Flowers foods announces three-for-two stock split - WALB.com, Albany News, Weather, Sports

Flowers foods announces three-for-two stock split

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News release from Flowers Foods

THOMASVILLE, GA; May 25, 2011—Prior to the Flowers Foods (NYSE: FLO) annual shareholders meeting today, the company's board of directors declared a three-for-two split of the company's stock by means of a 50% stock dividend and also increased the annual cash dividend by $.10.

This equates to a 12.5% increase over the previous dividend rate. Both the stock split and the dividend are payable on June 24, 2011, to shareholders of record on June 10, 2011.

Following the split, Flowers shareholders will own three shares for every two shares they held on the record date and their quarterly dividend rate will be $.15 per share, or $.60 per share on an annualized basis.

George E. Deese, Flowers Foods' chairman of the board and CEO, said the board is confident in the company's future performance. "The board believes Flowers Foods is in an excellent position to reward our shareholders with an increased dividend, allowing our investors to continue participating in the company's success over the long term," he said. "In addition, the stock split will increase the liquidity of our stock and attract new shareholders." 

Deese said the company is confident in the future and remains committed to its strategy of investing cash to build value for shareholders. "We anticipate delivering good results in 2011 and in the years to come, even as we manage through near term volatility in commodity markets and continued pressure from a weak economy.  Our business continues to generate substantial cash flow that funds dividends to our shareholders, capital improvements, and share repurchases, as well as growth through market expansion and strategic acquisitions. Our balance sheet is strong and our operating strengths are evident.  This week, we announced a new $500 million credit facility that substantially improves our capital structure. This provides a solid debt capital base and source of liquidity as we continue to execute our new five-year growth plan," Deese said.

During the shareholders meeting today, Deese and other members of management will review the company's operating strategies and financial performance. The meeting is being broadcast live at 11:00 a.m. Eastern on Flowers' Web site, www.flowersfoods.com. An archived version of the meeting will be posted on the company's Web site later today.

Company Information

Headquartered in Thomasville, Ga., Flowers Foods is one of the nation's leading producers and marketers of packaged bakery foods for retail and foodservice customers. Flowers operates 41 bakeries that produce a wide range of bakery products sold through an extensive direct-store-delivery network that encompasses the Southeast, Mid-Atlantic, and Southwest as well as select markets in California and Nevada, and nationwide through other delivery systems. Among the company's top brands are Nature's Own, Whitewheat, Tastykake, and Mrs. Freshley's. For more information, visit www.flowersfoods.com.

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