Cracker Barrel 2008 Annual Report Download - page 43

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continuing operations resulting from our 2006
recapitalization and corresponding higher debt levels.
LIQUIDITY AND CAPITAL RESOURCES
The following table presents a summary of our cash flows
for the last three years:
2008 2007 2006
Net cash provided by
operating activities of
continuing operations $124,510 $ 96,872 $174,694
Net cash used in investing
activities of continuing
operations (82,706) (87,721) (82,262)
Net cash used in financing
activities of continuing
operations (44,459) (502,309) (5,385)
Net cash provided by (used in)
operating activities of
discontinued operations 385 (33,818) 40,016
Net cash provided by (used in)
investing activities of
discontinued operations — 453,394 (54,810)
Net (decrease) increase in cash
and cash equivalents $ (2,270) $(73,582) $ 72,253
Our primary sources of liquidity are cash generated
from our operations and our borrowing capability under
the revolver portion of our $1,250,000 credit facility
(the “2006 Credit Facility”). Our internally generated cash,
along with cash on hand at August 3, 2007, proceeds
from stock option exercises and our borrowing capability
under the 2006 Credit Facility were sufficient to finance
all of our growth, share repurchases, dividend payments,
working capital needs and other cash payment
obligations in 2008.
Cash Generated from Operations
Our cash generated from operating activities was
$124,510 in 2008. Most of this cash was provided by net
income adjusted by depreciation and amortization and
share-based compensation and an increase in accrued
interest expense partially offset by our income taxes
receivable and an increase in inventories. The increase in
accrued interest expense is due to the timing of our
interest payments. Our income taxes receivable resulted
from the timing of payments for estimated taxes. The
increase in inventories is primarily due to higher retail
receipts as compared with the prior year.
Borrowing Capability
Under the 2006 Credit Facility, we have a $250,000
revolving credit facility which expires on April 27, 2011.
At August 1, 2008, we had $3,200 of outstanding
borrowings under the revolving facility and $29,062 of
standby letters of credit related to securing reserved
claims under workers’ compensation and general liability
insurance which reduce our availability under the
revolving facility. At August 1, 2008, we had $217,738
available under our revolving facility.
The 2006 Credit Facility also includes a Term Loan B
facility and Delayed-Draw Term Loan facility, each of
which have a scheduled maturity date of April 27, 2013.
During 2008, we borrowed the remaining $100,000
available under the Delayed-Draw Term Loan facility and
also made $47,250 in optional principal prepayments.
At August 1, 2008, our Term Loan B balance was $633,456
and our Delayed-Draw Term balance was $151,103.
See “Material Commitments” below and Note 8 to our
Consolidated Financial Statements for further information
on our long-term debt.
Share Repurchases, Dividends and Proceeds
from the Exercise of Options
During 2008, we repurchased 1,625,000 shares of our
common stock in the open market at an aggregate cost of
$52,380. On July 31, 2008, our Board of Directors approved
additional repurchases of up to $65,000 of our common
stock. Our principal criteria for share repurchases are that
they be accretive to expected net income per share, be
within the limits imposed by our 2006 Credit Facility and
that they now be made only from free cash flow.
Our 2006 Credit Facility imposes restrictions on the
amount of dividends we are able to pay. If there is no
default then existing and there is at least $100,000 then
available under our revolving credit facility, we may
both: (1) pay cash dividends on our common stock if the
aggregate amount of such dividends paid during any
fiscal year is less than 15% of Consolidated EBITDA from
continuing operations (as defined in the 2006 Credit
Facility) during the immediately preceding fiscal year;
and (2) in any event, increase our regular quarterly cash