Salem Communications is sitting on some cash and decided to share it with the company’s shareholders. The company will pay a special cash dividend of 20 cents per share on both its publicly traded Class A stock and the super-voting Class B shares held by its founders.
“This year, despite challenges facing the broadcast sector, Salem Communications continues to generate free cash flow and bring incremental value to our shareholders. After considering available options, our board of directors determined that this special dividend of approximately 20 cents per share was the best way to benefit our shareholders,” said a statement from CEO Ed Atsinger.
The payment will be made December 13th to shareholders of record at the close of business on December 6th.
In an SEC filing Tuesday (11/16) Salem reported that as of November 12, 2010, there were 18,598,465 shares of Class A common stock and outstanding and 5,553,696 shares of Class B common stock outstanding. Thus, the anticipated amount of the total dividend will be approximately $4.83 million.
The Class B shares are owned 50% by Atsinger and 50% by Stuart and Nancy Epperson. Stuart Epperson is Chairman of the company’s board of directors.