Dollar
Tree Stores, Inc. Announces $100 Million Accelerated Share
Repurchase
CHESAPEAKE,
Va. - December 11, 2006
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Dollar
Tree Stores, Inc. (NASDAQ: DLTR), the nation's leading operator of single-price
point dollar stores, today announced that after market close on December 8,
2006, it entered into two agreements with Goldman, Sachs & Co. to repurchase
approximately $100 million of its common shares under an accelerated share
repurchase program. Dollar Tree will acquire these common shares under the
$500
million share repurchase program announced on November 21, 2006.
Under
the
accelerated share repurchase program, Dollar Tree will immediately pay $100
million and receive approximately 2.7 million shares. We expect to receive
additional shares before, and may receive additional shares upon, the
anticipated three-month maturity of the program, depending on the market value
of our common shares. The first agreement, which covers half of the accelerated
repurchase amount, includes collar provisions that establish the minimum and
maximum numbers of shares. The second agreement, which covers the balance of
the
accelerated repurchase amount, includes purchase price adjustment provisions.
The specific number of shares to be repurchased is generally based on the volume
weighted average share price of the company’s common shares during the term of
the accelerated share repurchase program, subject in part to collar provisions
that establish the minimum and maximum numbers of shares under the first
agreement. The company expects final delivery of any additional shares to occur
in the first quarter of 2007, although in certain circumstances the completion
date may be shortened or extended. All of the repurchased shares will be
retired. Prior to issuance of this press release, no trading activity has
occurred in the public market related to the accelerated share repurchase
program.
"Our
share repurchase program continues to represent an important part of our capital
allocation strategy and an efficient and flexible way of returning value to
shareholders," said President and CEO Bob Sasser. “We ended fiscal year 2005
with nearly $350 million in cash and investments and believe we have the ability
to generate substantial free cash flow over the next five years. In anticipation
of the ability to fund future growth while generating a significant amount
of
free cash flow, we believe that the accelerated share repurchase is a good
use
of capital and will provide long term benefit to our shareholders.”
Dollar
Tree Stores operates 3,228 stores in 48 states as of November 25, 2006.
A
WARNING
ABOUT FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking
statements" as that term is used in the Private Securities Litigation Reform
Act
of 1995. Forward-looking statements address future events, developments or
results and typically use words such as believe, anticipate, expect, intend,
plan or estimate. For example, our forward-looking statements include statements
regarding our intentions to repurchase stock, the method and timing as well
as
the number of shares repurchased, related expenditures and the benefits of
such
transaction. They also include statements about our future cash flow and our
ability to fund future growth. For a discussion of the risks, uncertainties
and
assumptions that could affect our future events, developments or results, you
should carefully review the “Risk Factors,” "Business," and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”
sections in our Annual Report on Form 10 -
K filed
April 12, 2006 and our Quarterly Report on Form 10-Q filed December 6, 2006.
In
light of these risks and uncertainties, the future events, developments or
results described by our forward-looking statements in this document could
turn
out to be materially and adversely different from those we discuss or imply.
We
are not obligated to release publicly any revisions to any forward-looking
statements contained in this press release to reflect events or circumstances
occurring after the date of this report and you should not expect us to do
so.
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CONTACT:
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Dollar
Tree Stores, Inc., Chesapeake
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Timothy
J. Reid
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757-321-5284
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www.DollarTree.com
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