The Marcus Corp. announced that its board of directors has authorized the repurchase of up to 3 million additional shares of the company’s outstanding common stock.
The repurchases would be executed in the open market, in privately negotiated transactions or pursuant to a Securities and Exchange Commission Rule plan, depending upon a number of factors including prevailing market conditions.
As of Dec. 31, the company had nearly 18.5 million shares of common stock outstanding and 8.8 million shares of Class B common stock outstanding.
The new authorization adds to the company’s existing share repurchase program that had approximately 955,000 shares remaining under prior authorizations.
The Milwaukee-based company has repurchased approximately 1.8 million shares in conjunction with the exercise of stock options and the purchase of shares in the open market since June 1, 2012, the beginning of its 2013 fiscal year. The new authorization does not obligate the company to acquire any particular number of shares of common stock. The pace of the company’s repurchase activity will depend on factors such as current stock price, market conditions and other factors.
“We continue to believe that repurchasing our shares is a good investment for the company. With our strong cash flow and balance sheet, we believe that when timing and market conditions are appropriate, we will be able to repurchase shares to enhance shareholder value while at the same time continuing to invest in our businesses to facilitate our long-term growth,” said Gregory Marcus, president and chief executive officer of the company.
