Friday March 7
Insurance Auto Auctions Announces Share Repurchase ProgramThe management team and Board of Directors of Insurance Auto Auctions, Inc. has announced that it has initiated a previously authorized share repurchase program, and reiterated its confidence in the Company's progress and long-term outlook. In March, the Company has purchased approximately 650,000 shares of its Common Stock in the open market, or in block transactions.
Tom O'Brien, Chief Executive Officer, said, "Both the management team and our Board of Directors have confidence in the future of IAA. We are generating higher returns and offer more services for our customers than we have in the past, we are encouraged with our market share trend, we have a more favorable mix of business and our overall cost structure has been streamlined throughout the country. Looking forward, we have additional opportunities to enhance the business and expect to generate higher earnings and cash flow in the quarters ahead. We are proud of what we have accomplished to date and are excited about the future of IAA."
O'Brien added, "We believe the strategic initiatives we executed in 2002 have put us in a position to generate higher returns for shareholders going forward. Assuming stable volume levels during the year, we expect earnings of $0.75 per diluted share or more for 2003. We also expect cash flow from operations to exceed $25 million for the year. At the same time, we remain focused on preserving and deploying capital in ways that provide the best return to our shareholders. The decision to allocate capital to new and improved facilities and locations is a dynamic process and is based on customer needs, expected return on the capital and risk analysis. Our decision to allocate capital aggressively to our share buyback program reflects our confidence in our plan and the view that the current stock price makes IAAI an excellent investment opportunity."
Insurance Auto Auctions, Inc., a leader in automotive total loss and specialty salvage services, currently has 69 sites across the United States.
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