Panera Bread 2007 Annual Report Download - page 44

Historically, our principal requirements for cash have primarily resulted from our capital expenditures for the
development of new Company-owned bakery-cafes, for maintaining or remodeling existing Company-owned
bakery-cafes, for purchasing existing franchise-operated bakery-cafes, for developing, remodeling and maintaining
fresh dough facilities, and for other capital needs such as enhancements to information systems and other
infrastructure. In fiscal 2007, we also used our capital resources to repurchase shares of our common stock
and to purchase a 51 percent ownership interest in Paradise Bakery & Café on February 1, 2007. See Note 3 to the
accompanying consolidated financial statements for information relating to the Paradise acquisition and the
acquisitions of franchise-operated bakery-cafes on February 28, 2007 and June 21, 2007. See Notes 10 and 11 to the
accompanying consolidated financial statements for further information on our credit facility and our share
repurchase program, respectively.
We had net working capital of $24.4 million at December 25, 2007 and $18.0 million at December 26, 2006.
The increase in working capital from December 26, 2006 to December 25, 2007 resulted primarily from an increase
in cash and cash equivalents of $16.1 million, an increase in trade and other accounts receivable of $5.9 million, and
an increase in deferred income taxes of $3.4 million, partially offset by an increase in accrued expenses of
$17.3 million.
A summary of our cash flows, for the periods indicated, is as follows (in thousands):
Cash provided by (used in):
December 25,
2007
December 26,
2006
December 27,
2005
For the Fiscal Year Ended
Operating activities ............................ $154,014 $104,895 $ 110,628
Investing activities ............................. $(197,262) $ (90,917) $(129,640)
Financing activities ............................ $ 59,393 $ 13,668 $ 13,824
Operating Activities
Funds provided by operating activities for the fiscal year ended December 25, 2007 primarily resulted from net
income, depreciation and amortization, a decrease in prepaid expenses and deferred rent and non-acquisition
accrued expenses, partially offset by an increase in trade and other receivables and deferred income taxes. Funds
provided by operating activities for the fiscal year ended December 26, 2006 primarily resulted from net income,
depreciation and amortization, stock based compensation expense and a decrease in non-acquisition accrued
expenses, partially offset by an increase in prepaid expenses. Funds provided by operating activities for the fiscal
year ended December 27, 2005 primarily resulted from net income, depreciation and amortization, the tax benefit
from exercise of stock options and a decrease in non-acquisition accrued expenses, partially offset by an increase in
trade and other receivables.
Investing Activities
Capital expenditures are the largest ongoing component of our investing activities and include expenditures for
new bakery-cafes and fresh dough facilities, improvements to existing bakery-cafes and fresh dough facilities, and
other capital needs. A summary of capital expenditures for the periods indicated consisted of the following:
December 25,
2007
December 26,
2006
December 27,
2005
For the Fiscal Year Ended
(in thousands)
New bakery-cafe and fresh dough facilities .......... $ 92,864 $ 78,652 $61,804
Bakery-cafe and fresh dough facility improvements .... 27,617 25,775 15,854
Other capital needs ............................ 3,652 4,869 4,398
Total ..................................... $124,133 $109,296 $82,056
Our capital requirements, including development costs related to the opening or acquisition of additional
bakery-cafes and fresh dough facilities and maintenance and remodel expenditures, have and will continue to be
significant. Our future capital requirements and the adequacy of available funds will depend on many factors,
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