Express 2013 Annual Report Download - page 31

Table of Contents
Cash Flow Analysis
A summary of cash provided by or used in operating, investing and financing activities are shown in the following table:
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


Provided by operating activities $195,075
$269,364
$212,609
Used in investing activities (105,462)
(99,884)
(77,236)
Used in financing activities (33,331)
(65,551)
(170,775)
Increase (decrease) in cash and cash equivalents 55,587
103,935
(35,400)
Cash and cash equivalents at end of period $311,884
$256,297
$152,362
Net Cash Provided by Operating Activities
The majority of our operating cash inflows are derived from sales. Our operating cash outflows generally consist of payments to merchandise vendors,
employees for wages, salaries, and other employee benefits, and landlords for rent. Operating cash outflows also include payments for income taxes and
interest on long-term debt.
Net cash provided by operating activities was $195.1 million in 2013 compared to $269.4 million in 2012, a decrease of $74.3 million. For the 52-week
period ended February 1, 2014, the decrease in cash provided by operations primarily related to the following:
•Items included in net income provided $197.9 million of cash during 2013 compared to $218.8 million during 2012. The decrease in the current
year was primarily driven by the decreased performance of the business as discussed in "Overview" and "Results of Operations" partially offset by
an increase in share-based compensation expense in the current year.
•In addition to the decrease in cash provided by items included in net income discussed above, there was $2.8 million of decreases attributable to cash
used in working capital during 2013 compared to $50.6 million of cash provided in 2012. Working capital is subject to cyclical operating needs, the
timing of receivable collections and payable and expense payments, and the seasonal fluctuations in our operations. The $53.4 million change
primarily relates to the timing of merchandise and real estate payments in 2013 versus 2012.
Net cash provided by operating activities was $269.4 million in 2012 compared to $212.6 million in 2011, an increase of $56.8 million. For the 53-week
period ended February 2, 2013, the increase in cash provided by operations primarily related to the following:
•Items included in net income provided $218.8 million of cash during 2012 compared to $217.9 million during 2011. The increase was primarily
driven by lower interest expense, partially offset by the decreased performance of the business as discussed in the "Results of Operations."
•In addition to the increase in cash provided by items included in net income discussed above, there was $50.6 million of cash provided in working
capital increases during 2012 compared to $5.3 million of cash used in 2011. Working capital is subject to cyclical operating needs, the timing of
receivable collections and payable and expense payments, and the seasonal fluctuations in our operations. The $55.9 million change primarily
relates to the timing of merchandise and real estate payments in 2012 versus 2011. These were partially offset by incentive compensation paid in
2012 for 2011 results and reduced incentive compensation accrued in 2012 given softer business results.
Net Cash Used in Investing Activities
Investing activities consist primarily of capital expenditures for new and remodeled store construction and fixtures, information technology, and home office
and design studio renovations.
Net cash used in investing activities totaled $105.5 million in 2013 compared to $99.9 million in 2012, a $5.6 million increase. This increase was primarily
driven by investments in technology to support our e-commerce growth as well as our new retail management and human resources systems. The remaining
increase was attributable to new store openings and remodels,
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