Dollar Rent A Car 2011 Annual Report Download - page 44

The Company also used cash for non-vehicle capital expenditures of $23.0 million in 2010. These expenditures consist primarily of airport facility
improvements for the Company’s rental locations and IT-related projects.
Net cash provided by investing activities was $279.0 million for 2009. The principal component of cash provided by investing activities was the sale of
revenue-earning vehicles, which totaled $1.5 billion in proceeds. This source of cash was partially offset by the purchase of revenue-earning vehicles, which
totaled $1.1 billion, and the $100 million of cash and cash equivalents required to be maintained at all times under the Senior Secured Credit Facilities and
separately identified on the balance sheet as cash and cash equivalents – required minimum balance. Restricted cash at December 31, 2009 increased $26.0
million from the previous year, including $22.8 million available for vehicle purchases or debt service, coupled with $3.2 million of interest income earned on
restricted cash and investments. Non-vehicle capital expenditures were $15.5 million in 2009. These expenditures consisted primarily of airport facility
improvements for the Company’s rental locations and investments in IT-related equipment and systems.
Financing Activities
Net cash used in financing activities was $119.3 million in 2011 primarily due to a $100 million forward stock repurchase agreement entered into and pre-
funded in November 2011 to buyback Company shares. The Company also paid $14.8 million in deferred financing costs associated with the issuance of
the Series 2011-1 notes, Series 2011-2 notes and renewal of Series 2010-3 VFN. In 2011, the Company made payments of $1.5 billion primarily including
$500 million of scheduled debt repayments on the Series 2006-1 notes, $830 million of reductions to the amounts drawn under the Series 2010 VFNs, and
$148 million of principal payments on the Term Loan. These payments were offset by $1.5 billion in borrowings under the Series 2011-1 notes, the Series
2011-2 notes, the Series 2010-3 VFN and the Series 2010-2 VFN.
Net cash used in financing activities was $340.1 million in 2010, primarily due to $400 million of scheduled debt repayments on the Series 2005-1 notes and
$100 million of scheduled debt repayments on the Series 2006-1 notes, as well as a net reduction in Canadian debt of $20 million and a $10 million scheduled
repayment of the Term Loan. The Company also paid $11.8 million in deferred financing costs associated with the issuance of the Series 2010-1 VFN, Series
2010-2 VFN and Series 2010-3 VFN. These uses of cash were partially offset by the issuance of the Series 2010-1 VFN totaling $200 million.
Net cash used in financing activities was $644.1 million in 2009, primarily due to the repayment of amounts outstanding under the Company’s liquidity and
conduit facilities in the amount of $274.9 million and $215.0 million, respectively. Additionally, due to the non-renewal of its vehicle manufacturer and bank
lines of credit, the Company repaid $233.7 million of debt outstanding under these arrangements. The Company also prepaid $20 million of the Term Loan
and paid $6.6 million in deferred financing cost associated with amendments to the Senior Secured Credit Facilities. The Company also paid $6.6 million
in fees related to the issuance of an additional 6.6 million shares of common stock in November 2009. These uses of cash were partially offset by $129.6
million of proceeds from the issuance of common stock.
Contractual Obligations and Commitments
The Company has various contractual commitments primarily related to asset-backed medium-term notes, asset-backed VFNs, airport concession fee and
operating lease commitments related to airport and other facilities (some consisting of minimum annual guarantees as defined in the lease
agreements), technology contracts, and vehicle purchases. The Company expects to fund these commitments with existing cash resources, cash generated
from operations, sales proceeds from disposal of used vehicles and future issuances of asset-backed notes as existing notes mature.
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