Tim Hortons Inc. announces new share repurchase program for up to $250 million
in common shares
OAKVILLE, ON, Feb. 21, 2013
(All amounts in Canadian dollars)
OAKVILLE, ON, Feb. 21, 2013 /PRNewswire/ - Tim Hortons Inc. (NYSE: THI) (TSX:
THI) today announced it plans to commence a new share repurchase program
authorizing the repurchase of up to $250 million in common shares. The
maximum value of the share repurchases represents an increase from the
previous program, which was capped at $200 million.
The Company has obtained regulatory approval from the Toronto Stock Exchange
(TSX) to commence a normal course issuer bid (the "bid") for up to $250
million in common shares, not to exceed the regulatory maximum of 15,239,531
shares, representing 10% of the Company's public float as of February 14^th,
2013, as defined under the TSX rules. The bid is planned to commence on
February 26^th, 2013 and is due to terminate on the earlier of February 25^th,
2014 or the date the maximum share or dollar amount is reached.
"Our confidence in the strength of our cash flows led us to increase our share
repurchase program from $200 million to $250 million as a means of returning
capital to our shareholders," said Cynthia Devine, Chief Financial Officer.
Subject to the negotiation and execution of a broker agreement, the Company's
common shares under the bid will be purchased under the program through a
combination of a 10b5-1 automatic trading plan as well as at management's
discretion in compliance with regulatory requirements, and given market, cost
and other considerations.
Repurchases will be made through the facilities of the TSX (and/or other
Canadian marketplaces), the New York Stock Exchange (NYSE), or by such other
means as may be permitted by the TSX and/or the NYSE, and under applicable
laws, including private agreements under an issuer bid exemption order issued
by a securities regulatory authority in Canada. Purchases made by way of
private agreements under an issuer bid exemption order issued by a securities
regulatory authority will be at a discount to the prevailing market price as
provided in the exemption order.
There can be no assurance as to the precise number of shares that will be
repurchased under the share repurchase program, or the aggregate dollar amount
of the shares purchased. Tim Hortons may discontinue purchases at any time,
subject to compliance with applicable regulatory requirements. Shares
purchased pursuant to the share repurchase program will be cancelled.
The maximum number of shares that may be purchased during any trading day may
not exceed 25% of the average daily trading volume on the TSX, excluding
purchases made by Tim Hortons, based on the previous six completed calendar
months, for a daily total of 122,790 common shares. This limit, for which
there are permitted exceptions, is determined in accordance with regulatory
requirements. Under the 2012 program, which terminated December 28, 2012 when
the dollar amount cap was reached, Tim Hortons purchased 3,899,078 shares at a
weighted average price of $51.29 per share. As of February 14^th, 2013, we had
153,404,839 common shares outstanding.
Safe Harbor Statement
Certain information in this news release, particularly information regarding
future economic performance, finances, and plans, expectations and objectives
of management, and other information, constitutes forward-looking information
within the meaning of Canadian securities laws and forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
We refer to all of these as forward-looking statements. Various factors
including competition in the quick service segment of the food service
industry, general economic conditions and others described as "risk factors"
in the Company's 2011 Annual Report on Form 10-K filed February 28^th, 2012,
our Quarterly Report on Form 10-Q filed November 8^th, 2012, and our 2012
Annual Report on Form 10-K expected to be filed today with the U.S. Securities
and Exchange Commission and Canadian Securities Administrators, could affect
the Company's actual results and cause such results to differ materially from
those expressed in forward-looking statements. As such, readers are cautioned
not to place undue reliance on forward-looking statements contained in this
news release, which speak only as to management's expectations as of the date
Forward-looking statements are based on a number of assumptions which may
prove to be incorrect, including, but not limited to, assumptions about: the
absence of an adverse event or condition that damages our strong brand
position and reputation; the absence of a material increase in competition or
in volume or type of competitive activity within the quick service restaurant
segment of the food service industry; general worldwide economic conditions;
cost and availability of commodities; the ability to retain our senior
management team or the inability to attract and retain new qualified
personnel; continuing positive working relationships with the majority of the
Company's restaurant owners; the absence of any material adverse effects
arising as a result of litigation; and there being no significant change in
the Company's ability to comply with current or future regulatory
We are presenting this information for the purpose of informing you of
management's current expectations regarding these matters, and this
information may not be appropriate for any other purpose. We assume no
obligation to update or alter any forward-looking statements after they are
made, whether as a result of new information, future events, or otherwise,
except as required by applicable law. Please review the Company's Safe Harbor
Statement at www.timhortons.com/en/about/safeharbor.html.
Tim Hortons Inc. Overview
Tim Hortons is one of the largest publicly-traded restaurant chains in North
America based on market capitalization, and the largest in Canada. Operating
in the quick service segment of the restaurant industry, Tim Hortons appeals
to a broad range of consumer tastes, with a menu that includes premium coffee,
espresso-based hot and cold specialty drinks including lattes, cappuccinos and
espresso shots, specialty teas, fruit smoothies, home-style soups, fresh
Panini and classic sandwiches, wraps, hot breakfast sandwiches and fresh baked
goods, including our trademark donuts. As of December 30^th, 2012, Tim Hortons
had 4,264 systemwide restaurants, including 3,436 in Canada, 804 in the United
States and 24 in the Gulf Cooperation Council. More information about the
Company is available at www.timhortons.com.
SOURCE Tim Hortons Inc.
Scott Bonikowsky, (905) 339-6186 firstname.lastname@example.org
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