Hibbett Sports 2012 Annual Report Download - page 30

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We use cash in investing activities to build new stores and remodel, expand or relocate existing stores. We opened 52 new
stores and relocated, expanded and/or remodeled 18 existing stores during Fiscal 2012. We opened 45 new stores and relocated,
expanded and/or remodeled 17 existing stores during Fiscal 2011. We opened 42 new stores and relocated, expanded and/or
remodeled 21 existing stores during Fiscal 2010. Furthermore, net cash used in investing activities includes purchases of information
technology assets and expenditures for our distribution facility and corporate headquarters.
We estimate the cash outlay for capital expenditures in the fiscal year ending February 2, 2013 will be approximately
$15.9 million, which relates to the opening of approximately 60 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 2013, we anticipate that approximately 55% 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 11% related
primarily to transportation equipment, automobiles and security equipment for our stores. In addition, the lease for our existing
distribution center expires in December 2014. We plan to build and own versus lease our new distribution facility at a cost of
approximately $25.0 million over the next 3 years.
As of January 28, 2012, we had approximately $1.3 million outlay remaining on enhancements to our merchandising
system relating to demand forecasting and markdown optimization. We believe these enhancements will further advance our ability
to improve gross profit across all markets and merchandise by providing another tool for managing our inventory at the store level.
Financing Activities.
Net cash used in financing activities was $61.9 million and $25.2 million in Fiscal 2012 and Fiscal 2011, respectively,
compared to net cash provided by financing activities of $1.7 million in Fiscal 2010. The financing activity cash fluctuation between
years is primarily the result of repurchases of our common stock. We expended $67.5 million and $37.7 million on repurchases of
our common stock during Fiscal 2012 and Fiscal 2011, respectively. We did not repurchase any of our common stock during Fiscal
2010.
Financing activities also consisted of proceeds from stock option exercises and the excess tax benefit from the exercise of
incentive stock options. As stock options are exercised, we will continue to receive proceeds and expect a tax deduction; however,
the amounts and timing cannot be predicted.
At January 28, 2012, we had two unsecured revolving credit facilities that allow borrowings up to $30.0 million and
$50.0 million, respectively, and which renew in August 2012 and November 2012, respectively. The facilities do not require a
commitment or agency fee nor are there any covenant restrictions. We plan to renew these facilities as they expire and do not
anticipate any problems in doing so; however, no assurance can be given that we will be granted a renewal or terms which are
acceptable to us. As of January 28, 2012, we did not have any debt outstanding under either of these facilities.
At January 29, 2011, we had two unsecured revolving credit facilities that allowed borrowings up to $30.0 million and
$50.0 million, respectively, and which renewed in August 2011 and November 2011, respectively. The facilities did not require a
commitment or agency fee nor were there any covenant restrictions. We renewed these facilities as they expired. As of January
29, 2011, we did not have any debt outstanding under either of these facilities.
The following table lists the aggregate maturities of various classes of obligations and expiration amounts of various
classes of commitments related to Hibbett Sports, Inc. at January 28, 2012 (in thousands):
Contractual Obligations
Less than 1
year 1 - 3 years 3 - 5 years
More than 5
years Total
Long-term debt obligations (1) -$ -$ -$ -$ -$
Capital lease obligations (2) 173 389 476 1,207 2,245
Interest on capital lease obligations (2) 193 343 273 236 1,045
Operating lease obligations (2) 43,374 62,956 29,576 16,828 152,734
Purchase obligations (3) 1,492 653 4 - 2,149
Other liabilities (4) 256 - - 1,206 1,462
Total 45,488$ 64,341$ 30,329$ 19,477$ 159,635$
Payment due by period
(1) See “Part II, Item 8, Consolidated Financial Statements Note 5 – Debt.”
(2) See “Part II, Item 8, Consolidated Financial Statements Note 6 – Leases.”