Echo Global Logistics, Inc. Announces Increase in Common Stock Repurchase Authorization

Rhea-AI Summary

Echo Global Logistics, Inc. (NASDAQ: ECHO) announced an increase of $50 million to its stock repurchase program, extending the authorization through July 31, 2022. With this amendment, the company now has approximately $60.2 million available for buybacks. The program allows purchases in various forms, based on market conditions, with funds sourced from cash reserves and operations. CEO Doug Waggoner stated this initiative reflects confidence in the company's strength while providing shareholder value.

Positive

• Increase of $50 million added to the stock repurchase program.
• Total repurchase capacity now stands at $60.2 million.
• The program aims to enhance shareholder value.

Negative

• None.

CHICAGO, Aug. 4, 2020 /PRNewswire/ -- Echo Global Logistics, Inc. (NASDAQ: ECHO), a leading provider of technology-enabled transportation management services, today announced that on July 31, 2020, its Board of Directors amended its ongoing repurchase program, which provides for the repurchase of the Company's outstanding common stock, to add an additional $50 million of capacity and extend the program through July 31, 2022. As of the amendment date, and inclusive of this $50 million increase, the Company has approximately $60.2 million of repurchase availability under its repurchase program.

Under the program, purchases may be made from time to time in the open market, or through privately negotiated transactions, block transactions, or other techniques, as determined by the Company's management and in accordance with prevailing market conditions and the requirements of the Securities and Exchange Commission. The Company expects to fund all purchases from cash on hand, cash available under the Company's revolving credit facility, and future cash flows from operations. The Company is not obligated to acquire a particular number of shares and the program may be discontinued at any time at the Company's discretion.

"The repurchase program gives us the ability to capitalize on opportunities created by the market to provide additional shareholder value, while maintaining the flexibility to invest in our growth," said Doug Waggoner, Chairman of the Board of Directors and Chief Executive Officer at Echo. "Today's announcement highlights our belief in the strength of our business."

Forward-Looking Statements

All statements made in this release, other than statements of historical fact, are or may be deemed to be forward-looking statements. These statements are forward-looking statements under the federal securities laws. We can give no assurance that any future results discussed in these statements will be achieved. These statements are based on current plans and expectations of Echo Global Logistics and involve risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be different from any future results, performance, or achievements expressed or implied by these statements. Information concerning these risks, uncertainties, and other factors is contained under the headings "Risk Factors" and "Forward-Looking Statements" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2019, and other filings with the SEC.

About Echo Global Logistics

Echo Global Logistics, Inc. (NASDAQ: ECHO) is a leading Fortune 1000 provider of technology-enabled transportation and supply chain management services. Headquartered in Chicago with more than 30 offices around the country, Echo offers freight brokerage and Managed Transportation solutions for all major modes, including truckload, partial truckload, LTL, intermodal, and expedited. Echo maintains a proprietary, web-based technology platform that compiles and analyzes data from its network of over 50,000 transportation providers to serve 35,000 clients across a wide range of industries and simplify the critical tasks involved in transportation management. For more information on Echo Global Logistics, visit: www.echo.com.

INVESTOR RELATIONS CONTACTS:

Kyle Sauers
Chief Financial Officer
Echo Global Logistics
312-784-7695

Zach Jecklin
SVP of Strategy
Echo Global Logistics
312-784-2046

MEDIA CONTACT:

Christopher Clemmensen
SVP of Marketing
Echo Global Logistics
312-784-2132

 

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SOURCE Echo Global Logistics, Inc.

FAQ

What is the purpose of Echo Global Logistics' stock repurchase program?

The repurchase program is designed to enhance shareholder value and capitalize on market opportunities.

How much has Echo Global Logistics increased its repurchase program by?

Echo Global Logistics has increased its repurchase program by $50 million.

What is the total repurchase capacity after the amendment?

The total repurchase capacity now stands at approximately $60.2 million.

Until when is the repurchase program authorized?

The repurchase program has been extended through July 31, 2022.

How does Echo plan to fund the stock repurchases?

The company expects to fund purchases from cash on hand, its revolving credit facility, and future cash flows.