Restoration Hardware 2012 Annual Report Download - page 125

current liabilities of $3.4 million primarily due to an increase in gift certificate related liabilities and deferred
revenue and customer deposits of $2.5 million primarily due to an increase in special orders as well as timing of
shipments made at period end.
Net Cash Used In Investing Activities
Investing activities consist primarily of investments in capital expenditures related to new store openings
and improvements and in supply chain and systems infrastructure.
For fiscal 2012, net cash used in investing activities was $49.4 million primarily as a result of investments in
new stores of $27.8 million and investment in supply chain and systems infrastructure of $21.3 million and the
purchase of a new domain name for $0.3 million.
For fiscal 2011, capital expenditures were $25.6 million as a result of investments in new stores of $15.7
million and investment in supply chain and systems infrastructure of $9.9 million.
For fiscal 2010, capital expenditures were $39.9 million as a result of investments in approximately 80
Gallery store conversions of $21.2 million, new stores of $11.0 million and investment in supply chain and
systems infrastructure of $7.7 million.
Net Cash Provided By Financing Activities
Financing activities consist primarily of borrowings and repayments related to the revolving line of credit,
term loan and capital contributions.
For fiscal 2012, net cash provided by financing activities was $53.1 million primarily due to the issuance of
common stock which generated proceeds of $106.8 million, partially offset by issuance costs of $9.1 million.
This overall increase in cash provided by the initial public offering was partially offset by net repayments under
the revolving line of credit of $25.0 million, the repayment in full of the term loan of $15.0 million and payments
on capital lease obligations of $4.2 million.
For fiscal 2011, net cash provided by financing activities was $3.4 million primarily due to entering into an
amendment to Restoration Hardware, Inc.’s credit agreement, for the purpose of incorporating a term loan
facility for $15.0 million in January 2012. This increase is offset by net repayments under the revolving line of
credit of $4.6 million, debt issuance costs related to the amended credit agreement and term loan of $2.8 million,
as well as payments on capital lease obligations of $4.2 million.
For fiscal 2010, net cash provided by financing activities was $51.6 million primarily due to an increase in
net borrowing under the revolving line of credit of $54.2 million resulting from an increase in inventory
purchases made during the period. This overall increase in cash provided by financing activities was partially
offset by payments on capital lease obligations of $2.6 million.
Revolving Line of Credit and Term Loan
In August 2011, Restoration Hardware, Inc., along with its Canadian subsidiary, Restoration Hardware
Canada, Inc., entered into a credit agreement with Bank of America, N.A., as administrative agent, and certain
other lenders. This credit agreement modified a previous facility under which Restoration Hardware, Inc. had a
revolving line of credit for up to $190.0 million, as of July 30, 2011. As a result of the modification, the
unamortized deferred financing fees of $0.2 million related to the previous line of credit on the date of the
modification will be amortized over the life of the new revolving line of credit, which has a maturity date of
August 3, 2016. Under the credit agreement, Restoration Hardware, Inc. has a revolving line of credit available
of up to $417.5 million (following Restoration Hardware, Inc.’s exercise of the commitment increase option on
November 1, 2012, as described below), of which $10.0 million is available to Restoration Hardware Canada,
Inc. The credit agreement was further amended in January 2012 to add a $15.0 million term loan facility with a
maturity date of July 6, 2015, which was repaid in full on November 7, 2012, as described below.
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Form 10-K