Burger King 2009 Annual Report Download - page 63

Table of Contents
record. We paid quarterly dividends of $0.0625 per share of common stock for the third and fourth quarter of the year ended June 30,
2007, resulting in $16.9 million of cash payments to shareholders of record. During the first quarter of fiscal 2010, we declared a
quarterly dividend of $0.0625 per share of common stock that is payable on September 30, 2009 to shareholders of record on
September 14, 2009.
During fiscal 2009, we repurchased 834,882 shares of common stock under our previously announced share repurchase program at
an aggregate cost of $20.0 million, which we will retain in treasury for future use. All of the shares were purchased under the former
share repurchase program, which expired on December 31, 2008. During the third quarter of fiscal 2009, our board of directors
approved, and we adopted a new share repurchase program to repurchase up to $200 million of our common stock in the open market
from time to time prior to December 31, 2010. We intend to use a portion of our excess cash to repurchase shares under our share
repurchase program depending on market conditions. No shares have been purchased under the new share repurchase program to date.
We had cash and cash equivalents of $121.7 million and $166.0 million as of June 30, 2009 and 2008, respectively. In addition, as
of June 30, 2009, we had a borrowing capacity of $119.4 million under our $150.0 million revolving credit facility.
We expect that cash on hand, cash flow from operations and our borrowing capacity under our revolving credit facility will allow
us to meet cash requirements, including capital expenditures, tax payments, dividends, debt service payments and share repurchases, if
any, over the next twelve months and for the foreseeable future. If additional funds are needed for strategic initiatives or other corporate
purposes, we believe we could incur additional debt or raise funds through the issuance of our equity securities.
Comparative Cash Flows
Operating Activities
Cash provided by operating activities was $310.8 million in fiscal 2009, compared to $243.4 million in fiscal 2008. The
$310.8 million provided in fiscal 2009 includes net income of $200.1 million, non−cash items of $165.4 million, which include
depreciation and amortization of $98.1 million and a $50.1 million loss on the remeasurement of foreign denominated assets and a
$3.8 million change in other long term assets and liabilities, partially offset by a $58.5 million change in working capital. The
$58.5 million of cash used from the change in working capital is primarily due to the timing of tax payments, including benefits derived
from the dissolution of dormant foreign entities.
The $243.4 million provided in fiscal 2008 includes net income of $189.6 million, non−cash items of $50.2 million, which include
depreciation and amortization of $95.6 million, a $55.6 million gain on the remeasurement of foreign denominated assets, and
$32.0 million from a change in working capital, partially offset by a change in other long term assets and liabilities of $28.4 million.
The $32.0 million of cash generated from the change in working capital is primarily driven by a $20.8 million increase in accounts
payable and capital accruals, a decrease of $11.7 million in prepaid advertising and insurance expense and an $11.1 million increase in
accrued advertising, partially offset by an increase in accounts receivable of $8.6 million, which is primarily driven by higher sales
recognized in fiscal 2008, as compared to the prior fiscal year.
Investing Activities
Cash used for investing activities was $242.0 million in fiscal 2009, compared to $199.3 million in fiscal 2008. The $242.0 million
of cash used in fiscal 2009 includes $204.0 million of payments for property and equipment, $67.9 million used for the acquisition of
franchised restaurants and $4.4 million used for other investing activities, partially offset by proceeds received from refranchisings,
dispositions of assets and restaurant closures of $26.4 million and $7.9 million of principal payments received on direct financing
leases.
The $199.3 million of cash used in fiscal 2008 includes $178.2 million of payments for property and equipment, $54.2 million
used for the acquisition of franchised restaurants and $1.3 million used for other investing activities, partially offset by proceeds
received from refranchisings, dispositions of assets and restaurant closures of $27.0 million and $7.4 million of principal payments
received on direct financing leases.
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