PRIVATE schools operator STI Education Systems Holdings, Inc. said on Monday that starting fiscal year 2017 to 2018, it is adopting a new dividend declaration policy under which it will declare not less than 25 percent of the company’s core income as dividend.
“The Board approved a dividend declaration policy of not less than 25 percent of the core income of the Company from the previous fiscal year, subject to compliance with the requirements of applicable laws and regulations, statutory limitations and/or restrictions, terms and conditions which may be imposed on the Company by lenders or other financial institutions, and the Company’s investment plans and financial condition,” STI told the Philippine Stock Exchange.
“Core income is defined as consolidated income derived from the company’s main business and other recurring income,” it said.
“The amount of dividends will be reviewed periodically by the Board in light of the company’s earnings, financial conditions, cash flows, capital requirements and other considerations, while maintaining a level of capitalization that is commercially sound and sufficient to ensure that the Company can operate on a standalone basis,” it added.
Such dividends shall be declared and paid out of the company’s unrestricted retained earnings payable in terms of cash, property or stock to all shareholders on the basis of outstanding stocks they hold.
Unless otherwise required by law, the Board of Directors of the company shall determine the amount, type and date of payment of the dividends to the shareholders, STI said.
STI owns 77 schools nationwide, comprising 66 STI-branded colleges and 11 STI-branded education centers. Of these, 32 college campuses are wholly owned, 34 college campuses are operated by franchisees, seven education centers are operated by franchisees, and four are wholly owned education centers.