Petsmart 2009 Annual Report Download - page 39

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2.3 million shares of our common stock for $50.0 million during 2008, and 1.2 million shares of common stock for
$25.0 million during the thirteen weeks ended May 3, 2009, completing the $300.0 million program.
In June 2009, the Board of Directors approved a new share purchase program authorizing the purchase of up to
$350.0 million of our common stock through January 29, 2012. During 2009, we purchased 5.9 million shares of our
common stock for $140.0 million under this program. As of January 31, 2010, $210.0 million remained available
under the $350.0 million program.
Common Stock Dividends
We presently 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. During 2009, we paid
aggregate dividends of $0.26 per share. During 2008 and 2007, we paid aggregate dividends of $0.12 per share.
Operating Capital and Capital Expenditure Requirements
Substantially all our stores are leased facilities. We opened 45 new stores and closed 8 stores in 2009.
Generally, each new store requires capital expenditures of approximately $0.7 million for fixtures, equipment and
leasehold improvements, approximately $0.3 million for inventory and approximately $0.1 million for preopening
costs. We expect total capital spending to be approximately $125.0 to $135.0 million for 2010, based on our plan to
open 40 to 42 net new stores and 18 new PetsHotels, continuing our investment in the development of our
information systems, adding to our services capacity with the expansion of certain grooming salons, remodeling or
replacing certain store assets and continuing our store refresh program.
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 years (in thousands):
January 31,
2010
February 1,
2009
February 3,
2008
(52 weeks) (52 weeks) (53 weeks)
Year Ended
Capital Expenditures:
New stores ...................................... $ 28,470 $ 83,124 $114,398
Store-related projects(1) ............................ 48,051 51,908 68,612
PetsHotel(2) ..................................... 6,510 43,098 44,039
Information technology ............................. 20,297 27,464 34,187
Supply chain .................................... 8,851 20,480 30,316
Other(3) ........................................ 741 12,114 2,885
Total capital expenditures ......................... $112,920 $238,188 $294,437
(1) Includes store remodels, grooming salon expansions, equipment replacements, relocations, and various
merchandising projects.
(2) For new and existing stores.
(3) Includes corporate office related expenses, including costs related to the expansion and renovation of our
corporate offices during 2008.
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