Michaels Companies Inc (NASDAQ:MIK) disclosed that its Board has given a fresh authorization for a share buyback program of a maximum of $500 million. Following this, the stock is trading up in pre-market on Thursday.
Michaels Companies announcement came ahead of its analysts day presentation. Its CEO, Chuck Rubin, indicated that the buyback of shares would be done from time to time on the open market or through block trades or negotiated deals.
The company clarified that the current authorization does not have any expire period. The arts and crafts specialty retailer also revealed that it would buyback based on market conditions, regulatory requirements, debt agreements and corporate considerations.
Michaels Companies’ CEO reacted to comment, “The retail-leading profitability and high returns on invested capital we have generated have resulted in a track record of strong and consistent free cash flow. In the last three years alone we have generated more than $1.5 billion in cash from operations, of which $500 million has been allocated towards share repurchases, and over $500 million towards debt reduction.”