Align Technology, Inc. announced that its board of directors has authorised a plan, effective immediately, to repurchase up to an additional $300 million of the company’s stock. This latest authorisation is in addition to the existing $300 million authorisation announced in April 2014, which brings the total authorisation to $600 million. To date, Align has repurchased approximately $200 million of its stock, against these authorisations and anticipates it will repurchase another $100 million over the next 12 months.
“We’re pleased to announce a $300 million increase in our current stock repurchase programme. Our strong balance sheet and healthy cash flow position enables us to continue investing in our strategic growth drivers, while simultaneously returning excess cash to our shareholders through a stock repurchase programme,” said David White, Align CFO. “Our management team and board of directors believe that our business represents an attractive investment opportunity for both current and potential investors, and the repurchase programme demonstrates the company’s ongoing commitment to increasing shareholder value. This programme will also help offset dilution from our employee equity plans.”
Any purchases under Align’s stock repurchase programme may be made, from time-to-time, pursuant to a S.E.C. 10b5-1 plans, open market purchases, privately-negotiated transactions, accelerated stock repurchases, block trades or derivative contracts or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. The programme does not obligate Align to acquire any particular amount of common stock and depending on market conditions and other factors these purchases may be commenced or suspended at any time without prior notice. As of March 31, 2016, the company had approximately 80.2 million shares outstanding and $681 million in cash, cash equivalents and short-term and long-term marketable securities.