Eusebio Tanco approves dividend policy for STI shareholders
STI Education System Holdings Inc. has approved a dividend policy starting fiscal year 2017-2018, reflecting its priorities to continue delivering growth and returning capital to shareholders.
In a stock exchange filing, STI said its board of directors approved a dividend declaration policy of not less than 25% of the core income of the company from the previous fiscal year, subject to compliance with the requirements of applicable laws and terms and conditions which may be imposed on the firm by lenders or other financial institutions.
STI defines core income as consolidated net income derived from the company’s main business – education and other recurring income.
“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,” STI said.
Dividends shall be paid out of the company’s unrestricted retained earnings which shall be payable in cash, property or stock to all shareholders on the basis of outstanding stock held by them.
STI posted a net income of P644 million in the fiscal year ending March 31, 2017, down 40 percent from the previous year even as revenues rose to P2.93 billion.
The ptevious fiscal year’s profit of P1.1 billion was “largely due to the P553.4 million gain recognized last year resulting from the dacion of real estate properties in Quezon City and Davao in settlement for non current receivables.”