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This excerpt taken from the SMG 10-K filed Dec 14, 2006. Returning Cash to
Shareholders
Given the Company’s strong performance and consistent cash
flows, our Board of Directors has undertaken several actions
over the past eighteen months to return cash to our
shareholders. We began paying a regular quarterly cash dividend
of 12.5 cents per share in the fourth quarter of fiscal 2005. In
fiscal 2006, our Board launched a five-year $500 million
share repurchase program pursuant to which we have repurchased
2.0 common shares for $87.9 million.
Most recently, on December 12, 2006, we announced that we
intend to implement a recapitalization plan that would expand
upon and accelerate returns to shareholders beyond the current
$500 million program (which has been canceled) by returning
$750 million to our shareholders. Pursuant to this plan, we
intend to repurchase up to $250 million of our common
shares with the remainder paid as a special
one-time
cash dividend during the second quarter of fiscal 2007. These
actions reflect management’s confidence in the continued
growth of the Company coupled with strong and consistent cash
flows that can support higher levels of debt.
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