Popeye's 2014 Annual Report Download - page 43

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• The Company can request incremental revolving credit commitments up to an additional $125 million.
• No principal payments will be due until the maturity date December 18, 2018.
See Note 9 to our Consolidated Financial Statements included in this Form 10-K for a description of the 2013 Credit Facility.
Consolidated Total Leverage Ratio, as defined in the 2013 Credit Facility, is the ratio of the Company’s Consolidated Total
Indebtedness to Consolidated EBITDA for the four immediately preceding fiscal quarters. Consolidated Total Indebtedness means,
as at any date of determination, the aggregate principal amount of indebtedness of the Company. The Company's Consolidated
Total Leverage Ratio was 1.4 and 1.0 for as of December 28, 2014 and December 29, 2013, respectively. Consolidated Total
Leverage Ratio, Consolidated Total Indebtedness, and Consolidated EBITDA are supplemental non-GAAP financial measures.
See the heading “Management’s Use of Non-GAAP Financial Measures.”
Consolidated Minimum Fixed Charge Coverage Ratio, as defined in the 2013 Credit Facility, is the ratio of the company’s
Consolidated EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) less provisions for current taxes less
Consolidated Maintenance Capital Expenditures to Consolidated Fixed Charges. Consolidated Fixed Charges is defined as the
sum of aggregate amounts of scheduled principal payments made during such period on Indebtedness, including Capital Lease
Obligations, Consolidated Cash Interest, and Consolidated Rental Expense. At December 28, 2014 the Company was compliant
with all debt covenant requirements.
Outstanding balances accrue interest at a margin of 125 to 250 basis points over the London Interbank Offered Rate (“LIBOR”)
or other alternative indices plus an applicable margin as specified in the facility. The commitment fee on the unused balance under
the facility ranges from 15 to 40 basis points. The increment over LIBOR and the commitment fee are determined quarterly based
upon the Consolidated Total Leverage Ratio. As of December 28, 2014 and December 29, 2013, the Company’s weighted average
interest rates for all outstanding indebtedness under its credit facilities were 1.7% and 1.5% respectively. The Company had $28.9
million available for short-term borrowings and letters of credit under its 2013 Credit Facility as of December 28, 2014.
The Company uses interest rate swap agreements to fix the interest rate exposure on a portion of its outstanding loans under
its revolving credit facility. On December 16, 2014, the Company entered an interest rate swap contract effective January 5, 2015
under the 2013 Credit Facility. The Company's interest rate swap agreement limits the interest rate exposure on $53 million of
floating rate debt to a fixed rate of 2.69%. The original term of the swap agreement is scheduled to expire January 5, 2018. The
previous interest rate swap agreements were terminated on December 16, 2013.
The Company’s Board of Directors has approved a share repurchase program. During 2014, 2013 and 2012, we repurchased
and retired 891,931 shares, 504,295 shares and 741,228 shares of common stock for $40.0 million, $19.9 million and $15.2 million,
respectively. As of February 25, 2015, the remaining dollar amount of shares that may be repurchased under the program was
$100 million. See Note 12 to our Consolidated Financial Statements included in this Form 10-K.
Contractual Obligations
The following table summarizes our contractual obligations, due over the next five years and thereafter, as of December 28,
2014:
(In millions) 2015 2016 2017 2018 2019 There-
after Total
Long-term debt, excluding capital leases(1) $ 0.3 $ 0.3 $ 0.3 $ 106.4 $ 0.4 $ — $ 107.7
Interest on long-term debt, excluding capital leases(1) 1.9 1.9 1.9 1.8 — — 7.5
Leases(2) 8.0 7.9 7.7 7.2 7.0 115.7 153.5
Information technology outsourcing(3) 0.3 — — — — — 0.3
Business process services(3) 0.6 — — — — — 0.6
Total(4) $ 11.1 $ 10.1 $ 9.9 $ 115.4 $ 7.4 $ 115.7 $ 269.6
(1) For variable rate debt, the Company estimated average outstanding balances for the respective periods and applied interest
rates in effect at December 28, 2014. See Note 9 to our Consolidated Financial Statements included in this Form 10-K for
information concerning the terms of our 2013 Credit Facility.
(2) Of the 153.5 million of minimum lease payments, $147.7 million of those payments relate to operating leases and the
remaining $5.8 million of payments relate to capital leases. See Note 10 to our Consolidated Financial Statements included
in this Form 10-K.
(3) See Note 15 to our Consolidated Financial Statements included in this Form 10-K.