U.S. Silica (SLCA) Reduces Quarterly Cash Dividend By 68%
Zacks Investment Research | Feb 11, 2020 10:14PM ET
U.S. Silica Holdings, Inc. (NYSE:SLCA) has recently announced a reduction in its quarterly cash dividend. The company’s board has opted to lower the quarterly cash dividend payout to 2 cents per share from 6.25 cents, marking a 68% decline. The dividend will be paid out on Apr 3, 2020 to shareholders of record as of Mar 13, 2020.
The company stated that the move is in sync with its capital allocation strategy. U.S. Silica believes that reducing dividend is in the best interest of the company as well as shareholders. Lower dividend enables the company to make additional investments in the growing industrial and logistics businesses. Moreover, it provides more flexibility to reallocate capital for share repurchases and debt reduction.
Notably, U.S. Silica’s cash and cash equivalents plunged roughly 85% year over year to $187.3 million at the end of third-quarter 2019. Long-term debt rose around 3% year over year to $1,216.8 million.
Shares of U.S. Silica have tumbled 58.1% in the past year compared with the Zacks Investment Research
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