As a result, McLaughlin reiterated his confidence in the company's ability to provide superior shareholder value.
"We expect our internal cash flow generation will enable self-funding of our long-term growth plans, as well as the efficient return of $150 million of excess cash to our shareholders between now and the end of 2008," he stated.
"We will continue to be opportunistic, but will do so using objective methodologies that clearly outline direction and timing on future repurchase decisions."
The 3-for-2 stock split is the first stock split in Select Comfort's history. Stockholders of record on May 25, 2006, will receive one additional share of Select Comfort common stock for every two shares of common stock owned at the close of the financial markets on that day.
The additional shares will be distributed through Wells Fargo Shareholder Services, the company's transfer agent, beginning on the effective date of June 8, 2006.
As a result of the stock split, the number of outstanding shares of Select Comfort common stock will increase to approximately 54 million from approximately 36 million.
After adjusting for the split, the company's earnings per share guidance for 2006 is between $0.91 and $0.95, compared to previously stated full-year guidance of between $1.37 and $1.42 per diluted share.
The company reaffirmed its long-term growth targets, which includes revenue growth of between 15 and 20 percent,same-store sales growth of between 7 and 12 percent, and earnings growth of between 20 and 25 percent.
marketing@alchempro.com
