Cracker Barrel 2010 Annual Report Download - page 29

capital expenditures and dividends) rather than borrowings.
During 2010, we repurchased 1,352,000 shares in the open
market at an aggregate cost of $62,487. We did not repurchase
any shares in 2009. During 2008, we repurchased 1,625,000
shares in the open market at an aggregate cost of $52,380.
Our Credit Facility imposes restrictions on the amount of
dividends we are able to pay. If there is no default then
existing and there is at least $100,000 then available under
our Revolving Credit Facility, we may both: (1) pay cash
dividends on our common stock if the aggregate amount of
such dividends paid during any scal year is less than 15% of
Consolidated EBITDA from continuing operations (as
dened in the Credit Facility) during the immediately
preceding scal year; and (2) in any event, increase our regular
quarterly cash dividend in any quarter by an amount
not to exceed the greater of $.01 or 10% of the amount of
the dividend paid in the prior scal quarter.
Consistent with the prior year, we declared and paid a
quarterly dividend of $0.20 per common share (an annual
equivalent of $0.80 per share) in 2010. Additionally, on
September 23, 2010, the Board declared a dividend of $0.22
per share payable on November 5, 2010 to shareholders of
record on October 15, 2010. In 2009 and 2008, we paid
dividends of $0.78 and $0.68, respectively.
During 2010, we received proceeds of $37,460 from the
exercise of share-based compensation awards and the
corresponding issuance of 1,362,096 shares. e excess tax
benet realized upon exercise of share-based compensation
awards was $5,063. During 2009 and 2008, we received
proceeds of $4,362 and $306, respectively, from the exercise
of share-based compensation awards.
Working Capital
We had negative working capital of $73,289, $66,637 and
$44,080, respectively, at July 30, 2010, July 31, 2009 and
August 1, 2008. e change in working capital at July 30, 2010
compared with July 31, 2009 primarily reected the timing
of payments for accounts payable and estimated income taxes,
higher incentive compensation accruals and an increase in
cash generated from operations. e change in working capital
at July 31, 2009 compared with August 1, 2008 primarily
reected a reduction in our retail inventories. In the restaurant
industry, substantially all sales are either for cash or third-party
credit card. Like many other restaurant companies, we are
able to, and oen do operate with negative working capital.
Restaurant inventories purchased through our principal food
distributor are on terms of net zero days, while restaurant
inventories purchased locally generally are nanced from
normal trade credit. Because of our retail operations, which
have a lower product turnover than the restaurant business, we
carry larger inventories than many other companies in the
restaurant industry. Retail inventories purchased domestically
generally are nanced from normal trade credit, while imported
retail inventories generally are purchased through wire
transfers. ese various trade terms are aided by rapid turnover
of the restaurant inventory. Employees generally are paid on
weekly or semi-monthly schedules in arrears for hours worked,
and certain expenses such as certain taxes and some benets are
deferred for longer periods of time. Many other operating
expenses have normal trade terms.
Capital Expenditures
Capital expenditures (purchase of property and equipment)
were $69,891, $67,842 and $87,849 in 2010, 2009 and 2008,
respectively. Capital expenditures in 2010, 2009 and 2008 are
net of proceeds from insurance recoveries of $241, $262 and
$178, respectively. Capital expenditures for maintenance
programs accounted for the majority of these expenditures in
2010. Costs of new locations accounted for the majority of
these expenditures in 2009 and 2008. e increase in capital
expenditures from 2009 to 2010 is primarily due to higher
capital expenditures for maintenance programs and operational
innovation initiatives partially oset by lower costs related to
fewer new locations. e decrease in capital expenditures
from 2008 to 2009 is primarily due to a reduction in the
number of new locations acquired and under construction as
compared to the prior year. We estimate that our capital
expenditures during 2011 will be between $110,000 and
$120,000. is estimate includes certain costs related to the
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