Bullish sign, huh, Esway?
Office Depot Increases Stock Buyback Program; Board of Directors Increases Authorization to $600 million
DELRAY BEACH, Fla.--(BUSINESS WIRE)--Jan. 7, 2000--Office Depot, Inc. (NYSE:ODP) announced today that its Board of Directors has approved a $100 million increase to the previously announced $500 million stock repurchase authorization approved on August 30, 1999. The approved increase now brings the Company's total repurchase authorization to $600 million.
The Company completed the initial $500 million stock buyback authorization during the third and fourth quarters of fiscal 1999 which resulted in the repurchase of 46,733,633 million Office Depot common shares. The increase in the Company's repurchase authorization of up to $100 million of additional market value in Office Depot common stock has no expiration date and will allow the Company to purchase Office Depot stock either in the open market or through negotiated purchases.
David I. Fuente, Office Depot's CEO, commented on the increase to the authorization stating, "We remain confident in our longer term prospects and our ability to grow earnings and shareholder value. As a result, our Board of Directors has authorized management to increase the stock repurchase program authorization by $100 million. We continue to believe that the repurchase of our stock represents a considerable opportunity for our Company at this point in time."
As of December 26, 1999, Office Depot operated 825 office supply superstores in the United States and Canada, in addition to a national business-to-business delivery network supported by 30 delivery centers, more than 60 local sales offices and seven regional call centers. Furthermore, the Company owned and operated 26 office supply stores in France and six stores in Japan; had mail order and delivery operations in 10 countries outside of the United States and Canada; and under joint venture and licensing agreements, had 74 additional stores under the Office Depot name in six foreign countries. The Company also operates an award-winning U.S. Internet business at www.officedepot.com where customers can access Office Depot's low competitive prices seven days a week, twenty-four hours a day. Office Depot's common stock is traded on the New York Stock Exchange under the symbol ODP and is in the S&P 500 Index.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: Except for historical information, the matters discussed in this press release are, and should be considered to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements, including any and all projections and anticipated levels of performance, involve risks and uncertainties which may cause actual results to differ materially from those discussed herein. These risks and uncertainties are detailed from time to time by Office Depot, Inc. in its filings with the United States Securities and Exchange Commission ("SEC"). You are urged to review such filings - including without limitation our Report on Form 10-K, filed March 22, 1999 - for a more detailed discussion of the risks and uncertainties which are specific to the businesses conducted by Office Depot, Inc.
CONTACT:
Office Depot Inc., Delray Beach
Eileen H. Dunn, VP, Investor Relations/Public Relations
561/438-4930
KEYWORD: FLORIDA
BW1127 JAN 07,2000
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