Trans World Entertainment to Pay $15 Million Cash Dividend28 Nov, 2012 By: Erik Gruenwedel
Entertainment retailer breaks from tradition in issuing special dividend
In a first, Trans World Entertainment Corp. Nov. 28 said it will issue a special $15 million cash dividend payable on Dec. 26 to shareholders of record as of Dec. 10. The entertainment retailer does not typically issue dividends.
The dividend amounts to 47 cents per share to more than 31 million outstanding shares of common stock.
Albany, N.Y.-based Trans World operates 390 entertainment retail stores nationwide under the f.y.e. (For Your Entertainment) brand, in addition to Second Spin used packaged media stores and related Suncoast, f.y.e. and Wherehouse websites.
The retailer has posted seven consecutive quarters of improved financial results, including reporting a fiscal profit in 2011 — much of it on the back of packaged media. The reversal of fortune prompted an investor in the company’s third-quarter (ended Oct. 29) fiscal call to question management about issuing a dividend in light of Trans World’s $60 million in cash on hand and negligible debt.
“We are pleased to reward our shareholders with a special dividend. We continue to maintain strong financial flexibility and working capital to fund our growth initiatives,” founder and CEO Bob Higgins said in a statement.
Separately, Trans World said it sold a piece of retail property in Miami for $30 million.