Shake Shack 2015 Annual Report Download - page 44

Table of Contents
We currently intend to retain all available funds and any future earnings for use in the operation of our business, and therefore we do not currently expect to pay any cash dividends on
our Class A common stock. Any future determination to pay dividends to holders of Class A common stock will be at the discretion of our Board of Directors and will depend upon
many factors, including our results of operations, financial condition, capital requirements, restrictions in SSE Holdings' debt agreements and other factors that our Board of Directors
deems relevant.
We utilize operating lease arrangements for all of our domestic company-
operated Shacks. We believe that our operating lease arrangements continue to provide the appropriate
leverage for our capital structure in a financially efficient manner. Because we lease all of the properties related to our domestic company-
operated Shacks, as well as our home office,
we do not have any debt that is secured by real property.
Summary of Cash Flows
Our primary sources of liquidity and capital resources have been cash provided from operating activities, cash on hand and the Revolving Credit Facility. Aside from the capital
expenditures noted above, our primary requirements for liquidity are for lease obligations, working capital and general corporate needs. Our requirement for working capital is not
significant because our guests pay for their food and beverage purchases in cash or on debit or credit cards at the time of the sale and we are able to sell many of our inventory items
before payment is due to the supplier of such items.
The following table and discussion presents, for the periods indicated, a summary of our key cash flows from operating, investing and financing activities.
Operating Activities
For fiscal 2014, net cash provided by operating activities was $13.6 million compared to $12.9 million
for fiscal 2013, an increase of $0.7 million. This increase was primarily driven
by the opening of 10 new domestic company-operated Shack during fiscal 2014.
For fiscal 2013, net cash provided by operating activities was $12.9 million compared to $11.7 million for fiscal 2012, an increase of $1.2 million, primarily driven by the opening of
eight new domestic company-operated Shack during the fiscal year.
Investing Activities
For fiscal 2014, net cash used in investing activities was $28.5 million compared to $16.2 million for fiscal 2013, an increase of $12.3 million. This increase was due to an increase in
capital expenditures to construct new domestic company-operated Shacks in such period compared to fiscal 2013.
For fiscal 2013, net cash used in investing activities was $16.2 million compared to $11.0 million for fiscal 2012, an increase of $5.2 million. The increase was due to an increase in
capital expenditures to construct new domestic company-operated Shacks in the current year period.
Financing Activities
For fiscal 2014, net cash provided by financing activities was $4.5 million compared to $0.3 million for fiscal 2013, primarily due to increased borrowings under our Revolving Credit
Facility of $32.0 million, offset by increased member distributions of $27.1 million and deferred financing fees of $0.4 million.
For fiscal 2013, net cash provided by financing activities was $0.3 million. For fiscal 2012, net cash used in financing activities was $2.2 million, an increase of $2.5 million, primarily
due to the repayment of approximately $1.9 million of long-term debt as well as the payment of deferred financing charges.
Revolving Credit Facility
In December 2013, we entered into an amendment to our existing revolving credit agreement, which became effective in April 2014 (" Revolving Credit Facility
"). The amendment
provides for a revolving total commitment amount of $50.0 million, of which $30.0 million was available immediately. In December 2014, we entered into another amendment to the
Revolving Credit Facility, which became effective immediately, and provided for, among other things, the acceleration of the delayed total commitment effective date, resulting in an
immediate increase in the total commitment amount to $50.0 million. The amendment also provides for a mandatory prepayment of at least $15.0 million by April 30, 2015. The
Revolving Credit Facility will mature and all amounts outstanding will be due and payable five years from the effective date. The Revolving Credit Facility permits the issuance of
43
2014¹
2013 2012
Net cash provided by operating activities
$
13,584
$
12,924
$
11,678
Net cash used in investing activities
(28,515
)
(16,194
)
(11,036
)
Net cash provided by (used in) financing activities
4,532
313
(2,171
)
Decrease in cash and cash equivalents
(10,399
)
(2,957
)
(1,529
)
Cash at beginning of period
13,076
16,033
17,562
Cash at end of period
$
2,677
$
13,076
$
16,033
(1) We operate on a 52/53 week fiscal year that ends on the last Wednesday of the calendar year. Fiscal year 2014 was a 53-week year with the extra operating week (the " 53rd week
") falling in our
fiscal fourth quarter. Fiscal 2013 and 2012 each contained 52 weeks.