Marine supply retail chain, West Marine, Watsonville, California, has announced that its Board of Directors has authorized a new share repurchase program.
The program allows the repurchase of its common stock in the open market or through privately negotiated transactions in an amount up to US $10 million. West Marine's management will determine the amount and timing of repurchases.
“Our strong cash flow and solid financial position enable us to carry out this repurchase program, on a measured basis, without limiting our ability to invest capital in our key growth strategies,” says West Marine Chief Executive Officer, Matthew Hyde.
According to the company, the program is being implemented to mitigate the dilutive impact of shares issued under the company's omnibus equity incentive plan and its employee stock purchase plans. West Marine currently plans to implement the repurchase program after the release of results for the second fiscal quarter of 2013.
West Marine has no obligation to repurchase shares under the Board's authorization, and the timing, actual number and price of shares that are purchased will depend on a number of factors, including the market value of West Marine's common stock. West Marine says it may suspend or discontinue this repurchase program at any time.