WEBCO INDUSTRIES, INC. ANNOUNCES SHARE REPURCHASE

Rhea-AI Summary

Webco Industries (OTC: WEBC) has announced a significant share repurchase of 143,443 shares, representing 16.8% of its outstanding shares, in a private transaction valued at $28.7 million. The company funded the purchase through a combination of cash reserves and borrowing from its revolving credit line.

Following this transaction, Webco's outstanding shares have been reduced to 712,300, with approximately 78.5% owned by the combined families of F. William Weber and management. The company operates five tube production facilities in Oklahoma and Pennsylvania, along with eight value-added facilities across Oklahoma, Illinois, Michigan, Pennsylvania, and Texas, specializing in carbon steel, stainless steel, and specialty metal tubing products.

Positive

• Significant share repurchase of 16.8% of outstanding shares indicates confidence in company value
• Reduction in share count could lead to increased earnings per share
• High insider ownership of 78.5% suggests strong management alignment with shareholder interests

Negative

• Increased debt burden from using credit line for share repurchase
• Reduced public float may decrease stock liquidity
• Significant cash outlay of $28.7M could impact working capital

SAND SPRINGS, Okla., Jan. 2, 2025 /PRNewswire/ -- Webco Industries, Inc. (OTC: WEBC) today announced that the Company has acquired 143,443 shares of its common stock in a private transaction totaling $28.7 million, representing 16.8% of Webco's outstanding shares prior to the purchase.  The purchase price was paid using a combination of cash on hand and borrowing on the Company's revolving line of credit.

Dana S. Weber, Webco Chairman and Chief Executive Officer said, "We were recently approached by a shareholder regarding our interest in purchasing its holdings.  Following approval by our Board of Directors, we moved forward with the purchase. After the transaction, we have 712,300 shares outstanding, of which an estimated 78.5 percent is owned by the combined families of F. William. Weber and management.  We are pleased that we have historically been able to provide liquidity for our shareholders."

Webco's mission is to continuously build on our strengths as we create a vibrant company for the ages.  We leverage our core values of trust and teamwork, continuously building strength, agility and innovation.  We focus on practices that support our brand such that we are 100% engaged every day to build a forever kind of company for our Trusted Teammates, customers, business partners, investors and community.  We provide high-quality carbon steel, stainless steel and other metal specialty tubing products designed to industry and customer specifications.  We have five tube production facilities in Oklahoma and Pennsylvania and eight value-added facilities in Oklahoma, Illinois, Michigan, Pennsylvania and Texas, serving customers globally.  Our F. William Weber Leadership Campus is in Sand Springs, Oklahoma and houses our corporate offices and our Webco TechCenter™, providing a state-of-the-art laboratory and R & D facility to lead and develop technical solutions.

CONTACT:	Mike Howard
	Chief Financial Officer
	(918) 241-1094
	mhoward@webcotube.com

 

View original content:https://www.prnewswire.com/news-releases/webco-industries-inc-announces-share-repurchase-302341563.html

SOURCE Webco Industries, Inc.

FAQ

How many shares did Webco Industries (WEBC) repurchase in January 2024?

Webco Industries repurchased 143,443 shares, representing 16.8% of its outstanding shares, in a private transaction.

What was the total value of WEBC's January 2024 share repurchase?

The share repurchase transaction totaled $28.7 million.

How many shares remain outstanding for WEBC after the January 2024 repurchase?

After the repurchase transaction, Webco Industries has 712,300 shares outstanding.

What percentage of WEBC is owned by management and the Weber family after the 2024 repurchase?

After the transaction, approximately 78.5% of shares are owned by the combined families of F. William Weber and management.

How did WEBC finance the January 2024 share repurchase?

Webco Industries funded the purchase using a combination of cash on hand and borrowing from its revolving line of credit.