HanesBrands (NYSE: HBI), a leading marketer of everyday basic apparel
under world-class brands in the Americas, Asia and Europe, today
announced that its Board of Directors has declared a regular quarterly
cash dividend of $0.11 per share and approved a new share-repurchase
authorization for up to 40 million shares.
Hanes’ capital allocation strategy is to invest in the business and pay
quarterly cash dividends, and then use excess cash to repurchase shares
and use debt to fund acquisitions if the company is within its target
net-debt ratio of 2 to 3 times earnings before interest, taxes,
depreciation and amortization.
The regular quarterly cash dividend of $0.11 per share will be paid June
7, 2016, to stockholders of record at the close of business May 17,
2016. The dividend is the thirteenth consecutive quarterly return of
cash to stockholders since Hanes initiated its cash dividend program in
April 2013.
The new repurchase plan authorizes the company to buy up to 40 million
shares, valued at more than $1 billion at today’s share price, without
expiration. The new plan replaces the company’s previous
share-repurchase authorization for 40 million shares that was originally
approved in 2007. The company repurchased nearly 38 million shares under
that authorization.
The repurchase authorization enables the company to purchase its
ordinary shares from time to time through open market purchases,
negotiated transactions or other means, including 10b5-1 trading plans
in accordance with applicable securities laws or other restrictions. No
time period has been set for the repurchase program, and any such
program may be suspended or discontinued at any time.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain “forward-looking statements,” as
defined under U.S. federal securities laws. In particular, among others,
statements in this press release regarding HanesBrands’ intention to
repurchase shares of its common stock from time to time under the stock
repurchase program and the source of funding are forward-looking
statements that are subject to risks and uncertainties. These
forward-looking statements are based on our current intent, beliefs,
plans and expectations. Readers are cautioned not to place any undue
reliance on any forward-looking statements. Forward-looking statements
necessarily involve risks and uncertainties, many of which are outside
of our control, that could cause actual results to differ materially
from such statements and from our historical results and experience.
These risks and uncertainties include such things as: the market price
of our stock prevailing from time to time, the nature of other
investment opportunities presented to us from time to time, our cash
flows from operations, general economic conditions, our ability to
access sufficient capital at reasonable rates or commercially reasonable
terms or to maintain sufficient liquidity in the amounts and at the
times needed; risks associated with our indebtedness; and other risks
identified from time to time in our most recent Securities and Exchange
Commission reports, including our annual report on Form 10-K and
quarterly reports on Form 10-Q. Since it is not possible to predict or
identify all of the risks, uncertainties and other factors that may
affect future results, the above list should not be considered a
complete list. Any forward-looking statement speaks only as of the date
on which such statement is made, and HanesBrands undertakes no
obligation to update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise, other than as
required by law.
HanesBrands
HanesBrands, based in Winston-Salem, N.C., is a socially responsible
leading marketer of everyday basic innerwear and activewear apparel in
the Americas, Europe and Asia under some of the world’s strongest
apparel brands, including Hanes, Champion, Playtex, DIM,
Bali, Maidenform, JMS/Just My Size, L’eggs, Wonderbra,
Nur Die/Nur Der, Lovable and Gear for Sports. The company
sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery, and
activewear produced in the company’s low-cost global supply chain. A
member of the S&P 500 stock index, Hanes has approximately 65,300
employees in more than 40 countries and is ranked No. 490 on the Fortune
500 list of America’s largest companies by sales. Hanes takes pride in
its strong reputation for ethical business practices. The company is the
only apparel producer to ever be honored by the Great Place to Work
Institute for its workplace practices in Central America and the
Caribbean, and is ranked No. 160 on the Forbes magazine list of
America’s Best Employers. For seven consecutive years, Hanes has won the
U.S. Environmental Protection Agency Energy Star sustained
excellence/partner of the year award – the only apparel company to earn
sustained excellence honors. The company ranks No. 246 on Newsweek
magazine’s green list of 500 largest U.S. companies. More information
about the company and its corporate social responsibility initiatives,
including environmental, social compliance and community improvement
achievements, may be found at www.Hanes.com/corporate.
