Sally Beauty Supply 2013 Annual Report Download - page 79

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Net Cash Provided by Operating Activities
Net cash provided by operating activities during the fiscal year ended September 30, 2013 increased by
$12.9 million to $310.5 million compared to $297.6 million during the fiscal year ended September 30,
2012. The increase was primarily due to an improvement of approximately $21.0 million in operating
earnings, compared to the fiscal year ended September 30, 2012.
Net cash provided by operating activities during the fiscal year ended September 30, 2012 increased by
$5.7 million to $297.6 million compared to $291.8 million during the fiscal year ended September 30, 2011.
The increase was primarily due to an improvement of approximately $50.9 million in operating earnings,
partially offset by net changes in accounts payable and accrued liabilities of $34.6 million and an increase in
excess tax benefits from share-based compensation of $10.7 million for the fiscal year ended September 30,
2012, compared to the fiscal year ended September 30, 2011.
Net Cash Used by Investing Activities
Net cash used by investing activities during the fiscal year ended September 30, 2013 decreased by
$5.5 million to $107.0 million compared to $112.5 million during the fiscal year ended September 30, 2012.
This change was primarily due to a decrease of $21.3 million in cash used for acquisitions, net of cash
acquired, partially offset by an increase of $15.8 million in capital expenditures, primarily related to store
openings, the opening of a distribution facility in the Sally Beauty Supply segment and ongoing information
technology upgrades.
Net cash used by investing activities during the fiscal year ended September 30, 2012 decreased by
$34.2 million to $112.5 million compared to $146.7 million during the fiscal year ended September 30,
2011. This change was primarily due to a decrease of $43.6 million in cash used for acquisitions, net of cash
acquired, partially offset by an increase of $9.1 million in capital expenditures, primarily in connection with
design and implementation of a standardized enterprise resource planning (‘‘ERP’’) system in some of our
international operations.
Net Cash Used by Financing Activities
Net cash used by financing activities increased by $388.1 million to $396.8 million during the fiscal year
ended September 30, 2013, compared to $8.7 million during the fiscal year ended September 30, 2012. This
increase was primarily due to an increase in cash used to repurchase shares of our common stock of
$309.7 million, as well as a decrease in net borrowing under our credit facilities of $106.2 million, partially
offset by a decrease in debt issuance costs paid of $29.3 million. During the fiscal year ended
September 30, 2013, we repurchased approximately 18.9 million shares of our common stock (under the
2012 Share Repurchase Program and the 2013 Share Repurchase Program) at a cost of $509.7 million.
During the fiscal year ended September 30, 2012, we repurchased approximately 7.6 million shares of our
common stock from the CD&R Investors at a cost of $200.0 million.
Net cash used by financing activities during the fiscal year ended September 30, 2012 decreased by
$131.4 million to $8.7 million compared to $140.0 million during the fiscal year ended September 30, 2011.
This change was primarily due to net proceeds of $750.0 million from the issuance of our senior notes due
2019 and $859.3 million from the issuance of our senior notes due 2022 (please see ‘‘Long-Term Debt’’
below), and by increases in proceeds from exercises of stock options awarded under our share-based
compensation plans of $17.1 million and in excess tax benefits from share-based compensation of
$10.7 million. These amounts were partially offset by: (a) cash used to redeem our 9.25% senior notes due
2014 and our 10.50% senior subordinated notes due 2016 in the aggregate amount of $729.4 million
(including a call premium paid to redeem such notes of $24.4 million), (b) incremental optional
repayments of our senior term loan B facility (including the May 2012 repayment in full of such loan
facility) in the aggregate amount of $549.9 million, (c) cash used for our May 2012 repurchase of
approximately 7.6 million shares of our common stock from the CDR Investors for $200.0 million, and
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