Frontdoor, Inc. (NASDAQ:FTDR), the nation’s leading provider of home service plans, today announced the company’s board approved a new share repurchase program of up to $400 million of the company’s outstanding common stock. This new three-year program will be funded using cash on hand and cash generated from operations.
“We are pleased to announce the initiation of a new share repurchase program, which reflects our strong cash flow generation capability and gives us the opportunity to return capital to shareholders,” said Chief Financial Officer Brian Turcotte. “While our strategy continues to prioritize both organic and inorganic growth, our capital structure improvements, including the recent debt refinancing and repayment, naturally result in Frontdoor pursuing share repurchases at this point in our evolution.”
Purchases under the repurchase program may be made from time to time by the company in the open market at prevailing market prices (including through a Rule 10b5-1 Plan), in privately negotiated transactions, or through any combination of these methods, through September 3, 2024. The actual timing, number, manner, and value of any shares repurchased under the repurchase program will be determined by management and will depend on several factors, including the market price of the company’s common stock, general market and economic conditions, the company’s liquidity requirements, applicable legal requirements, and other business considerations. The repurchase program does not obligate the company to acquire any number of shares in any specific period or at all, and may be suspended or discontinued at any time at the company’s discretion.
