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Tupperware Higher on $250M Stock Buyback, $58M Debt Prepayment

Tupperware authorizes a stock buyback of as much as $250 million and prepays $58 million of term-loan debt.
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Shares of Tupperware Brands (TUP) - Get Tupperware Brands Corporation Report moved up on Tuesday after the home-goods icon authorized a stock buyback of as much as $250 million and prepaid $58 million of term-loan debt held by investment manager Angelo Gordon and banking giant JPMorgan Chase.

The Orlando, Fla., company says it is continuing to invest in its business amid increased confidence in its potential to generate cash flow.

The company's turnaround plan has improved its liquidity position over the past 18 months, enabling it to prepay $58 million of the term loan, Sandra Harris, chief operating officer and chief financial officer at Tupperware, said in a statement..

The timing and amount of any share repurchases will depend on market conditions and other factors, including its credit agreements, the company said. 

In March, the company reported adjusted earnings that trailed analysts’ forecasts.

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For the fiscal fourth quarter ended Dec. 26 Tupperware swung to net income  of $21.8 million, or 41 cents a share, from a loss of $71.7 million, or $1.47 a share, in the year-earlier quarter.

The latest adjusted profit was 14 cents a share, compared with a loss of 63 cents the year earlier. The latest figure was below the FactSet analyst consensus of 71 cents.

Revenue jumped 17% to $489.6 million, ahead of the analyst consensus of $449 million.

The results showed that the company's efforts to fix the core business are beginning to take hold," Chief Executive Miguel Fernandez said then.

The sales force realizes that "geography is no longer a barrier to reach new customers as they grow their business through social media platforms and digital tools,” he said.