Select Comfort Corporation (ticker: SCSS, exchange: NASDAQ Global Market (.O))
News Release -
Select Comfort Announces Stock Repurchase Program; Company Also Updates Earnings Guidance
MINNEAPOLIS, Feb 27, 2003 (BUSINESS WIRE) -- Select Comfort Corporation
(Nasdaq:SCSS), the nation's leading bed retailer and creator of the SLEEP
NUMBER(R) bed, announced today that its board of directors has approved an
expanded stock repurchase program of up to $12.5 million, or approximately 4.5
percent of outstanding shares.
Select Comfort has approximately 30.9 million shares outstanding. The company
also announced that it is revising its 2003 earnings guidance.
"For the first two months of 2003, sales growth versus prior year has exceeded
20 percent and same-store sales growth has exceeded 30 percent," said Bill
McLaughlin, president and CEO of Select Comfort. "Assuming a continuation of
sales and profit margin trends experienced in January and February, we expect
that earnings in the first quarter of 2003 will exceed the high end of the
previously announced earnings guidance range of $.07-.09 per share. We also
expect to exceed our previous full-year 2003 earnings guidance of $.44-.48 per
share, and now expect earnings of $.50-$.55, subject to conditions surrounding
possible global events, domestic economic uncertainties and potential benefits
of our growth initiatives."
"We are pleased to be able to use our excess cash resources to opportunistically
repurchase shares of our common stock," added McLaughlin. "Any repurchases under
this program will be additive to earnings per share, and will not affect our
ability to invest in the growth of the business in 2003 and beyond. We are
confident about our 2003 outlook and our long-term growth prospects."
The stock repurchase program authorized by Select Comfort's board of directors
will be effective three days following this announcement.
Founded in 1987, Select Comfort Corporation is the nation's leading bed
retailer(1), holding 26 U.S. issued or pending patents for its personalized
sleep products. The company designs, manufactures and markets a line of
adjustable-firmness mattresses featuring air-chamber technology, branded the
Sleep Number(R) bed, as well as foundations and sleep accessories. Select
Comfort's products are sold through its 321 retail stores located nationwide,
including leased departments in Bed Bath & Beyond stores; through selected
bedding retailers; through its national direct marketing operations; and on the
Internet at www.selectcomfort.com.
Statements used in this press release that relate to future plans, events,
financial results or performance are forward-looking statements that are subject
to certain risks and uncertainties including, among others, general and industry
economic trends, uncertainties arising from the possibility of war and other
global events, consumer confidence, the effectiveness and efficiency of our
advertising and promotional efforts, advertising rates, consumer acceptance of
our products and sleep technology, industry competition, our dependence on
significant suppliers, including Mill Creek Bank, a subsidiary of Conseco
Finance Corp., for extension of consumer credit, and the vulnerability of any
such suppliers to recessionary pressures, liquidity concerns or other factors,
government regulation, including anticipated future regulation of direct
marketing telephone solicitation and bedding flammability standards, risks
inherent in conversion of enterprise information systems as well as the risk
factors listed from time to time in the company's filings with the SEC,
including the company's Annual Report on Form 10-K and other periodic reports
filed with the SEC.
The company has no obligation to publicly update or revise any of the
forward-looking statements that may be in this news release.
(1) Top 25 Bedding Retailers, Furniture Today, August 12, 2002
CONTACT: Select Comfort Corporation
Mark Kimball, 763/551-7070