ChannelAdvisor Announces Completion Of $25 Million Share Repurchase Program, Announces Additional $25 Million Share Repurchase Authorization
RESEARCH TRIANGLE PARK, N.C., June 28, 2022 (GLOBE NEWSWIRE) -- ChannelAdvisor Corporation (NYSE:ECOM), a leading provider of cloud-based e-commerce solutions that enable brands and retailers to increase global sales, today announced that it has completed the $25 million share repurchase program authorized by its Board of Directors in August of 2021. Through this program, the company repurchased and retired over 1.8 million shares of common stock in aggregate, or approximately 6% of shares outstanding, at an average price of $13.67 per share.
Additionally, the company's Board of Directors has authorized an additional share repurchase program of up to $25 million worth of shares of ChannelAdvisor common stock through June 30, 2023. This timeframe may be extended or shortened by the Board of Directors. Repurchases, if any, will be made from time-to-time on the open market at prevailing prices or in negotiated transactions off the market.
"Our capital allocation framework emphasizes generating returns on invested capital above our cost of capital, and our share repurchase programs are an important part of that framework," said Rich Cornetta, ChannelAdvisor's chief financial officer. "Based on our historical and anticipated free cash flow yield, we felt that our recent share price represented a compelling opportunity, and that executing our buyback was a tax-efficient way to return some of our surplus capital to shareholders. We are debt-free with a strong balance sheet, and our new repurchase authorization is intended to ensure that we continue to have this tool in our capital allocation toolbox going forward."
The company will provide more details regarding the repurchase program on its FY22 Q2 results conference call in August.
About ChannelAdvisor
ChannelAdvisor (NYSE:ECOM) is a leading multichannel commerce platform whose mission is to connect and optimize the world's commerce. For over two decades, ChannelAdvisor has helped brands and retailers worldwide improve their online performance by expanding sales channels, connecting with consumers across the entire buying cycle, optimizing their operations for peak performance, and providing actionable analytics to improve competitiveness. Thousands of customers depend on ChannelAdvisor to securely power their e-commerce operations on channels such as Amazon, eBay, Facebook, Google, Walmart, and hundreds more. For more information, visit www.channeladvisor.com.
Forward-Looking Statements
Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding ChannelAdvisor's plans to repurchase outstanding shares of its common stock. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause ChannelAdvisor's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to, uncertainties regarding ChannelAdvisor's ability to generate free cash flow and the market price of its common stock, as well as general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in ChannelAdvisor's Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission ("SEC") on February 10, 2022, as well as other filings the ChannelAdvisor makes with the SEC from time to time. There can be no assurance that ChannelAdvisor's expectations will be realized. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. The forward-looking statements are based on information available to ChannelAdvisor as of the date of this press release and speak only as of the date of this press release, and ChannelAdvisor undertakes no obligation to update forward-looking statements.
Investor Contact: Raiford Garrabrant ChannelAdvisor Corporation 919-228-4817 [email protected] or Media Contact: Caroline Riddle ChannelAdvisor Corporation 919-439-8026 [email protected]
