Alamo Group's board authorizes stock repurchase program.SEGUIN, Texas--(BUSINESS WIRE)--May 29, 1997--Alamo Group Inc. (NYSE NYSE See: New York Stock Exchange :ALG ALG antilymphocyte globulin. ALG antilymphocyte globulin. ALG Antilymphocyte globulin, see there ) announced today that its Board of Directors has authorized the repurchase of up to 1,000,000 shares of the company's outstanding common stock. This represents approximately 10% of Alamo's 9,700,000 common shares outstanding. Any purchases will be made periodically in the open market to take advantage of favorable conditions or in privately negotiated transactions as deemed appropriate by the company. They will be funded through working capital and borrowings under Alamo's bank revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and will have no effect on any current or future expansion plans. Donald J. Douglass, Chairman and Chief Executive Officer, commented: "This repurchase program sends a clear signal that we have confidence in our company's future. Since Alamo Alamo Eighteenth-century mission in San Antonio, Texas, site of a historic siege of a small group of Texans by a Mexican army (1836) during the Texas war for independence from Mexico. Group went public in March of 1993, we have produced a compounded annual profit growth rate in excess of 18%. We continue to see attractive opportunities for growth in our core businesses as well as through synergistic alliances and acquisitions; our cash flow and low debt levels should enable us to take advantage of these opportunities going forward. As a result, we believe that at current levels, our stock remains substantially undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. and presents an attractive investment opportunity which this program intends to capitalize upon to increase shareholder value." Alamo Group is a leader in the design, manufacture and distribution of heavy duty, tractor-mounted mowing and vegetation maintenance equipment in America and Europe. The Company has 980 employees in the U.S. and 393 in Europe, and operates 12 manufacturing facilities. The corporate offices of Alamo Group Inc. are located in Seguin, Texas Seguin (pronounced IPA: /səˈgiːn/) is a city in Guadalupe County, Texas, in the United States. As of the 2000 census, the city population was 22,011. , near San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , and the headquarters for its European operations is located in Salford Priors, England, near Birmingham. CONTACT: Donald J. Douglass Chairman and Chief Executive Officer 210-738-1339 or 203-966-0621 Jim A. Smith Executive Vice President and Chief Financial Officer 210-372-9618 or June Filingeri/Jonathan Schaffer Media Contact: Stan Froelich Morgen-Walke Associates 212-850-5600 |
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