What was the amount of the special cash dividend per share paid by Budget in December 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ility. With respect to certain of the agreementoned guarantees, such as indemnifications provided to landlords against third-party claims for the use of real estate property leased by us, we maintain insurance coverage that mitigates our potential exposure.
16. Stockholders' Equity
Cash Dividend Payments
During 2024 and 2022, we did not declare or pay any cash dividends. In December 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, in December 2023, Budget paid a special cash dividend of $10.00 per share to all holders of common stock as of December 15, 2023. The total dividend payment amounted to $355 million.
This information is relevant to prospective franchisees as it provides insight into Budget's financial management and its decisions regarding distributing profits to shareholders. While franchisees are not shareholders, understanding the company's approach to dividends can offer a glimpse into its overall financial strategy and priorities.
It's important to note that Budget's ability to pay dividends is subject to limitations imposed by its senior credit facility, indentures governing its senior notes, and vehicle financing programs. This indicates that dividend payments are not guaranteed and can be affected by the company's financial obligations and performance.