(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 14th, 2013, as
defined under the TSX rules. The bid is planned to commence on
February 26th, 2013 and is
due to terminate on the earlier of February
25th, 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 14th, 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 28th, 2012, our Quarterly
Report on Form 10-Q filed November
8th, 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 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; 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 requirements.
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
30th, 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.