KVH Announces Purchase and Sales Agreements for Rhode Island Office and Factory, Approval for Share Buyback Program
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 $10 million.
“We expect that the sale of our Rhode Island facilities will provide us with approximately $12 million, net of transaction costs, for working capital and potential strategic opportunities while also allowing us to move to a new facility better suited to our future needs,” says Brent Bruun, KVH’s chief executive officer. “The Board’s authorization of a share repurchase program also underscores our commitment to the Company’s shareholders. It reflects our confidence in the company’s strategy, strong balance sheet, and ability to leverage the strategic opportunities that lie ahead to build long-term value.”
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 $8.5 million. The purchase includes related buildings, improvements, and other assets. Consummation of the transaction is subject to customary closing conditions and specified zoning approvals.
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 $4.5 million. The purchase includes related buildings, improvements, and other assets. Consummation of the transaction is subject to customary closing conditions.
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 $10 million.
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.
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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: 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.
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