Thrifty Car Rental 2010 Annual Report Download - page 46

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investments. Non-vehicle capital expenditures were $15.5 million. These expenditures consisted
primarily of airport facility improvements for the Company’s rental locations and investments in IT
equipment and systems.
Cash used in investing activities was $198.4 million for 2008. The principal use of cash in investing
activities was the purchase of revenue-earning vehicles, which totaled $2.2 billion. This use of cash
offset $2.5 billion in proceeds from the sale of used revenue-earning vehicles. Restricted cash at
December 31, 2008 increased $463.6 million from the previous year, including $454.7 million
available for vehicle purchases or debt service, coupled with $8.9 million of interest income earned
on restricted cash and investments. Non-vehicle capital expenditures were $28.9 million. These
expenditures consisted primarily of airport facility improvements for the Company’s rental locations
and investments in IT equipment and systems. In addition, the Company used cash for franchise
acquisitions of $2.1 million in 2008.
Financing Activities
Cash used in financing activities was $340.1 million in 2010, primarily due to $400 million of
scheduled debt repayments on the Series 2005-1 notes and $100 million of scheduled debt
repayments on the Series 2006-1 notes, as well as a net reduction in Canadian debt of $20 million
and a $10 million scheduled repayment of the Term Loan. The Company also paid $11.8 million in
deferred financing costs associated with the issuance of the Series 2010-1 VFN, Series 2010-2 VFN
and Series 2010-3 VFN. These uses of cash were partially offset by the issuance of the Series
2010-1 VFN totaling $200 million.
Cash used in financing activities was $644.1 million in 2009, primarily due to the repayment of
amounts outstanding under the liquidity facility and the conduit facility in the amount of $274.9 million
and $215.0 million, respectively. Additionally, due to the non-renewal of its vehicle manufacturer and
bank lines of credit, the Company repaid $233.7 million of debt outstanding under these
arrangements. The Company also prepaid $20 million of the Term Loan and paid $6.6 million in
deferred financing cost associated with amendments to the Senior Secured Credit Facilities. The
Company also paid $6.6 million in fees related to the issuance of an additional 6.6 million shares of
common stock in November 2009. These uses of cash were partially offset by $129.6 million of
proceeds from the issuance of common stock.
Cash used in financing activities was $180.2 million in 2008 primarily due to the maturity of the 2004
Series asset-backed medium-term notes totaling $500 million, a $70.6 million repayment of the Term
Loan and a decrease of $49.0 million in the Company’s limited partner interest in the Canadian
funding limited partnership (the Company’s Canadian fleet financing facility), partially offset by a net
increase in the issuance of commercial paper, including the liquidity facility of $249.1 million and an
increase of $203.0 million under the conduit facility.
Contractual Obligations and Commitments
The Company has various contractual commitments primarily related to asset-backed medium-term
notes, asset-backed VFNs and short-term borrowings outstanding for vehicle purchases, a non-
vehicle related term loan, airport concession fee and operating lease commitments related to airport
and other facilities, technology contracts, and vehicle purchases. The Company expects to fund
these commitments with existing cash resources, cash generated from operations, sales proceeds
from disposal of used vehicles and future issuances of asset-backed notes as existing medium-term
notes mature.
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