TORONTO, Nov. 23, 2015 /PRNewswire/ - (TSX: KFS, NYSE: KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company") today announced that its Board of Directors (the "Board") has approved a program to repurchase up to 5%, or nearly 1 million shares, of its currently issued and outstanding common stock (the "Share Repurchase Program").
Larry G. Swets, Jr., President and Chief Executive Officer, stated, "Capital management has always been a focus given management's and the Board's significant ownership of the Company. We have used our capital to eliminate past legacy issues and control our debt obligations. With the recent announcement of the payment to our Trust Preferred trustees of all deferred interest on our subordinated debt and the successful returns on our capital resulting from the sale of Assigned Risk Solutions and the monetization of the management services agreement with 1347 Property Insurance Holdings, Inc., we felt it appropriate to devote resources towards the purchase of our stock. Our Board's decision to authorize the Share Repurchase Program reaffirms our confidence in the future of the Company and is a sign of the importance we place in Kingsway's ability to create long-term profitable growth. Our Board and executive officers have no intention of selling shares under this program, another sign of our confidence in our future. We remain committed to increasing the intrinsic value of the Company on a per share basis."
Over the next twelve months, the repurchases may be made from time to time at the discretion of the Company's management in open market transactions through the facilities of the New York Stock Exchange, privately negotiated transactions, block purchases or otherwise in the United States, in each case in accordance with applicable securities laws and exchange requirements. The price that Kingsway may pay for common stock in open market transactions will not be in excess of the market price at the time of purchase (plus reasonable brokerage fees or commissions actually paid). The repurchases may not begin before January 29, 2016 due to contractual restrictions contained in the Company's six outstanding Trust Preferred indentures. The timing and amount of any repurchase will be based on market conditions and other factors including share price, regulatory requirements and capital availability. All repurchased common stock will be cancelled. The Board may also suspend, terminate, modify, cancel or extend the Share Repurchase Program at any time and for any reason.
The Share Repurchase Program will be funded using the Company's working capital. As of September 30, 2015, the Company had 19,709,706 shares of its common stock issued and outstanding.
About the Company Kingsway is a holding company functioning as a merchant bank with a focus on long-term value-creation. The Company owns or controls stakes in several insurance industry assets and utilizes its subsidiaries, 1347 Advisors LLC and 1347 Capital LLC, to pursue opportunities acting as an advisor, an investor and a financier. The common shares of Kingsway are listed on the Toronto Stock Exchange and the New York Stock Exchange under the trading symbol "KFS."
Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects", "believes", "anticipates", "intends", "estimates", "seeks" and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect Kingsway management's current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, please refer to the section entitled "Risk Factors" in the Company's 2014 Annual Report on Form 10-K. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise.
SOURCE Kingsway Financial Services Inc.