Physicians Formula Holdings, Inc. (NASDAQ:FACE) (“Physicians
Formula” or the “Company”)
today announced that Physicians Formula’s
Board of Directors has authorized the Company to repurchase up to $10
million of the Company’s outstanding common
stock (the “Repurchase Program”).
The Company had approximately 14,096,227 shares of common stock
outstanding as of August 8, 2008. In connection with the Repurchase
Program, the Company also announced that it has adopted a written
trading plan under Rule 10b5-1 under the Securities Exchange Act of
1934, as amended (the “Exchange Act”),
to facilitate the repurchase of shares of common stock under the
Repurchase Program. The Rule 10b5-1 trading plan authorizes daily share
repurchases, in accordance with the conditions of Rule 10b-18 under the
Exchange Act. The Company also announced today that Physicians Formula,
Inc., the Company’s wholly-owned subsidiary,
has entered into an amendment to its existing senior credit agreement
with Union Bank of California, N.A. to permit borrowings under the
revolving credit facility to fund the Repurchase Program.
“Our Board believes that at the current stock
price, our stock is undervalued based on many criteria, including the
long-term growth prospects for the Company, and that the Repurchase
Program is an effective means to increase shareholder value,”
said Ingrid Jackel, Chief Executive Officer of Physicians Formula. “Our
Board also believes that we are well positioned to increase long-term
shareholder value by growing our business through product innovation and
differentiation, and by providing strong support for existing and new
products through creative promotional activities.”
Under the terms of the Repurchase Program, the Company may repurchase
shares through open market purchases or through privately negotiated
transactions. The stock repurchase activities will be conducted in
compliance with the safe harbor provisions of Rule 10b-18 of the
Exchange Act. The initial repurchases under the Repurchase Program will
be made under a Rule 10b5-1 trading plan. Other than as set forth in any
pre-arranged written trading plans under Rule 10b5-1, the Repurchase
Program does not obligate the Company to repurchase any dollar amount or
number of shares of its common stock, and the program may be extended,
modified, suspended or discontinued at any time.
About Physicians Formula Holdings, Inc.
Physicians Formula is one of the fastest growing cosmetics companies
operating in the mass market prestige, or "masstige," market.
