The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Mark IV Completes Ten Million Share Buyback

21 May 1999

Mark IV Completes Ten Million Share Buyback: Board Authorizes Repurchase of Additional Ten Million Shares

    AMHERST, N.Y.--May 20, 1999--Mark IV Industries, Inc. today announced completion of its 10.0 million share repurchase program initiated in May 1998. The common stock was purchased at an average price of $16.55 per share, for a total cost of approximately $166 million, with 4.3 million shares being repurchased in fiscal 2000. Including the company's initial 7.3 million share buyback program, begun in March 1997, the company has repurchased 26 percent (17.3 million) of its then outstanding shares of common stock at an average price of $18.86 per share, for an aggregate cost of $326.6 million. In addition to its stock repurchases, the company has also purchased $21.6 million principal amount of its 7-3/4 percent senior subordinated debentures and repaid its entire $155 million domestic bank debt.
    Upon completion of the buyback program, the company's Board of Directors approved the purchase of an additional ten million shares, representing over 20 percent of Mark IV's current forty nine million shares outstanding. Under the new authorization, the stock will be purchased in the open market or through privately negotiated transactions, from time to time, at prices the company considers to be attractive.
    Sal H. Alfiero, chairman and chief executive officer of Mark IV, said, "The purchase of Mark IV stock continues to be the best investment we can make, in addition to demonstrating our commitment to enhancing shareholder value. Earnings and cash flow from operations, plus availability under existing credit facilities, and proceeds from disposal of non-core businesses, will be used to fund the purchases. The company's prospects remain bright and the positive cash flow of the businesses continues to strengthen our balance sheet. We are committed to manage the growth of the company while continuing to strive for balance sheet parameters of 50 percent debt to total capitalization."
    This press release contains forward-looking statements that involve risk and uncertainties as detailed from time to time in the company's SEC reports, including its report on Form 10-K for its fiscal year ended February 28, 1998. These risks and uncertainties could affect the company's actual results and cause them to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the company.
    Mark IV Industries, Inc., is a $2.2 billion global manufacturing company headquartered in the Buffalo suburb of Amherst, New York, employing 17,000 people worldwide. The company's core technologies include power transmission, fluid transfer, transportation and filtration systems and components for global industrial and automotive markets. For more information on Mark IV, visit the company's web site at http://www.mark-iv.com.