Papa Johns 2009 Annual Report Download - page 61

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54
Liquidity and Capital Resources
Our debt is comprised of the following at year end (in thousands):
2009 2008
Revolving line of credit 99,000$ 123,500$
Debt associated with VIEs* - 7,075
Other 50 79
Total debt 99,050 130,654
Less: current portion of debt - (7,075)
Long-term debt 99,050$ 123,579$
*Papa John's is the guarantor of BIBP's debt (none outstanding at December 27, 2009).
Our revolving line of credit allows us to borrow up to $175.0 million until its expiration date of January
2011. Outstanding balances accrue interest at 50.0 to 100.0 basis points over the London Interbank
Offered Rate (“LIBOR”) or other bank developed rates at our option. The commitment fee on the unused
balance ranges from 12.5 to 20.0 basis points. The increment over LIBOR and the commitment fee are
determined quarterly based upon the ratio of total indebtedness to earnings before interest, taxes,
depreciation and amortization (“EBITDA”), as defined in the line of credit.
The revolving line of credit contains customary affirmative and negative covenants, including the
following financial covenants, as defined (the covenants exclude the impact of consolidating BIBP’s
operations):
Actual Ratio for the
Year Ended
Permitted Ratio December 27, 2009
Leverage Ratio Not to exceed 2.5 to 1.0 1.1 to 1.0
Interest Coverage Ratio Not less than 3.5 to 1.0 4.7 to 1.0
We were in compliance with all covenants at December 27, 2009 and December 28, 2008.
Cash flow provided by operating activities increased to $100.9 million in 2009 from $73.1 million in
2008. The consolidation of BIBP increased cash flow from operations by approximately $22.5 million in
2009 and decreased cash flow from operations by approximately $10.5 million in 2008 (as reflected in
the net income and deferred income taxes captions in the accompanying “Consolidated Statements of
Cash Flows”). Excluding the impact of the consolidation of BIBP, cash flow was $78.4 million in 2009,
as compared to $83.6 million in 2008. The $5.2 million decrease in cash flow from operations, excluding
the consolidation of BIBP, was primarily due to reductions in net income from operations, excluding
impairment and disposition losses.
Cash flow provided by operating activities increased to $73.1 million in 2008 from $61.6 million in
2007. The consolidation of BIBP decreased cash flow from operations by approximately $10.5 million in