You're right. $5M in prior buybacks and $3M currently is roughly 10% or more. The first buyback averages around $6.61? So they buy back 10% while growing the debt 100%+. Imagine the imbalance in buyers and sellers if that $8M of share buybacks didn't occur.
Share buybacks in many cases is a sign of weakness to me. The company KNOWS earnings will suffer in the future so they reduce shares to prop up EPS. Too bad Obamacare will crush earnings and the company can't buy back shares fast enough to offset it. Any shares bought back are a waste of cash here. That $8M would have been producing new revenue for the business if it had bought 2 or 3 clubs. And another thing that's bad, the company was issuing shares and convertible debt WHILE the buybacks were occuring. Dumbest thing I've ever witnessed. They hardly reduced shares at all.
Obamacare is really a joke. All you have to do is give employees less than 30 hours, then no insurance needs to be offered by the company. I am sure management is offered health care by Ricks. Eric has already stated that Obamacare will not affect earnings.
The convertible offerings kill me too. Fortunately, one was paid off last quarter. I am not against the buy back, but paying off Tootsies first would be a better idea.
If you do the match, that 840k in interest (roughly) or about 5 or 6 cents (after taxes) in earnings .The free cash flow , from paying off Tootsies, could fund a huge buyback.