Following its debt refinancing and third-quarter loss, Pep Boys-Manny, Moe & Jack announced that its board of directors has authorized a program to repurchase up to $50 million of the company’s common stock.
The program is effective immediately and has no expiration date.
"Based on current market prices, we believe that our stock is undervalued and that the repurchase program is a good investment of available cash on hand and future cash flows,” says CEO and President Mike Odell.
Common stock may be repurchased in the open market or through negotiated transactions, including Rule 10b5-1 trading plans that would enable the company to repurchase its shares during periods outside of its normal trading windows, when the company typically would not be active in the market. The time of purchases and the exact number of shares to be purchased will depend on market conditions.
The repurchase program does not include specific price targets or timetables and may be suspended or terminated at any time.
Pep Boys posted a net loss of $6.8 million on net sales of $509.6 million for its third quarter ended Oct. 27, 2012. That compares to net income of $7 million on sales of $522.2 million for the same quarter of fiscal 2011.