Alliance Data Systems (ADS) Expands Stock Purchase Program by $400M
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Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that its board of directors has approved a new stock repurchase program to acquire up to $400 million of the Company's common stock during 2013. The program increases the Company's combined repurchase authorizations to approximately $2.8 billion since the first quarter of 2008, of which approximately $2.0 billion has been used to purchase approximately 36.3 million shares, representing approximately 46 percent of the Company's fully diluted shares outstanding when this program began in 2008. The new repurchase program replaces the existing program, which expired at the end of 2012.
Repurchases will be financed through free cash flow. The Company expects to maintain moderate levels of debt over the course of the repurchase program, providing flexibility to pursue tuck-in acquisitions, portfolio purchases and/or international loyalty coalition program expansions.
Charles Horn, chief financial officer of Alliance Data, said, "We are very optimistic about the Company's outlook for 2013 and are pleased to announce that we will continue our commitment to maximizing stockholder value through this new repurchase program. As communicated since 2007, we will always seek the right opportunities to repurchase our stock, and to do so while maintaining ample liquidity to support future growth of the business as needs dictate."
Under this repurchase program the Company is authorized to repurchase shares in open market purchases as well as in privately negotiated transactions from time to time through December 31, 2013. Stock purchased as part of this program will be held as treasury stock. The repurchase program's terms have been structured to comply with the SEC's Rule 10b-18, and the program is subject to market conditions, applicable legal requirements, contractual obligations, and other factors. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time.
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Repurchases will be financed through free cash flow. The Company expects to maintain moderate levels of debt over the course of the repurchase program, providing flexibility to pursue tuck-in acquisitions, portfolio purchases and/or international loyalty coalition program expansions.
Charles Horn, chief financial officer of Alliance Data, said, "We are very optimistic about the Company's outlook for 2013 and are pleased to announce that we will continue our commitment to maximizing stockholder value through this new repurchase program. As communicated since 2007, we will always seek the right opportunities to repurchase our stock, and to do so while maintaining ample liquidity to support future growth of the business as needs dictate."
Under this repurchase program the Company is authorized to repurchase shares in open market purchases as well as in privately negotiated transactions from time to time through December 31, 2013. Stock purchased as part of this program will be held as treasury stock. The repurchase program's terms have been structured to comply with the SEC's Rule 10b-18, and the program is subject to market conditions, applicable legal requirements, contractual obligations, and other factors. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time.
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