Business News
Schawk Announces Additional Stock Repurchase Program for up to Two Million Shares in 2009
Tuesday 02. December 2008 - Schawk, Inc. (NYSE: SGK), a leading provider of brand point management services, enabling companies of all sizes to connect their brands with consumers to create deeper brand affinity, announced that, pursuant to authority from its board of directors to repurchase, as conditions permit, up to two million shares of the Company's common stock per calendar year, the Company expects to seek to repurchase up to two million shares of the Company's common stock in 2009.
This additional stock repurchase program follows the Company’s 2008 repurchase authorization, announced in February 2008, to repurchase up to two million shares in 2008. Pursuant to the 2008 repurchase program, the Company had purchased a total of 636,300 shares for a cost of $9.8 million as of September 30, 2008, and expects to complete the 2008 purchase authorization of two million shares before the end of December 2008.
As of September 30, 2008, the Company had 26,545,584 shares outstanding. The 2009 share repurchase is expected to be funded using Schawk’s existing cash flow and its revolving credit facility, which had approximately $72 million of additional availability as of September 30, 2008.
The share repurchases may occur from time-to-time through open market purchases, privately negotiated transactions and/or transactions structured through investment banking institutions as permitted by securities laws and other legal requirements. The Company expects to enter into one or more 10b5-1 purchase plans with respect to the 2009 program. Market conditions will influence the timing of the buyback and the number of shares repurchased. The program does not obligate the Company to repurchase any specific number of shares and may be suspended or terminated at any time without prior notice. Shares repurchased will be held as treasury shares.
David A. Schawk, president and chief executive officer, said, “With our initial repurchase program of up to two million shares expected to be completed by the end of this year, we are affirming our confidence and optimism in the long-term future of the Company through this additional repurchase program for 2009.”