HireRight Board of Directors Authorizes $100 Million Share Repurchase Program

Rhea-AI Summary

HireRight Holdings Corporation (NYSE: HRT) has announced a two-year share repurchase program authorized by its Board of Directors, allowing for the buyback of up to $100 million in common stock. The repurchases will be executed at the company’s discretion through various means, contingent on market conditions and trading volume. As of September 30, 2022, HireRight held $146.5 million in cash, which will fund this initiative. The program aims to enhance shareholder value, although its effectiveness depends on several market factors.

Positive

• Authorization of a $100 million share repurchase program aimed at enhancing shareholder value.
• Strong cash position with $146.5 million available for funding the buyback.

Negative

• The effectiveness of the repurchase program is uncertain due to potential market price increases.
• No guarantees on the positive impact of the repurchase program on stock price.

NASHVILLE, Tenn.--(BUSINESS WIRE)-- HireRight Holdings Corporation (NYSE: HRT) ("HireRight" or the "Company"), a leading provider of background screening services, today announced its Board of Directors has authorized a two-year $100 million share repurchase program.

Under the repurchase program, the Company may purchase shares of its common stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and actual number of shares repurchased will depend on a variety of factors, including stock price, trading volume, market conditions and other general business considerations. The repurchase program may be modified, suspended, or terminated at any time.

Repurchases under this program may be funded from the Company’s existing cash and cash equivalents and future cash flows. As of September 30, 2022, the Company had $146.5 million in cash and cash equivalents.

About HireRight

HireRight is a leading global provider of technology-driven workforce risk management and compliance solutions. We provide comprehensive background screening, verification, identification, monitoring, and drug and health screening services for approximately 39,000 customers across the globe. We offer our services via a unified global software and data platform that tightly integrates into our customers’ human capital management systems enabling highly effective and efficient workflows for workforce hiring, onboarding, and monitoring. In 2021, we screened over 29 million job applicants, employees and contractors for our customers and processed over 110 million screens. For more information, visit www.HireRight.com or contact InvestorRelations@HireRight.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws related to the size, duration, mechanics, and funding of the repurchase program. These forward-looking statements are not guarantees. They reflect our current expectations and projections with respect to future events and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from expectations or results projected or implied by forward-looking statements. Among other things, we may terminate the repurchase plan early for various reasons, including a decision to allocate available cash to purposes other than the repurchase program, or the market price of our stock may increase to a level above the limit we have set for the repurchase plan, and in either case we may repurchase fewer shares and/or spend less money on repurchases than contemplated by the program. Also, there can be no assurances about any positive anticipated effects of the repurchase program.

For more information on the business risks we face and factors that could affect the outcome of forward-looking statements, refer to our Annual Report on Form 10-K filed with the SEC on March 21, 2022, in particular the sections of that document entitled “Risk Factors,” “Forward-Looking Statements,” and “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and other filings we make from time to time with the SEC. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221114005412/en/

Investors:

InvestorRelations@HireRight.com

+1 949-528-1000

Media:

Monica.Soladay@HireRight.com

Source: HireRight Holdings Corporation

FAQ

What is the significance of HireRight's $100 million share repurchase program?

The $100 million share repurchase program is aimed at increasing shareholder value by reducing the number of outstanding shares.

When was the share buyback program authorized by HireRight's Board?

The share buyback program was authorized recently, as indicated in the press release.

How will HireRight fund the share repurchase program?

The program may be funded from HireRight's existing cash and cash equivalents, alongside future cash flows.

What are the potential risks associated with HireRight's share repurchase program?

The repurchase may be affected by market price fluctuations that could limit the number of shares repurchased.

What does the timing of the repurchase depend on?

The timing and number of shares repurchased will depend on stock price, trading volume, and overall market conditions.