Rue 21 2011 Annual Report Download - page 35

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As of January 28, 2012, we had cash, cash equivalents and short term investments totaling $72.0 million. Our
cash and cash equivalents consist of cash on deposit and investments with a maturity of 90 days or less. Our cash,
cash equivalents and short term investments balance at January 28, 2012 increased by $21.9 million from $50.1
million at January 29, 2011. Components of this change in cash for fiscal year 2011, as well as for change in cash
for the fiscal years 2010 and 2009, are provided below in more detail.
A summary of operating, investing and financing activities are shown in the following table:
Fiscal Year Ended
January 28,
2012
January 29,
2011
January 30,
2010
(in thousands)
Provided by operating activities .......................... $ 74,200 $ 61,643 $ 48,779
Used for investing activities ............................. (83,552) (40,480) (33,630)
Provided by financing activities .......................... 1,201 2,197 6,991
Increase (Decrease) in cash and cash equivalents ............. $(8,151) $ 23,360 $ 22,140
Operating Activities
Operating activities consist primarily of net income adjusted for non-cash items, including depreciation and
amortization, deferred taxes, the effect of working capital changes and tenant allowances received from landlords.
Fiscal Year Ended
January 28,
2012
January 29,
2011
January 30,
2010
(in thousands)
Net income ........................................... $38,950 $ 30,244 $22,017
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization ........................... 26,618 21,980 16,994
Deferred taxes ........................................ 5,837 664 1,158
Share-based compensation .............................. 4,943 2,240 410
Merchandise inventory ................................. (35,085) (23,358) (5,855)
Accounts payable ...................................... 22,287 21,821 (102)
Other working capital components ........................ 10,652 9,157 14,160
All other ............................................. (2) (1,105) (3)
Net cash provided by operating activities ................... $74,200 $ 61,643 $48,779
During fiscal year 2011, we generated $74.2 million in cash from operating activities. Our major source of cash
from operations was attributable to net income of $39.0 million and an increase in accounts payable of $22.3
million. Net cash was reduced for additional merchandise inventory required by operations of $35.1 million.
During fiscal year 2010, we generated $61.6 million in cash from operating activities. Our major source of cash
from operations was attributable to net income of $30.2 million and an increase in accounts payable of $21.8
million. Net cash was reduced for additional merchandise inventory required by operations of $23.4 million.
During fiscal year 2009, we generated $48.8 million in cash from operating activities. This increase in cash
from operating activities was primarily attributable to net income of $22.0 million. Other working capital
components increased by $14.2 million due to increases in accrued expenses and in tenant allowances received from
landlords as a result of new store openings.
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