SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: April 22, 1999
SEMCO Energy, Inc.
(Exact name of registrant as specified in its charter)
Michigan 0-8503 38-2144267
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
405 Water Street, Port Huron, Michigan 48060
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 810-987-2200
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Item 5. Other Events.
On April 20, 1999, the Board of Directors declared a 2.5% increase in its
regular quarterly cash dividend and a special $.05 per share cash dividend on
the outstanding stock of the Company. The Board also discontinued the practice
of declaring a 5% stock dividend. See exhibit hereto.
Item 7.(c) Exhibits.
99 Press Release issued April 20, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SEMCO Energy, Inc.
(Registrant)
Dated: April 22, 1999 By: /s/William L. Johnson
William L. Johnson
Chairman, President and C.E.O.
<PAGE>
EXHIBIT INDEX
Form 8-K
April 22, 1999
Filed
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Exhibit By
No. Description Herewith Reference
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99 Press Release dated April 20, 1999. x
FOR IMMEDIATE RELEASE
Contact: Edric R. Mason, Jr.
Phone: 810-989-4104
FAX: 810-987-4098
SEMCO ENERGY, INC. DECLARES CASH DIVIDEND INCREASE
PORT HURON - APRIL 20 - The Board of Directors of SEMCO
ENERGY,Inc. (NASDAQ/NM:SMGS) today declared a 2.5% increase in
its regular quarterly cash dividend and a special $.05 per share
cash dividend on the outstanding Common stock of the Company. The
Board also discontinued the practice of declaring a 5% stock
dividend.
Specifically, the Board increased the quarterly dividend
rate to $.205 per share on the Common Stock of the Corporation, a
2.5% increase from the previous quarterly cash dividend of $.20
per share.
In addition, the Board declared a special cash dividend of
$.05 per share on the Common Stock of the Corporation, which
represents a 6.3% one-time payment over the current dividend.
The Company also announced the regular quarterly dividend of
$.578125 per share on the outstanding $2.3125, Series A,
Convertible Cumulative Preferred Stock of the Corporation.
All three dividends are payable on the 15th day of May 1999
to stockholders of record at the close of business on May 5,
1999.
"I am very pleased to announce the 2.5% increase in the cash
dividend, our first increase in the cash dividend rate since
1988, and the special cash dividend of $.05 per share," said
William L. Johnson, Chairman, President and Chief Executive
Officer of SEMCO ENERGY, Inc.
According to Johnson, "The Company has paid an annual stock
dividend since 1983. This year, the Board decided not to declare
a stock dividend but instead modified the dividend policy by
increasing the cash dividend. The Board's reasoning for this
positive change in the dividend policy is that stock dividends
create more shares outstanding with no compensating additional
earnings, therefore, reducing earnings per share growth and
limiting stock price appreciation. In fact, there are very few
companies l-eft which still pay a stock dividend. We believe that
cash dividend increases, instead of a stock dividend, make the
stock more appealing to a greater number of investors."
Johnson concluded, "Our management team has made significant
progress in positioning the Company to be successful. Our goal is
to produce long-term earnings per share growth at about twice the
industry average.
"With our new dividend policy we intend to share the growth
of the Company with periodic increases in the cash dividend, as
long as the Company is financially sound and it is in the best
interests of our shareholders. We also are mindful of the fact
that, as we grow, a larger portion of earnings should be retained
and reinvested in the business.
"With our new business strategy and this dividend policy, it
is our objective to provide to shareholders a more competitive
total return with a larger portion of the return coming from
stock appreciation."
SEMCO ENERGY, Inc. is a diversified energy services and
infrastructure company organized into two major segments: Natural
gas distribution and diversified businesses.
SEMCO ENERGY GAS COMPANY distributes natural gas to 250,000
residential, industrial and commercial customers in Michigan's
Upper and Lower Peninsulas.
SEMCO ENERGY VENTURES acquires and operates businesses
involved in gas engineering and quality assurance services,
pipeline construction services, propane distribution, intrastate
pipelines and natural gas storage in Iowa, Kansas, Louisiana,
Michigan, New Jersey, Tennessee, Texas and Wisconsin.
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