Thrifty Car Rental 2011 Annual Report Download - page 45

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billion, partially offset by proceeds from the sale of revenue-earning vehicles, which totaled $0.9
billion. In addition, restricted cash and investments decreased $345.1 million from December 31,
2009, primarily due to the repayment of the Series 2005-1 notes. The Company also used cash for
non-vehicle capital expenditures of $23.0 million in 2010. These expenditures consist primarily of
airport facility improvements for the Company’s rental locations and IT-related projects.
Net cash provided by investing activities was $279.0 million for 2009. The principal component of
cash provided by investing activities was the sale of revenue-earning vehicles, which totaled $1.5
billion in proceeds. This source of cash was partially offset by the purchase of revenue-earning
vehicles, which totaled $1.1 billion, and the $100 million of cash and cash equivalents required to be
maintained at all times under the Senior Secured Credit Facilities and separately identified on the
balance sheet as cash and cash equivalents – required minimum balance. Restricted cash at
December 31, 2009 increased $26.0 million from the previous year, including $22.8 million available
for vehicle purchases or debt service, coupled with $3.2 million of interest income earned on
restricted cash and investments. Non-vehicle capital expenditures were $15.5 million in 2009.
These expenditures consisted primarily of airport facility improvements for the Company’s rental
locations and investments in IT-related equipment and systems.
Financing Activities
Net cash used in financing activities was $119.3 million in 2011 primarily due to a $100 million
forward stock repurchase agreement entered into and pre-funded in November 2011 to buyback
Company shares. The Company also paid $14.8 million in deferred financing costs associated with
the issuance of the Series 2011-1 notes, Series 2011-2 notes and renewal of Series 2010-3 VFN. In
2011, the Company made payments of $1.5 billion primarily including $500 million of scheduled debt
repayments on the Series 2006-1 notes, $830 million of reductions to the amounts drawn under the
Series 2010 VFNs, and $148 million of principal payments on the Term Loan. These payments were
offset by $1.5 billion in borrowings under the Series 2011-1 notes, the Series 2011-2 notes, the
Series 2010-3 VFN and the Series 2010-2 VFN.
Net 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.
Net cash used in financing activities was $644.1 million in 2009, primarily due to the repayment of
amounts outstanding under the Company’s liquidity and conduit facilities 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.
Contractual Obligations and Commitments
The Company has various contractual commitments primarily related to asset-backed medium-term
notes, asset-backed VFNs, airport concession fee and operating lease commitments related to
airport and other facilities (some consisting of minimum annual guarantees as defined in the lease
agreements), 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 notes mature.