Video Display Corporation to Initiate New 1.5 Million Share Repurchase Program
January 21 2014 - 9:39AM
Video Display Corporation (Nasdaq:VIDE), a worldwide leader in the
manufacture and marketing of specialty niche market display systems
for the defense, broadcast, training and simulation and commercial
applications, today announced that the VDC Board of Directors has
approved a $6,000,000 share repurchase program which, at current
market prices, represents approximately 20 percent of the Company's
outstanding shares.
The new repurchase program authorizes the purchase, from time to
time, of up to 1,500,000 shares of the company's common stock
on the open market and in private transactions. The timing and
amount of shares repurchased will be determined by VDC's
management based upon its evaluation of market conditions, the
trading price of the stock, the Company's cash needs, securities
law limitations and other factors. The repurchase program may
be suspended or discontinued at any time.
With the consummation of the sales of two subsidiaries, the
Company's cash and deposits currently total approximately $10
million, subsequent to repaying all long term debt and revolving
credit lines which had restricted the Company's share repurchase
programs for the past several years.
This Board action is being undertaken to immediately return
capital to our shareholders from the sale of certain of the
Company's subsidiaries. At the same time, management is
pursuing opportunities to significantly increase the revenue and
profitability, and thereby enhancing the value, of the four
subsidiaries that remain as the operating units of the Company.
"The Board and management team have collaborated to
formulate these strategic actions, which reflect our confidence in
our underlying business as well as our commitment to
enhancing shareholder value," said Ron Ordway, CEO. "We have
succeeded in our initial goal of selling the Aydin Displays, Inc.
and Z-Axis, Inc. subsidiaries in order to eliminate all long term
and revolver debt owed to our banking sources as well as generating
significant cash reserves and greatly strengthened the Company
Balance Sheet. We anticipate selling one additional subsidiary
within a short term period, pursuing some consolidation
opportunities and identifying further efficiencies while continuing
our revenue growth initiatives, all as part of a strong commitment
to generating incremental increases in stockholder value."
About Video Display Corporation
Video Display Corporation designs, manufactures, markets,
distributes, installs and provides a complete line
of technologically advanced display products and systems for
military, medical and industrial uses, with emphasis on high end
training and simulation applications. We offer one of the best
and most comprehensive customer support service, from basic
components to turnkey systems used by government, military, space,
medical, homeland security and commercial organizations
worldwide.
For more information, visit the Company's web site at
www.videodisplay.com
CONTACT: Ronald D. Ordway, Chairman and CEO
770-938-2080
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