Cracker Barrel 2015 Annual Report Download - page 17

Capital Expenditures
e following table presents our capital expenditures (purchase
of propertyand equipment),net of proceedsfrom insurance
recoveries, for the last three years:
2015 2014 2013
Capital expenditures,
proceedsfrom
insurance recoveries $90,490 $90,564 $73,961
Our capital expenditures consistedprimarily of costs of
new store locations and capital expenditures for maintenance
programs.Capital expenditures were relatively at in 2015 as
compared to 2014. e increase in capital expenditures from
2013 to 2014 resulted primarily from an increase in the
number of new store locations acquired and under construc-
tion as compared to the prior year andhigher maintenance
capital expenditures due to our aging store base.
We estimate that our capital expenditures during 2016 will
be between $110,000 and $120,000. is estimate includes
the acquisition of sites and construction costs of seven or
eight new stores that we planto open during 2016, as well as
acquisition and construction costs for store locations to be
opened in 2017. We also expect to increase capital expenditures
for technology andoperational improvements, which are
intended to improve the guest experience and improve margins.
We intendto fund our capital expenditures with cash
generatedby operations and borrowingsunder our revolving
creditfacility,as necessary.
Borrowing Capacity and Debt Covenants
On January 8, 2015, we entered into a ve-year $750,000
revolving credit facility (the “Revolving Credit Facility”).
e Revolving Credit Facility replaced a term loan totaling
$181,250 and a$218,750 revolving creditfacility (“Prior
CreditFacility”).
e following table highlights our borrowing capacity and
outstanding borrowings under the Revolving Credit Facility,
our standby leers of creditand our borrowing availability
under the Revolving Credit Facility as of July 31, 2015:
July 31, 2015
Borrowing capacity under the Revolving Credit Facility $750,000
Less: Outstanding borrowingsunder the Revolving
CreditFacility400,000
Less: Standby leersof credit* 11,530
Borrowing availability under the Revolving Credit Facility $338,470
*Ourstandby leers of credit relate to securingreserved claimsunder
workers’ compensation insurance and reduceour borrowing availability
under the RevolvingCredit Facility.
We reduced our borrowings under our Prior Credit Facility
by $125,000 in 2013 by making optional paymentsusing
excess cash generated from operations. We did not borrow or
make any debt paymentsin 2014. In 2015, we both borrowed
andpaid down $6,250 under our Prior Credit Facility.
See“Material Commitments”below and Note5 to our
Consolidated FinancialStatements for further information on
our long-term debt.
e Revolving 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 Revolving Credit Facility’s
nancial covenants for the remaining term of the facility.
Dividends, ShareRepurchases
andShare-Based Compensation Awards
Our Revolving Credit Facility imposes restrictions on the
amount of dividends we are permied to payand the amount
of shareswe are permied to repurchase. Under the Revolving
CreditFacility, provided there is no default existing andthe
total of our availability under the Revolving Credit Facility plus
our cash and cash equivalents on hand is at least $100,000
(the “cash availability”), we may declareand pay cash dividends
on shares of our common stock and repurchasesharesof
our common stock (1) in an unlimited amountif at the time
the dividend or the repurchase is made our consolidated total
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