SANFORD, N.C. -- The Pantry Inc. said that its board 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.
Peter J. Sodini, president and CEO, said 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.
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, it said.
The Pantry had approximately 22.9 million shares of common stock outstanding as of August 6, 2007. The company expects to use available cash to finance these purchases. It 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, it said.
Headquartered in Sanford, N.C., The Pantry is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated c-store chains in the country, with revenues for fiscal 2006 of approximately $6 billion. As of June 28, 2007, the company operated 1,642 stores in 11 states under several banners, including Kangaroo Express, its primary operating banner.
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