Wendy's 2009 Annual Report Download - page 56

•Distributions received from our investment in a joint venture of $14.6 million; and
•Changes in operating assets and liabilities which resulted in a net use of cash of $2.7 million primarily
due to a $6.1 million increase in accounts and notes receivable and a $2.5 million decrease in accounts
payable, accrued expenses and other current liabilities partially offset by a $1.9 million decrease in
inventories and a $4.0 million decrease in prepaid expenses and other current assets.
Additionally, for the year ended January 3, 2010, we had the following significant sources and uses of
cash other than from operating activities:
•Proceeds of $607.5 million primarily from the issuance of the Senior Notes discussed below under
“Long-term Debt”;
•Net repayments of other long-term debt of $210.4 million, including a prepayment of $132.5 million
on our senior secured term loan;
•Cash capital expenditures totaling $101.9 million, including the construction of new restaurants
(approximately $18.1 million) and the remodeling of existing restaurants;
•Deferred financing costs of $38.4 million;
•Net investment proceeds of $38.1 million;
•Repurchases of common stock of $72.9 million, including commissions of $0.3 million and excluding
$5.8 million of repurchases that were not settled until after year end; and
•Dividend payments of $28.0 million.
The net cash provided by continuing operations before the effect of exchange rate changes on cash was
approximately $502.6 million.
Sources and Uses of Cash for 2010
Our anticipated consolidated cash requirements for continuing operations for 2010, exclusive of operating
cash flow requirements, consist principally of:
•Cash capital expenditures of approximately $165.0 million as discussed below in “Capital
Expenditures”;
•Quarterly cash dividends aggregating up to approximately $26.6 million as discussed below in
“Dividends”;
•Scheduled debt principal repayments aggregating $22.1 million, including a $5.0 million mandatory
prepayment on our secured equipment term loan;
•Potential repurchases of common stock of up to $121.6 million (including $5.8 million of repurchases
in 2009 that were not settled until after the 2009 year end) under the currently authorized stock
buyback program, including $41.8 million, excluding commissions of $0.2 million, already purchased
through February 26, 2010;
•Scheduled payments of $14.3 million pursuant to the Co-op Agreement;
•Severance payments of approximately $5.8 million related to our facilities relocation and corporate
restructuring accruals; and
•The costs of any potential business acquisitions or financing activities.
Based upon current levels of operations, we expect that cash flows from operations and available cash will
provide sufficient liquidity to meet operating cash requirements for the next twelve months.
Working Capital and Capitalization
Working capital, which equals current assets less current liabilities, was $403.8 million at January 3,
2010, reflecting a current ratio, which equals current assets divided by current liabilities, of 1.8:1. Working
capital at January 3, 2010 increased $525.5 million from a deficit of $121.7 million at December 28, 2008,
primarily due to $298.8 million in net cash provided by continuing operating activities and $259.4 million in
net cash provided by continuing financing activities.
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