Alta Equipment Group announced that its board of directors has authorized a stock repurchase program under which the company can repurchase up to $10 million of the currently outstanding shares of the company’s common stock through open market purchases, privately-negotiated transactions, or otherwise, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. Alta Equipment became a publicly traded company last month.
“The stock repurchase program reflects our confidence in the strength of our balance sheet, quality of our assets and our ongoing ability to generate free cash flow,” said Alta CEO Ryan Greenawalt. “At current market price levels, we believe the repurchase program is an excellent opportunity to buy our common shares at a significant discount to their intrinsic value and are an attractive investment. Our overall financial position, as well as our cash flow from operations, will support this buyback program and continue forward with our 2020-2021 operating plans.”
The actual timing, number and value of shares repurchased under the stock repurchase program will depend on a number of factors, including constraints specified in any Rule 10b5-1 trading plans, price, general business and market conditions, and alternative investment opportunities. 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. Payment for shares repurchased under the program will be funded using the company's cash on hand.
Alta owns and operates one of the largest integrated equipment dealership platforms in the U.S. Through its branch network, the company sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, cranes, earthmoving equipment and other industrial and construction equipment. Alta has operated as an equipment dealership for 35 years and has developed a branch network that includes 43 total locations across Michigan, Illinois, Indiana, New England, New York and Florida. Alta offers its customers a one-stop-shop for most of their equipment needs by providing sales, parts, service, and rental functions under one roof. More information can be found at www.altaequipment.com.
