Dollar
Tree Stores, Inc. Announces $100 Million Accelerated Share
Repurchase
CHESAPEAKE,
Va. – August 31, 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 August 30, 2007 it entered into
an agreement with Merrill Lynch International 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. Upon completion of this
transaction, the Company will have about $98 million remaining in future
authorized share repurchases. This is the Company’s third accelerated
share repurchase program since December 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 $100 million. The Company will
initially receive approximately 1.6 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 4.5 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.
"We
believe share repurchase, facilitated in part by accelerated share repurchase
programs, is an efficient use of capital that provides long term benefit to
our
shareholders," said President and CEO Bob Sasser. “In late July we completed our
second accelerated program for $150 million, announced on March 29, 2007, that
was subsequently followed by $75 million of open market purchases completed
in
early August under a 10b-5-1 plan.”
Dollar
Tree Stores operated 3,334 stores in 48 states as of August 4,
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. 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 4, 2007 and our
Quarterly Report on Form 10-Q filed June 14, 2007. 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
|