Krispy Kreme Announces $20M Share Repurchase Authorization; Fiscal 2013 Operating Cash Flow Projected at $39-$43M

The Board of Directors of Krispy Kreme Doughnuts, Inc. KKD has approved a share repurchase program of up to $20 million, effective immediately. This program is intended to be implemented through purchases made from time to time either in the open market or through private transactions, in accordance with United States Securities and Exchange Commission requirements. As of March 28, 2012, the Company had approximately 68 million shares outstanding. As previously announced, the Company forecasts operating income for fiscal 2013, ending February 3, 2013, in the range of $29 to $33 million. This would represent an increase of between 13% and 29% over the $25.6 million of operating income earned in fiscal 2012. Cash provided by operating activities is forecasted to be in the range of $39 to $43 million. After deducting capital expenditures estimated at $20 million and $2 million of scheduled debt principal payments, the Company forecasts generating free cash flow in the range of $17 to $21 million in fiscal 2013. Free cash flow is a non-GAAP measure (see the reconciliation of GAAP to free cash flow in the table accompanying this release).