Tim Hortons Inc. amends Normal Course Issuer Bid to repurchase up to 10% of
its common shares
OAKVILLE, ON, Aug. 8, 2013
(All amounts in Canadian dollars)
OAKVILLE, ON, Aug. 8, 2013 /PRNewswire/ - Tim Hortons Inc. (TSX: THI, NYSE:
THI) today announced that it has obtained regulatory approval from the Toronto
Stock Exchange ("TSX") to amend its Normal Course Issuer Bid ("NCIB") to
remove the former maximum dollar cap of $250 million. As a result, under our
amended NCIB, as approved by the Company's Board of Directors and subject to
the execution of an amended broker agreement, we will be entitled to purchase
up to 10% of our "public float" as at February 14, 2013 (the reference date
for our original NCIB), being 15,239,531 common shares.
The Company's common shares under the amended 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 permitted under issuer bid exemption orders
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 (as defined in
Section 628 of the TSX Company Manual) for a daily total of 122,790 common
shares. This limit, for which there are permitted exceptions, is determined in
accordance with regulatory requirements.
From February 26, 2013 until July 31, 2013, approximately 2.4 million shares
have been purchased under the NCIB at an average price of $55.01 per share,
for a total of approximately $132.1 million.
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 2012 Annual Report on Form 10-K filed February 21^st, 2013,
and our Quarterly Report on Form 10-Q to be filed on August 8^th, 2013 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 hereof.
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; ability to obtain financing on
favourable terms; ability to maintain investment grade credit ratings;
prospects and execution risks concerning the U.S. market strategy; 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
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 and fruit smoothies, fresh baked goods,
grilled Panini and classic sandwiches, wraps, soups, prepared foods and other
food products. As of June 30^th, 2013, Tim Hortons had 4,304 systemwide
restaurants, including 3,468 in Canada, 807 in the United States and 29 in the
Gulf Cooperation Council. More information about the Company is available at
SOURCE Tim Hortons
Scott Bonikowsky, (905) 339-6186 firstname.lastname@example.org
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