Dollar Tree 2007 Annual Report Download - page 21

DOLLAR TREE, INC. • 2007 ANNUAL REPORT 19
The following table compares cash-related information for the years ended February 2, 2008, February 3,
2007, and January 28, 2006:
Year Ended Year Ended Year Ended
(in millions) February 2, 2008 February 3, 2007 January 28, 2006
Net cash provided by (used in):
Operating activities $ 367.3 $ 412.8 $ 365.1
Investing activities (22.7) (190.7) (235.5)
Financing activities (389.0) (202.9) (170.3)
Net cash provided by operating activities
decreased $45.5 million compared to last year due to
increased working capital requirements in the current
year and increases in the provision for deferred taxes,
partially offset by improved earnings before deprecia-
tion and amortization in the current year.
Net cash used in investing activities decreased
$168.0 million compared to last year. This decrease is
due to $129.1 million of increased proceeds from
short-term investment activity in the current year to
fund increased capital stock repurchases and $54.1
million used in the prior year to acquire Deal$ assets.
These were partially offset by increased capital expen-
ditures in the current year resulting from the Briar
Creek distribution center and the corporate headquar-
ters expansions.
Net cash used in financing activities increased
$186.1 million due primarily to increased stock repur-
chases in the current year partially offset by increased
proceeds from stock option exercises in the current
year resulting from the Company’s higher stock price
earlier in the year.
The $47.7 million increase in cash provided by
operating activities in 2006 as compared to 2005 was
primarily due to increased earnings before deprecia-
tion and better payables management in 2006, partial-
ly offset by approximately $28.9 million of rent
payments for February 2007 made prior to the end of
fiscal 2006.
The $44.8 million decrease in cash used in invest-
ing activities in 2006 compared to 2005 was the result
of a $114.9 million increase in net proceeds from
short-term investments which were used to help fund
stock repurchases and the Deal$ acquisition in 2006.
In 2006, we purchased an additional $9.3 million, net,
of investments in a restricted account to collateralize
certain long-term insurance obligations. Additional
uses of cash for investing activities consisted of $54.1
million for the Deal$ acquisition in 2006 and an
increase of $36.1 million in capital expenditures due
primarily to new store growth and the installation of
freezers and coolers to certain stores in 2006.
The $32.6 million increase in cash used in financ-
ing activities in 2006 compared to 2005 primarily
resulted from $248.2 million in stock repurchases in
2006 compared to $180.4 million in 2005. This
increase was partially offset by increased proceeds
from stock option exercises in 2006 resulting from our
higher stock prices in 2006 as compared to 2005.
At February 2, 2008, our long-term borrowings
were $268.5 million and our capital lease commit-
ments were $0.9 million. We also have $125.0 million
and $50.0 million Letter of Credit Reimbursement
and Security Agreements, under which approximately
$88.9 million were committed to letters of credit
issued for routine purchases of imported merchandise
at February 2, 2008.
On February 20, 2008, we entered into a five-year
$550.0 million Credit Agreement (the Agreement).
The Agreement provides for a $300.0 million revolv-
ing line of credit, including up to $150.0 million in
available letters of credit, and a $250.0 million term
loan. Our March 2004, $450.0 million unsecured
revolving credit facility was terminated concurrent
with entering into the Agreement.
In March 2005, our Board of Directors authorized
the repurchase of up to $300.0 million of our com-
mon stock through March 2008. In November 2006,
our Board of Directors authorized the repurchase of
up to $500.0 million of our common stock. This
amount was in addition to the $27.0 million remain-
ing on the March 2005 authorization. Then, in
October 2007, our Board of Directors authorized the
repurchase of an additional $500.0 million of our
common stock. This authorization was in addition to
the November 2006 authorization which had approxi-
mately $98.4 million remaining at the time.