Warrantech Corporation Announces Expansion of Stock Repurchase Program; To Purchase Up to 1,000,000 Shares
18 August 1998
Warrantech Corporation Announces Expansion of Stock Repurchase Program; To Purchase Up to 1,000,000 Shares
STAMFORD, Conn.--August 18, 1998--Warrantech Corporation (NASDAQ NMS: WTEC) announced today that its Board of Directors has expanded the Company's stock repurchase program by authorizing management to repurchase up to one million shares of the Company's shares in the open market at times and in amounts which management deems appropriate.
Warrantech Chairman and Chief Executive Officer, Joel San Antonio, stated, "At its current level, we consider Warrantech common stock to be undervalued. Management is sensitive to this issue and will consider strategic repurchases of shares of Warrantech at appropriate intervals.
"The authorization to repurchase up to one million shares not only demonstrates the Company's commitment to enhancing shareholder value, but also the Board's optimism in the Company's future and the Company's expectation that, assuming trends in the Company's business activity continue, Warrantech will return to profitability in the fiscal second quarter."
Warrantech further announced that, as part of its repurchase program, it will consider the purchase of block positions at negotiated prices. Interested holders should contact Warrantech's Chief Financial Officer, Richard Gavino.
Warrantech Corporation, through its subsidiaries, administers and markets service contracts and after-market warranties on automobiles, automotive components, recreational vehicles, appliances, consumer electronics, homes, computer and computer peripherals for retailers, distributors and manufacturers. The Company continues to expand its global penetration, and now provides its services in the United States, Canada, Mexico, the United Kingdom, Puerto Rico and Latin America.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the effectiveness of cost containment measures and the continuation of current levels of business activity, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and exchange Commission. These risks could cause the Company's actual results for the current fiscal year and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company.
This release is available on the KCSA Worldwide Website at www.kcsa.com.