Veritiv Increases Stock Repurchase Program by $50 Million, Expanding the Total to $100 Million

Rhea-AI Summary

Veritiv Corporation (NYSE: VRTV) announced an increase in its stock repurchase program from $50 million to $100 million. With approximately $71 million remaining under this expanded program, the company has already repurchased nearly $29 million of shares this year. CEO Sal Abbate stated that the strong balance sheet and earnings momentum support this decision, which reflects confidence in the company's future. The repurchase strategy allows flexibility in timing and method, depending on market conditions.

Positive

• Stock repurchase program expanded from $50 million to $100 million.
• Approximately $29 million of shares repurchased this year shows strong buyback activity.
• Enhanced shareholder value expected through increased buyback.

Negative

• None.

ATLANTA, May 24, 2021 /PRNewswire/ -- Veritiv Corporation (NYSE: VRTV), a full-service provider of business-to-business distribution solutions and services, announced today its Board of Directors has approved an increase in the size of the Company's existing stock repurchase program from $50 million to $100 million. After accounting for shares repurchased to date, the Company currently has approximately $71 million remaining under the expanded program.

"Our continued earnings momentum and strong balance sheet allow us to increase our stock repurchase program," said Sal Abbate, Chief Executive Officer. "Having already repurchased nearly $29 million of shares this year, management and our Board of Directors believe the timing is right to expand the program. We continue to believe the repurchase of our stock is the best use of capital at this time."

Under the increased repurchase authorization, the Company may, from time to time, purchase shares of its common stock through open market purchases, privately negotiated transactions, accelerated repurchase programs, tender offers or otherwise, including Rule 10b5-1 trading plans, in accordance with applicable securities laws and regulations. The timing and method of any repurchases, which will depend on a variety of factors, including market conditions, are subject to results of operations, financial conditions, cash requirements and other factors. This increased repurchase authorization does not obligate the Company to purchase a specific number of shares or to make purchases by a specific date, and may be suspended, terminated, increased or decreased by the Board of Directors at any time.

About Veritiv
Veritiv Corporation (NYSE: VRTV), headquartered in Atlanta and a Fortune 500® company, is a full-service provider of packaging, JanSan and hygiene products, services and solutions. Additionally, Veritiv provides print and publishing products, and logistics and supply chain management solutions. Serving customers in a wide range of industries both in North America and globally, Veritiv has distribution centers throughout the U.S., Canada and Mexico, and team members around the world helping shape the success of its customers. For more information about Veritiv and its business segments visit www.veritivcorp.com.

Safe Harbor Provision
Certain statements contained in this press release regarding the Company's future earnings results, performance, business plans, prospects and any other statements not constituting historical fact are "forward-looking statements" subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. All forward-looking statements reflect only the Company's current beliefs and assumptions with respect to future events and results and are based on information currently available to the Company. Accordingly, the statements are subject to significant risks, uncertainties and contingencies, which could cause the Company's actual results to differ materially from those expressed in, or implied by, these statements, including the risks and other factors discussed under "Risk Factors" and elsewhere in the Company's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other publicly available reports filed with the Securities and Exchange Commission. The Company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by unauthorized third parties. The Company's filings with the Securities and Exchange Commission may contain updates to the information included in this press release.

 

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SOURCE Veritiv Corporation

FAQ

What is the new stock repurchase amount for Veritiv Corporation (VRTV)?

Veritiv Corporation's stock repurchase program has increased to $100 million.

How much has Veritiv Corporation (VRTV) repurchased in shares so far this year?

Veritiv Corporation has repurchased nearly $29 million in shares this year.

What does the increase in the stock repurchase program mean for shareholders of VRTV?

The increased buyback program is expected to enhance shareholder value and reflects management's confidence in the company's financial health.

When did Veritiv Corporation announce the stock repurchase program increase?

The announcement was made on May 24, 2021.