Einstein Bros 2012 Annual Report Download - page 36

10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312513085036/d445565d10k.htm[9/11/2014 10:07:50 AM]
Table of Contents
Net Cash Provided by Operating Activities
Net cash generated by operating activities was $48.5 million for fiscal 2012 compared to $39.1 million for fiscal 2011, a 24.0% increase. A
significant portion of the increase can be attributed to increases in our year end accounts payable and accrued liability balances. Our accounts
payable has increased based on timing differences in the ordinary course of business and capital expenditures. Our accrued expenses increased due
to increases in our bonus accruals and incremental increases in dividends. The remaining increase can be attributed to timing differences within
our working capital accounts.
Cash Used in Investing Activities
During fiscal 2012, we spent $2.2 million, net of cash acquired, on the purchase of eight restaurants. We also used approximately $24.0
million of cash to purchase additional property and equipment as follows:
• $20.2 million for new restaurants and upgrades of existing restaurants, including the installation of new equipment, exterior signs and
new menu boards;
• $3.7 million for replacement of equipment at our existing company-owned restaurants and at our manufacturing operations; and
• $0.1 million for general corporate purposes.
We also received $0.4 million in proceeds from the sale of one company-owned restaurant to a franchisee.
During fiscal 2011, we spent $6.8 million, net of cash acquired, on the purchase of nine restaurants, which includes $5.0 million towards the
acquisition of the assets of Kettleman Bagel Company in Portland, Oregon. We also used approximately $18.2 million of cash to purchase
additional property and equipment as follows:
• $10.8 million for new restaurants and upgrades of existing restaurants, including the installation of new coffee equipment, exterior signs
and new menu boards;
• $6.4 million for replacement of equipment at our existing company-owned restaurants and at our manufacturing operations; and
• $1.0 million for general corporate purposes.
We also received $1.4 million in proceeds from the sale of three company-owned restaurants to franchisees and insurance proceeds from a
restaurant fire.
Cash Used in Financing Activities
During fiscal 2012, we amended our Senior Credit Facility to increase the availability and then borrowed an additional $38.1 million on our
term loan and an additional $30.0 million on our revolving line of credit. With these proceeds, we paid a one-time special cash dividend of $4.00
per share of common stock to stockholders totaling approximately $68.1 million. We paid $1.6 million in debt issuance costs associated with this
amendment. Prior to the amendment of the Senior Credit Facility, we made term loan payments totaling $5.6 million throughout the year.
In addition to the dividend payment referred to above, we also made $8.5 million in regular quarterly dividend payments in 2012. We
received $1.8 million in proceeds from stock options exercised during fiscal 2012.
During fiscal 2011, we made payments on our Senior Credit Facility totaling $15.5 million, of which $7.5 million went towards the term loan
in accordance with our debt repayment schedule and $8.0 million towards the revolving line of credit. Our outstanding debt balance decreased
$13.5 million, based on the above repayments, partially offset by $2.0 million in borrowings on the revolving line of credit. We also paid dividends
of $6.3 million during fiscal 2011. We received $1.3 million in proceeds from stock options exercised during fiscal 2011.
44
Table of Contents
Off-Balance Sheet Arrangements
Letters of Credit
We have $6.7 million in letters of credit outstanding under our Senior Credit Facility. The letters of credit expire on various dates during
2013, are generally automatically renewable for one additional year and are payable upon demand in the event that we fail to pay the underlying
obligation.