Comfort Inn 2013 Annual Report Download - page 34

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Table of Contents
 
Except as noted below, the Company is not a party to any litigation other than litigation in the ordinary course of business. The Company's management
and legal counsel do not expect that the ultimate outcome of any of its currently ongoing legal proceedings, individually or collectively, will have a material
adverse effect on the Company's financial position, results of operations or cash flows.
In May 2013, the Company was added to an ongoing multi-district class action pending in federal court in Dallas, Texas. The lawsuit alleged that
several online travel companies and hotel companies have engaged in anti-competitive practices. The complaint sought an unspecified amount of damages and
equitable relief. The Company, along with other defendants, disputed the allegations and vigorously defended itself against these claims. On February 18,
2014, the court granted the defendants’ motion to dismiss the lawsuit without prejudice. The plaintiffs have 30 days to petition the court to refile their claim
with additional facts. We currently do not believe this litigation will have a material effect on our consolidated financial position, results of operation or
liquidity.
 
None

 
The shares of the Company’s common stock are listed and traded on the New York Stock Exchange. The following table sets forth information on the
high and low sales prices of the Company’s common stock and cash dividends declared per share for each quarterly period for the two most recently
completed years.




 


March 31, $39.14
$35.01
$ 0.185
June 30, $ 42.29
$34.80
$ 0.185
September 30, $44.48
$31.06
$10.595 (1 )
December 31, $33.68
$30.40
$ 0.185

March 31, $42.32
$34.00
$ 0.185
June 30, $45.96
$38.30
$ 0.185
September 30, $44.04
$37.94
$ 0.185
December 31, $49.79
$ 39.71
$ 0.185
(1) Dividends declared during the third quarter of 2012 include a $10.41 special cash dividend per common share and a regular quarterly dividend of
$0.185 per common share.
The Company currently maintains the payment of a quarterly dividend on its common shares outstanding, however, the declaration of future dividends
are subject to the discretion of the board of directors. We expect that regular quarterly cash dividends will continue to be paid at a comparable rate in the future,
subject to future business performance, economic conditions and changes in the current income tax regulations. In addition, the Company may not make
dividend payments if there is an existing event of default under its senior secured credit facility or if the payment would create an event of default.
Furthermore, if the Company's total leverage, as defined in the Company's senior secured credit facility, exceeds 4.50 to 1, the Company is generally restricted
from paying aggregate dividends in excess of $50 million during any calendar year.
34