Boston, MA 08/22/2214 (wallstreetpr) – ACCO Brands Corporation (NYSE:ACCO)’s board of directors approved a share repurchase program. The Company will repurchase shares of its common stock up to $100 million. The program subjects to market conditions, shareholders’ approval and also complies with the Rule 10b5-1 of the Securities Exchange Act of 1934.
ACCO Brands Corporation (NYSE:ACCO)’ CEO Boris Elisman said that the Company can generate long-term cash flow so that it can use the excess amount to repurchase of shares along with the repayment of outstanding debt and invest in the business that can provide long-term opportunities.
Stable Cash Position
In six months periods, ACCO Brands generated cash of $5.6 million, significantly lower than the same period last year due to higher change in working capital. But, the Company used lower cash in capex and the additional borrowings improved the net cash position. So, as of June 30, 2014, ACCO Brands had cash and cash equivalents of $92.3 million.
The Company has total long-term debt of $904.8 million with borrowings of $42.5 million under revolving credit facility, which is due by May 2018.
During the same period, ACCO Brands Corporation (NYSE:ACCO) has 114.2 million outstanding shares. The purchase of a share will further enhance its cash position that depends on various factors such as current working capital needs, future investment opportunities and its financial position including cash positions.
Positive Performance Support The Program
ACCO Brands is the largest suppliers of school, office and consumer products. The Company reported growth in adjusted net income compared to the same period 2013 despite a marginal decrease in net sales.
Both North America and International market except computer products reported marginal decline at constant currency, but, the change is currency exchange slightly affect the net sales.
ACCO Brands Corporation (NYSE:ACCO) anticipates positive growth across its business segments and expects to generate free cash flow of ~$140 million in FY2014. The Company has sufficient capital to support the share repurchase program.
