Aftermarket Technology Corp. and Affiliates Announce Plan to Purchase Up To 1 Million Shares of Company
3 January 2001
Aftermarket Technology Corp. and Affiliates Announce Plan to Purchase Up To 1 Million Shares of Company
WESTMONT, Ill., Jan. 3 Aftermarket Technology Corp.
today announced that the Company, together with certain members
of management and directors of the Company, certain principals and affiliates
of the Aurora Capital Group and certain other shareholders of the Company,
intends to commence a program for the purchase of up to 1 million shares of
the Company's common stock. This equates to approximately 5% of the Company's
common shares outstanding. Such purchases may be made from time to time in
the open market, through privately negotiated transactions or through block
purchases. The purchase program will commence on or about January 8, 2001,
and will be conducted in accordance with the Securities and Exchange
Commission's Rule 10b-18, subject to market conditions, applicable legal
requirements and other factors.
Investment partnerships managed by Aurora currently own approximately 47%
of the Company's common shares outstanding and collectively hold approximately
63% of the voting power through their direct ownership and certain voting
arrangements.
Commenting on the planned stock purchase, Mike DuBose, Chairman, President
and CEO said, "We are commencing the share purchase program because we believe
that ATC's stock is significantly undervalued due to weakened market
conditions throughout the automotive sector and the declining performance of
the stock market in general. I am pleased that the principals of Aurora, our
largest shareholder, view this as an opportunity to strongly support the
Company's strategic direction by again increasing their ownership position."
DuBose continued, "In concert with Aurora's plans, ATC's strong cash flow
position affords us with the opportunity to buy back shares of what we believe
is an undervalued asset in light of our record earnings performance the past
year."
ATC is headquartered in Westmont, Illinois. The Company's continuing
operations include drive train remanufacturing, value added logistics and
reverse logistics services. ATC also remanufactures electronic control
modules, instrument and display clusters and radios.
The preceding paragraphs contain statements that are not related to
historical results and are "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include those that are predictive or express expectations, that
depend upon or refer to future events or conditions, or that concern future
financial performance (including future revenues, earnings or growth rates),
ongoing business strategies or prospects, or possible future Company actions.
Forward-looking statements involve risks and uncertainties because such
statements are based on current expectations, projections and assumptions
regarding future events that may not prove to be accurate. Actual results may
differ materially from those projected or implied in the forward-looking
statements. The factors that could cause actual results to differ are
discussed in the Company's Annual Report on Form 10-K for the year ended
December 31, 1999 and other filings made by the Company with the Securities
and Exchange Commission.