Citi Trends, Inc. Announces Expanded Capital Return Program
April 10 2017 - 6:45AM
Business Wire
Expects to return approximately $30 million
to stockholders over next 12 months
Increases quarterly dividend by
33.3%
Authorizes $25 million share repurchase
program
Citi Trends, Inc. (NASDAQ:CTRN) today announced that its Board
of Directors has expanded its capital return program to include the
following:
- a 33.3% increase in its quarterly
dividend, from $0.06 to $0.08,
- a new share repurchase program of up to
$25 million,
- maintain a minimum cash balance of $80
million, and
- commitment to return excess cash to the
Company’s stockholders through additional dividends and
buybacks.
Ed Anderson, Executive Chairman, commented, “These actions
demonstrate the Board's commitment to thoughtfully and
appropriately returning excess capital to stockholders while
maintaining the financial flexibility required to grow our
business. Just as with the successful completion of a $15 million
repurchase program and the institution of a regular quarterly
dividend in 2015, these decisions have been informed by the Board’s
extensive stockholder engagement and in-depth evaluations of the
Company’s balance sheet and strategic initiatives. We remain
committed to creating, enhancing and responsibly returning value to
our stockholders.”
This expanded capital return program is designed to return
available cash to stockholders while maintaining a minimum cash
balance of $80 million. Considering practices in our industry and
the retail experience of the Company’s Board and management, as
well as the Company’s capital needs for its current strategic
initiatives, the Board believes that this balance will provide the
appropriate financial strength and flexibility. Pursuant to this
expanded capital return program, the Board will regularly evaluate
the best way to return excess cash to the Company’s stockholders,
through regular dividends, stock buybacks, and/or special
dividends.
The increase to the quarterly dividend will begin with the
second quarter dividend to be paid to stockholders in June 2017,
consistent with the Company’s typical timing for its second quarter
dividend, subject to Board approval. The repurchase program
announced today has no time limit, and the Company expects to fund
the share repurchases from cash on hand. The expanded capital
return program will be subject to continuing Board review and based
on a number of factors, including business and market conditions,
the Company’s future financial performance and other investment
priorities.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel and accessories for the entire family. The Company operates
538 stores located in 31 states. Citi Trends' website address is
www.cititrends.com. CTRN-G
Forward-Looking
Statements
All statements other than historical facts contained in this
news release, including statements regarding our future financial
results and position, business policy and plans, objectives of
management for future operations and our intentions and ability to
pay dividends and complete any share repurchases, are
forward-looking statements that are subject to material risks and
uncertainties. The words "believe," "may," "could," "plans,"
"estimate," "continue," "anticipate," "intend," "expect" and
similar expressions, as they relate to Citi Trends, are intended to
identify forward-looking statements. Investors are cautioned that
any such forward-looking statements are not guarantees of future
performance or results and are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified.
Actual results or developments may differ materially from those
included in the forward-looking statements as a result of various
factors which are discussed in Citi Trends filings with the
Securities and Exchange Commission. These risks and uncertainties
include, but are not limited to, uncertainties relating to economic
conditions, growth risks, consumer spending patterns, competition
within the industry, competition in our markets, the ability to
anticipate and respond to fashion trends and the outcome of our
current proxy fight and any other actions of activist stockholders.
Any forward-looking statements by the Company with respect to the
Company’s intention to declare and pay dividends, repurchase shares
pursuant to the share repurchase program, or otherwise, are
intended to speak only as of the date such statements are made.
Except as required by applicable law, including the securities laws
of the United States and the rules and regulations of the
Securities and Exchange Commission, Citi Trends does not undertake
to publicly update any forward-looking statements in this news
release or with respect to matters described herein, whether as a
result of any new information, future events or otherwise.
Important Additional
Information
Citi Trends, its directors and certain of its executive officers
may be deemed to be participants in the solicitation of proxies
from Citi Trends stockholders in connection with the matters to be
considered at Citi Trends' 2017 Annual Meeting to be held on May
24, 2017. On April 3, 2017, Citi Trends filed a definitive proxy
statement (the “Proxy Statement”) with the U.S. Securities and
Exchange Commission (the "SEC") in connection with any such
solicitation of proxies from Citi Trends stockholders. INVESTORS
AND STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE PROXY
STATEMENT AND ACCOMPANYING BLUE PROXY CARD WITH RESPECT TO THE 2017
ANNUAL MEETING, AND OTHER DOCUMENTS FILED WITH THE SEC, CAREFULLY
AND IN THEIR ENTIRETY AS THEY CONTAIN IMPORTANT INFORMATION.
Detailed information regarding the identity of potential
participants, and their direct or indirect interests, by security
holdings or otherwise, is set forth in the Proxy Statement and
other materials to be filed with the SEC in connection with Citi
Trends' 2017 Annual Meeting. Stockholders may obtain the Proxy
Statement, any amendments or supplements to the Proxy Statement and
other documents filed by Citi Trends with the SEC for no charge at
the SEC's website at www.sec.gov. Copies will also be available at
no charge at the Investor Relations section of our corporate
website at www.cititrends.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170410005431/en/
Media:ICRPhil Denning,
646-277-1258phil.denning@icrinc.comorInvestors:Okapi
PartnersBruce Goldfarb, Chuck Garske and Teresa Huang,
212-297-0720
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