Express 2015 Annual Report Download - page 29

Table of Contents
not be considered in isolation or as a substitute for reported net income and reported earnings per diluted share. These non-GAAP financial measures reflect
an additional way of viewing our operations that, when viewed with our GAAP results and the below reconciliations to the corresponding GAAP financial
measures, provide a more complete understanding of our business. We strongly encourage investors and stockholders to review our Consolidated Financial
Statements in their entirety and not to rely on any single financial measure.
The table below reconciles the non-GAAP financial measures, adjusted net income and adjusted earnings per diluted share, with the most directly comparable
GAAP financial measures, net income and earnings per diluted share. No adjustments were made to net income or earnings per diluted share for 2014 and
2013, and therefore no tabular reconciliation has been included for those periods.
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 



Reported GAAP Measure $ 116,513
$ 1.38
84,591
Interest Expense (a) * 5,916 * 0.07
Adjusted Non-GAAP Measure $ 122,429
$ 1.45
(a) Includes the redemption premium paid, the write-off of unamortized debt issuance costs, and the write-off of the unamortized debt discount
related to the redemption of all $200.9 million of our Senior Notes.
* Items were tax affected at our statutory rate of approximately 39% for 2015.

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 $ 229,603
$ 156,570
$ 195,075
Used in investing activities (115,378)
(116,098)
(105,462)
Used in financing activities (271,997)
(4,938)
(33,331)
(Decrease) increase in cash and cash equivalents (159,256)
34,275
55,587
Cash and cash equivalents at end of period $ 186,903
$ 346,159
$ 311,884
Our business relies on cash flows from operations as our primary source of liquidity, with the majority of that cash flow being generated in the fourth quarter
of the year. Our primary operating cash needs are for merchandise inventories, payroll, store rent, and marketing. Net cash provided by operating activities
was $229.6 million in 2015 compared to $156.6 million in 2014. The increase in cash flows in 2015 was primarily driven by the improved profitability of the
business. Our liquidity position also benefits from the fact that we generally collect cash from sales to customers the same day or, in the case of credit or debit
card transactions, within three to five days of the related sale, and have up to 75 days to pay certain merchandise vendors and 45 days to pay the majority of
our non-merchandise vendors.
In addition to cash flow from operations, we have access to additional liquidity, if needed, through borrowings under our Revolving Credit Facility. As of
January 30, 2016, we had $240.6 million available for borrowing under our Revolving Credit Facility. Refer to Note 8 of our Consolidated Financial
Statements for additional information on our Revolving Credit Facility.
We also use cash for capital expenditures and financing transactions. Capital expenditures consist primarily of new and remodeled store construction and
fixtures and information technology projects. We had capital expenditures of approximately $115.3 million in 2015, $115.1 million in 2014, and $105.4
million in 2013. The increase in 2014 and 2015 was primarily driven by investment in systems that will support our continued evolution into an omni-
channel brand. These new systems are expected to become operational in 2016.
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