Reliability incorporated buys back 30% of its shares
Mar 12, 1997 1:26 PM [PRNewswire]
HOUSTON, March 12 /PRNewswire/ -- Reliability Incorporated (Nasdaq-NNM: REAL) today announced that it
purchased 1,270,221 shares of its common stock from S.I.P., Inc. at $6.50 per share. S.I.P., Inc. is a second
tier subsidiary of Parsons Corporation. The shares which were purchased represent all of the shares owned
by S.I.P., Inc. and are approximately 30% of the outstanding stock of Reliability. Parsons Corporation acquired
the Reliability stock in 1977.
Curt Bower, Senior Vice President and CFO of Parsons Corporation, said that S.I.P., Inc. sold its shares
because the investment no longer fit with Parsons Corporation's investment strategies and goals and that it
does not reflect a lack of confidence in Reliability's management or business prospects.
Larry Edwards, president of Reliability, said he thinks that the purchase by the Company is a good investment
since (1) it represents a discount from the current market; (2) the current market price does not reflect
Reliability's true value; and (3) the market should recognize the enhanced value the purchase adds to the
remaining outstanding shares. He believes this purchase should send a strong message to the financial
community that the Company has great confidence in its current position and future outlook. Reliability has
reported record-breaking net income in 1995 and 1996. Reliability intends to keep the stock in the treasury, but
may use some of the stock to grant options to key employees and to fund employee benefit plan contributions. |
