Avis Budget Group today announced that it has repurchased approximately $135 million of stock under its current stock repurchase program. The program was first announced in August 2013 and authorised an initial maximum amount of $200 million. Today, the Company’s Board of Directors has authorised an increase to the amount remaining for future repurchases under the program from the approximately $65 million remaining to $300 million.
“The increase in our share repurchase authorisation reflects the continued confidence we have in our business and our prospects,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “We have reduced our diluted share count by more than 20 million shares as a result of our convertible debt repurchases and share repurchases since 2012, and we remain committed to delivering value to our shareholders, while maintaining a prudent capital structure and flexibility to execute on our strategic initiatives.”
Under the stock repurchase program, the Company repurchases shares from time to time in open market transactions, and may also repurchase shares in accelerated stock buyback programs, tender offers, privately negotiated transactions or by other means. Repurchases may also be made under a Rule 10b5-1 plan. The timing and amount of repurchase transactions will be determined by the Company’s management based on its evaluation of market conditions, share price, legal requirements and other factors. The program may be suspended, modified or discontinued at any time without prior notice.
Avis Budget Group is scheduled to report its first quarter 2014 results on Wednesday, May 7.