Under the program, repurchases may be made in the open market, or through privately negotiated transactions, block transactions, or other mechanisms, as determined by the Company’s management and in accordance with prevailing market conditions and the requirements of the Securities and Exchange Commission. Quality expects to fund share repurchases from future cash flows from operations or borrowings under its asset-based revolving credit facility. The share repurchase program does not have an expiration date, the Company is not obligated to acquire a particular number of shares, and the program may be discontinued at any time at the Company’s discretion.
“Today’s announcement underscores the confidence that the Board and management team have in our business and our ability to generate free cash flow,” said Gary Enzor, Chief Executive Officer. “We remain focused on carefully managing capital and paying down our high interest debt and still intend to utilize the opportunities we have to pay down a portion of our 9.875% Second-Priority Senior Secured Notes due 2018 between now and November 2014. However, our current depressed share price presents a compelling opportunity to deliver value to our shareholders through this share repurchase program.”