(All amounts in Canadian dollars)
OAKVILLE, ON, Feb. 23, 2012 /CNW/ - Tim Hortons Inc. (NYSE: THI) (TSX:
THI) today announced it plans to commence a new share repurchase
program for up to $200 million in common shares.
The Company has obtained regulatory approval from the Toronto Stock
Exchange (TSX) to commence a new share repurchase program for up to
$200 million in common shares, not to exceed the regulatory maximum of
13,668,332 shares, representing 10% of the Company's public float as of
February 20th, 2012, as defined under the TSX rules. The bid is planned to commence
on March 5th, 2012 and is due to terminate on March 4th, 2013.
"Our decision to proceed with our sixth consecutive major share
repurchase program reflects our strong financial foundation and
confidence in our cash flows, growth strategies and continued
performance," said Cynthia Devine, Chief Financial Officer.
Subject to the negotiation and execution of a broker agreement, the
Company's common shares under the Normal Course Issuer 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
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
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 under its current normal course
issuer bid, based on the previous six completed calendar months, for a
daily total of 103,928 common shares. This limit, for which there are
permitted exceptions, is determined in accordance with regulatory
requirements. Under the 2011 program, up to February 20th, 2012, Tim Hortons purchased 9,373,968 shares at an average net price
of $45.94. As of February 20th, 2012, we had 157,430,411 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, including as they relate to
the number of shares that may be repurchased under the Company's share
repurchase program, 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 2010 Annual Report on Form 10-K filed on February 25th, 2011 and the Company's 2011 Annual Report on Form 10-K expected to be
filed on or about February 27th, 2012 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
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 within the quick service restaurant segment of
the food service industry; commodity costs; 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; there being no significant change in the Company's ability
to comply with current or future regulatory requirements; and general
worldwide economic conditions.
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 sandwiches,
wraps, hot breakfast sandwiches and fresh baked goods, including our
trademark donuts. As of January 1st, 2012, Tim Hortons had 4,014 systemwide restaurants, including 3,295 in
Canada, 714 in the United States and 5 in the Gulf Cooperation Council.
More information about the Company is available at www.timhortons.com.
SOURCE Tim Hortons Inc.
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