Saks Fifth Avenue 2009 Annual Report Download - page 32

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Table of Contents
compared to income from continuing operations of $47.1 million in 2007 and a year-over-year decrease in accounts payable and accrued liabilities of
approximately $114.6 million. This was partially offset by an inflow of cash resulting from a decrease in inventory of approximately $118.5 million.
Cash used in investing activities from continuing operations was $73.9 million in 2009, $123.0 million in 2008 and $124.4 million in 2007. Cash used in
investing activities principally consists of construction of new stores and renovation and expansion of existing stores and investments in support areas (e.g.,
technology and distribution centers). The $49.1 million decrease in cash used in 2009 is primarily related to a decrease in capital expenditures of approximately
$52.7 million, partially offset by a decrease in proceeds from the sale of property and equipment of approximately $3.7 million. The $1.4 million decrease in cash
used in 2008 is primarily related to a decrease in capital expenditures of approximately $9.4 million, partially offset by a decrease in proceeds from the sale of
property and equipment of approximately $8.0 million.
Cash provided by financing activities from continuing operations was $18.8 million and 2009 and $35.5 million in 2008. Cash used in financing activities
from continuing operations was $119.6 million in 2007. The 2009 cash provided by financing activities relates to $120.0 million of proceeds from the issuance of
the 7.5% convertible notes and $95.1 million of proceeds, net of issuance costs, from the issuance of 14.9 million shares of the Company’s common stock. These
inflows were partially offset by the repayment of borrowings under the revolving credit facility of $156.7 million, the early extinguishment of $23.0 million of
7.5% senior notes due in December 2010, the payment of $13.1 million of deferred financing costs related to the 7.5% convertible notes and the amended
revolving credit facility agreement, and the payment on capital lease obligations of $4.7 million. The 2008 cash provided by financing activities relates to
proceeds of $156.7 million from the revolving credit facility and $4.1 million in proceeds from the issuance of common stock associated with stock option
exercises partially offset by the repayments of long-term debt and capital lease obligations of approximately $89.2 million and $34.9 million of common stock
repurchases. The 2007 use relates to the repurchase of approximately $106.3 million in principal amount of senior notes and $27.5 million of common stock
repurchases partially offset by $34.3 million in proceeds from the issuance of common stock associated with stock option exercises.
During the year ended February 2, 2008, the Company repurchased approximately 1.7 million shares of its common stock at an average price of $15.95
and a total cost of approximately $27.5 million.
During the year ended January 31, 2009, the Company repurchased approximately 2.9 million shares of its common stock at an average price of $11.83 per
share and a total cost of approximately $34.9 million.
During the year ended January 30, 2010, there were no repurchases of common stock. At January 30, 2010, there were 32.7 million shares remaining
available for repurchase under the Company’s existing shares repurchase program.
CASH BALANCES AND LIQUIDITY
During 2009, the Company substantially strengthened its capital structure and enhanced future flexibility through a series of actions including a $120.0
million convertible debt offering, a $100.0 million common stock offering, the repurchase of $23.0 million of senior notes, and the extension of the maturity of
its $500.0 million revolving credit agreement to 2013. The Company ended the fiscal year with no borrowings on its revolving credit facility, approximately
$147.3 million of cash on hand, and approximately $22.9 million of current debt maturities. Based on these actions, the Company expects to have sufficient
liquidity to fund operations in 2010.
The Company’s primary sources of short-term liquidity are cash on hand and availability under its revolving credit facility. In November 2009, the
Company entered into an amended and restated revolving credit
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Source: SAKS INC, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠