Gentherm Initiates $60 Million Accelerated Share Repurchase
November 02 2023 - 8:00AM
Gentherm (NASDAQ:THRM), the global market leader of innovative
thermal management and pneumatic comfort technologies for the
automotive industry and a leader in medical patient temperature
management systems, today announced that it has entered into an
accelerated share repurchase agreement (ASR) with Bank of America,
N.A. to repurchase an aggregate of $60 million of Gentherm’s common
shares. The agreement was entered pursuant to the Company’s
previously announced stock repurchase program. The Board of
Directors authorized an extension of the stock repurchase program
through June 30, 2024, which had approximately $97 million
remaining as of October 31, 2023.
The Company will initially receive approximately 1.22 million
common shares. The final number of shares to be repurchased will be
based on the volume-weighted average price of Gentherm’s common
shares during the term of the transaction, less a discount and
subject to adjustments pursuant to the terms and conditions of the
ASR. The final settlement of the transactions under the ASR is
expected to occur no later than the second quarter of 2024.
“I am pleased to announce our $60 million ASR, which reflects
the strength of our balance sheet, cash flow generation and ample
liquidity, as well as management and our Board’s continued
confidence in our ability over time to grow faster than automotive
production while improving profitability,” said Matteo Anversa,
Executive Vice President of Finance, Chief Financial Officer and
Treasurer. “Returning capital to our shareholders through stock
repurchase programs while simultaneously investing in our strategic
growth drivers, is consistent with our capital allocation strategy
and commitment to increasing shareholder value."
Investor ContactYijing
Brentanoinvestors@gentherm.com 248.308.1702
Media ContactMelissa
Fischermedia@gentherm.com248.289.9702
About GenthermGentherm (NASDAQ: THRM)
is the global market leader of innovative thermal management and
pneumatic comfort technologies for the automotive industry and a
leader in medical patient temperature management systems.
Automotive products include variable temperature Climate Control
Seats, heated automotive interior systems (including heated seats,
steering wheels, armrests and other components), battery
performance solutions, cable systems, lumbar and massage comfort
solutions, valve system technologies, and other electronic devices.
Medical products include patient temperature management systems.
The Company is also developing a number of new technologies and
products that will help enable improvements to existing products
and to create new product applications for existing and new
markets. Gentherm has more than 14,000 employees in
facilities in the United
States, Germany, China, Czech Republic, Hungary,
Japan, Malta, Mexico, North Macedonia, South
Korea, United Kingdom, Ukraine, and Vietnam. For
more information, go to www.gentherm.com.
Forward-Looking Statements Except for
historical information contained herein, statements in this release
are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements represent Gentherm
Incorporated's goals, beliefs, plans and expectations about its
prospects for the future and other future events. The
forward-looking statements included in this release are made as of
the date hereof or as of the date specified herein and are based on
management's reasonable expectations and beliefs. Such statements
are subject to a number of important assumptions, significant risks
and uncertainties (some of which are beyond our control) and other
factors that may cause actual results or performance to differ
materially from that described in or indicated by the
forward-looking statements, including but not limited to:
- macroeconomic, geopolitical and similar global factors on the
cyclical Automotive industry;
- the production levels of our major customers and OEMs in our
key markets and sudden fluctuations in such production levels, in
particular with respect to models for which we supply significant
amounts of product;
- our ability to integrate our recent acquisitions and realize
synergies, as well as to consummate additional strategic
acquisitions, investments and exits;
- our implementation activities to execute our long-term strategy
of Fit-for-Growth 2.0, including profitability improvement and cost
reductions;
- our ability to effectively manage new product launches and
research and development;
- increasing competition, including with non-traditional
entrants;
- the ongoing supply-constrained environment, including raw
material and component shortages, manufacturing disruptions and
delays, logistics challenges, inflationary and other cost
pressures;
- the impact of our global operations, including our global
supply chain, operations within Ukraine, economic and trade
policies by various jurisdictions, and foreign currency risk and
foreign exchange exposure;
- our business in China, which is subject to unique operational,
competitive, regulatory and economic risks;
- a tightening labor market, labor shortages or work stoppages
impacting us, our customers or our suppliers, including the
potential impact of ongoing and future labor strikes among certain
OEMs and suppliers;
- our achievement of product cost reductions to offset
customer-imposed price reductions or other pricing pressures;
- any security breaches and other disruptions to our information
technology networks and systems, as well as privacy, data security
and data protection risks;
- our product quality and safety;
- the evolution of the automotive industry towards electric
vehicles, autonomous vehicles and mobility on demand services, and
related consumer behaviors and preferences;
- the development of and market acceptance of our existing and
future products;
- our borrowing availability under our revolving credit facility,
as well as our ability to access the capital markets, to support
our planned growth;
- our indebtedness and compliance with our debt covenants;
- the effects of climate change and catastrophic events, as well
as regulatory and stakeholder-imposed requirements to address
climate change and other sustainability issues;
- our efforts to optimize our global supply chain and
manufacturing footprint;
- our ability to project future sales volume based on third-party
information, based on which we manage our business;
- our ability to convert new business awards into product
revenues;
- any loss or insolvency of our key customers and OEMs, or key
suppliers;
- risks associated with our manufacturing processes;
- the extensive regulation of our patient temperature management
business;
- the protection of our intellectual property in certain
jurisdictions;
- our compliance with anti-corruption laws and regulations;
and
- legal and regulatory proceedings and claims involving us or one
of our major customers.
The foregoing risks should be read in conjunction with the
Company's reports filed with or furnished to the Securities and
Exchange Commission (the “SEC”), including “Risk Factors,” in its
most recent Annual Report on Form 10-K and subsequent SEC filings,
for a discussion of these and other risks and uncertainties. In
addition, with reasonable frequency, we have entered into business
combinations, acquisitions, divestitures, strategic investments and
other significant transactions. Such forward-looking statements do
not include the potential impact of any such transactions that may
be completed after the date hereof, each of which may present
material risks to the Company’s future business and financial
results.
Except as required by law, the Company expressly disclaims any
obligation or undertaking to update any forward-looking statements
to reflect any change in its expectations with regard thereto or
any change in events, conditions or circumstances on which any such
statement is based.
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