Shake Shack 2016 Annual Report Download - page 63

Table of Contents
LIQUIDITY AND CAPITAL RESOURCES
Sources and Uses of Cash
Our primary sources of liquidity are cash from operations, cash on hand, and availability under our Revolving Credit Facility. As of December 30, 2015 , we
maintained a cash balance of $70.8 million and had $19.9 million of availability under our Revolving Credit Facility.
Our primary requirements for liquidity are to fund our working capital needs, operating lease obligations, capital expenditures and general corporate needs. Our
requirements for working capital are not significant because our guests pay for their food and beverage purchases in cash or on debit or credit cards at the time of
the sale and we are able to sell many of our inventory items before payment is due to the supplier of such items. Our ongoing capital expenditures are principally
related to opening new Shacks, existing Shack capital investments (both for remodels and maintenance), as well as investments in our corporate infrastructure.
In addition, we are obligated to make payments to the Continuing SSE Equity Owners under the Tax Receivable Agreement. As of December 30, 2015 , such
obligations totaled $173.1 million . Although the amount of any payments that must be made under the Tax Receivable Agreement may be significant, the timing
of these payments will vary and will generally be limited to one payment per member per year. The amount of such payments are also limited to the extent we
utilize the related deferred tax assets. The payments that we are required to make will generally reduce the amount of overall cash that might have otherwise been
available to us or to SSE Holdings, but we expect the cash tax savings we will realize from the utilization of the related deferred tax assets to fund the required
payments.
We believe that cash provided by operating activities, cash on hand and availability under the Revolving Credit Facility will be sufficient to fund our operating
lease obligations, capital expenditures, tax receivable agreement obligations and working capital needs for at least the next 12 months and the foreseeable future.
Summary of Cash Flows
The following table and discussion presents, for the periods indicated, a summary of our key cash flows from operating, investing and financing activities.
(in thousands) 2015
2014
2013
Net cash provided by operating activities $ 41,258
$ 13,584
$ 12,924
Net cash used in investing activities (34,514)
(28,515)
(16,194)
Net cash provided by financing activities 61,428
4,532
313
Increase (decrease) in cash and cash equivalents 68,172
(10,399)
(2,957)
Cash and cash equivalents at beginning of period 2,677
13,076
16,033
Cash and cash equivalents at end of period $ 70,849
$ 2,677
$ 13,076
Operating Activities
For fiscal 2015 , net cash provided by operating activities was $41.3 million compared to $13.6 million for fiscal 2014 , an increase of $27.7 million . This increase
was primarily driven by the opening of 13 new domestic company-operated Shack during fiscal 2015 .
For fiscal 2014 , net cash provided by operating activities was $13.6 million compared to $12.9 million for fiscal 2013 , an increase of $0.7 million , primarily
driven by the opening of 10 new domestic company-operated Shack during the fiscal year.
Investing Activities
For fiscal 2015 , net cash used in investing activities was $34.5 million compared to $28.5 million for fiscal 2014 , an increase of $6.0 million . This increase was
primarily due to an increase in capital expenditures to construct new domestic company-operated Shacks in such period compared to fiscal 2014 , as well as $2.4
million of purchases of marketable securities.
61 | Shake Shack Inc. Form 10-K