Buffalo Wild Wings 2009 Annual Report Download - page 53

Net cash provided by operating activities in 2008 consisted primarily of net earnings adjusted for non-cash expenses and an
increase in accounts payable, and accrued expenses, and a decrease in refundable income taxes. The increase in accounts payable was
primarily due to the larger number of restaurants in operation, the amount of construction activity at the end of 2008, and the timing of
payments. The increase in accrued expenses was due primarily to higher utility accruals and losses related to future natural gas
contracts. The decrease in refundable income taxes was due to the timing of tax payments.
Net cash provided by operating activities in 2007 consisted primarily of net earnings adjusted for non-cash expenses and an
increase in accounts payable and accrued expenses partially offset by an increase in accounts receivable, prepaid expenses, and
income tax receivables. The increase in accounts payable is relative to the growth in the number of company-owned restaurants. The
increase in accrued expenses was due primarily to the growth in the number of company-owned restaurants, and a higher gift card
liability due to strong fourth quarter gift card sales. The increase in accounts receivable was primarily due to higher credit card
receivables and landlord receivables for tenant improvements. The increase in prepaid expense is primarily due to the timing of
payments related to our self insurance programs. The increase in income tax receivables was due to the timing of payments.
Net cash used in investing activities for 2009, 2008, and 2007, was $79.2 million, $60.1 million, and $54.7 million,
respectively. Investing activities included purchases of property and equipment related to the opening of new company-owned
restaurants and restaurants under construction in all periods. In 2009 we opened 36 new restaurants. In 2008 we purchased nine
franchised locations in Nevada for $23.1 million and opened 31 new restaurants. In 2007 we opened 23 new restaurants. In 2010, we
expect capital expenditures for approximately 42 new or relocated company-owned restaurants to cost approximately $1.75 million
per location, and expenditures of approximately $20 million for the upgrades and remodels of existing restaurants. In 2009, we
purchased $57.0 million of marketable securities and received proceeds of $51.6 million as investments in marketable securities
matured or were sold. In 2008, we purchased $116.3 million of marketable securities and received proceeds of $146.6 million as
investments in marketable securities matured or were sold. In 2007, we purchased $158.2 million of marketable securities and
received proceeds of $144.8 million as investments in marketable securities matured.
Net cash provided by financing activities for 2009, 2008, and 2007, was $1.1 million, $853,000, and $873,000, respectively.
Net cash provided by financing activities for 2009 resulted primarily from the issuance of common stock for options exercised and
employee stock purchases of $1.2 million and excess tax benefits for restricted stock unit issuances of $1.5 million partially offset by
tax payments for restricted stock units of $1.5 million. Net cash provided by financing activities for 2008 resulted from the issuance of
common stock for options exercised and employee stock purchases of $1.2 million and excess tax benefits for restricted stock unit
issuances of $615,000 partially offset by tax payments for restricted stock units of $989,000. Net cash provided by financing activities
for 2007 resulted primarily from the issuance of common stock for options exercised and employee stock purchases of $1.4 million
and excess tax benefits for restricted stock unit issuances of $1.0 million partially offset by tax payments for restricted stock units of
$1.6 million. No additional funding from the issuance of common stock (other than from the exercise of options and employee stock
purchases) is anticipated in 2010.
Our liquidity is impacted by minimum cash payment commitments resulting from operating lease obligations for our
restaurants and our corporate offices. Lease terms are generally 10 to 15 years with renewal options and generally require us to pay a
proportionate share of real estate taxes, insurance, common area maintenance and other operating costs. Some restaurant leases
provide for contingent rental payments based on sales thresholds. We own the buildings in which 31 of our restaurants operate and
therefore have a very limited ability to enter into sale-leaseback transactions as a potential source of cash.
The following table presents a summary of our contractual operating lease obligations and commitments as of December 27,
2009:
Payments Due By Period
(in thousands)
Total
Less than
one year 1-3 years 3-5 years
After 5
years
Operating lease obligations $ 240,869 28,521 53,734 48,119 110,495
Commitments for restaurants under
development 34,477 1,379 5,073 5,134 22,891
Total $ 275,346 29,900 58,807 53,253 133,386
Source: BUFFALO WILD WINGS INC, 10-K, February 26, 2010 Powered by Morningstar® Document Research℠