Message #16 From:
Stock News Bot Date: January 9, 2007 03:00:00 AM
SSI News Stage Stores Announces 3-for-2 Stock Split, a $50 Million Stock Repurchase Program and Provides Preliminary FY 2007 Sales and EPS Forecasts on a Post-Split Basis
HOUSTON--(BUSINESS WIRE)--Stage Stores, Inc. (NYSE:SSI) announced today that its Board of
Directors has approved a 3-for-2 split of the Company’s
common stock, and has additionally authorized the Company to implement a
$50 million Stock Repurchase Program. In approving the 3-for-2 stock
split, the Board stated its intention to maintain the Company’s
quarterly cash dividend at its current level of $0.05 per share, which
represents a 50% increase in the yield on a post-split basis.
Jim Scarborough, Chairman and Chief Executive Officer, commented, “Based
on our continuing solid financial results, our strong cash flow, our
healthy balance sheet, and our confidence in our long-term prospects,
which should benefit from the implementation of our recently announced
long-range strategic growth initiatives, I am very pleased to report
that our Board of Directors has approved a 3-for-2 stock split as well
as a $50 million Stock Repurchase Program. I am also very pleased to
report that our Board has resolved to maintain our quarterly cash
dividend at its current level of $0.05 per share, which, on an
after-stock split basis, represents a 50% increase in the dividend
yield. We believe that all of these actions are in the best interest of
our shareholders, and should result in enhanced shareholder value.”
Details of 3-for-2 Stock Split
The Company’s 3-for-2 stock split will be paid
as a stock dividend. Holders of record of the Company’s
common stock at the close of business on January 18, 2007, will receive
one additional share of common stock for every two shares of common
stock that they owned as of that date. Fractional shares resulting from
the stock split will be paid in cash in lieu of issuing fractional
shares. The stock dividend will be paid on January 31, 2007. Prior to
the split, there will be approximately 29,160,000 shares of the Company’s
common stock outstanding. After the split, there will be approximately
43,740,000 shares of the Company’s common
stock outstanding.
Details of Stock Repurchase Program
Under the Company’s $50 million Stock
Repurchase Program, the Company may repurchase its outstanding common
stock up to that amount from time to time, either on the open market or
through privately negotiated transactions. The Stock Repurchase Program
will be financed by the Company’s cash flow
and other liquidity sources. In addition, the Company expects to
continue to repurchase shares using the proceeds that it receives from
the exercise of employee stock options under its Amended and Restated
2001 Equity Incentive Plan, including the tax benefits that will accrue
to the Company from the exercise of those options.
Preliminary FY 2007 Guidance
The Company also reported today that, based on its preliminary financial
plans for the 2007 fiscal year, and reflecting the impact of the 3-for-2
stock split, it currently expects to achieve the following results for
the 52-week period ending February 2, 2008:
Comparable store sales: low to mid single digits
Sales ($mm): $1,610 - $1,643
Diluted Earnings Per Share: $1.47 to $1.57
The above diluted earnings per share range does not reflect any
potential beneficial impact on diluted earnings per share related to
the Company’s $50 million Stock Repurchase
Program.
Mr. Scarborough commented, “The mid-point of
our preliminary EPS forecast range for our 2007 fiscal year represents
an approximate 20% increase in earnings versus our 2006 EPS forecast
range of $1.24 to $1.28 on a post-stock split basis. This is clearly a
significant increase in earnings for us, and reflects the positive
impact of our various growth initiatives, combined with the contribution
of the 108 new stores we opened during 2006, and our expectation of
improved operating performance in our Peebles division in 2007.”
About Stage Stores
Stage Stores, Inc. brings nationally recognized brand name apparel,
accessories, cosmetics and footwear for the entire family to small and
mid-size towns and communities through 656 stores located in 33 states.
The Company operates under the Bealls, Palais Royal and Stage names
throughout the South Central states, and under the Peebles name
throughout the Midwestern, Southeastern, Mid-Atlantic and New England
states. For more information about Stage Stores, visit the Company’s
web site at www.stagestores.com.
“Safe
Harbor”
Statement
This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including comments regarding the Company’s
current sales and diluted EPS outlooks for the 2007 fiscal year. The
Company intends forward-looking terminology such as "believes",
"expects", "may", "will", "should", "could", "anticipates", "plans" or
similar expressions to identify forward-looking statements. Such
statements are subject to certain risks and uncertainties which could
cause the Company's actual results to differ materially from those
anticipated by the forward-looking statements. These risks and
uncertainties include, but are not limited to, those described in the
Company's Annual Report on Form 10-K as filed with the Securities and
Exchange Commission (the "SEC") on April 13, 2006, in the Company's
subsequent Quarterly Reports on Form 10-Q as filed with the SEC and
other factors as may periodically be described in other Company filings
with the SEC.
