TORONTO, Sept. 10, 2012 /CNW/ - Davis + Henderson Corporation ("D+H") announced today that the Toronto Stock Exchange ("TSX") has approved its notice of intention to enter into a normal course
issuer bid for its common shares as appropriate opportunities arise
from time to time. D+H's normal course issuer bid will be made in
accordance with the policies of the TSX. D+H may purchase its common
shares during the period from September 12, 2012 to September 11, 2013.
Pursuant to the notice and subject to the market price of its common
shares and other considerations, D+H may acquire, over the next 12
months, up to 1,777,000 common shares, representing approximately 3% of
its issued and outstanding common shares as at September 4, 2012.
Daily purchases will be limited to 37,491 common shares, other than
block purchase exemptions. There are 59,233,373 common shares
outstanding as at September 4, 2012. Any purchases will be made at
market prices through the facilities of the TSX. Purchases may also be
made through the facilities of alternative Canadian trading platforms
(such as Alpha, Pure, Omega, TMX Select, Tri-Act, Chi-X) in addition to
through the facilities of the TSX. D+H has not made any purchases in
the 12 months preceding the date of this notice. Any tendered shares
taken up and paid for by D+H will be cancelled.
D+H also announced that that it has entered into an automatic share
purchase plan with a broker in order to facilitate repurchases of its
common shares under its normal course issuer bid. Under D+H's
automatic share purchase plan, D+H's broker may repurchase common
shares under the normal course issuer bid at any time including without
limitation when D+H would ordinarily not be permitted to due to
regulatory restrictions or self-imposed blackout periods. Purchases
will be made by D+H's broker based upon the parameters prescribed by
the TSX and the terms of the parties' written agreement. The automatic
stock purchase plan has been reviewed by the TSX.
D+H believes that its common shares from time to time, may trade in a
price range that does not adequately reflect their underlying value
based on the company's business and strong financial position. As a
result, D+H believes that an investment in its outstanding common
shares may represent an attractive investment and a desirable use of a
portion of its corporate funds. "We believe the addition of this share
buyback program to our surplus cash strategy is appropriate at this
point in the economic and capital market cycle," said Brian Kyle, Chief
Financial Officer. "While it does not change our bias toward our
traditional forms of resource allocation, it does provide us with an
extra tool that is widely used by other dividend-paying growth
companies to create shareholder value."
About D+H
D+H is a leading solutions provider to the North American financial
services marketplace, providing innovative technology-based programs,
products and business services tailored to our customers' needs. A
deeply rooted tradition of developing and nurturing valued customer
relationships and a broad set of integrated solutions position D+H for
ongoing growth in our chosen markets. In 2011, D+H rose to 41st on the FinTech 100, a ranking of the top technology providers to the global financial
services industry.
Davis + Henderson Corporation is listed on the Toronto Stock Exchange
under the symbol DH. Further information can be found in the disclosure
documents filed by Davis + Henderson Corporation with the securities
regulatory authorities, available at www.sedar.com.
Forward-Looking Information
This news release contains certain statements that constitute
forward-looking information within the meaning of applicable securities
laws ("forward-looking statements"). Statements concerning D+H's
objectives, goals, strategies, intentions, plans, beliefs, expectations
and estimates, and the business, operations, financial performance and
condition of D+H are forward-looking statements. The words "believe",
"expect", "anticipate", "estimate", "intend", "may", "will", "would"
and similar expressions and the negative of such expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are subject to important assumptions,
including the following specific assumptions: the ability of D+H to
meet its revenue, EBITDA, Adjusted EBITDA and Adjusted net income
targets; general industry and economic conditions; changes in D+H's
relationship with its customers and suppliers; pricing pressures and
other competitive factors; the anticipated effect of acquisitions on
the financial performance of D+H; and the expected benefits arising as
a result of acquisitions. D+H has also made certain macroeconomic and
general industry assumptions in the preparation of such forward-looking
statements. While D+H considers these factors and assumptions to be
reasonable based on information currently available, there can be no
assurance that actual results will be consistent with these
forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the business, or developments in D+H's
industry, to differ materially from the anticipated results,
performance, achievements or developments expressed or implied by such
forward-looking statements.
Risks related to forward-looking statements include, among other things,
challenges presented by declines in the use of personal and business
cheques; D+H's dependence on a limited number of large financial
institution customers and dependence on their acceptance of new
programs; strategic initiatives being undertaken to meet D+H's
financial objective; stability and growth in the real estate, mortgage
and lending markets; as well as general market conditions, including
economic and interest rate dynamics. Given these uncertainties, readers
are cautioned not to place undue reliance on such forward-looking
statements. The documents incorporated by reference herein also
identify additional factors that could affect the operating results and
performance of D+H. Forward-looking statements are based on
management's current plans, estimates, projections, beliefs and
opinions, and D+H does not undertake any obligation to update
forward-looking statements should assumptions related to these plans,
estimates, projections, beliefs and opinions change except as required
by applicable securities laws.
All of the forward-looking statements made in this press release are
qualified by these cautionary statements and other cautionary
statements or factors contained herein, and there can be no assurance
that the actual results or developments will be realized or, even if
substantially realized, that they will have the expected consequences
to, or effects on, D+H.
SOURCE: Davis + Henderson Corporation
