Napa Auto Parts 2014 Annual Report Download - page 30

$850 million, of which approximately $265 million was outstanding under the Syndicated Facility or line of
credit at December 31, 2014 and 2013. Currently, we believe that our cash on hand and available short-term and
long-term sources of capital are sufficient to fund the Company’s operations, including working capital require-
ments, scheduled debt payments, interest payments, capital expenditures, benefit plan contributions, income tax
obligations, dividends, share repurchases and contemplated acquisitions.
The ratio of current assets to current liabilities was 1.6 to 1 at December 31, 2014 and 2013. Our liquidity
position remains solid. The Company’s total debt outstanding at December 31, 2014 is unchanged from
December 31, 2013.
Sources and Uses of Net Cash
A summary of the Company’s consolidated statements of cash flows is as follows:
Year Ended December 31, Percent Change
Net Cash Provided by (Used in): 2014 2013 2012 2014 vs. 2013 2013 vs. 2012
(In thousands)
Operating Activities ..................... $ 790,145 $1,056,731 $ 906,438 (25)% 17%
Investing Activities ...................... (386,715) (825,579) (651,867) (53)% 27%
Financing Activities ..................... (455,440) (425,117) (378,834) 7% 12%
Net Cash Provided by Operating Activities:
The Company continues to generate cash and in 2014 net cash provided by operating activities totaled $790
million. This reflects a 25% decrease from 2013 due primarily to the change in trade accounts receivable, mer-
chandise inventories and trade accounts payable, which, collectively, net to a $34 million use of cash in 2014
compared to a $278 million source of cash in 2013. Net cash provided by operating activities was $1.1 billion in
2013, a 17% increase from 2012, as, collectively, trade accounts receivable, merchandise inventories and trade
accounts payable represented a $278 million source of cash in 2013 compared to a $208 million source of cash in
2012. Additionally, net income and depreciation and amortization increased by $37 million and $36 million,
respectively, in 2013.
Net Cash Used in Investing Activities:
Net cash flow used in investing activities was $387 million in 2014 compared to $826 million in 2013, a
decrease of 53%. Cash used for acquisitions of businesses and other investing activities in 2014 was $288 mil-
lion, or $424 million less than in 2013. Capital expenditures of $108 million in 2014 decreased by $16 million or
13% from 2013, and were slightly lower than our estimate of $120 to $130 million for the year. We estimate that
cash used for capital expenditures in 2015 will be approximately $125 to $145 million. Net cash flow used in
investing activities was $826 million in 2013 compared to $652 million in 2012, an increase of 27%. Cash used
for acquisitions of businesses and other investing activities in 2013 was $712 million, or $154 million greater
than in 2012. Additionally, capital expenditures of $124 million in 2013 increased by $22 million or 22% from
2012, which was within our estimate of $115 to $135 million for the year.
Net Cash Used in Financing Activities:
The Company used $455 million of cash in financing activities in 2014, up 7% from the $425 million used
in financing activities in 2013. Cash used in financing activities in 2013 was up $46 million or 12% from the
$379 million used in 2012. For the three years presented, net cash used in financing activities was primarily for
dividends paid to shareholders and repurchases of the Company’s common stock. The Company paid dividends
to shareholders of $347 million, $326 million and $301 million during 2014, 2013 and 2012, respectively. The
Company expects this trend of increasing dividends to continue in the foreseeable future. During 2014, 2013 and
2012, the Company repurchased $96 million, $121 million and $82 million, respectively, of the Company’s
common stock. We expect to remain active in our share repurchase program, but the amount and value of shares
repurchased will vary.
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