Cracker Barrel 2014 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:
2014 2013 2012
Capital expenditures, net of proceeds
from insurance recoveries $ 90,564 $ 73,961 $ 80,170
Our capital expenditures consisted primarily of costs of
new store locations and capital expenditures for maintenance
programs. e increase in capital expenditures from 2013
to 2014 resulted primarily from an increase in the number of
new store locations acquired and under construction as
compared to the prior year and higher maintenance capital
expenditures due to our aging store base. 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.
We estimate that our capital expenditures during 2015 will
be between $100,000 and $110,000. is estimate includes
the acquisition of sites and construction costs of approximate-
ly six or seven new stores that will open during 2015, as well
as acquisition and construction costs for store locations to be
opened in 2016. We also expect to increase capital expendi-
tures for maintenance programs related to our aging store base
and technology and operational improvements, which are
intended to improve the guest experience and improve margins.
We intend to fund our capital expenditures with cash
generated by operations and borrowings under our revolving
credit facility, as necessary.
Borrowing Capacity and Debt Covenants
In July 2011, we entered into a ve-year $750,000 credit
facility (the “Credit Facility”) consisting of a $250,000 term
loan (aggregate principal amount outstanding at both
August 1, 2014 and August 2, 2013 was $187,500) and
a $500,000 revolving credit facility (“the Revolving Credit
Facility”). e Credit Facility expires on July 8, 2016. We
currently plan to renance the Credit Facility before the end
of 2015.
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 1, 2014:
August 1, 2014
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* 20,637
Borrowing availability under the Revolving Credit Facility $ 266,863
* 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 prepaid our 2014 required principal payments under
our term loan in 2013. As a result, we did not make any debt
payments under our Credit Facility in 2014. We reduced
our borrowings under our Credit Facility by $125,000 and
$25,000 in 2013 and 2012, respectively, by making optional
prepayments using excess cash generated from operations.
See “Material Commitments” below and Note 5 to our Consoli-
dated 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 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. Provided there is no default
existing and the total of our availability under the Revolving
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