PetIQ, Inc. Announces $30 Million Stock Repurchase Program

Rhea-AI Summary

PetIQ, a prominent pet medication company, has announced a stock repurchase program authorized by its Board of Directors. This initiative allows PetIQ to repurchase up to $30 million of its outstanding common stock. CEO Cord Christensen expressed confidence in the company's financial strength and growth prospects, stating that the current share price is undervalued. The repurchases will be conducted in compliance with market regulations and are aimed at enhancing long-term shareholder value.

Positive

• Authorization of a $30 million stock repurchase program to enhance shareholder value.
• Management's confidence in the company's growth opportunities and financial strength.

Negative

• None.

EAGLE, Idaho, Sept. 06, 2022 (GLOBE NEWSWIRE) -- PetIQ, Inc. (“PetIQ” or the “Company”) (Nasdaq: PETQ), a leading pet medication and wellness company, today announced that as part of the Company's long-term strategy to maximize stockholder value, its Board of Directors has authorized a stock repurchase program, which will enable the Company to repurchase up to $30 million in aggregate of the Company's outstanding shares of common stock.

Cord Christensen, PetIQ’s Chairman and Chief Executive Officer, commented, “We have confidence in PetIQ’s business model, financial strength, and future growth opportunities which we believe are undervalued in the Company’s current share price. We will use our cash on hand and free cash flow to repurchase stock and pay down debt while continuing to maintain the flexibility to pursue all strategic initiatives as part of our plan to create long-term shareholder value.”

Under the new program, the Company’s proposed stock repurchases may be made from time to time in one or more transactions on the open market or in privately negotiated purchase and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under Securities Exchange Act of 1934, as amended.

About PetIQ
PetIQ is a leading pet medication and wellness company delivering a smarter way for pet parents to help their pets live their best lives through convenient access to affordable veterinary products and services. The company engages with customers through more than 60,000 points of distribution across retail and e-commerce channels with its branded and distributed medications, which is further supported by its own world-class medications manufacturing facility in Omaha, Nebraska. The company’s national service platform, VIP Petcare, operates in over 2,600 retail partner locations in 41 states providing cost effective and convenient veterinary wellness services. PetIQ believes that pets are an important part of the family and deserve the best products and care we can give them.

Contact: katie.turner@petiq.com or 208.513.1513

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could” and similar expressions. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances, or achievements expressed or implied by the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, the impact of COVID-19 on our business and the global economy; our ability to successfully grow our business through acquisitions; our dependency on a limited number of customers; our ability to implement our growth strategy effectively; competition from veterinarians and others in our industry; reputational damage to our brands; economic trends and spending on pets; the effectiveness of our marketing and trade promotion programs; recalls or withdrawals of our products or product liability claims; our ability to manage our manufacturing and supply chain effectively; disruptions in our manufacturing and distribution chains; our ability to introduce new products and improve existing products; our ability to protect our intellectual property; costs associated with governmental regulation; our ability to keep and retain key employees; our ability to sustain profitability; and the risks set forth under the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2021 and other reports filed time to time with the Securities and Exchange Commission. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or operating results. The forward-looking statements speak only as of the date on which they are made, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Consequently, you should not place undue reliance on forward-looking statements. 

FAQ

What is the purpose of PetIQ's stock repurchase program?

The program aims to enhance long-term shareholder value by repurchasing up to $30 million of the company's outstanding shares.

How much stock is PetIQ planning to buy back?

PetIQ has authorized a stock repurchase program for up to $30 million.

When was the stock repurchase program announced by PetIQ?

The stock repurchase program was announced on September 6, 2022.

Who commented on PetIQ's stock repurchase program?

PetIQ's Chairman and CEO Cord Christensen commented on the program, highlighting confidence in the company's future.

What factors could affect PetIQ's stock performance?

Factors include the company's financial strength, market conditions, and the effectiveness of their strategic initiatives.