Kimball Electronics, Inc. Announces Extension of Stock Repurchase Plan

Rhea-AI Summary

Kimball Electronics, Inc. (Nasdaq: KE) announced an extension of its stock repurchase plan, authorizing an additional purchase of up to $20 million of its common stock, bringing the total authorized repurchases to $100 million without expiration. This move reflects the Board's confidence in the company's business model and strong cash flow. The repurchases may occur via various methods, including in open-market transactions, based on market conditions and corporate considerations. The company plans to fund the purchases using existing liquidity.

Positive

• Extension of stock repurchase plan by $20 million reinforces Board's confidence in the business.
• Total authorized repurchase amount rises to $100 million, indicating strong financial position.
• Funding from existing liquidity suggests no additional financial strain.

Negative

• None.

JASPER, Ind., Nov. 11, 2020 (GLOBE NEWSWIRE) -- Kimball Electronics, Inc. (Nasdaq: KE), (the “Company”), announced that the Board of Directors (the “Board”) of Kimball Electronics, Inc., at its November 10, 2020 regular Board meeting, authorized an extension of the current stock repurchase plan (the “Plan”) to allow the purchase of up to an additional $20 million of the Company’s common stock. The Plan was originally authorized in October 2015, and then separately extended in September 2016, August 2017, and November 2018, allowing a repurchase of up to an additional $20 million of common stock of the Company with each extension. This current extension brings the total amount of authorized share repurchases under the Plan to $100 million, with no expiration. The Plan may be suspended or discontinued at any time.

Purchases may be made under various programs, including in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions, all in accordance with applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Repurchases may also be made under a Rule 10b5-1 program, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws.

The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements, and other corporate considerations, as determined by the Company’s management team. The Company expects to finance the additional purchases with existing liquidity.

“The authorization of the extension of our stock repurchase program demonstrates the Board’s confidence in our business model and continued strong cash flow generation,” said Donald Charron, Chairman and Chief Executive Officer. “Our balanced approach to capital deployment, supported by a solid balance sheet, gives us the flexibility to invest in our strategic growth initiatives while also returning capital to shareholders.”

Forward-Looking Statements

Certain statements contained within this release are considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Specific risk factors that could have an effect on the future performance of the Company can be found in its Annual Report on Form 10-K for the year ended June 30, 2020.

About Kimball Electronics, Inc.

Kimball Electronics is a multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers around the world. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana.

To learn more about Kimball Electronics, visit: www.kimballelectronics.com.

Lasting relationships. Global success.

CONTACT:
Adam W. Smith
Treasurer
Telephone 812.634.4000
E-mail: Investor.Relations@kimballelectronics.com

FAQ

What is the current stock repurchase authorization for Kimball Electronics (KE)?

The current stock repurchase authorization for Kimball Electronics is extended by an additional $20 million, with a total authorized amount now at $100 million.

Why did Kimball Electronics extend its stock repurchase plan?

The extension of the stock repurchase plan demonstrates the Board's confidence in the company's business model and its strong cash flow.

How will Kimball Electronics finance its stock repurchases?

Kimball Electronics expects to finance the additional stock repurchases with existing liquidity.

When was the stock repurchase plan authorized by Kimball Electronics?

The stock repurchase plan was originally authorized in October 2015 and has since been extended multiple times.

What impact could the stock repurchase have on Kimball Electronics' stock price?

Stock buybacks can potentially increase shareholder value by reducing the number of shares outstanding, which may support or raise the stock price.