KVH Announces Purchase and Sales Agreements for Rhode Island Office and Factory, Approval for Share Buyback Program
Rhea-AI Summary
KVH Industries (NASDAQ: KVHI) has announced two significant developments: First, the company has entered into purchase and sale agreements for its Rhode Island properties for a combined value of $13 million ($8.5 million for 75 Enterprise Center and $4.5 million for 50 Enterprise Center), expected to generate approximately $12 million net of transaction costs. Second, the Board has authorized a share repurchase program of up to $10 million.
The sale of 75 Enterprise Center to Knight Capital includes a lease-back arrangement allowing KVH to remain as tenant for 6-9 months while completing manufacturing wind-down and relocating headquarters. The 50 Enterprise Center property will be sold to Seacorp's subsidiary. Both transactions are subject to customary closing conditions.
Positive
- Expected net proceeds of $12 million from property sales to strengthen working capital
- Board authorization of $10 million share buyback program indicates confidence in company strategy
- Lease-back arrangement provides operational continuity during transition
Negative
- Manufacturing wind-down indicates operational restructuring
- Property sales may incur relocation and transition costs
- Share buyback could reduce available capital for strategic investments
News Market Reaction
On the day this news was published, KVHI declined 0.68%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MIDDLETOWN, R.I., Dec. 11, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), announced that it has entered into purchase and sale agreements for its Rhode Island office and factory. In addition, KVH announced that its Board of Directors has authorized a share repurchase program with an aggregate purchase price of up to
“We expect that the sale of our Rhode Island facilities will provide us with approximately
On December 5, 2024, KVH entered into a purchase and sale agreement with Knight Capital LLC, under which the company agreed to sell its property located at 75 Enterprise Center, Middletown, Rhode Island, to Knight Capital for a purchase price of
Upon consummation of the sale, KVH will remain in possession of the property as a tenant under a triple-net lease having an initial term of six months, which the company can extend for up to an additional three months as it completes its manufacturing wind-down and identifies a new headquarters facility.
In addition, on December 9, 2024, KVH entered into a purchase and sale agreement with 50 Enterprise LLC, a subsidiary of Seacorp, Inc., under which the company agreed to sell its property located at 50 Enterprise Center, Middletown, Rhode Island, to the purchaser for a purchase price of
On December 9, 2024, the company’s Board of Directors also authorized a share repurchase program under which the Company may purchase outstanding shares of KVH common stock for an aggregate purchase price of up to
Under the program, the company, at management’s discretion, may repurchase shares from time to time through various means, including on the open market, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. KVH may elect to make purchases under Rule 10b-18 under the Securities Exchange Act of 1934, as amended, which imposes certain volume limitations, and/or under Rule 10b5-1 under that act, which would permit repurchases to occur during periods when the company might otherwise be precluded from making purchases under insider trading laws or company policy. The volume and timing of such repurchases will depend on various factors, including the availability of shares, price, market conditions, alternative uses of capital, liquidity, general business conditions, satisfaction of debt covenants, and applicable regulatory requirements. The program does not obligate KVH to repurchase any minimum number or dollar amount of shares, and the program may be modified, suspended, or terminated at any time without prior notice.
Note to Editors: For more information about KVH, please visit https://www.kvh.com.
About KVH Industries, Inc.
KVH Industries, Inc. is a global leader in maritime and mobile connectivity delivered via the KVH ONE® network. The company, founded in 1982, is based in Middletown, RI, with research, development, and manufacturing operations in Middletown, RI, and more than a dozen offices around the globe. KVH provides connectivity solutions for commercial maritime, leisure marine, military/government, and land mobile applications on vessels and vehicles, including the TracNet™, TracPhone®, and TracVision® product lines, the CommBox™ Edge network and bandwidth management systems, the KVH ONE OpenNet Program for non-KVH antennas, AgilePlans® Connectivity as a Service (CaaS), and the KVH Link crew wellbeing content service.
This press release contains forward-looking statements that involve risks and uncertainties. For example, forward-looking statements include the proposed sale of the company’s Rhode Island facilities and the possible repurchase of outstanding company shares. Actual results could differ materially from the results projected in or implied by the forward-looking statements made in this press release. Factors that might cause these differences include, but are not limited to, in the case of the property sales, the potential failure to satisfy conditions to the obligation of the property buyers to consummate the sale, including a failure to obtain required zoning approvals or to pass inspection, and, in the case of the stock repurchase program, potential increases in the market price of KVH common stock above targeted repurchase prices, potential changes in capital requirement and priorities, potential changes in business strategy, the emergence of strategic opportunities requiring cash investment, unanticipated costs or expenses, changes in tax law or policy, or other factors that may reduce our revenues or increase our expenses. These and other factors are discussed in more detail in KVH’s Annual Report on Form 10-K filed with the SEC on March 15, 2024, and our Quarterly Report on Form 10-Q filed with the SEC on November 5, 2024. Copies are available through its Investor Relations department and website: https://investors.kvh.com. KVH does not assume any obligation to update our forward-looking statements to reflect new information and developments.
KVH Industries, Inc., has used, registered, or applied to register its trademarks in the USA and other countries around the world, including but not limited to the following marks: KVH, KVH ONE, TracVision, TracPhone, TracNet, CommBox, and AgilePlans. Other trademarks are the property of their respective companies.
For further information, please contact:
Chris Watson
Vice President, Marketing & Communications
KVH Industries, Inc.
Tel: +1 401 845 2441
cwatson@kvh.com
This press release was published by a CLEAR® Verified individual.
FAQ
How much will KVH Industries (KVHI) receive from the sale of its Rhode Island properties?
What is the size of KVHI's newly announced share buyback program?
How long can KVH remain in the 75 Enterprise Center property after the sale?
Who are the buyers of KVH's Rhode Island properties?
What methods can KVHI use to execute its share repurchase program?
