” the “Company” or “we”) today announced that the Board of Directors, through its Audit Committee, has declared a special, one-time cash dividend of $1.00 per share to holders of the Company’s Class A and Class B Common Stock. The dividend is payable on July 17, 2023, to stockholders of record at the close of business on July 3, 2023. The aggregate amount of the cash payment to be made in connection with this special dividend will be approximately $234 million. In addition, holders of restricted stock units that are unvested on the record date will be credited with a dividend equivalent based on the value of the per share dividend pursuant to the terms of the Company’s equity incentive documents. The dividend equivalent will entitle such holders to receive additional shares upon vesting of the corresponding restricted stock units. 

“Cricut continues to fully fund its growth initiatives. As part of our COVID risk mitigation strategies, we intentionally built up our on-hand inventory to ensure we could supply our customers during the pandemic. Starting late last year and continuing for the next few quarters, we began to focus on bringing inventory levels in line with historical norms. As a result, our business will generate higher cash flow this year than we would typically expect. For example, in Q1 2023, we generated $95 million of positive cash flow from operations, $49 million of which was driven by reducing inventory. In a more typical environment, we would generally consume cash to build inventory in Q1. We ended Q1 with $307 million in cash and short-term investments, and our $300 million credit line remains untapped. With working capital normalizing, and a profitable business, Cricut has more cash than we can envision using to grow. We prefer share repurchases in the current market to return capital to shareholders. Although our share repurchase program will continue, market liquidity severely limits our flexibility to right size cash through repurchases alone. Therefore, we believe it is also appropriate to return capital to our shareholders via this special dividend,” said Kimball Shill, Cricut’s Chief Financial Officer. “We expect to continue generating healthy cash flow from operations and to end the year with substantial cash and no debt after paying this dividend. We remain committed to our long-term operating margin targets of 15-19%. Our proven model has demonstrated that when we operate at scale and drive topline growth, these margins are achievable.”