Cracker Barrel 2012 Annual Report Download - page 23

Our capital expenditures consisted primarily of costs of
new store locations and capital expenditures for maintenance
programs in 2012 and 2011 and capital expenditures for
maintenance programs in 2010. e increases in capital
expenditures from 2011 and 2012 and from 2010 to 2011
both resulted primarily from increases in the number of new
store locations acquired and under construction as compared
to the prior year partially oset by lower capital expenditures
for maintenance programs.
We estimate that our capital expenditures during 2013 will
be between $90,000 and $100,000. is estimate includes
certain costs related to the acquisition of sites and construc-
tion of new stores that have opened or will open during 2013,
as well as for acquisition and construction costs for store
locations to be opened in future years and capital expendi-
tures for maintenance programs. We intend to fund our
capital expenditures with cash generated by operations and
borrowings under our revolving credit facility, as necessary.
Proceeds from Sale of Property and Equipment
During 2011, we received net proceeds of $1,054 from
the sale of two closed stores and $6,576 as a result of a
condemnation award.
Borrowing Capacity and Debt Covenants
In order to provide us with increased exibility in our capital
structure, in July 2011, we entered into a ve-year $750,000
credit facility (the “Credit Facility”) consisting of a $250,000
term loan (aggregate outstanding at August 3, 2012 and
July 29, 2011 was $212,500 and $231,250, respectively) and a
$500,000 revolving credit facility (“the Revolving Credit
Facility”). e Credit Facility replaced term loans totaling
$575,000 and a $165,000 revolving credit facility.
e following table highlights our borrowing capacity and
outstanding borrowings under the Revolving Credit Facility,
our standby leers of credit and our borrowing availability
under the Revolving Credit Facility as of August 3, 2012:
August 3, 2012
Borrowing capacity under the Revolving Credit Facility $ 500,000
Outstanding borrowings under the Revolving
Credit Facility 312,500
Standby leers of credit* 31,506
Borrowing availability under the Revolving Credit Facility $ 155,994
* Our standby leers of credit relate to securing reserved claims under
workers’ compensation insurance and reduce our borrowing availability
under the Revolving Credit Facility.
We reduced our borrowings under our Credit Facility by
$25,000 in both 2012 and 2011 and by $64,856 in 2010.
We were able to reduce our debt primarily by making optional
prepayments under our term loan facilities by using excess
cash generated from operations. e following table highlights
the optional prepayments made under our term loan facilities
for the last three years:
2012 2011 2010
Optional principal prepayments
under our term loan facilities $ 18,750 $ 18,750 $ 57,856
See “Material Commitments” below and Note 5 to our
Consolidated Financial Statements for further information on
our long-term debt.
e Credit Facility contains customary nancial covenants,
which include maintenance of a maximum consolidated total
leverage ratio and a minimum consolidated interest coverage
ratio. We presently are and expect to remain in compliance
with the Credit Facility’s nancial covenants for the remaining
term of the facility.
Dividends, Share Repurchases and Proceeds
from the Exercise of Share-Based Compensation Awards
Our Credit Facility imposes restrictions on the amount of
dividends we are permied to pay and the amount of shares
we are permied to repurchase. In April 2012, we amended
our Credit Facility to provide more exibility with regard to
the dividends we are permied to pay as well as the amount of
shares we are able to repurchase.
If there is no default then existing and the total of our
availability under our Revolving Credit Facility plus our
cash and cash equivalents on hand is at least $100,000 (the
“liquidity requirements”), we may declare and pay cash
dividends on shares of our common stock if the aggregate
amount of dividends paid during any scal year is less than
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