Premium Catering (Holdings) Limited Announces Share Repurchase Program

Rhea-AI Summary

Premium Catering (Holdings) Limited (NASDAQ: PC) has announced a $1.0 million share repurchase program for its Ordinary Shares. The program, authorized by the Board of Directors, allows the company to repurchase shares through various means including open market purchases, block trades, and privately negotiated transactions.

The repurchases will comply with federal securities laws and Rule 10b-18 requirements. The program has no time limit and can be modified or suspended at any time. The company plans to fund the buyback using existing cash reserves and future cash flows.

Positive

• Board authorization of $1.0 million share repurchase program
• Management's confidence in company's long-term value potential
• Flexibility in repurchase timing and execution methods
• Program to be funded from existing cash and future cash flows

Negative

• Relatively small buyback amount of $1.0 million may have limited impact on share price
• No specific timeline commitment for the repurchase program

Insights

Financial Strategist

Premium Catering's $1M share buyback signals management confidence but represents a relatively modest capital allocation move.

Premium Catering has authorized a $1.0 million share repurchase program with no specified time limit. The buyback represents a classic signal from management that they believe shares may be undervalued relative to future growth opportunities. However, without context on the company's market capitalization, cash position, or earnings, it's difficult to assess the relative significance of this $1 million authorization.

The flexibility built into this program is notable - the company can execute through various mechanisms (open market, block trades, private transactions) and has implemented no time constraints. This gives management considerable discretion to time purchases opportunistically when they perceive shares to be particularly undervalued.

The funding mechanism - using existing cash/equivalents and future cash flows - suggests management believes their balance sheet is strong enough to support this capital allocation without compromising operational needs. That said, the language around "evaluating strategic deployment of capital" indicates this is just one tool in their capital allocation strategy rather than a comprehensive return of capital program.

Without additional information on the company's outstanding shares, this buyback's potential impact on EPS or ownership concentration remains unclear. It represents a vote of confidence from management but should be viewed in the broader context of the company's overall financial position and growth strategy.

Singapore, June 26, 2025 (GLOBE NEWSWIRE) -- Premium Catering (Holdings) Limited (NASDAQ: PC) (“Premium Catering” or the “Company”) today announced that its Board of Directors has authorized a share repurchase program for up to $1.0 million of the Company’s Ordinary Shares.

“This repurchase authorization underscores the Board and Management’s belief that at times our share price may be undervalued relative to our long-term opportunity. We remain committed to evaluating the strategic deployment of our capital where we believe it can generate shareholder value,” said Yu Chun Yin, an Executive Director.

Under the program, the Company may make repurchases, from time to time, through open market purchases, block trades, in privately negotiated transactions, or by other means. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under this authorization. The volume, timing, and manner of any repurchases will be determined at the Company’s discretion, subject to general market conditions, as well as the Company’s management of capital, general business conditions, other investment opportunities, regulatory requirements, and other factors. The repurchase program does not obligate the Company to repurchase any specific amount of common stock, has no time limit, and may be modified, suspended, or discontinued at any time without notice at the discretion of the Board of Directors. The Company currently expects to fund the repurchase program from existing cash and cash equivalents and/or future cash flows.

About Premium Catering Holdings Limited

Premium Catering (Holdings) Limited is a certified Halal food caterer specializing in Indian, Bangladesh and Chinese cuisine and has over 11 years of experience in the catering services industry in Singapore. The Group primarily supplies budget prepared meals to foreign construction workers in Singapore. In addition, the Group operates food stalls and provides buffet catering services for private functions as well as ancillary delivery services. Since 2019, the Group has introduced smart incubators where prepared meals are placed in them for collection by the customer. The smart incubators are the Company’s custom-made compartmentalized, heated and insulated food vending lockers which are used to deliver budget prepared meals to customers in a secured, hygienic, contactless manner at a pre-set temperature.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the methods, amount, and timing of, and sources of funding for, repurchases under the stock repurchase program. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F for the fiscal the year ended June 30, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on management’s current estimates and expectations. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Contact:

Sarah Loh
The Chief Financial Officer
Telephone +65-67901488
IR@premium-catering.com.sg

FAQ

What is the size of Premium Catering's (NASDAQ: PC) share repurchase program?

Premium Catering has authorized a $1.0 million share repurchase program for its Ordinary Shares.

How will Premium Catering (NASDAQ: PC) fund its share buyback program?

The company plans to fund the repurchase program using existing cash and cash equivalents and/or future cash flows.

What is the timeline for Premium Catering's (NASDAQ: PC) share repurchase program?

The program has no specific time limit and can be modified, suspended, or discontinued at any time at the Board's discretion.

How will Premium Catering (NASDAQ: PC) execute its share repurchase program?

The company may repurchase shares through open market purchases, block trades, privately negotiated transactions, and may enter into Rule 10b5-1 plans, in accordance with federal securities laws.

Why did Premium Catering (NASDAQ: PC) announce a share repurchase program?

The company believes its share price may be undervalued relative to its long-term opportunity and aims to generate shareholder value through strategic capital deployment.