Popeye's 2015 Annual Report Download - page 40

The table below summarizes our capital expenditures for fiscal years 2015, 2014, and 2013:
(Dollars in millions) 2015 2014 2013
Construction of new Company-operated restaurants $ 10.9 $ 20.9 $ 15.5
Acquisition and conversion of restaurants in California and Minnesota — 2.9 13.6
Reimaging activities at Company-operated restaurants — 0.6 1.7
Information technology hardware and software 0.4 0.8 0.4
Construction of the new corporate office — 1.3 —
General and administrative assets 0.6 0.3 0.3
Other capital assets(1) 0.9 1.0 1.3
Total capital expenditures $ 12.8 $ 27.8 $ 32.8
(1) Maintain, replace and extend the lives of Company-operated restaurant equipment and facilities.
During 2015, 2014 and 2013, we repurchased and retired 1,084,478 shares, 891,931 shares and 504,295 shares of common
stock for $62.0 million, $40.0 million and $19.9 million, respectively. The remaining dollar amount of shares that may be
repurchased under the program is $193 million. See Note 12 to our Consolidated Financial Statements included in this Form
10-K.
See Operating and Financial Outlook for 2016 for a discussion of expected capital expenditures and share repurchases
during 2016.
Net cash used by financing activities was $49.4 million in 2015 compared to $7.5 million net cash provided by financing
activities in 2014. The $56.9 million increase in cash used by financing activities was primarily due to a $40.0 million decrease
in net borrowing under its 2013 Revolving Credit Facility and a $22.0 million increase in share repurchases in 2015 compared
to 2014 partially offset by a $5.0 million increase in excess tax benefits from share-based payment arrangements.
At December 27, 2015 the Company was compliant with all debt covenant requirements.
Outstanding balances under our 2013 Revolving Credit Facility accrued 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 27, 2015
and December 28, 2014, the Company’s weighted average interest rates for all outstanding indebtedness under its credit facilities
were 1.9% and 1.7% respectively. The Company had $25.9 million available for short-term borrowings and letters of credit
under its credit facility as of December 27, 2015.
The Company uses interest rate swap agreements to fix the interest rate exposure on a portion of its outstanding revolving
debt. On December 16, 2014 and June 15, 2015 the Company entered into interest rate swap contracts effective January 5,
2015 and July 6, 2015, respectively. The Company’s interest rate swap contracts limit the interest rate exposure on $85 million
of floating rate debt borrowed under its 2013 Revolving Credit Facility to a fixed rate of 2.70%. The swap agreements are
scheduled to expire January 5, 2018.
On January 22, 2016, the Company refinanced its existing 2013 Revolving Credit Facility with a new five year $250.0
million revolving credit facility (“2016 Revolving Credit Facility”).
Key terms in the 2016 Revolving Credit Facility include the following:
• The Company must maintain a Consolidated Total Leverage Ratio of < 4.00 to 1.0.
• The Company must maintain a Consolidated Minimum Fixed Charge Coverage Ratio of > 1.25 to 1.0.
• The Company may repurchase and retire its common shares at any time the Consolidated Total Leverage Ratio is less
than 3.50 to 1.0.
• Borrowings under the facility will bear interest based upon the LIBOR Rate or the Base Rate (each as defined in the
new facility) plus an applicable margin based on the Company’s Total Leverage Ratio (as defined in the facility). The
borrowings currently bear interest at the LIBOR Rate plus 1.50%, the same as in the prior facility. The Company will
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