Gildan Activewear Hikes Dividend; Renews Shareholder Rights Plan

(RTTNews) - Gildan Activewear Inc. (GIL, GIL.TO) said that its board has approved a 20% increase in the amount of the current quarterly dividend and has declared a cash dividend of $0.0935 per share, payable on April 3, 2017 to shareholders of record on March 9, 2017.

Gildan is authorized to make purchases under the bid during the period from February 27, 2017 to February 26, 2018 in accordance with the requirements of the TSX. Under the bid, Gildan may purchase up to a maximum of 131,732 shares daily through TSX facilities, which represents 25% of the average daily trading volume on the TSX for the most recently completed six calendar months. For 2017, Gildan expects to achieve adjusted EPS in the range of $1.60 to $1.70, which at the mid-point of the guidance range represents growth of 9% over 2016 on projected high single digit consolidated net sales growth. Adjusted EBITDA for 2017 is expected to be in the range of $555 to $585 million. The Company is also projecting another record year of strong free cash flow generation in excess of $400 million.

The Company also announced that its Board of Directors has approved a new shareholder rights plan which will become effective upon confirmation and approval by the shareholders of the Company at the annual meeting of shareholders to be held on May 4, 2017. If approved by the shareholders, the Rights Plan will remain in effect until the close of business on the date of the Company's annual meeting of shareholders in 2020, with one renewal option subject to shareholder approval, and subject to earlier termination or expiration of the Rights Plan in accordance with its terms.