Cracker Barrel 2014 Annual Report Download - page 24

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 and repurchase shares of our common stock if the
aggregate amount of dividends paid and shares repurchased
during any scal year is less than the sum of (1) 20% of
Consolidated EBITDA from continuing operations (as dened
in the Credit Facility) (the “20% limitation”) during the
immediately preceding scal year and (2) provided our consol-
idated total leverage ratio is 3.25 to 1.00 or less, $100,000
(less the amount of any share repurchases during the current
scal year). 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 2014, we declared a
quarterly dividend of $0.75 per share of our common stock.
Additionally, during the third quarter of 2014, we increased
our quarterly dividend by 33% by declaring a dividend of
$1.00 per share payable on August 5, 2014 to shareholders of
record on July 18, 2014.
e following table highlights the dividends per share we
paid for the last three years:
2014 2013 2012
Dividends per share paid $ 3.00 $ 1.90 $ 0.97
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. Under our 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. Subject to the limits imposed
by the Credit Facility, in 2014, 2013 and 2012, we were
authorized by our Board of Directors to repurchase shares at
the discretion of management up to $50,000, $100,000 and
$65,000, respectively.
e following table highlights our share repurchases for the
last three years:
2014 2013 2012
Shares of common stock
repurchased 120,000 44,300 265,538
Cost of shares repurchased $ 12,473 $ 3,570 $ 14,923
In 2014, related tax withholding payments on certain
share-based compensation awards exceeded proceeds received
from the exercise of stock options which resulted in a net
use of cash of $8,457. In 2013 and 2012, proceeds received from
the exercise of share-based compensation awards were
$6,454 and $17,602, respectively.
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.
e following table highlights our working capital:
2014 2013 2012
Working capital (decit) $ (14,789) $ (13,873) $ 18,249
e change in working capital at August 1, 2014 compared
to August 2, 2013 primarily reected our current maturities
on our debt, the increase in our dividend payable, an increase
in deferred revenue related to the sales of our gi cards and
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