Rue 21 2011 Annual Report Download - page 36

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Investing Activities
Investing activities consist of capital expenditures for new and converted stores, as well as investment in
information technology and our distribution and headquarter facility expansions. Additionally, the company
purchased short term investments during fiscal year 2011.
Fiscal Year Ended
January 28,
2012
January 29,
2011
January 30,
2010
(in thousands)
Capital expenditures, net of tenant allowances ............... $(34,160) $(25,462) $(24,297)
Tenant allowances ..................................... (19,392) (15,018) (9,333)
Purchases of short term investments ....................... (30,000) — —
Net cash used for investing activities ...................... $(83,552) $(40,480) $(33,630)
In fiscal year 2011, capital expenditures, net of tenant allowances increased $8.7 million as compared to fiscal
year 2010. Capital expenditures, net of tenant allowances, for the opening of new stores and conversions were $15.7
million, $16.2 million and $11.5 million in fiscal years 2011, 2010 and 2009, respectively. The remaining capital
expenditures in fiscal year 2011 were primarily due to increases in fixture refreshes, headquarters expansion and
information technology infrastructure investments.
While there can be no assurance that current expectations will be realized, the Company expects capital
expenditures, net of tenant allowances to be approximately $38.0 to $40.0 million in fiscal year 2012.
Purchases of short term investments consisted of highly liquid, money market funds with a maturity in excess
of 90 days and less than 365 days.
Financing Activities
Financing activities consist principally of proceeds from the exercise of employee stock options and excess tax
benefits from share-based award activities, proceeds from our initial public offering in fiscal year 2009, along with
net borrowings under our credit facilities.
Fiscal Year Ended
January 28,
2012
January 29,
2011
January 30,
2010
(in thousands)
Net payments under revolver ............................. $ — $ — $(19,476)
Proceeds from initial public offering, net ................... — — 26,242
Proceeds from stock options exercised ..................... 563 688 110
Excess tax benefits from stock-based award activities ......... 638 1,509 276
Debt financing costs ................................... — — (161)
Net cash provided by financing activities ................... $1,201 $2,197 $ 6,991
Net cash of $1.2 million was provided by financing activities in fiscal year 2011, which was primarily utilized
to fund general corporate activities. During fiscal year 2011, we received $0.6 million for the exercise of stock
options, and we recognized a $0.6 million excess tax benefit related to share based award activities.
We completed our initial public offering (IPO) on November 13, 2009, which resulted in net proceeds to us of
$29.2 million after deducting underwriters’ discounts and commissions. We incurred legal and other costs related to
our IPO of approximately $3.0 million, which is included as a reduction of additional paid-in capital. We used the
net proceeds to us from the IPO to repay the $25.8 million outstanding under the senior secured credit facilities.
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