Monro Muffler Brake Inc. plans to declare a three-for-two split of its common stock in the form of a 50% stock dividend. The split is subject to shareholder approval of an increase of authorized common shares from 20 million to 45 million.
"The shareholder vote to increase the number of shares of authorized common stock will take place on Aug. 7 at Monro's regularly scheduled annual shareholders' meeting."
If the split is approved, Monro shareholders will then receive one additional common share for every two shares when the split is effectuated in September 2007.
Separately, the Board of Directors has approved a 29% increase in the Company's quarterly dividend to $.09 per share.
The increased dividend rate will be effective commencing with the regular quarterly dividend payable on July 27 to shareholders of record as of July 17.
"We are pleased that we are able to be strategic and flexible with our capital so that we may continue to maximize value for our shareholders," says Robert G. Gross, Monro's CEO and president.
In addition, the company announced the repurchase of 118,400 shares of its common stock for $4.1 million, at the weighted average price of $34.78, during the period of March 5 through May 18.
