Hibbett Sports 2005 Annual Report Download - page 21

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MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERAT I O N S
Historically, we have funded our cash requirements primarily through cash flow from operations and
occasionally from borrowings under our revolving credit facilities.
Our Statements of Cash Flows are summarized as follows (in thousands):
For the Fiscal Years Ended
January 29, January 31, February 1,
2005 2004 2003
(as restated) (as restated)
Net cash provided by operating activities: $ 46,123 $ 37,479 $ 19,885
Cash flows provided by (used in) investing activities:
Capital expenditures (12,671) (11,226) (8,401)
Proceeds from sales of property and equipment 45 12 611
Net cash (used in) investing activities $(12,626) $(11,214) $ (7,790)
Cash flows provided by (used in) financing activities:
Revolving loan borrowings and repayments, net -- -- (3,903)
Proceeds from options exercised and purchase of shares --
under the employee stock purchase plan 1,993 3,682 1,852
Cash used for stock repurchase (19,111) -- --
Net cash provided by (used in) financing activities $(17,118) $ 3,682 $ (2,051)
Net cash provided by operating activities has historically been driven by net income levels combined with
fluctuations in inventory and accounts payable balances. Net income has increased in each of the last three
fiscal years. In addition, we have continued to increase our inventory levels and turns throughout these periods
as the number of stores has increased. However, inventory levels on a per-store basis have decreased. We
financed this increase in total inventory primarily through cash generated from operations in each of the last
three fiscal years. These activities resulted in cash flows provided by operating activities of $46.1 million,
$37.5 million and $19.9 million in fiscal 2005, fiscal 2004 and fiscal 2003, respectively.
With respect to cash flows from investing activities, capital expenditures for fiscal 2005 were $12.6 million
compared with $11.2 million in fiscal 2004 and $8.4 million in fiscal 2003. Capital expenditures for the
52 weeks ended January 29, 2005, were primarily related to the opening of 62 new Hibbett Sports
stores and 1 new Sports Additions store, the refurbishing of existing stores and purchasing corporate
assets, including automobiles, warehouse equipment and technology upgrades.
We estimate the cash outlay for capital expenditures in fiscal 2006 will be approximately $15.0 million,
which relates to the opening of approximately 80 Hibbett Sports stores (exclusive of store closings),
remodeling of selected existing stores and improvements at the Company's headquarters and distribution center.
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