Align Technology Announces $100 Million Accelerated Stock Repurchase Program

Rhea-AI Summary

Align Technology, Inc. (Nasdaq: ALGN) has announced a new accelerated stock repurchase agreement with Goldman Sachs to buy back $100 million of its common stock. This repurchase is part of Align's $1.0 billion stock buyback program initiated on May 13, 2021. Under the ASR, Align will initially acquire about 143,000 shares, with the final total dependent on the stock's volume-weighted average price. The transaction is anticipated to conclude by August 2021 and will utilize Align's cash reserves, which stood at $1.1 billion as of March 31, 2021.

Positive

• Initiation of a $100 million stock repurchase indicates strong confidence in the company's valuation.
• The repurchase program is expected to enhance shareholder value by potentially increasing EPS.

Negative

• The reliance on cash reserves for the buyback may impact liquidity for other investments or operational needs.

TEMPE, Ariz., May 18, 2021 (GLOBE NEWSWIRE) -- Align Technology, Inc. (“Align”) (Nasdaq: ALGN) a leading global medical device company that designs, manufactures, and sells the Invisalign system of clear aligners, iTero intraoral scanners, and exocad CAD/CAM software for digital orthodontics and restorative dentistry, today announced that it has entered into a new accelerated stock repurchase agreement ("ASR") with Goldman Sachs & Co LLC, to repurchase $100 million of Align's common stock under Align’s new $1.0 billion stock repurchase program announced on May 13, 2021. 

Under the terms of the ASR, Align will receive an initial delivery of approximately 143,000 shares. The final number of shares to be repurchased will be based on Align's volume-weighted average stock price during the term of the ASR, less an agreed upon discount. The ASR transaction is expected to be completed by August 2021 and will be funded with Align’s cash on hand. As of March 31, 2021, Align had approximately 79.1 million shares outstanding and $1.1 billion in cash and cash equivalents.

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign^® system, the most advanced clear aligner system in the world, iTero^® intraoral scanners and services, and exocad CAD/CAM software. Align has helped treat over 10.2 million patients with the Invisalign system and is driving the evolution in digital dentistry with the iTero intraoral scanner and exocad CAD/CAM software − modernizing today's practices by enabling enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies. Visit www.aligntech.com for more information.

For additional information about the Invisalign system or to find an Invisalign doctor in your area, please visit www.invisalign.com. For additional information about the iTero digital scanning system, please visit www.itero.com. For additional information about exocad dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.

Forward-Looking Statements

This news release contains forward-looking statements including statements regarding the expected completion date of the ASR transaction, the number of shares of common stock that will be repurchased and Align's expectation that it will finance the ASR transaction with cash on hand as well as other statements regarding the ASR. Forward-looking statements contained in this news release relating to expectations about future events or results are based upon information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement.

The foregoing and other risks are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission (SEC) on February 26, 2021 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which was filed with the SEC on May 5, 2021. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.                                        

Align Technology	Zeno Group
Madelyn Homick	Sarah Johnson
(408) 470-1180	(828) 551-4201
mhomick@aligntech.com	sarah.johnson@zenogroup.com

FAQ

What is the purpose of Align Technology's stock buyback?

The buyback aims to enhance shareholder value and reflects the company's confidence in its future performance.

When will Align Technology's accelerated stock repurchase agreement be completed?

The ASR transaction is expected to be completed by August 2021.

How much is Align Technology planning to repurchase under the new program?

Align Technology plans to repurchase a total of $1.0 billion worth of common stock, with $100 million allocated for the initial ASR.

How many shares will Align Technology initially repurchase under the ASR?

Align will initially repurchase approximately 143,000 shares.

What financial resources will Align Technology use to fund the stock repurchase?

The stock repurchase will be funded with Align's cash on hand, which was reported at $1.1 billion as of March 31, 2021.