Board OKs buyback program

Tuesday, Jan. 28, 2003 | 11:12 a.m.

Shuffle Master Inc. announced that the company's board of directors has authorized mangement to repurchase up to $20 million of common stock under a new share buyback program.

In fiscal 2002 the company repurchased 896,000 shares of common stock at a cost of $16.3 million. Prior to this authorization, the company purchased an additional 310,000 shares in fiscal 2003 at a cost of $6.1 million, completing all previous authorizations.

"Our strong financial position gives our management team the opportunity to allocate capital in an effort to generate the best return for each dollar invested," Shuffle Master Chief Executive Officer Mark Yoseloff said in a statement. "To that end, we believe our current valuation presents an accretive opportunity and an excellent use of cash."

The Las Vegas-based maker of card shufflers and other equipment had about $20 million in available cash at the end of fiscal 2002 and expects to generate more than $30 million in cash flow in fiscal 2003. It also expects to generate more than $20 million in free cash flow in 2003.