Buffalo Wild Wings 2015 Annual Report Download - page 33

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Liquidity and Capital Resources
Our primary liquidity and capital requirements have been for constructing, remodeling and maintaining our new and
existing company-owned restaurants; working capital; acquisitions; improving technology; share repurchases; and other
general business needs. We fund these expenses, except for acquisitions of businesses and investments in affiliates, primarily
with cash from operations. Depending on the size of the transaction, acquisitions of businesses or investments in affiliates
would generally be funded from cash and marketable securities balances or using our line of credit. Our cash and marketable
securities balance at December 27, 2015 was $20.3 million. Our marketable securities balance consists of mutual funds held for
our deferred compensation plan.
During fiscal 2015, 2014, and 2013, net cash provided by operating activities was $237.3 million, $217.9 million, and
$179.4 million, respectively. Net cash provided by operating activities in 2015 consisted primarily of net earnings adjusted for
non-cash expenses and an increase in accrued expenses partially offset by an increase in refundable income taxes. The increase
in accrued expenses was primarily due to higher withholdings on restricted stock units and higher wages payable. The increase
in refundable income taxes was due to the enactment of the Protecting Americans from Tax Hikes (PATH) Act of 2015.
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 was primarily due to higher payroll-
related costs including higher incentive compensation and wages. The increase in accounts payable was 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 was primarily due to higher payroll-related
costs including higher incentive compensation and wages. The increase in income taxes was primarily due to timing of
payments.
Net cash used in investing activities for 2015, 2014, and 2013, was $365.2 million, $179.0 million, and $145.7 million,
respectively. Investing activities for 2015 included $172.5 million for acquisitions of property and equipment related to the
additional company-owned restaurants and restaurants under construction and $203.6 million for the acquisitions of businesses.
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 acquisition of
businesses and investments in affiliates. In 2015, 2014, and 2013, we opened or purchased 107, 57, and 55 restaurants,
respectively. In 2016, we expect capital expenditures of approximately $200 million, which does not include franchise
acquisitions or emerging brand investments. In 2015, we purchased $12.3 million of marketable securities and received
proceeds of $23.3 million as investments in marketable securities matured or were sold. 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.
Net cash provided by (used in) financing activities for 2015, 2014, and 2013, was $45.5 million, $(1.9) million, and $3.0
million, respectively. Net cash provided by financing activities for 2015 resulted primarily from net proceeds from our line of
credit of $34.5 million, and short-term borrowings from our national advertising and gift card funds of $36.2 million, partially
offset by repurchases of our common stock of $25.0 million. 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. No additional funding from the issuance of common stock (other than from
the exercise of options and employee stock purchases) is anticipated in 2016. We anticipate repurchasing $100 million of
common stock in 2016.
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