Express 2010 Annual Report Download - page 63

net income, a $44.1 million source of cash related to the change in accounts payable and accrued expenses-
related parties, and a $21.6 million source of cash related to the change in accounts payable, deferred revenue,
and accrued expenses.
Net Cash Used in Investing Activities
Investing activities consist primarily of capital expenditures for growth (new store openings), store maintenance
(remodels, conversions to a dual-gender format, visual, fixtures, heating, ventilation and air conditioning
improvements, and gates), and non-store maintenance (information technology and expenses associated with
operations at our corporate home office).
Net cash used in investing activities was $54.8 million in 2010 compared to $26.9 million in 2009, an increase of
$28.0 million. Capital expenditures, gross of landlord allowances, attributed to the opening of new stores, store
remodels, and store conversions to a dual-gender format totaled $21.0 during 2010 compared to $14.4 million
during 2009, an increase of $6.6 million. Capital expenditures related to investments in information technology
primarily related to our transition to a stand-alone business were $14.3 million in 2010 compared to $10.2
million in 2009.
Net cash used in investing activities was $26.9 million in 2009 compared to $51.8 million in 2008, a decrease of
$24.9 million. Capital expenditures, gross of landlord allowances, attributed to the opening of new stores, store
remodels, and store conversions to a dual-gender format totaled $14.4 million during 2009 compared to $29.5
million during 2008, a decrease of $15.1 million. Capital expenditures related to investments in information
technology primarily related to our transition to a stand-alone business were $10.2 million in 2009.
The remaining capital expenditures in each period relate primarily to investments in information technology,
store fixtures, heating, ventilation and air conditioning improvements, gates, and investments in the operations at
our corporate home office.
In 2011 we plan to open 25 to 27 new stores, including 20 in the United States and 5 to 7 in Canada. We expect
capital expenditures for 2011 to be approximately $72.0 to $76.0 million, primarily driven by these new store
openings. These capital expenditures do not include the impact of landlord allowances, which are expected to be
approximately $18.0 to $22.0 million for 2011.
Net Cash Used in Financing Activities
Financing activities consist primarily of borrowings and repayments related to the Senior Notes, Topco credit
facility, and Opco revolving credit facility, as well as distributions to our equity holders, dividends to our
stockholders, and fees and expenses paid in connection with our credit facilities and the IPO.
Net cash used by financing activities was $211.8 million during 2010 as compared to $115.6 million in 2009, an
increase of $96.2 million. This use of cash consisted of repayments of $300.0 million for borrowings under the
Topco credit facility, $261.0 million in distributions to equity holders prior to our IPO, including a $31.0 million
tax distribution in the second quarter of 2010, a special dividend of $49.5 million in December of 2010, and
$18.7 million in costs incurred in connection with the Senior Notes offering and IPO. These uses were offset by
net proceeds of $246.5 million (net of original issue discount) received from the Senior Notes offering and
$166.9 million (net of underwriting discount) received from the IPO.
Net cash used by financing activities was $115.6 million in 2009 as compared to $127.3 million in 2008, a
decrease of $11.7 million. This use of cash was primarily related to the $75.0 million repayment for amounts
borrowed under our Opco revolving credit facility in 2008, $7.1 million of repayments related primarily to the
accrued paid-in-kind interest on our Term C Loan, and a $33.0 million distribution to equity holders.
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