Wabash National Corporation (NYSE:WNC) announced that its board of directors has authorized the company to repurchase up to an additional $100 million of its common stock over the next two years.
This authorization is an increase to the existing $100 million repurchase program previously approved in February 2016 and of which approximately $15 million was available as of February 23, 2017. Stock repurchases under this program may be made in the open market or in private transactions at times and in amounts determined by the company.
The company, at its sole discretion, may limit or terminate the stock repurchase program at any time based on market conditions, liquidity needs or other factors. The program is intended to enhance shareholder value by reducing the overall number of outstanding shares, including by offsetting dilution resulting from stock-based compensation programs.
Dick Giromini, Chief Executive Officer, said, "Board authorization increasing the share repurchase program further validates our continued commitment to deliver return of capital to our shareholders. We are taking this action as part of our ongoing commitment to reward shareholders based on the confidence we have in Wabash’s long-term potential of cash generation while continuing to execute our capital allocation strategy. We remain confident that we will have sufficient cash flow to continue both an active share repurchase and a quarterly dividend program while also maintaining strong liquidity, deleveraging our balance sheet and growing the business."