Thoratec Announces $150 Million Share Repurchase Authorization
PLEASANTON, Calif., Nov. 26, 2012 /PRNewswire/ -- Thoratec Corporation (NASDAQ: THOR), a world leader in device-based mechanical circulatory support therapies to save, support and restore failing hearts, announced today that its Board of Directors has authorized the repurchase of up to $150 million of the company's shares of common stock. The company's prior authorization expired in early November. As part of the new authorization, the company has entered into a $75 million Accelerated Share Repurchase (ASR) agreement with J.P. Morgan, which will begin immediately. The balance of the authorization will be available for utilization at the company's discretion through the end of 2013.
Under the ASR agreement, Thoratec will receive approximately 1.5 million shares at the inception of the program. The total number of shares ultimately purchased under the agreement will be determined upon final settlement, using the volume-weighted average price of the Company's common stock over a period of time of up to 4.5 months.
"We remain enthusiastic about the future for Thoratec, based on our market opportunity in both chronic and acute circulatory support, our competitive position, and our pipeline of new technologies. This repurchase authorization reflects our confidence in the long-term strength of the company, as well as our commitment to a disciplined capital deployment strategy," said Gary F. Burbach, President and Chief Executive Officer.
"While our top priority is to fund our internal growth initiatives and pursue strategic opportunities, our current cash position coupled with ongoing strong cash flow generation provides us the opportunity to continue returning value to shareholders through additional share repurchase activity," added Taylor C. Harris, Vice President and Chief Financial Officer.
During the first nine months of 2012, Thoratec generated $109 million of cash flow from operating activities, an increase of over 25% relative to the comparable period in 2011. As of September 29, 2012, the company had approximately $308 million in cash, cash equivalents and investments.
Repurchases will take place on the open market or in privately negotiated transactions from time to time based on market and other conditions. The program is effective immediately, and except for the ASR, it may be modified, suspended, terminated or extended by the company at any time without prior notice.
Thoratec is the world leader in mechanical circulatory support with the broadest product portfolio to treat the full range of clinical needs for patients suffering from advanced heart failure. The company's products include the HeartMate LVAS and Thoratec VAD, with more than 20,000 devices implanted in patients suffering from heart failure. Thoratec also manufactures and markets the CentriMag and PediMag / PediVAS product lines. Thoratec is headquartered in Pleasanton, California. For more information, visit www.thoratec.com.
Thoratec, the Thoratec logo, HeartMate and HeartMate II are registered trademarks of Thoratec Corporation and IVAD is a trademark of Thoratec Corporation. CentriMag and PediMag are registered trademarks of Thoratec LLC, and PediVAS is a registered trademark of Thoratec Switzerland GmbH.
Many of the preceding paragraphs, particularly but not exclusively those addressing guidance for fiscal 2012 financial results or future performance contain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can be identified by the words, "believes," "views," "expects," "plans," "projects," "hopes," "could," "will," and other similar words. Actual results, events or performance could differ materially from these forward-looking statements based on a variety of factors, many of which are beyond Thoratec's control. Therefore, readers are cautioned not to put undue reliance on these statements. Investors are cautioned that all such statements involve risks and uncertainties, including risks related to regulatory approvals, the development of new products, including development and clinical trial timing, and new markets including Destination Therapy, the growth of existing markets for our products, customer and physician acceptance of Thoratec products, changes in the mix of existing markets for our products and related gross margin for such product sales, the ability to improve financial performance, the effects of FDA regulatory requirements, our ability to address issues raised by FDA inspections adequately and on a timely basis without a resulting recall of products or interruption of manufacturing or shipment of products, the effects of healthcare reimbursement and coverage policies, the effects of seasonality on Thoratec product sales, the effects of competition and the effects of any merger, acquisition and divestiture related activities. Forward-looking statements contained in this press release should be considered in light these factors and those factors discussed from time to time in Thoratec's public reports filed with the Securities and Exchange Commission, such as those discussed under the heading, "Risk Factors," in Thoratec's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other SEC filings. These forward-looking statements speak only as of the date hereof. Thoratec undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
SOURCE Thoratec Corporation