Cracker Barrel 2013 Annual Report Download - page 23

Capital Expenditures
e following table presents our capital expenditures (purchase
of property and equipment), net of proceeds from insurance
recoveries, for the last three years:
2013 2012 2011
Capital expenditures,
net of proceeds from
insurance recoveries $ 73,961 $ 80,170 $ 77,686
Our capital expenditures consisted primarily of costs of
new store locations and capital expenditures for maintenance
programs. e decrease in capital expenditures from 2012 to
2013 resulted primarily from a decrease in the number of
new store locations acquired and under construction as
compared to the prior year partially oset by higher capital
expenditures for operational initiatives and maintenance
programs. e increase in capital expenditures from 2011 to
2012 resulted primarily from an increase 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 2014 will
be between $90,000 and $100,000. is estimate includes the
acquisition of sites and construction costs of approximately
seven or eight new stores that will open during 2014, as well as
acquisition and construction costs for store locations to be
opened in 2015. We also expect to increase capital expenditures
for maintenance programs, technology and operational
improvements. 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 condemna-
tion award.
Borrowing Capacity and Debt Covenants
Our $750,000 credit facility (the “Credit Facility”) consists
of a term loan (aggregate outstanding at August 2, 2013
and August 3, 2012 was $187,500 and $212,500, respectively)
and a $500,000 revolving credit facility (“the 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 2, 2013:
August 2, 2013
Borrowing capacity under the Revolving Credit Facility $ 500,000
Less: Outstanding borrowings under the Revolving
Credit Facility 212,500
Less: Standby leers of credit* 28,971
Borrowing availability under the Revolving Credit Facility $ 258,529
* 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
$125,000 in 2013 and $25,000 in both 2012 and 2011 by
making optional prepayments using excess cash generated
from operations. 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. Prior to the June 3, 2013
amendment described below, if there was no default then
existing and the total of our availability under our Revolving
Credit Facility plus our cash and cash equivalents on hand was
at least $100,000 (the “liquidity requirements”), we could
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 20% of Consolidated EBITDA from continuing
operations (as dened in the Credit Facility) (the “20%
limitation”) during the immediately preceding scal year. In any
event, as long as the liquidity requirements were met, dividends
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