SYSCO Corporation NEWS RELEASE
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CONTACT: Toni R. Spigelmyer
Assistant Vice President,
Investor & Media Relations
SYSCO Declares Two-For-One Stock Split, Increases Cash Dividend and
Approves Eight-Million-Share Repurchase Program
Houston, November 3, 2000 - SYSCO Corporation (NYSE: SYY), North America's
largest foodservice marketing and distribution organization, announced today
that the Board of Directors has declared a two-for-one stock split, increased
the quarterly cash dividend and approved the repurchase of eight million shares
of the company's stock.
The stock split is payable December 15, 2000, in the form of a 100 percent
stock dividend, to shareholders of record November 15, 2000. The quarterly cash
dividend, which was increased to $0.14 per share, or $0.07 per share on a
post-split basis, will be payable January 26, 2001 to shareholders of record
January 5, 2001. The new rate represents a 17 percent increase above the current
quarterly cash payout of $0.12 per share.
Directors also authorized the repurchase of eight million shares of common
stock. The Board last approved the repurchase of eight million shares in July
1999 and approximately three million shares are remaining on that authorization.
The new authorization will result in a total of 11 million shares (on a
pre-split basis) authorized for repurchase.
Charles H. Cotros, chairman and chief executive officer, said, "The stock
dividend is the ninth declared during SYSCO's 30-year history as a public
company, and follows 100 percent stock dividends paid in 1982, 1986, 1989, 1992
and 1998. SYSCO has been enjoying excellent sales growth and double-digit
earnings per share increases for the past six fiscal years, and the price of
SYSCO's stock has risen along with investors' confidence in management's ability
to continue to achieve the market share gains and operating efficiencies that
have favorably impacted our performance."
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Mr. Cotros also reflected that the cash dividend increase is the 32nd that
has been approved in the company's history. "The decision to increase the
quarterly dividend indicates the Board's confidence that SYSCO generates
significant cash flow to continue dividend payments after investing sufficient
capital to grow our business," he said.
Commenting on SYSCO's past performance and opportunities for ongoing
success, Richard J. Schnieders, president and chief operating officer, said
SYSCO's commitment to providing unsurpassed customer service and products has
been and will continue to be instrumental to the company's success. "Our 40,000
plus employees, located across the continental United States, Alaska and Canada,
have served as the foundation for our success. Together with our valued
suppliers, we have been able to consistently satisfy the requirements of our
customers who prepare meals away from home," he said. "The future growth
opportunities for our industry and for SYSCO remain compelling. Going forward,
SYSCO is committed to leading the foodservice distribution industry by
maintaining its focus on providing quality products and unequaled customer
service, developing and utilizing innovative technologies and doing whatever is
necessary to help our customers succeed."
SYSCO Corporation is the largest foodservice marketing and distribution
organization in North America, providing food and related products and services
to about 356,000 customers. The SYSCO distribution network, supported by more
than 40,000 employees, currently extends throughout the entire contiguous United
States, Alaska, the District of Columbia, Hawaii and portions of Canada. For the
fiscal year ended July 1, 2000, the company reported sales of $19.3 billion.
Certain statements made herein are forward-looking statements under the Private
Securities Litigation Reform Act of 1995. They include statements regarding
SYSCO's ability to increase market share and operating efficiencies, as well as
its ability to generate significant cash flow to continue dividend payments
after investing sufficient capital to grow its business and anticipated industry
growth. These statements are based on management's current growth expectations
and estimates; actual results may differ materially due to certain risks and
uncertainties. For example, the company's ability to increase market share and
operating efficiencies and generate significant cash flow may be affected by
competitive price pressures, availability of supplies, work stoppages,
successful integration of acquired companies, conditions in the economy,
industry growth and internal factors, such as the ability to control expenses.
Industry growth may be affected by changes in general economic conditions. For a
discussion of these and other factors that could cause actual results to differ
from those described in the forward-looking statements, see the Company's Annual
Report on Form 10-K for the fiscal year ended July 1, 2000 as filed with the
Securities and Exchange Commission.
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