SALT LAKE CITY, March 11, 2014 (GLOBE NEWSWIRE) -- LifeVantage Corporation (Nasdaq:LFVN), a company dedicated to helping people achieve healthy living through a combination of a compelling business opportunity and scientifically validated products, today announced that its Board of Directors approved an initial $6 million that will be used for an accelerated debt pay down and common stock repurchase program. The Company will fund up to $3 million in stock repurchases with the remainder being used to accelerate the pay down of debt, through cash on hand and future cash flow from operations.
Douglas C. Robinson, President and Chief Executive Officer of LifeVantage stated, "We believe that utilizing our strong balance sheet and cash flow from operations to continue repurchasing stock, when appropriate, and simultaneously accelerating our debt payments will enhance long-term shareholder value for our Company. We are able to implement these accelerated debt pay down and additional stock repurchase initiatives while maintaining ample capital to continue investing in our previously announced strategic initiatives of product development, geographic expansion and strengthening marketing. We feel the combination of these initiatives will have a positive impact on our operational performance in the future."
As of December 31, 2013, the Company's cash and cash equivalents were $34.5 million and total debt was $47 million. Over the past 15 months, the Company has repurchased $50 million of its stock.The repurchase program permits LifeVantage to purchase shares from time to time through a variety of methods, including in the open market, through privately negotiated transactions or other means as determined by the company's management, in accordance with applicable securities laws. As part of the repurchase program, the Company expects that it will enter into a pre-arranged stock repurchase plan which will operate in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934. Accordingly, transactions, if any, under the pre-arranged repurchase plan would be completed in accordance with the terms of the stock repurchase plan, including specified price, volume and timing conditions.