Chili's 2012 Annual Report Download - page 44

Cash Flow from Investing Activities—Continuing Operations
2012 2011
Net cash used in investing activities (in thousands):
Payments for property and equipment ........... $(125,226) $(70,361)
Proceeds from sale of assets ................... 8,112 8,696
Investments in equity method investees .......... (3,170) (2,896)
Payments for purchases of restaurants ........... (3,120) 0
$(123,404) $(64,561)
Net cash used in investing activities of continuing operations for fiscal 2012 increased to $123.4 million
compared to $64.6 million in the prior year. Capital expenditures increased to $125.2 for fiscal 2012 compared to
$70.4 million for fiscal 2011 driven primarily by increased investments in new equipment and technology related
to our kitchen retrofit initiative, the ongoing Chili’s reimage program and purchases of new and replacement
restaurant furniture and equipment. We estimate that our capital expenditures during fiscal 2013 will be
approximately $130 million to $140 million and will be funded entirely by cash from operations.
Cash Flow from Financing Activities—Continuing Operations
2012 2011
Net cash used in financing activities (in thousands):
Purchases of treasury stock .................. $(287,291) $(422,099)
Proceeds from issuance of long-term debt ....... 70,000 0
Payments of dividends ...................... (50,081) (53,185)
Proceeds from issuances of treasury stock ....... 43,416 33,057
Borrowings on credit facilities ................ 40,000 0
Payments on long-term debt .................. (18,749) (16,127)
Other .................................... (214) 291
$(202,919) $(458,063)
Net cash used in financing activities of continuing operations for fiscal 2012 decreased to approximately
$202.9 million compared to $458.1 million in the prior year primarily due to lower spending on share
repurchases, the $70.0 million in proceeds received from the revised term loan and the $40.0 million in proceeds
drawn from the revolver.
We repurchased approximately 11.1 million shares of our common stock for $287.3 million during fiscal
2012. Subsequent to the end of the fiscal year, we repurchased approximately 1.1 million shares for
approximately $34 million.
In August 2011, we executed a revised unsecured senior credit facility increasing total capacity from $400
million to $500 million. The maturity date of the revised credit facility is August 2016. The revised facility
includes a $250 million revolver and a $250 million term loan. In connection with the revision of the facility, we
increased the term loan borrowings by $70.0 million. In April 2012, $40 million was drawn from the revolver
primarily to fund share repurchases, none of which was repaid by the end of the fiscal year. In July 2012, an
additional $50 million was borrowed from the revolver primarily to fund share repurchases discussed above.
The revised term loan and revolving credit facility bear interest at LIBOR plus an applicable margin, which
is a function of our credit rating and debt to cash flow ratio, but is subject to a maximum of LIBOR plus 2.50%.
Based on our current credit rating, we are paying interest at a rate of LIBOR plus 1.63%. One month LIBOR at
June 27, 2012 was approximately 0.25%. As of June 27, 2012, we were in compliance with all financial debt
covenants.
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