Span-America Repurchases 261,310 Shares from Former Director Robert B. Johnston and the Jerry Zucker Revocable Trust
October 02 2015 - 4:15PM
Business Wire
Span-America Medical Systems, Inc. (NASDAQ:SPAN) announced today
that it has repurchased 261,310 shares of its common stock
(approximately 9% of the outstanding shares) from Robert B.
Johnston and his affiliate, The Jerry Zucker Revocable Trust, for
$4.6 million. The repurchase includes 12,000 shares owned by Mr.
Johnston and 249,310 shares owned by The Jerry Zucker Revocable
Trust. The Company also announced that Mr. Johnston resigned from
the Company’s Board of Directors following the sale of the stock to
the Company. Mr. Johnston was first elected as a Span-America
director in 2004 pursuant to an Agreement between the Company,
Jerry Zucker and Mr. Johnston. Mr. Johnston advised the Company
that he was resigning because he and his affiliates ceased to own
any Span-America stock.
“We believe the purchase of approximately 9% of Span-America’s
stock highlights our Board’s confidence in our Company’s future,”
stated Jim Ferguson, President and Chief Executive Officer of
Span-America. “We used $4.6 million of cash-on-hand to repurchase
the stock. We expect to use our existing line of credit in the near
future to fund an increase in inventory in anticipation of our ramp
up for a major seasonal promotion of consumer bedding products
scheduled to ship in November of 2015, which will be in the first
quarter of our 2016 fiscal year.
“Our outlook for fiscal 2016 is positive based on expected
growth in both our medical and custom products segments. We also
expect the repurchase of these shares to be accretive to our fiscal
2016 earnings per share based on the continued successful execution
of our growth strategy.
“We want to thank Robert Johnston for his many years of service
and valuable contributions during his tenure on our Board of
Directors. The Board expects to fill Mr. Johnston’s unexpired term
in the near future,” concluded Ferguson.
About Span-America Medical Systems, Inc.
Span-America manufactures and markets a comprehensive selection
of pressure management products for the medical market, including
Geo-Matt®, PressureGuard®, Geo-Mattress®, Custom Care®, Span+Aids®,
Isch-Dish®, Risk Manager® and Selan® products. We also supply
custom foam and packaging products to the consumer
and industrial markets. Through our
wholly-owned subsidiary Span Medical Products Canada Inc., we
manufacture and market the M.C. Healthcare Products
brands of Encore™, Maxxum, Advantage and Rexx bed frames as
well as related case goods, tables and seating products for the
long-term care market. Span-America’s stock is traded on The
NASDAQ Global Market under the symbol “SPAN.” For more
information, visit www.spanamerica.com and
www.mchealthcare.com.
Forward-Looking Statements
We have made forward-looking statements in this release
regarding, among other things, our expectations for future sales
and earnings performance. We wish to caution the reader that these
statements are only predictions. These forward-looking statements
may be generally identified by the use of forward-looking words and
phrases such as “will,” “intends,” “may,” “believes,”
“anticipates,” “should” and “expects,” and are based on the
company’s current expectations or beliefs concerning future events
that involve risks and uncertainties. Actual events or results may
differ materially as a result of risks and uncertainties facing the
company, including: (a) the inability to achieve anticipated sales
growth in the medical and custom products segments, (b) the
possibility of a loss of a key customer or distributor for our
products, (c) risks related to international operations and foreign
currency exchange associated with our Canadian subsidiary, (d) the
possibility of having material uncollectible receivables from one
or more key customers or distributors, (e) the potential for
volatile pricing conditions in the market for polyurethane foam,
(f) raw material cost increases, (g) the possibility that some or
all of our medical products could be determined to be subject to
the 2.3% medical device excise tax imposed by the Affordable Care
Act, (h) the potential for lost sales due to competition from
low-cost foreign imports, (i) changes in relationships with large
customers or key suppliers, (j) uncertainty about whether or not we
will continue to be awarded one-time seasonal promotions with major
retailers, which can have a large impact on annual revenues and
earnings, (k) the impact of competitive products and pricing,
(l) government reimbursement changes in the medical market,
(m) FDA and Health Canada regulation of medical device
manufacturing and (n) other risks referenced from time to time
in our Securities and Exchange Commission filings. We disclaim any
obligation to update publicly any forward-looking statement,
whether as a result of new information, future events or otherwise.
We are not responsible for changes made to this document by wire
services or Internet services.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151002005650/en/
Span-America Medical Systems, Inc.Jim Ferguson, 864-288-8877,
ext. 6912President and Chief Executive Officer
Span America (NASDAQ:SPAN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Span America (NASDAQ:SPAN)
Historical Stock Chart
From Jul 2023 to Jul 2024