Petsmart 2007 Annual Report Download - page 40

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Common Stock Dividends
We believe our ability to generate cash allows us to invest in the growth of the business and, at the same time,
distribute a quarterly dividend. Our credit facility and letter of credit facility permit us to pay dividends, so long as
we are not in default and the payment of dividends would not result in default. In 2007, the Board of Directors
declared the following dividends:
Date Declared
Dividend Amount
per Share
Stockholders of
Record Date Date Paid
March 27, 2007 .................. $0.03 April 27, 2007 May 11, 2007
June 20, 2007 .................... $0.03 July 27, 2007 August 10, 2007
September 19, 2007 ............... $0.03 October 26, 2007 November 9, 2007
December 13, 2007 ................ $0.03 February 1, 2008 February 15, 2008
On March 25, 2008, the Board of Directors declared a quarterly cash dividend of $0.03 per share, payable on
May 16, 2008 to stockholders of record on May 2, 2008.
Operating Capital and Capital Expenditure Requirements
Substantially all our stores are leased facilities. We opened or acquired 115 new stores in 2007 and closed 15
stores. Generally, each new store requires capital expenditures of approximately $0.7 million for fixtures,
equipment and leasehold improvements (without PetsHotel expenditures), approximately $0.3 million for inven-
tory and approximately $0.1 million for preopening costs. We expect total capital spending to be $285.0 million or
less for 2008, based on our plan to open 104 net new stores and 45 new PetsHotels, to fixture and equip a new
distribution center in Reno, Nevada that will open in 2008, to continue our investment in the development of our
information systems, to add to our services capacity with the expansion of certain grooming salons, to remodel or
replace certain store assets and to continue our store refresh program.
We believe our existing cash and cash equivalents, together with cash flows from operations, borrowing
capacity under our bank credit facility and available lease financing, will provide adequate funds for our foreseeable
working capital needs and planned capital expenditures. Our ability to fund our operations and make planned
capital expenditures depends on our future operating performance and cash flow, which are subject to prevailing
economic conditions and to financial, business and other factors, some of which are beyond our control.
The following table presents our capital expenditures for each of the past three fiscal years (in thousands):
February 3,
2008
January 28,
2007
January 29,
2006
Year Ended
(53 weeks) (52 weeks) (52 weeks)
Capital Expenditures:
New stores ...................................... $114,398 $ 78,389 $ 62,059
Store-related projects(1) ............................ 68,612 51,482 26,508
PetsHotel(2) ..................................... 44,039 29,999 28,222
Information technology ............................. 34,187 61,522 33,595
Supply chain .................................... 30,316 18,420 14,718
Other .......................................... 2,885 1,294 635
Total capital expenditures ......................... $294,437 $241,106 $165,737
(1) Includes store remodels, grooming salon expansion, equipment replacement, relocations and/or expansions, as
well as various merchandising projects.
(2) For new and existing stores.
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