Tim Hortons ups quarterly dividend by 31%, begins share repurchases

By Lisa Kerner

Charlotte, N.C., Feb. 23 - Tim Hortons Inc. ended the fourth quarter of 2010 with C$354.7 million of long-term debt and C$574.4 million of cash and cash equivalents, according to its quarter-end and year-end earnings call on Wednesday.

The company announced it is increasing its quarterly dividend by about 31% to C$0.17 per share and also beginning a new share repurchase program of up to C$445 million.

Tim Hortons said the share repurchase program represents C$200 million of free cash flow generation and cash on hand and up to C$245 million of the remaining undistributed proceeds from its Maidstone Bakeries sale.

For the fourth quarter, Tim Hortons reported total revenues of C$643.5 million, a 3.5% decrease from the prior-year period.

Operating income in the fourth quarter was up at C$461.6 million, driven by a C$361.1 million gain from the sale of Maidstone Bakeries.

For the full year, the company posted total revenues of C$2.54 billion, an increase of 4.0%, or 5.7% on a 52-week basis.

Operating income for the year was C$872.2 million.

Tim Hortons is a restaurant chain based in Oakville, Ont.

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