Stanford, N.C.-based The Pantry Inc.’s Board of Directors has authorized a share repurchase program of up to $35 million for each of fiscal 2007 and fiscal 2008 but not to exceed an aggregate of $50 million. The program authorizes the company to repurchase shares of the company’s common stock until Sept. 25, 2008 in open market or private transactions. The company has no obligation to
repurchase shares under the program and the program may be suspended or terminated at any time.
“Consistent with our goal to deliver long-term value to our stockholders, we believe this stock repurchase program will allow us to be opportunistic in buying shares of our stock when favorable market conditions exist while continuing our strategy to selectively pursue acquisitions and develop new stores,” said Peter J. Sodini, president and CEO.
The company had approximately 22.9 million shares of common stock outstanding as of Aug. 6, 2007, and expects to use available cash to finance these purchases. The Pantry will determine the timing and amount of stock repurchases based on its evaluation of market conditions, relative returns on alternative uses for cash, and other factors.
The Pantry recently reported that shares are down more than 30 percent since Jan. 1. The company has been troubled by gas margins that are down from usual levels and has disappointed investors with poor earnings guidance. Recently, the chain announced that it would temporarily cease the rapid acquisition spree it was on during the first quarter of the year.
