ELKRIDGE, Md., Sept. 27, 2011 /PRNewswire/ -- GP Strategies Corporation (NYSE: GPX), the parent company of global performance improvement solutions provider General Physics Corporation (GP), announced today that its Board of Directors has authorized a $5 million share repurchase program, replacing the existing authorization which has approximately $1.2 million remaining. GP Strategies' share repurchase program allows management, at its discretion, to repurchase shares from time to time in the open market subject to market conditions and other factors.
Scott Greenberg, Chief Executive Officer, commented "We believe that the share repurchase program reflects confidence in the Company and our commitment to increasing shareholder value. The buyback program allows the Company flexibility to repurchase shares at its discretion, while maintaining sufficient liquidity to invest in strategic growth initiatives."
The Company expects to fund share repurchases using cash generated from operations and borrowings under its $35 million credit facility. The repurchases will be made at management's discretion in accordance with applicable federal securities law. The amount and timing of share repurchases will depend on a variety of factors, including market conditions and prevailing stock prices. Repurchases may also be made under a Rule 10b5-1 plan, which permits the Company to repurchase shares when it otherwise would be precluded from doing so under insider trading laws. The share buyback authorization does not obligate the Company to acquire any specific number of shares in any period, and may be modified, suspended or discontinued at any time at the discretion of the Company's Board of Directors.
GP Strategies, whose principal operating subsidiary is General Physics Corporation, is a NYSE-listed company (GPX). GP is a global performance improvement solutions provider of sales and technical training, e-Learning solutions, management consulting and engineering services. GP's solutions improve the effectiveness of organizations by delivering innovative and superior training, consulting and business improvement services, customized to meet the specific needs of its clients. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers. Additional information may be found at www.gpworldwide.com.
We make statements in this press release that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements reflect our current expectations concerning future events and results. We use words such as "expect," "intend," "believe," "may," "should," "could," "anticipates," and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties, and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
SOURCE GP Strategies