Victory Capital Announces New Share Repurchase Authorization
August 28 2019 - 4:30PM
Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or
the “Company”) today announced that its Board of Directors has
approved a new common stock repurchase program authorizing the
repurchase of up to $15 million of its Class A Common Stock through
December 31, 2020.
“This new authorization demonstrates the Board’s
unwaivering confidence in our long-term growth strategy,” said
David Brown, Chairman and Chief Executive Officer. “Nevertheless,
reducing debt to support acquisition initiatives remains the
primary use of our free cash flow. With rising levels of cash
generation, we can also continue to invest in our integrated
platform while returning capital to shareholders through share
repurchases and dividends. The flexibility afforded by this
balanced capital allocation approach allowed us to accelerate
opportunistic share repurchases under the former
authorization.”
The Company’s prior $15 million stock repurchase
authorization, initiated in May 2018, has been largely
completed.
Under the new program, the Company may purchase
its shares from time to time in the open market or in privately
negotiated transactions. The amount and timing of the
purchases will depend on a number of factors including the price
and availability of the Company's shares, trading volume, capital
availability, Company performance and general economic and market
conditions. The share repurchase program may be suspended or
discontinued at any time.
About Victory
CapitalVictory Capital is a global investment management
firm operating a next-generation, integrated multi-boutique
business model with $147.8 billion in assets under management as of
July 31, 2019.
Victory Capital provides specialized investment
strategies to institutions, intermediaries, retirement platforms
and individual investors, including USAA members through its direct
member channel. Through its Investment Franchises and Solutions
Platform, Victory Capital offers a diverse array of independent
investment approaches and innovative investment vehicles designed
to drive better investor outcomes. This includes actively managed
mutual funds and separately managed accounts, rules-based and
active ETFs, multi-asset class strategies, custom solutions and a
529 College Savings Plan.
For more information, please visit www.vcm.com
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Forward-Looking Statements
This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements may include, without
limitation, any statements preceded by, followed by or including
words such as “target,” “believe,” “expect,” “aim,” “intend,”
“may,” “anticipate,” “assume,” “budget,” “continue,” “estimate,”
“future,” “objective,” “outlook,” “plan,” “potential,” “predict,”
“project,” “will,” “can have,” “likely,” “should,” “would,” “could”
and other words and terms of similar meaning or the negative
thereof. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors beyond Victory
Capital’s control, as discussed in Victory Capital’s filings with
the SEC, that could cause Victory Capital’s actual results,
performance or achievements to be materially different from the
expected results, performance or achievements expressed or implied
by such forward-looking statements.
Although it is not possible to identify all such
risks and factors, they include, among others, the following:
reductions in AUM based on investment performance, client
withdrawals, difficult market conditions and other factors; the
nature of the Company’s contracts and investment advisory
agreements; the Company’s ability to maintain historical returns
and sustain its historical growth; the Company’s dependence on
third parties to market its strategies and provide products or
services for the operation of its business; the Company’s ability
to retain key investment professionals or members of its senior
management team; the Company’s reliance on the technology systems
supporting its operations; the Company’s ability to successfully
acquire and integrate new companies; the concentration of the
Company’s investments in long-only small- and mid-cap equity and
U.S. clients; risks and uncertainties associated with non-U.S.
investments; the Company’s efforts to establish and develop new
teams and strategies; the ability of the Company’s investment teams
to identify appropriate investment opportunities; the Company’s
ability to limit employee misconduct; the Company’s ability to meet
the guidelines set by its clients; the Company’s exposure to
potential litigation (including administrative or tax proceedings)
or regulatory actions; the Company’s ability to implement effective
information and cyber security policies, procedures and
capabilities; the Company’s substantial indebtedness; the potential
impairment of the Company’s goodwill and intangible assets;
disruption to the operations of third parties whose functions are
integral to the Company’s ETF platform; the Company’s determination
that Victory Capital is not required to register as an "investment
company" under the 1940 Act; the fluctuation of the Company’s
expenses; the Company’s ability to respond to recent trends in the
investment management industry; the level of regulation on
investment management firms and the Company’s ability to respond to
regulatory developments; the competitiveness of the investment
management industry; the dual class structure of the Company’s
common stock; the level of control over the Company retained by
Crestview GP; the Company’s status as an emerging growth company
and a controlled company; and other risks and factors listed under
"Risk Factors" and elsewhere in the Company’s filings with the
SEC.
Such forward-looking statements are based on
numerous assumptions regarding Victory Capital’s present and future
business strategies and the environment in which it will operate in
the future. Any forward-looking statement made in this press
release speaks only as of the date hereof. Except as required by
law, Victory Capital assumes no obligation to update these
forward-looking statements, or to update the reasons actual results
could differ materially from those anticipated in the
forward-looking statements, even if new information becomes
available in the future.
Contacts:
Investors:Matthew Dennis,
CFADirector, Investor Relations216-898-2412mdennis@vcm.com
Media:Tricia
Ross310-622-8226tross@finprofiles.com
USAA is a trademark of United Services
Automobile Association and is being used by Victory Capital and its
affiliates under license. Victory Capital and its affiliates are
not affiliated with USAA or its affiliates.
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