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Domino's Pizza repurchases and retires 4.4 million shares

March 29, 2005

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ANN ARBOR, Mich. — Domino's Pizza announced the repurchase and retirement of 4,409,171 shares of its common stock from shareholder JP Morgan Capital, L.P. and its affiliates (collectively, JPMP), for approximately $75 million ($17.01 per share). According to a regulatory filing, Domino's also amended its senior credit facility in order to execute the transaction.

"This repurchase transaction, coupled with our recently announced dividend increase, clearly demonstrates our commitment to shareholder value creation through appropriate deployment of our free cash flow," said chairman and chief executive officer David Brandon. "We remain confident in our business model which continues to generate significant cash flow to invest in our business, de-lever and return capital to our shareholders."

The company said the size of Domino's public float will not be affected by the repurchase, and the transaction will save the company about $1.8 million in annual dividends at its current dividend rate. The move is expected to boost earnings per share more than 3 cents in fiscal 2005.