Tim Hortons Inc. announces new share repurchase program for up to $440 million
in common shares
(All amounts in Canadian dollars)
OAKVILLE, ON, Feb. 20, 2014 /CNW/ - Tim Hortons Inc. (TSX: THI, NYSE: THI)
today announced that it plans to commence a new share repurchase program for
up to $440 million in common shares.
The Company has obtained regulatory approval from the Toronto Stock Exchange
(TSX) to commence a new share repurchase program (a "normal course issuer bid"
or "bid") for up to $440 million in common shares, not to exceed the
regulatory maximum of 13,726,219 shares, representing 10% of the Company's
public float as of February 14, 2014, as defined under TSX rules. The bid is
planned to commence on February 28, 2014 and is due to terminate on the
earlier of February 27, 2015 or the date the maximum share or dollar amount is
"The new share repurchase program is comprised of the remaining portion of our
previously announced target of repurchasing $1 billion of shares in the 12
months ended August 2014, plus an additional amount of approximately $200
million," said Cynthia Devine, Chief Financial Officer.
Subject to the negotiation and execution of a broker agreement, the Company's
common shares will be purchased under the bid 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
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 bid, 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 bid 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, based on the
previous six completed calendar months, for a daily total of 83,032 common
shares. This limit, for which there are permitted exceptions, is determined in
accordance with regulatory requirements. On February 3, 2014, Tim Hortons
reached the regulatory maximum under the 2013 program, having purchased
15,239,531 shares at an average price of $59.88 per share. The 2013 program
was thus terminated on February 3, 2014. As of February 14, 2014, Tim Hortons
had 138,165,308 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
2012 Annual Report on Form 10-K filed February 21, 2013, our Quarterly Report
on Form 10-Q filed on November 7, 2013, and our 2013 Annual Report on Form
10-K expected to be filed on or about February 25, 2014 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, or implied by, 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; our ability to obtain financing on
favourable terms; our ability to maintain investment grade credit ratings;
prospects and execution risks concerning our 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 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,
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 December 29, 2013, Tim Hortons had 4,485 systemwide restaurants,
including 3,588 in Canada, 859 in the United States and 38 in the Gulf
Cooperation Council. More information about the Company is available at
SOURCE Tim Hortons
Scott Bonikowsky: (905) 339-6186 email@example.com
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