Cracker Barrel 2013 Annual Report Download - page 24

could be declared and paid in any scal year up to the amount
of dividends permied and paid in the preceding scal year
without regard to the 20% limitation.
Eective June 3, 2013, we amended the Credit Facility to
provide more exibility with regard to the dividends we are
permied to pay. Under the amended Credit Facility, if there
is no default existing and the liquidity requirements are met,
we may declare and pay cash dividends on shares of our
common stock if the aggregate amount of dividends paid in
any scal year is less than the sum of (1) the 20% limitation
and (2) $100,000 (less the amount of any share repurchases
during the current scal year), provided our consolidated
total leverage ratio is 3.25 to 1.00 or less. In any event, as long
as the liquidity requirements are met, dividends may be declared
and paid in any scal year up to the amount of dividends
permied and paid in the preceding scal year without regard
to the 20% limitation.
During the rst three quarters of 2013, we declared a
quarterly dividend of $0.50 per share of our common stock.
Additionally, during the fourth quarter of 2013, we increased
our quarterly dividend by 50% by declaring a dividend of
$0.75 per share payable on August 5, 2013 to shareholders of
record on July 19, 2013. In the rst quarter of 2014, we
declared a dividend of $0.75 per share payable on November
5, 2013 to shareholders of record on October 18, 2013.
e following table highlights the dividends per share we
paid for the last three years:
2013 2012 2011
Dividends per share paid $ 1.90 $ 0.97 $ 0.86
Our current criteria for share repurchases are that they be
accretive to expected net income per share and are within
the limits imposed by our Credit Facility. Subject to the limits
imposed by the Credit Facility, in 2013 and 2012, we were
authorized by our Board of Directors to repurchase shares at
the discretion of management up to $100,000 and $65,000,
respectively. In 2011, we were authorized to repurchase shares
to oset share dilution that resulted from the issuance of
shares under our equity compensation plans up to $65,000.
Under the June 3, 2013 amendment of the Credit Facility, we
may repurchase shares up to a maximum amount of $100,000
less the amount of dividends paid provided the liquidity
requirements are met. Additionally, we have been authorized
by our Board of Directors to repurchase shares at the
discretion of management up to $50,000 during 2014.
e following table highlights our share repurchases for the
last three years:
2013 2012 2011
Shares of common stock
repurchased 44,300 265,538 676,600
Cost of shares repurchased $ 3,570 $ 14,923 $ 33,563
e following table highlights the proceeds received from
the exercise of share-based compensation awards for the last
three years:
2013 2012 2011
Proceeds from exercise of
share-based compensation awards $ 6,454 $ 17,602 $ 20,540
Working Capital
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
other restaurant inventories purchased locally are generally
nanced through trade credit at terms of 30 days or less.
Because of our gi shop, which has a lower product turnover
than the restaurant, we carry larger inventories than many other
companies in the restaurant industry. Retail inventories are
generally nanced through trade credit at terms of 60 days or
less. 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
except for bonuses that are paid either quarterly or annually
in arrears. Many other operating expenses have normal trade
terms and certain expenses such as certain taxes and some
benets are deferred for longer periods of time.
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