Exhibit
99.1
Dollar
Tree Stores, Inc. Announces $150 Million Accelerated Share
Repurchase
CHESAPEAKE,
Va. - March 29, 2007
-
Dollar
Tree Stores, Inc. (NASDAQ: DLTR), the nation's leading operator of single-price
point dollar stores, today announced that after market close on March 29, 2007
it entered into an agreement with Goldman, Sachs & Co. to repurchase
approximately $150 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. Upon completion
of this transaction, the Company will have about $273 million remaining in
future authorized share repurchases. The Company recently completed a $100
million accelerated share repurchase program, announced on December 11,
2006.
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 to collar provisions that
establish the minimum and maximum price and number of shares to be repurchased
under the agreement.
Under
the
agreement, Dollar Tree will immediately pay $150 million. The Company will
initially receive approximately 2.6
million
shares --based on a calculation of approximately 70% of the top end of the
collar-- and will receive the additional shares by the end of an estimated
1 to
4 month period contemplated to complete the transaction, depending on market
conditions. 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 this accelerated share repurchase program.
"Our
share repurchase program is an important part of our capital allocation
strategy," said President and CEO Bob Sasser. “Having successfully completed a
similar transaction in recent months, we believe that the accelerated share
repurchase is an efficient use of capital and will provide long term benefit
to
our shareholders.”
Dollar
Tree Stores operates 3,219 stores in 48 states as of February 3, 2007.
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.
| CONTACT: |
Dollar Tree Stores, Inc.,
Chesapeake |
| |
Timothy J. Reid |
| |
757-321-5284 |
| |
www.DollarTree.com
|