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Accretive Health, Inc. (NYSE:AH) today announced its Board of Directors has authorized the repurchase of up to $50 Million of the company’s common stock from time to time in the open market, or in privately negotiated transactions.
Mary Tolan, Founder and Chief Executive Officer of Accretive Health, said, “We have a strong conviction in our growth prospects and the fundamental strength of our business model. The company has no debt and we are confident in our ability to generate operating cash flow to support continued growth. We believe that the stock represents an attractive value relative to our future outlook and with this authorization, we have the ability to opportunistically make share repurchases as a component of our capital allocation strategy while continuing to invest in future growth opportunities.”
The timing and amount of any shares repurchased will be determined by the company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes.
Accretive Health will fund the share repurchases from cash on hand. As of June 30, 2012, the company had approximately $200.9 million of cash and equivalents and 99.4 million shares of common stock outstanding.
Statements in this press release regarding the company's growth prospects, business model, operating cash flow, intention to repurchase shares of its common stock from time to time under the stock repurchase program, the intended use of any repurchased shares and the source of funding are forward-looking statements. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, the market price of the company's stock prevailing from time to time, the nature of other investment opportunities presented to the company from time to time, the company's cash flows from operations, general economic conditions, and other factors identified in the company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC.