Sprouts Farmers Market 2013 Annual Report Download - page 74

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Table of Contents
Liquidity and Capital Resources
The following table sets forth the major sources and uses of cash for each of the periods set forth below, as well as our cash
and cash equivalents at the end of each period:
Since inception, we have financed our operations primarily through cash generated from our operations, private placements of
our equity, our IPO and borrowings under our current and former credit facilities. Our primary uses of cash are for purchases of
inventory, operating expenses, capital expenditures primarily for opening new stores, and debt service. We also used cash for the
Transactions in 2012 and 2011. In 2013, we generated $160.6 million in operating cash flows, ended 2013 with $77.7 million of
cash and cash equivalents and had no amounts drawn under our Revolving Credit Facility.
We believe that our existing cash and cash equivalents and cash anticipated to be generated by operations will be sufficient to
meet our anticipated cash needs for at least the next 12 months. Our future capital requirements will depend on many factors,
including new store openings, maintenance capital expenditures at existing stores, store initiatives and other corporate capital
expenditures and activities.
Operating Activities
Net cash provided by operating activities increased $76.2 million to $160.6 million for 2013 compared to $84.4 million for
2012, primarily related to our increased scale of operations following the Sunflower Transaction and new store openings. Between
these fiscal periods, we opened 19 stores. Additionally, 2013 includes the full impact of the acquired Sunflower stores. In addition to
the increase in the number of stores we operate, we leveraged fixed direct store expenses through comparable store sales growth
and a decrease in acquisition and integration costs of $19.5 million for the comparative periods. These increases were partially
offset by a $5.7 million increase in interest payments.
69
(1)
Period does not include results of operations for Sunflower stores acquired in May 2012.
(2) Period includes results of operations of Sunflower stores commencing on May 29, 2012. The period also included $7.6 million of acquisition and
integration costs related to the Sunflower Transaction.
(3) Period includes $5.6 million of acquisition and integration costs related to the Sunflower Transaction, $2.3 million of store closure and exit costs for
reserve for one store closed during period, $1.0 million for loss on extinguishment of debt related to renewal of a financing lease and $0.6 million loss
on disposal of used assets.
(4) Period includes $4.1 million of expense for integration costs related to the Sunflower Transaction and a benefit to store closure and exit costs of $1.4
million for a landlord
’
s voluntary release of a liability related to a previously closed store.
(5)
Period includes $0.8 million of store closure and exit costs primarily related to the closure of the former Sunflower warehouse.
(6) Period includes $8.2 million of loss on extinguishment of debt related to our April 2013 Refinancing and $0.9 million of store closure and exit costs
related to changes in assumptions about sublease income for previously closed locations.
(7) Period included $9.5 million of loss on extinguishment of debt related to the $340.0 million paydown on the Term Loan using proceeds from the IPO
and $3.2 million for team member IPO bonuses paid.
(8) Period includes $2.0 million of expense related to the secondary offering, including payroll taxes on options exercises and $1.0 million of loss on
extinguishment of debt related to the $40.0 million additional principal payment made during the period.
Fiscal 2013
Fiscal 2012
Fiscal 2011
Cash and cash equivalents at end of period
$
77,652
$
67,211
$
14,542
Cash provided by operating activities
$
160,588
$
84,431
$
52,384
Cash used in investing activities
$
(86,291
)
$
(166,703
)
$
(260,505
)
Cash provided by (used in) financing activities
$
(63,856
)
$
134,941
$
217,745