Finning Announces Amendment to Share Repurchase Program
VANCOUVER, British Columbia, Nov. 13, 2018 (GLOBE NEWSWIRE) — Finning International Inc. (TSX: FTT) (“Finning”) announced today that it has received approval from the Toronto Stock Exchange (“TSX”) for an amendment to its existing normal course issuer bid (“NCIB”) to increase the number of common shares available for purchase for cancellation from 3,000,000 to 5,300,000. The 5,300,000 common shares represents approximately 3.1% of the 168,402,412 common shares which were issued and outstanding as at April 23, 2018 (just prior to the launch of the NCIB). The amendment to the NCIB will take effect as of Friday, November 16, 2018.
The NCIB, which began on May 11, 2018 and will end no later than May 10, 2019, is being conducted through the facilities of the TSX or other Canadian marketplaces or alternative trading systems, if eligible, and will conform to their rules and regulations.
The Board of Directors of Finning believe that, from time to time, the purchase by Finning of its common shares represents a desirable use of its available cash to increase shareholder value.
The average daily trading volume of Finning’s common shares over the six month period ending October 31, 2018, as calculated in accordance with TSX rules, was 398,160 common shares. Consequently, under TSX rules, Finning will be allowed to purchase daily, through the facilities of the TSX, a maximum of 99,540 common shares representing 25% of such average daily trading volume, subject to certain exceptions for block purchases. All shares purchased pursuant to the normal course issuer bid will be cancelled.
Purchases under the normal course issuer bid will be made by means of open market transactions or such other means as the TSX may permit.
The price to be paid by Finning for any common share will be the market price at the time of acquisition, plus brokerage fees, or such other price as the TSX may permit.
Under the NCIB, Finning has repurchased a total of 719,021 common shares at a weighted average price of $29.87.
Finning International Inc. (TSX:FTT) is the world’s largest Caterpillar equipment dealer delivering unrivalled service to customers for 85 years. Finning sells, rents and provides parts and service for equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in Western Canada, Chile, Argentina, Bolivia, the United Kingdom and Ireland.
Vice President, Investor Relations and Corporate Affairs
This news release contains statements that are not historical facts. A statement Finning makes is forward-looking when it uses what Finning knows and expects today to make a statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the purchase of up to 5,300,000 of Finning’s common shares pursuant to a normal course issuer bid (“NCIB”), the facilities and terms under which the NCIB will be operated and Finning’s belief that, from time to time, the purchase of its common shares represents a desirable use of its available cash to increase shareholder value. All such forward-looking statements are made pursuant to the ‘safe harbour’ provisions of applicable Canadian securities laws.
Unless otherwise indicated by us, forward-looking statements in this news release reflect Finning’s expectations as at the date of this news release. Except as may be required by Canadian securities laws, Finning does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking statements and that Finning’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, Finning cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by these forward-looking statements include: general economic and market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, Finning’s products and services; Finning’s ability to maintain its relationship with Caterpillar Inc.; Finning’s dependence on the continued market acceptance of its products, including Caterpillar products, and the timely supply of parts and equipment; Finning’s ability to continue to improve productivity and operational efficiencies while continuing to maintain customer service; Finning’s ability to manage cost pressures as growth in revenue occurs; Finning’s ability to reduce costs in response to slowing activity levels; Finning’s ability to attract sufficient skilled labour resources as market conditions, business strategy or technologies change; Finning’s ability to negotiate and renew collective bargaining agreements with satisfactory terms for Finning’s employees and Finning; the intensity of competitive activity; Finning’s ability to raise the capital needed to implement its business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; the integrity, reliability and availability of, and benefits from information technology and the data processed by that technology; and Finning’s ability to protect itself from cybersecurity threats or incidents. Forward-looking statements are provided in this news release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of Finning’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this news release are based on a number of assumptions that Finning believed were reasonable on the day Finning made the forward-looking statements. Refer in particular to the Outlook section of the annual MD&A for forward-looking statements. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this news release are discussed in Finning’s current annual information form (“AIF”) and in the annual management discussion & analysis (“MD&A”) for the financial risks.
Finning cautions readers that the risks described in the MD&A and the AIF are not the only ones that could impact Finning. Additional risks and uncertainties not currently known to Finning or that are currently deemed to be immaterial may also have a material adverse effect on Finning’s business, financial condition, or results of operations.
Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date of this news release. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Finning therefore cannot describe the expected impact in a meaningful way or in the same way Finning presents known risks affecting its business.