The repurchases would be executed in the open market, in privately negotiated transactions or pursuant to a Securities and Exchange Commission Rule 10b5-1 plan, depending upon a number of factors, including prevailing market conditions. As of June 30, the Milwaukee-based company had 20.1 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 763,000 shares remaining under prior authorizations. The company repurchased approximately 1.1 million shares in the open market during its fiscal year ended May 31.
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. The company’s share repurchase program may be suspended, modified or discontinued at any time and has no set expiration date. The shares repurchased would be retained as treasury stock and used for employee benefit plans or other general corporate purposes.
“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.