Hibbett Sports 2011 Annual Report Download - page 28

24
Our consolidated statements of cash flows are summarized as follows (in thousands):
January 29, January 30, January 31,
2011 2010 2009
Net cash provided by operating activities: 61,918$ 36,914$ 38,997$
Net cash used in investing activities: (10,883) (9,603) (13,781)
Net cash (used in) provided by financing activities: (25,209) 1,730 (15,308)
Net increase in cash and cash equivalents 25,826$ 29,041$ 9,908$
Fiscal Year Ended
Operating Activities.
Cash flow from operations is seasonal in our business. Typically, we use cash flow from operations to increase inventory
in advance of peak selling seasons, such as winter holidays and back-to-school. Inventory levels are reduced in connection with
higher sales during the peak selling seasons and this inventory reduction, combined with proportionately higher net income, typically
produces a positive cash flow. In recent years, we have experienced a trend of increasing free rent provisions in lieu of cash
construction allowances in our leases. We believe this is primarily the result of the tightening of commercial credit on our
landlords. Because of this, the non-cash portion of landlord allowances has also experienced increases.
Net cash provided by operating activities was $61.9 million for the 52 weeks ended January 29, 2011 compared with net
cash provided by operating activities of $36.9 million and $39.0 million in the 52 weeks ended January 30, 2010 and January 31,
2009, respectively.
Inventory levels have continued to increase year over year as the number of stores have increased, although the inventory
per store has historically trended slightly down to flat. Ending inventory at January 29, 2011 was up 3.2% compared to January 30,
2010. The increase in inventory used cash of $5.5 million, $17.6 million and $10.4 million during Fiscal 2011, Fiscal 2010 and
Fiscal 2009, respectively. The accounts payable increase provided cash of $11.0 million, $0.5 million and $0.3 million during Fiscal
2011, Fiscal 2010 and Fiscal 2009, respectively, as we took advantage of more favorable payment terms and managed cash while
protecting vendor discounts. Net income provided cash of $46.4 million, $32.5 million and $29.4 million during Fiscal 2011, Fiscal
2010 and Fiscal 2009, respectively. Non-cash charges included depreciation and amortization expense of $13.6 million, $13.9
million and $14.3 million during Fiscal 2011, Fiscal 2010 and Fiscal 2009, respectively, and stock-based compensation expense of
$4.8 million, $4.2 million and $3.6 million during Fiscal 2011, Fiscal 2010 and Fiscal 2009, respectively.
Investing Activities.
Cash used in investing activities in the fiscal periods ended January 29, 2011, January 30, 2010 and January 31, 2009
totaled $10.9 million, $9.6 million and $13.8 million, respectively. Gross capital expenditures used $10.5 million, $9.6 million and
$13.7 million during Fiscal 2011, Fiscal 2010 and Fiscal 2009, respectively.
We use cash in investing activities to build new stores and remodel or relocate existing stores. Furthermore, net cash used
in investing activities includes purchases of information technology assets and expenditures for our distribution facility and corporate
headquarters.
We opened 45 new stores and relocated and/or remodeled 17 existing stores during the 52 weeks ended January 29, 2011.
We opened 42 new stores and relocated and/or remodeled 21 existing stores during the 52 weeks ended January 30, 2010. We
opened 69 new stores and relocated and/or remodeled 19 existing stores during the 52 weeks ended January 31, 2009.
We estimate the cash outlay for capital expenditures in the fiscal year ending January 28, 2012 will be approximately
$13.0 million, which relates to the opening of approximately 50 new stores, remodeling of selected existing stores, information
system upgrades and various improvements at our headquarters and distribution center. Of the total budgeted dollars for capital
expenditures for Fiscal 2012, we anticipate that approximately 56% will be related to the opening of new stores and remodeling
and/or relocating existing stores. Approximately 34% will be related to information systems with the remaining 10% related
primarily to office expansion, distribution center improvement and security equipment for our stores.
As of January 29, 2011, we had an approximate $0.8 million outlay remaining on enhancements to our merchandising
system relating to inventory planning. We believe these enhancements will further advance our ability to analyze inventory needs
and generally improve sales across all markets and merchandise by providing another tool for managing our inventory at the store
level.