Outdoor Channel Holdings will buy back up to $10 million worth of shares, or roughly 1.6 million of the 27.1 million shares outstanding, between April 15 and Nov. 30, the company announced Monday.
“This stock repurchase plan underscores the board and management’s confidence in the long-term prospects of Outdoor Channel,” CEO Roger Werner said in a statement. “Following a milestone year in which numerous achievements were made to improve the overall prospects for Outdoor Channel…we are confident that the company is well poised to capitalize on strategic opportunities.”
Outdoor Channel competes with the likes of Versus, The Sportsman Channel, ESPN, FSN and the recently launched Maximum Adventure Network for viewers who enjoy outdoors, hunting and fishing programming.
On March 10, Outdoor Channel Holdings posted a fourth-quarter loss of $1.6 million, or 6 cents a share, on sales of $11.7 million, down from a loss of $1.7 million, or 7 cents a share, on sales of $11.9 million in the year-ago quarter.
For the fiscal year, the company lost $1.9 million, or 7 cents a share, on sales of $46.9 million. The $46.9 million in sales marked an 8.3% improvement from the prior fiscal year when it lost $7 million, or 28 cents a share, on sales of $43.3 million.
Its shares rallied up 41 cents, or 7%, to close at $6.73 a share after the buyback was announced but the stock has tumbled more than 43 percent from its 52-week high of $11.93 in July.
In an effort to right the ship, Outdoor Channel Holdings in April sold its stake in the Gold Prospector’s Association of America for $3.6 million in cash and worked to transition the network brand to a “more contemporary, action-oriented look and feel,” Werner said.