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Case from journal
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Reference no. NAC3247
Authors: Tom Cook
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 2012

Abstract

In early March 2010, Bill Ritterath, Chief Financial Officer of Daktronics, Inc, was meeting in his office with Jim Morgan, CEO, and Alered Kurtenbach, Chairman of the Board, about increasing dividend payments to shareholders. The company went through a difficult period the past three years with the downturn in the national economy and the sudden reversal in the company’s operating and financial performance. But with the economy showing some signs of recovering from the recession, Dr Kurtenbach thought it was time to review Daktronics’ current dividend policy. Cash balances were growing rapidly and the outlook for future cash flows was positive. He said, 'We can afford to return some additional cash to shareholders given our confidence that business is turning around and improving.' In making the decision, Dr Kurtenbach wanted it to be based on an assessment of the company’s current cash position and future cash flow projections. Dr Kurtenbach asked Mr Ritterath to make a recommendation at the next Board meeting (in four weeks) on a new dividend distribution, including both the amount and form of the distribution.
Location:
Industry:
Size:
3,400 employees
Other setting(s):
2010

About

Abstract

In early March 2010, Bill Ritterath, Chief Financial Officer of Daktronics, Inc, was meeting in his office with Jim Morgan, CEO, and Alered Kurtenbach, Chairman of the Board, about increasing dividend payments to shareholders. The company went through a difficult period the past three years with the downturn in the national economy and the sudden reversal in the company’s operating and financial performance. But with the economy showing some signs of recovering from the recession, Dr Kurtenbach thought it was time to review Daktronics’ current dividend policy. Cash balances were growing rapidly and the outlook for future cash flows was positive. He said, 'We can afford to return some additional cash to shareholders given our confidence that business is turning around and improving.' In making the decision, Dr Kurtenbach wanted it to be based on an assessment of the company’s current cash position and future cash flow projections. Dr Kurtenbach asked Mr Ritterath to make a recommendation at the next Board meeting (in four weeks) on a new dividend distribution, including both the amount and form of the distribution.

Settings

Location:
Industry:
Size:
3,400 employees
Other setting(s):
2010

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