IRVING, Texas, June 1, 2012 (GLOBE NEWSWIRE) -- Global Power Equipment Group Inc. (Nasdaq:GLPW) ("Global Power") today announced that its Board of Directors has approved the payment of a quarterly cash dividend to stockholders and authorized a stock repurchase program.
The initial quarterly cash dividend of $0.09 per share will be paid on or about June 29, 2012, to stockholders of record as of the close of business on June 13, 2012. The stock repurchase program authorizes the purchase of up to 2 million shares of Global Power's common stock, par value $0.01, through June 30, 2014.
David L. Keller, President and Chief Executive Officer, stated: "While we continue to pursue strategic acquisitions and fund organic growth initiatives, the steady increase in our cash balances and the flexible structure of our new credit facility allows us to also return value to our shareholders. We believe that even with these announced return of capital programs, Global Power will still have sufficient cash on hand and debt capacity to execute our strategic and organic growth initiatives."
Although Global Power anticipates paying a cash dividend each quarter, future declarations of dividends are subject to Board approval and may be adjusted or discontinued in the discretion of the Board, including as financial and business needs or market conditions change.
Stock repurchases made pursuant to the stock repurchase program will be made in either open market or privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any stock repurchases will be determined by Global Power in its discretion and will be subject to market and economic conditions, prevailing stock prices, our loan covenants, applicable legal and regulatory requirements, alternative investment opportunities, and other factors.
The stock repurchase program is currently expected to be funded from existing cash on hand and cash generated from operations. As of March 30, 2012, Global Power had unrestricted cash of approximately $95.4 million. Global Power currently has approximately 17.1 million shares of common stock outstanding. Global Power is not obligated to repurchase any particular amount of common stock during any period and may choose to suspend or discontinue the stock repurchase program at any time.
About Global Power
Texas-based Global Power Equipment Group Inc. is a design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. Through its Services Division, the Company provides on-site specialty support and outage management services for commercial nuclear reactors in the United States and maintenance services to fossil and hydroelectric power plants and other industrial operations. Through its Products Division, the Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 40 years of power generation industry experience. With a strong competitive position in its product lines, the Company benefits from a large installed base of equipment in domestic and international markets. Additional information about Global Power Equipment Group Inc. may be found at www.globalpower.com.
Forward-looking Statement Disclaimer
This press release contains "forward-looking statements" within the meaning of that term set forth in the Private Securities Litigation Reform Act of 1995. Statements in this press release regarding Global Power's intention to repurchase shares of its common stock from time to time under the stock repurchase program, the source of funding, and our ability to pursue strategic acquisitions and organic growth opportunities are examples of forward-looking statements. These statements reflect our current views of future events and financial performance and are subject to a number of risks and uncertainties. Our actual results, performance or achievements may differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, decreased demand for new gas turbine power plants, reduced demand for, or increased regulation of, nuclear power, loss of any of our major customers, cost increases and project cost overruns, unforeseen schedule delays, poor performance by our subcontractors, cancellation of projects, competition for the sale of our products and services, shortages in, or increases in prices for, energy and materials such as steel that we use to manufacture our products, damage to our reputation, warranty or product liability claims, increased exposure to environmental or other liabilities, failure to comply with various laws and regulations, failure to attract and retain highly-qualified personnel, volatility of our stock price, deterioration or uncertainty of credit markets, and changes in the economic, social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates, the banking environment or monetary policy. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in our filings with the Securities and Exchange Commission, including the section of our Annual Report on Form 10-K filed with the SEC on March 14, 2012 titled "Risk Factors." Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and we caution you not to rely upon them unduly.