Program to Extend Through 2012
LOUISVILLE, Ky.--(BUSINESS WIRE)--Dec. 20, 2011--
Sypris Solutions, Inc. (Nasdaq/NM: SYPR) announced today that its Board
of Directors approved a new program authorizing the Company to
repurchase up to $5 million of its outstanding shares of common stock
from time to time over the next twelve months. The share repurchase
program does not obligate the Company to repurchase a minimum number of
shares, and the program may be suspended or discontinued at any time
without prior notice. The share repurchase program will be funded with
the Company's cash on hand, and repurchased shares will be retired and
returned to unissued status.
“Sypris is positioned for profitable growth in a way that we believe is
still unrecognized by the market,” said Jeffrey T. Gill, President and
Chief Executive Officer. “We are pleased to launch our share repurchase
program with this initial $5 million authorization to take advantage of
this situation.”
In connection with the share repurchase program, the Board also
authorized an Executive Equity Repurchase Agreement whereby management,
including officers and directors, would grant the Company a first right
to purchase shares at current market prices (calculated as the average
of several days’ closing prices). The Company’s right to purchase the
shares would occur any time a party to the Agreement departed the
Company or intended to sell more than 1,500 shares of common stock. The
Agreement has a five-year term, subject to earlier termination by the
Company, and participation by each individual is voluntary.
“The combination of our share repurchase program and this new Agreement
with our management team reflects our confidence in the future of our
business and our commitment to returning value to Sypris shareholders,”
Mr. Gill added.
The repurchases under the share repurchase program may be made in open
market or privately negotiated transactions or pursuant to the Equity
Repurchase Agreement, depending on prevailing market conditions and
other factors.
About Sypris
Sypris Solutions is a diversified provider of outsourced services and
specialty products. The Company performs a wide range of manufacturing,
engineering, design and other technical services, typically under
multi-year, sole-source contracts with corporations and government
agencies in the markets for truck components and assemblies and
aerospace and defense electronics. For more information about Sypris
Solutions, visit its Web site at http://www.sypris.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the federal securities laws. Such forward-looking
statements include statements regarding the Company's share repurchase
program and the Company's future cash generation and cash resources. Forward-looking
statements are subject to risks and uncertainties and are subject to
change. Such risks include those described in our most recent
Form 10-K and Form 10-Q and other SEC filings. Briefly, we
currently believe that such risks also include: potential impairments,
non-recoverability or write-offs of goodwill, assets or deferred costs,
including capitalized pre-contract costs related to the development of a
replacement for certain aerospace and defense products; inventory
valuation risks including obsolescence, shrinkage, theft, overstocking
or underbilling; declining revenues in our aerospace and defense
business lines as we transition from legacy products and services into
new market segments and technologies; U.S. government spending on
products and services that our Electronics Group provides, including the
timing of budgetary decisions; potential liabilities associated with
discontinued operations, including post-closing indemnifications or
claims related to business or asset dispositions; the costs of
compliance with our auditing, regulatory or contractual obligations;
regulatory actions or sanctions (in each case including FCPA, OSHA and
Federal Acquisition Regulations, among others); adverse determinations
by government contracting officers, especially regarding the potential
retrofit of certain electronic products with respect to alleged "latent
defects," which are disputed by the Company; dependence on, recruitment
or retention of key employees; pension valuation, health care or other
benefit costs; labor relations; strikes; union negotiations; changes in
licenses, security clearances, or other legal rights to operate, manage
our work force or import and export as needed; breakdowns, relocations
or major repairs of machinery and equipment; changes or delays in
government or other customer budgets, funding or programs; potential
weaknesses in internal controls over [financial reporting and]
enterprise risk management; reliance on major customers or suppliers,
especially in the automotive or aerospace and defense electronics
sectors; the cost, efficiency and yield of our operations and capital
investments, including working capital, production schedules, cycle
times, scrap rates, injuries, wages, overtime costs, freight or
expediting costs; our inability to successfully launch or sustain new or
next generation programs or product features, especially in accordance
with budgets or committed delivery schedules; disputes or litigation,
involving customer, supplier, lessor, landlord, creditor, stockholder,
product liability or environmental claims; the costs and supply of debt,
equity capital, or insurance; fees, costs or other dilutive effects of
refinancing, compliance with covenants; cost and availability of raw
materials such as steel, component parts, natural gas or utilities;
volatility of our customers' forecasts, financial conditions, market
shares, product requirements or scheduling demands; adverse impacts of
new technologies or other competitive pressures which increase our costs
or erode our margins; failure to adequately insure or to identify
environmental or other insurable risks; revised contract prices or
estimates of major contract costs; risks of foreign operations; currency
exchange rates; war, terrorism, computer hacking or other cyber attacks,
or political uncertainty; unanticipated or uninsured disasters, losses
or business risks; inaccurate data about markets, customers or business
conditions; or unknown risks and uncertainties.
The Company undertakes no obligation to update or revise publicly,
any forward-looking statements, whether as a result of new information,
future events or otherwise.
Source: Sypris Solutions, Inc.
Sypris Solutions, Inc.
Brian A. Lutes, 502-329-2000
Chief
Financial Officer
