Stein Mart 2014 Annual Report Download - page 18

16
positive cash flows from operations on a full year basis. Internally generated cash, along with our available cash and borrowing capacity
under the New Credit Agreement, will provide the means needed to fund our operations.
The following table presents cash flows data for fiscal 2014, fiscal 2013 and fiscal 2012 (dollar amounts in thousands):
Cash provided by (used in): 2014 2013 2012
Operating activities 52,431$ 40,066$ 71,339$
Investing activities (40,342)$ (36,266)$ (45,426)$
Financing activities (13,629)$ (4,179)$ (52,733)$
Cash provided by operating activities
Net cash provided by operating activities was $52.4 million for fiscal 2014 compared to net cash provided by operating activities of $40.1
million for fiscal 2013. The increase in cash provided by operating activities for 2014 as compared to 2013 was primarily due to higher net
income adjusted for other non-cash charges and changes in accrued and prepaid expenses, with the latter driven by lower payments for
income taxes. These increases were partially offset by additional investments in inventory and changes in accounts payable. Cash
provided by operating activities for fiscal 2012 was positively impacted by an income tax refund of approximately $6.6 million, which did not
reoccur in 2013 and 2014. Cash provided by operating activities for fiscal 2012 includes a positive working capital impact from lengthening
vendor payment terms implemented in 2011.
Cash used in investing activities
Net cash used in investing activities included $40.2 million for capital expenditures. Capital expenditures in 2014, 2013 and 2012 include
approximately $14 million, $13 million and $20 million, respectively, for systems improvements, with the largest portion for our new
merchandise information system. The remaining capital amounts are for opening and remodeling stores, including upgrades to fitting
rooms, lighting, flooring and fixtures.
We expect to invest approximately $46 million in capital expenditures in 2015, with $13 million for continuing information systems
upgrades, $13 million for store remodels and $16 million for new and relocated stores. Each new store requires capital expenditures of
approximately $0.5 million for fixtures and equipment, $1.3 million for leasehold improvements, $0.1 million for pre-opening expenses
(excluding rent during the pre-opening term) and average $1 million for initial inventory investment (or $0.4 million net of accounts
payable). Leasehold improvements generally are either paid for by the landlord or are reimbursed by the landlord through tenant
improvement allowances and recognized as a reduction of rent on a straight-line basis over the lease term. Rent during the pre-opening
term generally ranges from insignificant to $0.2 million with higher amounts attributable to situations where we have property access during
our construction period.
Cash used in financing activities
Financing activities in 2014 include $12.3 million payment of one quarterly dividend of $0.05 per share and three quarterly dividends of
$0.075 per share. Financing activities in 2013 include $6.7 million payment of three quarterly dividends of $0.05 per share. Financing
activities for 2012 include $43.8 million for payment of a special dividend of $1.00 per share. During 2014 we repurchased 0.3 million
shares of our common stock at a cost of $4.1 million. During 2013 we repurchased 0.1 million shares of our common stock at a cost of
$1.1 million compared to 0.6 million shares at a cost of $3.9 million in 2012.
We had no capital leases in 2014. Capital lease payments were $2.2 million and $6.1 million for 2013 and 2012, respectively.
Impact of Inflation
Although we expect that our operations will be influenced by general economic conditions, we do not believe that inflation has had a
material effect on our results of operations. However, there can be no assurance that our business will not be affected by inflation in the
future.
Contractual Obligations
The following table sets forth our contractual obligations at January 31, 2015 (dollar amounts in thousands):
Less than 1 235 After 5
Total 1 Year Years Years Years
Operatin
g
leases 427,318$ 85,363$ 78,245$ 155,275$ 108,435$
The above table does not include long-term debt as we did not have any direct borrowings under our Prior Credit Agreement at January
31, 2015. Other long-term liabilities on the balance sheet include the liability for deferred compensation, deferred taxes, postretirement
benefit liability and other long-term liabilities that do not have specific due dates, so they are excluded from the preceding table. We have
merchandise purchase orders that are cancelable, and are therefore not included in the preceding table.