Q Investments Is Encouraged by Houghton Mifflin Harcourt’s Recent Actions to Address Shareholder Concerns

FORT WORTH, Texas--()--A fund affiliated with Q Investments, L.P., announced today that it applauds Houghton Mifflin Harcourt Company’s (NASDAQ:HMHC) recent decision to address shareholders’ concerns and add an additional $300 million to the company’s existing stock repurchase program, bringing the total authorization to $500 million.

Q Investments has been pressing the company to return capital to shareholders and “right size” its balance sheet. Since the firm began its efforts this past December through submitting a shareholder proposal for the company’s 2015 proxy statement, the board has addressed these concerns by first increasing the stock repurchase program from $100 million to $200 million, and then yet again increasing the program from $200 million to $500 million. The company has also announced the $575 million acquisition of Scholastic Corp.’s Educational Technology and Services business. In addition, the company’s CEO recently further addressed the firm’s concerns by publicly stating that a “significant amount” of the share repurchase program would be completed within the next 12 months.

Q Investments believes that these actions constitute important steps in reconnecting with shareholders. The firm is looking forward to the company’s investor day on May 12th and hopes that the company continues to listen to its shareholders and takes appropriate actions to address their concerns.

Q Investments has been a holder of Houghton Mifflin Harcourt Company debt and stock since 2010, having worked collaboratively with the company through its bankruptcy and restructuring process.

Contacts

Media:
Abernathy MacGregor
Liz Micci, 212-371-5999
edm@abmac.com
or
Cia Williams, 212-371-5999
cew@abmac.com