|KNOT is sitting on over $130 million in cash and short term investments. The company is going to use as much as $50 million of that balance to buy back common stock:|
The Knot Inc. Announces Stock Repurchase Program
Board of Directors authorizes repurchase of up to $50 million of Company’s common stock
Press Release Source: The Knot Inc. On Monday February 22, 2010, 4:00 pm
NEW YORK--(BUSINESS WIRE)--The Knot Inc. (NASDAQ: KNOT - News), the premier media company devoted to weddings, babies, and everything in between, today announced that its Board of Directors has authorized the repurchase of up to $50 million of the Company’s common stock from time to time on the open market or in privately negotiated transactions.
“We believe the repurchase of the Company’s shares represents an excellent long-term investment and that this action demonstrates our commitment to enhancing shareholder value,” said Chief Executive Officer of The Knot, David Liu.
The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at any time.
The repurchase program will be funded using the Company’s working capital. As of December 31, 2009, the Company had cash and cash equivalents of approximately $95.0 million, and short-term investments of approximately $36.5 million, consisting entirely of auction-rate securities that are redeemable at par beginning on June 30, 2010, under the Company’s settlement agreement with UBS.
The Company had approximately 33.7 million shares of common stock outstanding as of December 31, 2009.