Tribune Publishing announces $30M stock repurchase program
Tribune Publishing today announced a stock repurchase program as it looks to support its stock price. The company, which comprises the newspaper properties of the former Tribune Company, says if may repurchase up to $30 million of outstanding Common Stock over the next two years.
The company reported second quarter earnings last week, reporting lower revenue but raising its guidance (see report here).
“Our Adjusted EBITDA results for the period reflect significant cost-management initiatives, which we plan to continue in the second half of the year, and strong revenue diversification efforts, with meaningful growth in our Digital Marketing Services and Content Syndication businesses,” Tribune Publishing’s CEO Jack Griffin said.
The company would obviously like to avoid the fate of McClatchy, the publisher of the Sacramento Bee, Miami Herald, Kansas City Star. McClatchy has seen its stock price fall nearly 80 percent in the last 52 weeks of trading, closing yesterday at $.90 a share. Shares of The New York Times Co. were up yesterday following publicity generated over the weekend from its article on Amazon working conditions.
Tribune Publishing stock (TPUB) is up 4 percent in early morning trading following the news (while the market as a whole is down in early trading).
Here is Tribune Publishing stock repurchase announcement:
CHICAGO, Ill. – August 18, 2015 – Tribune Publishing Company today announced that its Board of Directors has authorized a stock repurchase program, under which the Company may repurchase up to $30 million of outstanding Common Stock over the next 24 months. The purchases may be made in open-market transactions or privately negotiated transactions and may be made from time to time depending on market conditions, share price, trading volume, cash needs and other business factors.
“Tribune Publishing’s Board of Directors and senior management believe the Company is making significant progress in its transformation strategy,” said Jack Griffin, CEO of Tribune Publishing. “The stock repurchase program announced today demonstrates our confidence in our Company and underscores our commitment to delivering shareholder value.”