Lifetime Fitness 2012 Annual Report Download - page 46

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40
The following schedule reflects 2012, 2011 and 2010 capital expenditures by type of expenditure:
For the Year Ended December 31,
2012 2011 2010
(In thousands)
New center land and construction $ 122,120 $ 102,346 $ 111,942
Maintenance of existing facilities, remodels of acquired centers and
corporate capital expenditures 110,994 61,378 34,375
Total capital expenditures $ 233,114 $ 163,724 $ 146,317
At December 31, 2012, we had purchased the real property for four large format centers we plan to open in 2013 and
after.
In 2012, we spent approximately $30.6 million in acquisition related costs, including a race timing company that
developed a radio frequency identification timing system for athletic and endurance events including run, bike and
multi-sport races. We also acquired a tennis center in the Atlanta, Georgia market which we named Life Time Tennis
Atlanta. Additionally in 2012, we acquired certain athletic events which complement our existing portfolio of
athletic events.
In 2011, we spent approximately $70.3 million in acquisition related costs, including several athletic events related
businesses and a yoga business in Michigan. Also, in late 2011, we acquired nine centers from LFF; eight of the
centers we leased and one we purchased.
In addition, in late 2011, we purchased the real property of six centers which we had previously leased with
borrowings from our credit facility plus the assumption of $72.1 million of long-term debt.
We expect our capital expenditures to be approximately $300 to $350 million in 2013, of which we expect to incur
approximately $220 to $250 million for new center construction and expansion of existing centers and
approximately $80 to $100 million for the remodel of acquired centers, maintaining existing centers and corporate
infrastructure. We plan to fund these capital expenditures primarily with cash flow from operations.
Financing Activities
Financing activities consist primarily of repayments of and proceeds from our revolving credit facility, payments on
debt obligations and repurchases of common stock under our ESPP Authorization and our Stock Repurchase
Authorization.
Net cash provided by financing activities was $5.8 million for the year ended December 31, 2012, compared to $0.3
million used in financing activities for the year ended December 31, 2011. The change of $5.5 million was primarily
due to a large debt retirement made in the second quarter of 2011, partially offset by $19.1 million repurchases of
common stock under our Stock Repurchase Program in the fourth quarter of 2012.
Net cash provided by financing activities was $0.3 million for the year ended December 31, 2011, compared to
$37.3 million used in financing activities for the year ended December 31, 2010. The change of $37.6 million was
primarily due to the prepayment of mortgage notes payable.
See footnote 4, “Long-Term Debt,” to our consolidated financial statements for a description of all of our
outstanding financing arrangements.
Debt Covenants
We were in compliance in all material respects with all restrictive and financial covenants under our credit facility as
of December 31, 2012.