Big Lots 2014 Annual Report Download - page 109

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31
In June 2014, we announced that our Board of Directors commenced a cash dividend program. Since the commencement of
the program, we have declared and paid three quarterly cash dividends of $0.17 per common share for a total paid amount of
approximately $27.8 million.
In March 2015, our Board increased the Company’s quarterly dividend payment rate by approximately 12% by declaring a
quarterly cash dividend of $0.19 per common share payable on April 3, 2015 to shareholders of record as of the close of
business on March 20, 2015.
The following table compares the primary components of our cash flows from 2014 to 2013:
(in thousands) 2014 2013 Change
Net cash provided by operating activities $ 318,562 $ 198,334 $ 120,228
Net cash used in investing activities (90,749)(97,495) 6,746
Net cash used in financing activities $ (249,320) $ (91,196) $ (158,124)
Cash provided by operating activities increased by $120.3 million to $318.6 million in 2014 compared to $198.3 million in
2013. The increase in cash provided by operating activities was primarily driven by an increase in cash provided by the sale of
inventory in the ordinary course of business of $61.9 million coupled with a decrease in cash used to pay for accounts payable
of $20.6 million in 2014 as compared to 2013. During 2014, we improved our inventory turnover by reducing our existing in-
store inventory through our Edit to Amplify merchandise strategy and purchasing merchandise in volumes more consistent with
our expected sales opportunities, which also benefited our accounts payable position. Additionally, in 2014, we received a
benefit to our deferred income taxes of $54.7 million. The benefit was the result of the deduction taken for the worthless stock
value of our Canadian operation which was shut down during the first quarter of 2014, which reduced our fiscal 2014 taxable
income and in turn our cash used to pay taxes. Partially offsetting these higher cash inflows was a decrease in net income of
$11.0 million, which was primarily driven by the increase in losses from discontinued operations associated with the wind
down of our Canadian operations.
Cash used in investing activities decreased by $6.8 million to $90.7 million in 2014 compared to $97.5 million in 2013. The
decrease was primarily due to lower capital expenditures in 2014 as compared to 2013, which were $93.5 million and $104.8
million, respectively. The decrease in capital expenditures was principally driven by a reduction in new store openings in 2014
as compared to 2013, which decreased to 24 new stores in 2014 from 55 new stores in 2013. Additionally, we received greater
proceeds on the sale of property and equipment in 2013, as we sold an owned store location, as compared to 2014, when we
had no similar real estate transaction.
Cash used in financing activities increased by $158.1 million to $249.3 million in 2014 compared to $91.2 million in 2013.
The increase in the cash used in financing activities was principally due to the existence of our share repurchase programs
during 2014. Our use of cash for share repurchase activities increased by $250.5 million to $250.7 million in 2014 as
compared to $0.2 million in 2013. Additionally, we paid three quarterly cash dividends of $0.17 per common share in the
second, third, and fourth quarters of 2014 in an aggregate amount of $27.8 million. Partially offsetting the increase in cash
used in financing activities was a decrease in net repayments to our borrowings under our credit facility of $79.3 million to
$14.9 million in 2014 compared to $94.2 million in 2013. Lastly, there was a substantial increase in the proceeds from the
exercise of stock options of $37.7 million, as more stock options were exercised in 2014 as compared to 2013.
Based on historical and expected financial results, we believe that we have or, if necessary, have the ability to obtain, adequate
resources to fund ongoing and seasonal working capital requirements, proposed capital expenditures, new projects, and
currently maturing obligations.