Buffalo Wild Wings 2014 Annual Report Download - page 35

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We fund these expenses, except for acquisitions and Emerging Brands, primarily with cash from operations. Depending on the
size of the transaction, acquisitions or investments in emerging brands would generally be funded from cash and marketable
securities balances or using our line of credit. Our cash and marketable securities balance at December 28, 2014 was $112.9
million. We invest our cash balances in debt securities with the focus on protection of principal, adequate liquidity and return
on investment based on risk. Our marketable securities balance consists of mutual funds held for our deferred compensation
plan and debt securities.
During fiscal 2014, 2013, and 2012, net cash provided by operating activities was $217.9 million, $179.4 million, and
$145.2 million, respectively. Net cash provided by operating activities in 2014 consisted primarily of net earnings adjusted for
non-cash expenses and an increase in accrued expenses and accounts payable. The increase in accrued expenses is primarily
due to higher payroll-related costs including higher incentive compensation and wages. The increase in accounts payable is
primarily due to timing of payments.
Net cash provided by operating activities in 2013 consisted primarily of net earnings adjusted for non-cash expenses and
an increase in accrued expenses and income taxes. The increase in accrued expenses is primarily due to higher payroll-related
costs including higher incentive compensation and wages. The increase in income taxes is primarily due to timing of payments.
Net cash provided by operating activities in 2012 consisted primarily of net earnings adjusted for non-cash expenses and
an increase in accrued expenses and decrease in refundable income taxes partially offset by an increase in accounts receivable.
The increase in accrued expenses was primarily due to the timing of our bi-weekly payroll. The decrease in refundable income
taxes was due to the timing of payments. The increase in accounts receivable was primarily due to an increase in credit card
receivable due to the timing of the holidays near our fiscal year end.
Net cash used in investing activities for 2014, 2013, and 2012, was $179.0 million, $145.7 million, and $142.8 million,
respectively. Investing activities for 2014 included $137.5 million for acquisitions of property and equipment related to the
additional company-owned restaurants and restaurants under construction and $30.6 million for the acquisitions of businesses
and investments in affiliates. Investing activities for 2013 included $138.7 million for acquisitions of property and equipment
related to the additional company-owned restaurants and restaurants under construction and $10.3 million for the acquisitions
of businesses and investments in affiliates. Investing activities for 2012 included $130.5 million for acquisitions of property
and equipment related to the additional company-owned restaurants and restaurants under construction and $43.6 million for
the acquisition of businesses. In 2014, 2013, and 2012, we opened or purchased 57, 55, and 69 Buffalo Wild Wings and
Emerging Brands restaurants, respectively. In 2015, we expect capital expenditures of approximately $113.7 million for the cost
of 50 new or relocated company-owned Buffalo Wild Wings and 5 Emerging Brands restaurants, $26.6 million for technology
improvements on our restaurant and corporate systems, and $37.3 million for capital expenditures at existing restaurants. In
2014, we purchased $23.0 million of marketable securities and received proceeds of $12.0 million as investments in marketable
securities matured or were sold. In 2013, we received proceeds of $3.3 million as investments in marketable securities matured
or were sold. In 2012, we purchased $132.1 million of marketable securities and received proceeds of $163.5 million as
investments in marketable securities matured or were sold.
Net cash provided by (used in) financing activities for 2014, 2013, and 2012, was $(1.9) million, $3.0 million, and $(1.6)
million, respectively. Net cash used in financing activities for 2014 resulted primarily from tax payments for restricted stock
units of $7.5 million partially offset by the issuance of common stock for options exercised and employee stock purchases of
$3.0 million and excess tax benefits from stock issuances of $2.5 million. Net cash provided by financing activities for 2013
resulted primarily from the issuance of common stock for options exercised and employee stock purchases of $2.5 million and
excess tax benefits from stock issuances of $5.5 million partially offset by tax payments for restricted stock units of $4.9
million. Net cash used in financing activities for 2012 resulted primarily from tax payments for restricted stock units of $8.5
million partially offset by the issuance of common stock for options exercised and employee stock purchases of $2.8 million
and excess tax benefits from stock issuances of $4.2 million. No additional funding from the issuance of common stock (other
than from the exercise of options and employee stock purchases) is anticipated in 2015.
Our liquidity is impacted by minimum cash payment commitments resulting from operating lease obligations for our
restaurants and our corporate offices. Lease terms are generally 10 to 15 years with renewal options and generally require us to
pay a proportionate share of real estate taxes, insurance, common area maintenance and other operating costs. Some restaurant
leases provide for contingent rental payments based on sales thresholds. We own the buildings in which 25% of our company-
owned restaurants operate.