| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Valassis Communications Inc. > News item |
Valassis ends second quarter with 'very comfortable' level of leverage
By Lisa Kerner
Charlotte, N.C., July 29 - Valassis Communications Inc. ended the second quarter with a net debt-to-adjusted EBITDA leverage ratio of 1.6 to 1, giving the company "a very comfortable level of leverage" and providing "substantial financial flexibility," chief executive officer Alan Schultz said during the company's earnings call on Thursday.
During the quarter, the company repurchased $297.8 million principal amount of its 8¼% senior notes due 2015, which had a negative impact on reported earnings per share of 28 cents, Schultz said.
The total principal amount of the 8¼% notes outstanding as of June 30 was $242.2 million.
"By paying down a substantial portion of our most expensive debt we will save approximately $12 million in net interest expense in 2010 and $22.2 million in net interest expense in 2011, even after you net out the increased interest expense and fees associated with the April 2010 amendment to our senior secured credit facility which allowed us to repurchase those 8¼% notes," Schultz said.
Valassis used its financial flexibility to repurchase 1,619,600 shares of its common stock for a total of $54.6 million, or an average cost of $33.71 per share, under its stock repurchase program that was reinstated in May.
The company's 2010 stock repurchases are limited by its senior secured credit facility to a total of $58.4 million, Schultz said.
Valassis ended the second quarter with $228.7 million in cash and net debt (total debt less cash) of $481.1 million, a company news release said.
Based in Livonia, Mich., Valassis is a provider of media and marketing services.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.