Select Comfort Corporation, the nation's leading bed retailer and creator of the Sleep Number bed, announced that the Board of Directors, during its meeting last week, authorized the company to repurchase up to an additional $150 million of its outstanding common stock through 2008. The Board also approved a 3-for-2 stock split of its outstanding shares of common stock, effective June 8.
Over the past seven quarters, Select Comfort has used nearly $90 million of internally generated cash from operations to repurchase approximately 4.1 million shares of its common stock, representing more than 10 percent of outstanding shares.
The average repurchase price per share is $21.77, representing a greater than 40 percent discount to the company's stock price.
"Our share repurchase program, which has been accretive to earnings per share, has historically been opportunistic in nature," said Bill McLaughlin, Chairman and Chief Executive Officer, Select Comfort.
"Based on a detailed analysis undertaken by the company over the past several months, we concluded that a prudent, consistent and systematic share repurchase program should serve as a core element in our philosophy to provide superior investment returns to our shareholders.
"It is personally gratifying to be able to announce this new program and philosophy, which is a direct result of the success of our advantaged business model," McLaughlin continued.
"We have one of the highest returns on invested capital and equity in the industry, and we are confident we will continue to experience consistently superior revenue and earnings growth over the long term."
marketing@alchempro.com
