BRENTWOOD, Tenn., Feb. 22 /PRNewswire-FirstCall/ -- Tractor Supply Company , the largest retail farm and ranch store chain in the United States, today announced its board of directors approved a share repurchase program authorizing the Company to purchase up to $200 million of its common stock over a three-year period. The purchases may be made from time to time in the open market or through privately negotiated transactions at management's discretion, depending on market conditions and other factors, in accordance with Securities and Exchange Commission requirements.
Additionally, the Company announced it has entered into a new five-year $250 million unsecured revolving credit agreement arranged by Banc of America Securities, LLC. This new agreement replaces the Company's existing $155 million unsecured revolving credit agreement, which was scheduled to mature on February 27, 2008.
Jim Wright, President and Chief Executive Officer, stated, "The strength of our balance sheet provides us with the ability to increase shareholder return by repurchasing shares, while remaining firmly committed to investing in long-term growth initiatives. The Board's authorization of this $200 million share repurchase program confirms its confidence in our Company's future prospects, as well as our commitment to utilize our capital efficiently for our shareholders' long-term benefit. Our prospects and credit strength were also reaffirmed by our bank group which participated in the new credit agreement with significantly more favorable terms and conditions than those in our previous credit facility."
At December 30, 2006, Tractor Supply Company operated 676 stores in 37 states and one Canadian province. The Company's stores are focused on supplying the lifestyle needs of recreational farmers and ranchers. The Company also serves the maintenance needs of those who enjoy the rural lifestyle, as well as tradesmen and small businesses. Stores are located in towns outlying major metropolitan markets and in rural communities. The Company offers the following comprehensive selection of merchandise: (1) equine, animal and pet products, including everything necessary for their health, care, growth and containment; (2) maintenance products for agricultural and rural use; (3) hardware and tool products; (4) seasonal products, including lawn and garden power equipment; (5) truck, trailer and towing products; and (6) work clothing and footwear for the entire family.
Forward Looking Statements:
As with any business, all phases of the Company's operations are subject to influences outside its control. This information contains certain forward- looking statements, including statements regarding estimated results of operations in future periods. These forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the finalization of the Company's financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company's operations. These factors include general economic cycles affecting consumer spending, weather factors, operating factors affecting customer satisfaction, consumer debt levels, inflation, pricing and other competitive factors, the ability to attract, train and retain qualified employees, the ability to manage growth and identify suitable locations and negotiate favorable lease agreements on new and relocated stores, the timing and acceptance of new products in the stores, the mix of goods sold, the continued availability of favorable credit sources, capital market conditions in general, the ability to increase sales at existing stores, the ability to retain vendors, reliance on foreign suppliers, management of its information systems and the seasonality of the Company's business. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
