Expects to return approximately $30 million to stockholders over
next 12 months
Increases quarterly dividend by 33.3%
Authorizes $25 million share repurchase program
SAVANNAH, Ga.--(BUSINESS WIRE)--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170410005431/en/
Media:
ICR
Phil Denning, 646-277-1258
phil.denning@icrinc.com
or
Investors:
Okapi
Partners
Bruce Goldfarb, Chuck Garske and Teresa Huang, 212-297-0720
Source: Citi Trends, Inc.
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