Stock Exchange | Financial Content Business Page

0

Align Technology, Inc. (“Align”) (Nasdaq: ALGN), one of the world’s leading medical device companies that designs, manufactures and sells the Invisalign® system of clear aligners, iTero™ intraoral scanners and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry, today announced that it has entered into a new Accelerated Stock Repurchase (“ASR”) agreement with Goldman Sachs & Co. LLC, to repurchase $200 million of common stock of Align under the $1.0 billion share repurchase program announced on May 13, 2021. In addition to the ASR, Joe Hogan, President and CEO, has intention to personally purchase $2.0 million of Align common stock, in addition to its purchase of $2.0 million in May 2022.

Under the ASR, Align will receive an initial delivery of approximately 849,000 shares. The final number of shares to be repurchased will be based on the volume-weighted average trading price of Align shares over the term of the ASR, less an agreed discount. The ASR transaction will be funded with cash from Align and is expected to be completed around February 1, 2023. As of September 30, 2022, Align had approximately 78.2 million shares outstanding and $1.1 billion in cash equivalents of cash and short-term and long-term negotiable securities.

As of September 30, 2022, Align has repurchased 1,321,000 common shares at an average price of $416.39 for a total of approximately $550 million under its May 2021 $1.0 billion buyback program After this current ASR, approximately $250 million will remain available under the program.

“I am confident in the incredible underpenetrated market opportunity for digital orthodontics and restorative dentistry and in the long-term value of Align,” said Joe Hogan, President and CEO. “Regardless of the operating environment, we are committed to balancing investments to drive growth with long-term strategic priorities that will transform the practice of dentistry and strengthen our business. We will continue to invest in digital solutions and demand creation to support physicians and their patients, while addressing global macroeconomic challenges together.

“We are delighted to announce a new $200 million accelerated share buyback agreement that reflects our commitment to increasing shareholder value and returning capital to our shareholders through share buyback programs, while simultaneously investing in our strategic growth engines,” said John Morici, Vice President, Finance and Chief Financial Officer. “We are well capitalized to continue to manage these challenging market conditions with a strong balance sheet comprising over $1 billion in cash and investments, a healthy cash position and zero long-term debt. We will continue to focus on the issues that have been central to our historically successful business strategies by managing things within our control. This includes maintaining fiscal controls and focused delivery on our business model so that we are positioned for success once this challenging operating environment finally subsides.

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign® system, the world’s most advanced transparent alignment system, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable improved digital orthodontic and restorative workflows to improve patient outcomes and practice efficiency for more than 234,000 physician customers and are essential to accessing the 500 million Align consumer market opportunities around the world. Over the past 25 years, Align has helped physicians treat 14 million patients with the Invisalign system and is at the forefront of the evolution of digital dentistry with Align Digital Platform™, our integrated suite of technologies. and proprietary and exclusive services delivered seamlessly and end-to-end. complete solution for patients and consumers, orthodontists and general dentists, and laboratories/partners. Visit www.aligntech.com for more information.

For more information about the Invisalign system or to find an Invisalign-trained physician in your area, please visit www.invisalign.com. For more information on the iTero digital scanning system, please visit www.itero.com. For more information on exocad’s dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.

Invisalign, iTero, exocad, Align, Align Digital Platform, Smile Architect, Invisalign Go and ClinCheck are trademarks of Align Technology, Inc.

Forward-looking statements

This press release contains forward-looking statements, including statements regarding the expected completion date of the ASR Transaction, the number of Common Shares that will be repurchased, Align’s expectation to fund the ASR Transaction with available cash, and that other statements regarding the ASR, the expected amount and timing of stock purchases by the President and CEO of Align, management’s beliefs regarding market opportunities, current market conditions and future and value of Align, as well as management’s financial and strategic objectives and Align’s ability to achieve them. Forward-looking statements in this press release regarding expectations regarding future events or results are based on information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.

Factors that could cause such a difference include, but are not limited to:

  • macroeconomic conditions, including inflation, exchange rate fluctuations, rising interest rates, market volatility, weak general economic conditions and recessions and the impact of central bank efforts and federal, state and local governments to fight inflation and recession;

  • customer and consumer buying behavior and changes in consumer spending patterns due to, among other things, macroeconomic conditions, employment levels, wages and salaries, inflationary pressures, declining consumer confidence and the military conflict in Ukraine;

  • the impact of the COVID-19 pandemic and its variants on the health and safety of our employees, customers, patients and our suppliers, as well as the physical and economic impacts of the various recommendations, orders and protocols issued by the authorities local and national government agencies in light of the continued evolution of the pandemic, including any periodic reapplication of preventive measures in various locations around the world;

  • the economic and geopolitical ramifications of the military conflict in Ukraine, including sanctions, retaliatory sanctions, nationalism, supply chain disruptions and other consequences, which may or will continue to negatively impact our operations and our research and development activities inside and outside Russia;

  • the timing, availability and cost of raw materials, components, products and other shipping and supply chain constraints;

  • unexpected or rapid changes in the growth or decline of our domestic and/or international markets;

  • competition from existing and new competitors;

  • revolutionary and rapidly changing advances that fundamentally change the dental industry or the way new and existing customers market and deliver products and services to consumers;

  • the ability to protect our intellectual property rights;

  • continued compliance with regulatory requirements;

  • reduced or slower sales growth of our clear aligners and intraoral scanners domestically and/or internationally and the impact this would have on adoption of Invisalign products;

  • the willingness and ability of our customers to maintain and/or increase use of the products in sufficient numbers;

  • the possibility that the development and release of new products or enhancements to existing products may not proceed according to schedule or may themselves contain bugs, errors or defects in software or hardware requiring correction and that the market for the sale of such new or improved products may not develop as expected;

  • a more challenging consumer demand environment in China generally, particularly for manufacturers and service providers whose headquarters or primary operations are not based in China;

  • risks relating to our ability to maintain or increase profitability or revenue growth in future periods (or minimize declines) while controlling expenses;

  • expanding our business and products;

  • the impact of excess or limited capacity in our manufacturing and processing facilities and pressure on our internal systems and people; and

  • the compromise of our systems or networks, including the customer and/or patient data they contain, for any reason.

The foregoing and other risks are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the fiscal year ended on December 31, 2021, which was filed with the Securities and Exchange Commission on February 25, 2022 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, which was filed with the SEC on August 4, 2022 Align undertakes no obligation to publicly revise or update any forward-looking statement for any reason.

Share.

Comments are closed.