BROOMFIELD, Colo., Sept. 5,
2023 /PRNewswire/ -- Gogo Inc. (NASDAQ: GOGO) ("Gogo"
or the "Company"), the world's largest provider of broadband
connectivity services for the business aviation market, today
announced that its Board of Directors approved a share repurchase
program that grants the Company authority to repurchase up to
$50 million of shares of the
Company's common stock.
"Our long-term capital allocation priorities are to first
maintain adequate liquidity; second, invest in high-return
strategic initiatives; third, carry an appropriate level of debt
with a target net leverage ratio of 2.5x - 3.5x; and fourth, return
capital to shareholders," said Oakleigh Thorne, chairman and
CEO. "With a strong cash balance, our Gogo 5G, Galileo and other
strategic projects well-funded, our net leverage ratio at 3.0x, and
with strong confidence in our business, we are now comfortable
moving to priority four and returning capital to shareholders,"
Thorne said.
Repurchases may be made at management's discretion from time to
time on the open market, through privately negotiated transactions,
or by other means, including through the use of trading plans
intended to qualify under 10b5-1 under the Securities Exchange Act,
as amended, in accordance with applicable securities laws and other
restrictions. The repurchase program has no time limit and may be
suspended for periods or discontinued at any time and does not
obligate the Company to purchase any shares of Gogo common
stock. The timing and total amount of stock repurchases will depend
upon business, economic and market conditions, corporate and
regulatory requirements, prevailing stock prices, and other
considerations. The Company does not expect to incur debt to fund
the share repurchase program.
The Company had 128,697,082 shares of common stock outstanding
as of August 3, 2023.
About Gogo
Gogo is the world's largest provider of
broadband connectivity services for the business aviation market.
We offer a customizable suite of smart cabin systems for highly
integrated connectivity, inflight entertainment and voice
solutions. Gogo's products and services are installed on thousands
of business aircraft of all sizes and mission types from turboprops
to the largest global jets, and are utilized by the largest
fractional ownership operators, charter operators, corporate flight
departments and individuals.
As of June 30, 2023, Gogo reported
7,064 business aircraft flying with its ATG systems onboard, 3,598
of which are flying with a Gogo AVANCE L5 or L3 system; and 4,433
aircraft with narrowband satellite connectivity installed. Connect
with us at www.gogoair.com.
Cautionary Note Regarding Forward-Looking
Statements
Certain disclosures in this press release include
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, without limitation, statements regarding our
business and financial outlook, capital allocation strategy and
plans and other financial and operating information. When used in
this discussion, the words "authority," "priority," "continue,"
"expect," "intend," "may," "plan," "project," "will," and the
negative of these or similar terms and phrases are intended to
identify forward-looking statements in this press release.
Forward-looking statements reflect our current expectations
regarding future events, results or outcomes. These expectations
may or may not be realized. Although we believe the expectations
reflected in the forward-looking statements are reasonable, we can
give you no assurance these expectations will prove to have been
correct. Some of these expectations may be based upon assumptions,
data or judgments that prove to be incorrect. Actual events,
results and outcomes may differ materially from our expectations
due to a variety of known and unknown risks, uncertainties and
other factors. Although it is not possible to identify all of these
risks and factors, they include, among others, economic and market
conditions, prevailing stock prices, corporate and regulatory
requirements, the possibility that the share repurchase program may
be suspended or discontinued, our ability to develop and deploy
Gogo 5G, Global Broadband or other next generation technologies;
our ability to deliver the expected performance capabilities of any
new technology, including, without limitation, AVANCE LX5; and
other events beyond our control that may result in unexpected
adverse operating results.
Additional information concerning these and other factors can
be found under the caption "Risk Factors" in our annual report on
Form 10-K for the year ended December 31,
2022, as filed with the Securities and Exchange Commission
on February 28, 2023, and in our
quarterly reports on Form 10-Q as filed with the SEC on
May 3, 2023 and August 7, 2023.
Any one of these factors or a combination of these factors
could materially affect our financial condition or future results
of operations and could influence whether any forward-looking
statements contained in this report ultimately prove to be
accurate. Our forward-looking statements are not guarantees of
future performance, and you should not place undue reliance on
them. All forward-looking statements speak only as of the date made
and we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Media Relations Contact:
Caroline Bosco
+1 312-517-6127
cbosco@gogoair.com
Investor Relations Contact:
William Davis
+1 917-519-6994
wdavis@gogoair.com
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SOURCE Gogo Inc.