Monday, February 8, 2016
Note found on StreetInsider.com
February 8, 2016 4:27 PM EST
ARC Document Solutions, Inc. (NYSE: ARC) today announced that its Board of Directors approved a share repurchase program that authorizes the company to purchase up to $15 million of the company's outstanding common stock through December 31, 2017.
"The share repurchase program reflects management's confidence in the business and the future of our new offerings," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "The current disconnect between ARC's share price and its fundamental value has created an excellent opportunity to create significant long-term benefits for the company and its shareholders by buying back our common stock. The strength of our cash flows will allow us not only to repurchase shares in the coming quarters, but also to continue to invest in the long-term growth of our business."
In connection with the share repurchase program, ARC Document Solutions amended its senior secured credit agreement in order to provide additional flexibility to repurchase shares.
Under the new repurchase program, purchases of shares of common stock may be made from time to time in the open market, or in privately negotiated transactions, in compliance with applicable state and federal securities laws. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements, and capital availability. The share buyback program does not obligate the company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time without prior notice.
The company expects that the repurchase program will be funded by cash flows generated from its operations. At the end of 2015, the Company had approximately 47 million shares of common stock issued and outstanding.
Posted by Joel Salus at 2:22 PM