SCOTTSDALE, Ariz.--(BUSINESS WIRE)--P.F. Chang's China Bistro, Inc. (NASDAQ: PFCB) today announced that its Board of Directors has increased the authorized amount of the Company’s share repurchase program from $100 million to $150 million. The Company plans to fully utilize the $150 million share repurchase authorization during fiscal 2012.
The Board also authorized an increase to the Company’s quarterly cash dividend payment from $0.25 to $0.275 per share on the Company’s common stock, an increase of 10%. The Company anticipates making total cash dividend payments of approximately $21 million in fiscal 2012.
Chairman and CEO Rick Federico said, “Our Board and management team are confident in the Company’s long-term strategy. We are committed to driving shareholder value and believe this can be best achieved through a combination of continuing to invest in our core businesses and returning cash to our shareholders. We are proud of our ability to generate consistent and sizeable cash from operations, as well as our record of returning capital to shareholders through the repurchase of shares and the payment of our quarterly dividend, which we recently initiated. Our expanded repurchase authorization and increased quarterly dividend is further evidence of our commitment to enhance shareholder value.”
The Company intends to utilize its existing cash balances, excess cash flow and available credit lines to facilitate share repurchases. The Company has a $150 million credit facility which expires in October 2016. There are currently no borrowings against the facility, with approximately $16 million committed for letters of credit related to self-insurance programs.
About P.F. Chang’s
P.F. Chang’s China Bistro, Inc. owns and operates two restaurant concepts in the Asian niche. P.F. Chang’s China Bistro features a blend of high-quality, Chinese-inspired cuisine and American hospitality in a sophisticated, contemporary bistro setting. Pei Wei Asian Diner offers a modest menu of freshly prepared pan-Asian cuisine in a relaxed, warm environment offering attentive counter service and take-out flexibility. In addition, the Company has extended its brands to international markets and retail products, both of which are operated under licensing agreements.
Note with respect to forward-looking statements
The statements contained in this press release that are not purely historical are forward-looking statements. The accuracy of these forward-looking statements may be affected by certain risks and uncertainties, including those outside the Company’s control. More detailed information about the Company and the risk factors that may affect the realization of any forward-looking statements is set forth in the Company's filings with the SEC, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.