First Aviation Announces Share Buy-Back.WESTPORT, Conn.--(BUSINESS WIRE)--November 3, 1999-- The Board of Directors of First Aviation Services Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FAVS FAVS Fabbrica Armi Valle Susa FAVS Fighter Attack Visual System ) announced today that it has authorized a repurchase of up to 1,000,000 shares of its common stock. Purchases will be funded from a portion of the proceeds from the $73 million sale of its NAC See network access control. subsidiary to Rolls-Royce North America Rolls-Royce North America is a subsidiary of Rolls-Royce plc involved principally in the manufacture of gas turbine engines and other propulsion systems. The most significant part of Rolls-Royce North America is Rolls-Royce Corporation Inc. The sale was completed on November 1, 1999. First Aviation estimates that the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale, after paying down NAC's outstanding debt, transaction costs and estimated income taxes on the sale will be approximately $44 million. First Aviation has approximately 9.2 million shares outstanding. Repurchases may be made from time-to-time in open market transactions, block purchases, privately negotiated transactions or otherwise at prevailing prices. No time limit has been given for the completion of the program. "Given our current financial position and growth prospects, our Board of Directors continues to believe that our stock is 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 that the repurchase of stock Repurchase of stock Technique to pay cash to firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. presents an excellent investment opportunity as well as a way of enhancing shareholder value", said Aaron P. Hollander, Chairman of First Aviation. "We expect our strong growth to continue." First Aviation's operations include Aerospace Products International, headquartered in Memphis, Tennessee, which is the fastest growing supplier of aircraft parts, services and logistics to the general aviation, regional and commercial airline markets. First Aviation Services continues to pursue opportunities for growth through acquisition and service offering expansion. More information about First Aviation can be found on the world wide web at http://www.firstaviation.com. Forward-Looking Statements The Company from time to time may discuss forward-looking information. Except for the historical information contained in this release, all forward looking information are estimates of the Company's management and are subject to various risks and uncertainties, including the Company's ability to obtain parts from its suppliers on a timely basis, consummate suitable acquisitions, and other items that are beyond the Company's control and may cause results to differ from management expectations. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion