FT. LAUDERDALE, Fla.,
Aug. 3 /PRNewswire-FirstCall/ --
SMF ENERGY CORPORATION, (Nasdaq: FUEL), a leading mobile
fueling and energy logistics company providing efficient, just in
time distribution of petroleum products and chemicals, today
announced that its Board of Directors has authorized its first ever
stock repurchase program pursuant to which the Company intends to
purchase up to 5% of its outstanding capital stock, or
approximately 435,000 shares of common stock or common stock
equivalents, in open market transactions or privately negotiated
purchases.
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Richard E. Gathright, President
and Chief Executive Officer of the Company, stated, "We believe
that our stock is an attractive value at current trading prices and
that the repurchase of shares at those prices will enhance the
value of the continuing investment by our non-selling
shareholders."
Gathright continued, "We have examined our cash availability and
compared that with our ability to make these repurchases over the
next twelve months and we have concluded that this is the most
prudent use of our excess cash. While we intend to continue
to invest cash in our business by acquiring new equipment,
expanding into new markets and, if available, making strategic
acquisitions, we believe that purchasing and retiring shares of our
capital stock at this time will strengthen the value of our Company
as a whole, and will help reduce the risk that our stock price is
adversely affected by speculative trading unrelated to our actual
performance or prospects.
The timing of the repurchases will depend on a number of
factors, including but not limited to, market conditions and
prices, the Company's liquidity requirements and alternative uses
of capital. Any repurchased shares will be available for reissuance
in the future for general corporate purposes."
Gathright concluded, "Our principal lender, whose consent is
required for any stock repurchases, has approved the repurchase of
up to $840,000 in capital stock as
part of this program, subject to our continuing maintenance of some
specified financial milestones while the program is ongoing.
We are confident that our future financial and cash flow
performance will enable us to complete the program as announced."
ABOUT SMF ENERGY CORPORATION (NASDAQ: FUEL)
The Company is a leading provider of petroleum product
distribution services, transportation logistics and emergency
response services to the trucking, manufacturing, construction,
shipping, utility, energy, chemical, telecommunication and
government services industries. The Company provides its
services and products through 34 locations in the 11 states of
Alabama, California, Florida, Georgia, Louisiana, Nevada, Mississippi, North
Carolina, South Carolina,
Tennessee and
Texas. The broad range of services the Company offers
its customers includes commercial mobile and bulk fueling; the
packaging, distribution and sale of lubricants and chemicals;
integrated out-sourced fuel management; transportation logistics
and emergency response services. The Company's fleet of
custom specialized tank wagons, tractor-trailer transports, box
trucks and customized flatbed vehicles delivers diesel fuel and
gasoline to customers' locations on a regularly scheduled or as
needed basis, refueling vehicles and equipment, re-supplying
fixed-site and temporary bulk storage tanks, and emergency power
generation systems; and distributes a wide variety of specialized
petroleum products, lubricants and chemicals to our
customers. More information on the Company is available
at www.mobilefueling.com.
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within
the meaning of the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. For example, predictions
or statements of belief or expectation concerning the Company's
financial condition or operating performance in the future,
and the Company's ability to meet the milestones necessary to
complete the share repurchase program are "forward looking
statements" that should not be relied upon. Such
forward-looking statements are based on the current beliefs of the
Company and its management based on information known to them at
this time. Because these statements depend on various
assumptions as to future events, they should not be relied on by
shareholders or other persons in evaluating the
Company. Although management believes that the
assumptions reflected in such forward-looking statements are
reasonable, actual results could differ materially from those
projected. In addition, there are numerous risks and
uncertainties that could cause actual results to differ from those
anticipated by the Company, including but not limited to those
cited in the "Risk Factors" section of the Company's Form 10-K for
the year ended June, 30, 2009.
Contact: Robert W.
Beard
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Senior Vice President and
Investor Relations Officer
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954-308-4200
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SOURCE SMF Energy Corporation
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