Share this article

print logo

Astronics to pay a 20 percent stock dividend

Astronics Corp. will give its shareholders one additional share of the Buffalo aircraft electronics and lighting manufacturer’s stock for every five that they now own in a move to put more shares into circulation and make its stock more attractive to investors.

The stock dividend will not increase the value of an Astronics shareholder’s investment in the company because the move will reduce the price of each share of stock by 20 percent.

The stock dividend applies to shareholders of both Astronics’ Class A and Class B shares. The dividend will be paid in Class B shares, which convert to Class A shares if they are traded and have 10 times the voting power of Class A shares.

The stock dividend will increase the number of Class B Astronics shares outstanding to 6 million from the current 3.1 million. The company has 11.5 million Class A shares.

Shareholders will receive cash for any fractional shares.

The stock distribution is the seventh that Astronics has made since 1988 and follows a 15 percent stock distribution that it made last year and a 10 percent dividend in 2011.

Astronics shares fell by 74 cents, or 1.5 percent, in early trading Friday. The shares have more than doubled in price this year as the company’s profits during the first six months of 2013 jumped by 22 percent, while sales grew by 11 percent. Much of the revenue growth came from a 16 percent increase in sales of the systems it makes to provide in-seat power for commercial airline passengers.

The additional shares will be distributed Oct. 24 to shareholders of record Oct. 10.