Sport-Haley, Inc. announced that the Board of Directors authorized the officers of the Company to repurchase an additional 300,000 shares of the Company’s issued and outstanding common stock in accordance with the Company’s previously announced stock repurchase program, provided such purchase(s) comply in all respects with all applicable Securities and Exchange Commission regulations.
As governed by the program, repurchases of the Company’s common stock may be made from time to time in the open market at prevailing market prices. The Company has no commitment or obligation to obtain all or any portion of the shares authorized for repurchase.
Prior to this announcement, the Company had cumulatively repurchased 2,296,900 of the 2,520,000 total shares in the program that were previously authorized for repurchase. Cumulatively, the Company has expended approximately $12,682,000 to repurchase shares of its common stock since the inception of the repurchase plan in December 1994. Including the additional 300,000 shares, the 523,100 shares currently authorized for repurchase represent approximately 20% of the Company’s 2,660,485 shares of common stock issued and outstanding as of this date. The Company plans to utilize its working capital as the source of funds used to repurchase any shares. All shares repurchased will be canceled and returned to the status of authorized but unissued common stock.
“Sport-Haley’s Board of Directors still consider our common stock to be undervalued,” said Kevin M. Tomlinson, Chief Executive Officer. “Our common stock consistently trades around $3 per share. At the same time, our book value per share exceeds $8 per share and cash, marketable securities and receivables together have a book value of about $4.60 per share, in and of themselves. The Board believes that the continuation of the repurchase program is in the best interests of the Company’s shareholders, especially those who may desire to liquidate their positions in our stock. The Board currently considers repurchases of the Company’s common stock to be a better use of available corporate funds than our other investment alternatives.”
