Edelbrock Corp. Announces Stock Repurchase, Sept. 9, 1998
9 September 1998
Edelbrock Corp. Announces Stock Repurchase, Sept. 9, 1998
TORRANCE, Calif.--Sept. 9, 1998--Edelbrock Corp. (Nasdaq NM:EDEL) Wednesday announced that the board of directors of the company authorized a systematic program for the repurchase of up to 50,000 of its outstanding shares of Common Stock, having a par value of $0.01 per share, for cash, in the open market on the Nasdaq National Market System and in privately negotiated transactions.
The 50,000 shares would represent approximately 2 percent of the company's million outstanding shares of Common Stock.
Vic Edelbrock, Edelbrock's chief executive officer and chairman, stated that the board of directors believes the repurchase plan reflects the company's opinion that Edelbrock Corp. Common Stock is undervalued in the market and represents a good investment.
The repurchased shares will be accumulated by the company and held in treasury for the purpose of providing available shares for possible resale in future public or private offerings and any other actions that its board of directors considers appropriate. The purchases will be made from working capital of the company other than working capital derived from borrowed funds.
The repurchases will commence on Sept. 9, 1998, and will be carried out in accordance with certain volume, timing and price constraints imposed by the Securities and Exchange Commission's rules applicable to such transactions. The amount, timing and price of purchases will otherwise depend on market conditions and other factors.
Founded in 1938, Torrance-based Edelbrock is recognized as one of the nation's premier designers, manufacturers and distributors of performance replacement parts for the automotive and motorcycle aftermarkets. In addition to three production facilities in Torrance, the company owns and operates a state-of-the-art aluminum foundry in San Jacinto, Calif., at which it manufactures many of its quality products.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as the financial strength and competitive pricing environment of the automotive and motorcycle aftermarket industries; product demand; market acceptance; manufacturing efficiencies; new product development; the success of planned advertising, marketing and promotional campaigns; and other risks identified in documents filed by the company with the Securities and Exchange Commission.