Sally Beauty Supply 2013 Annual Report Download - page 78

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approximately $15.7 million, subject to certain adjustments. We funded these acquisitions with cash from
operations and borrowings under the ABL facility.
Share Repurchase Programs
In August 2012, we announced that our Board of Directors approved the 2012 Share Repurchase Program.
In addition, on March 5, 2013, we announced that our Board of Directors approved a new share
repurchase program authorizing us to repurchase up to $700.0 million of our common stock over the next
eight quarters (the ‘‘2013 Share Repurchase Program’’). In connection with the authorization of the 2013
Share Repurchase Program, the 2012 Share Repurchase Program was terminated.
Prior to termination of the 2012 Share Repurchase Program, the Company had repurchased and retired
approximately 10.4 million shares at a cost of $266.4 million under the 2012 Share Repurchase Program. In
addition, during the period from March 5, 2013 through September 30, 2013, the Company repurchased
and retired approximately 8.5 million shares at a cost of $243.3 million under the 2013 Share Repurchase
Program. As such, during the fiscal year 2013, we repurchased an aggregate of 18.9 million shares at a cost
of $509.7 million under the 2012 Share Repurchase Program and the 2013 Share Repurchase Program. We
funded these share repurchases with the cash proceeds from our September 2012 debt issuance, cash from
operations and borrowings under the ABL facility.
The 2013 Share Repurchase Program expires on or about March 5, 2015. Future repurchases of shares of
our common stock are expected to be funded with existing cash balances, funds expected to be generated
by operations, funds available under the ABL facility and the cash proceeds from our $200.0 million debt
issuance in October 2013.
In May 2012, we entered into an agreement pursuant to which we repurchased (and subsequently retired)
7.6 million shares of our common stock from the CDR Investors, in a private transaction, at $26.485 per
share. We funded this $200.0 million share repurchase primarily with borrowings in the amount of
$160.0 million under our ABL facility and with cash from operations.
Historical Cash Flows
For the fiscal years 2013, 2012 and 2011, our primary source of cash has been funds provided by operating
activities and, when necessary, borrowings under our ABL facility. The primary uses of cash during the past
three years were for acquisitions, capital expenditures, repayments of long-term debt and share
repurchases.
The following table shows our sources and uses of funds for the fiscal years ended September 30, 2013,
2012 and 2011 (in thousands):
Fiscal Year Ended September 30,
2013 2012 Change 2012 2011 Change
Net cash provided by
operating activities .... $310,454 $ 297,582 $ 12,872 $ 297,582 $ 291,841 $ 5,741
Net cash used by investing
activities ............ (106,977) (112,513) 5,536 (112,513) (146,735) 34,222
Net cash used by financing
activities ............ (396,775) (8,682) (388,093) (8,682) (140,049) 131,367
Effect of foreign currency
exchange rate changes
on cash and cash
equivalents .......... 193 352 (159) 352 (1,070) 1,422
Net (decrease) increase in
cash and cash
equivalents .......... $(193,105) $ 176,739 $(369,844) $ 176,739 $ 3,987 $172,752
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