GFSI » Topics » Liquidity and Capital Resources

This excerpt taken from the GFSI 10-Q filed May 14, 2009.

Liquidity and Capital Resources

 

The following table sets forth the elements of our cash flow statement for the three months ended March 31, (in thousands):

 

 

 

For the three months ended March 31,

 

 

 

2009

 

2008

 

Net cash (used in) provided by operating activities

 

$

(827

)

$

4,926

 

Net cash used in investing activities

 

(1,040

)

(34,370

)

Net cash (used in) provided by financing activities

 

(772

)

30,771

 

Net change in cash and cash equivalents

 

$

(2,639

)

$

1,327

 

 

These excerpts taken from the GFSI 10-K filed Mar 31, 2009.

Liquidity and Capital Resources

        The following table sets forth the elements of our cash flow statement for the years ended December 31, (in thousands):

 
  2008   2007  

Net cash provided by operating activities

  $ 16,111   $ 2,814  
           

Net cash used by investing activities

  $ (40,680 ) $ (12,147 )
           

Net cash provided by financing activities

  $ 27,213   $ 5,221  
           

Liquidity and Capital Resources



        The following table sets forth the elements of our cash flow statement for the years ended December 31, (in thousands):














































































 
 2008  2007  

Net cash provided by operating activities

 $16,111 $2,814 
      

Net cash used by investing activities

 $(40,680)$(12,147)
      

Net cash provided by financing activities

 $27,213 $5,221 
      





This excerpt taken from the GFSI 10-Q filed Mar 29, 2007.

Liquidity and Capital Resources

          The following table sets forth the elements of our cash flow statement for the following periods:

 

 

Three Months Ended
March 31,

 

 

 


 

 

 

2005

 

2006

 

 

 



 



 

Net cash provided by operating activities

 

$

408

 

$

2,066

 

Net cash used in investing activities

 

 

(219

)

 

(16,973

)

Net cash provided by (used in) financing activities

 

 

(189

)

 

16,130

 

This excerpt taken from the GFSI 10-K filed Mar 29, 2007.

Liquidity and Capital Resources

          The following table sets forth the elements of our cash flow statement for the following periods:

 

 

Year Ended December 31,

 

 

 


 

 

 

2004

 

2005

 

2006

 

 

 



 



 



 

 

 

(In thousands)

 

Net cash provided by operating activities

 

$

6,471

 

$

4,389

 

 

5,295

 

Net cash used in investing activities

 

 

(1,201

)

 

(8,331

)

 

(19,247

)

Net cash provided by (used in) financing activities

 

 

(6,849

)

 

4,072

 

 

20,575

 

This excerpt taken from the GFSI DEF 14A filed Nov 17, 2005.

Liquidity and Capital Resources

          Captiva’s primary sources of capital since inception have historically been cash provided by short-term and long-term debt, and from investment by members.  From inception through September 30, 2005, Captiva used approximately $194,000 from operations.  From inception through September 30, 2005, Captiva used approximately $2.4 million in its investing activities, consisting primarily of the acquisition of the assets of TBT.  

          Cash provided by financing activities totaled $2.7 million from inception through September 30, 2005, which primarily is the result of debt financing for the acquisition.

          Upon formation, Captiva entered into loan agreements with two of its founders totaling $250,000.  These loans were due and payable 60 months from the date of issuance and bear interest at 5% per annum.  On June 1, 2005, Captiva obtained a $1,600,000 mezzanine loan from Salem Capital Partners, L.P.  Loan payments to Salem precluded the payment of dividends (other than to members to pay taxes) and restricted the amount of payroll to certain of Captiva’s employees.  Also on June 1, 2005, Captiva obtained a $1,500,000 revolving line of credit from The Peoples Bank.  As of September 30, 2005, $851,000 was outstanding on the line of credit.  Upon the closing of the merger, all of Captiva’s debt will be repaid in full from the cash portion of the merger consideration.

50


          As of September 30, 2005, Captiva had working capital of approximately $300,000 compared to a working capital deficit of approximately $46,000 as of December 31, 2004.  The change in working capital resulted primarily from the capital infusion as well as the long-term debt agreements. 

This excerpt taken from the GFSI 10-Q filed Nov 15, 2005.

Liquidity and Capital Resources

          Our primary sources of capital have historically been cash provided by operations, short-term and long-term debt, and investment from stockholders.  During the first nine months of 2005 our operating activities provided cash of approximately $2.6 million. We used approximately $1.9 million in our investing activities, consisting primarily of capital expenditures of $424,000 and $711,000 of software development costs, as well as $508,000 for the acquisition of the KVI leasing business. We currently estimate that total capital expenditures for 2005 will be approximately $500,000 (excluding expenditures for software development costs).

          Cash used in financing activities totaled $522,000 for the first nine months of 2005, which is the result of net proceeds of $1.5 million from draws against our line of credit as well as $396,000 of proceeds received from employee stock option exercises and stock purchases and $71,000 net proceeds from lease financing.  Offsetting these financing receipts were repayments of long-term debt totaling $1.2 million, dividend payments of $1.1 million, and repurchase of common stock of $150,000.

          The Company was the borrower under a credit agreement dated August 7, 1998 between the Company as borrower, Fleet National Bank as administrative agent and a syndicate of other lenders (the “1998 Credit Facility”). The 1998 Credit Facility was paid in full on January 20, 2004 using the net proceeds received from the Lightyear transaction and the net proceeds from the Bank of America Credit Facility. 

          The Company entered into the Bank of America Credit Facility on January 19, 2004. The credit facility is secured by a pledge of all of the Company’s assets and contains financial and non-financial covenants. The new credit agreement includes a term loan in the amount of $5.0 million and a revolving line of credit of up to $6.0 million for a total facility of up to $11.0 million. The revolving line of credit includes a $1.0 million letter of credit sub-limit. As of September 30, 2005, $3.7 million was outstanding under the Bank of America Credit Facility.

22


          The Bank of America Credit Facility expires on January 19, 2007. The revolving credit commitment reduces by $1.0 million on each of the first two anniversary dates.

          The term loan is repayable in twelve equal quarterly installments of $416,667, along with interest at the applicable margin. Interest is also due on the revolving loan quarterly at the applicable margin. The interest rates of the term loan and revolving loan are based on a pricing grid using the Company’s Funded Debt to Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) Ratio, as follows (The Company has the option of choosing Libor or Base Rate):

Funded Debt to EBITDA

 

Libor

 

Base Rate


 


 


Less than or equal to 1.0

 

Libor + 2.25%

 

0

Greater than 1.0 but less than or equal to 1.25

 

Libor + 2.50%

 

0

Greater than 1.25 but less than or equal to 1.50

 

Libor + 2.75%

 

0

          As of September 30, 2005, the Company’s applicable borrowing rate, calculated as Libor + 2.25%, was 5.76%.

          The credit agreement includes certain restrictive financial covenants, measured quarterly, relating to net worth, maximum annual capital expenditures, funded debt to EBITDA ratio and fixed charges coverage ratio, as defined in the credit agreement.  The credit agreement also contains certain non-financial covenants, including but not limited to a prohibition on declaring and paying any cash dividends on any class of stock, except for the Series A and Series B preferred shares outstanding, provided, that no default, as defined in the credit agreement, exists as of the date of payment and such payment will not cause a default.  As of September 30, 2005, the Company was, and expects to be throughout 2005, in compliance with the credit agreement covenants.

          As of September 30, 2005, we had working capital of approximately $154,000 compared to a working capital deficit of approximately $158,000 as of December 31, 2004. The change in working capital resulted primarily from decreases in accrued liabilities, partially offset by an increase in accounts receivable.  We believe that our line of credit availability along with future operating cash flows will be sufficient to meet our working capital and capital expenditure requirements for the next twelve months.

          We may, in the future, acquire businesses or products complementary to our business, although we cannot be certain that any such acquisitions will be made. The need for cash to finance additional working capital or to make acquisitions may cause us to seek additional equity or debt financing. We cannot be certain that such financing will be available, or that our need for higher levels of working capital will not have a material adverse effect on our business, financial condition or results of operations.

This excerpt taken from the GFSI 10-Q filed Aug 10, 2005.

Liquidity and Capital Resources

          Our primary sources of capital have historically been cash provided by operations, short-term and long-term debt, and investment from stockholders.  During the first six months of 2005 our operating activities provided cash of approximately $1.4 million. We used approximately $589,000 in our investing activities, consisting primarily of capital expenditures of $206,000 and $403,000 of software development costs.  We currently estimate that total capital expenditures for 2005 will be approximately $500,000 (excluding expenditures for software development costs).

          Cash used in financing activities totaled $853,000 for the first six months of 2005, which is the result of net proceeds of $770,000 from draws against our line of credit as well as $378,000 of proceeds received from employee stock option exercises and stock purchases.  Offsetting these financing receipts were repayments of long-term debt totaling $833,000, dividend payments of $1.1 million, and repurchase of common stock of $88,000.

          The Company was the borrower under a credit agreement dated August 7, 1998 between the Company as borrower, Fleet National Bank as administrative agent and a syndicate of other lenders (the “1998 Credit Facility”). The 1998 Credit Facility was paid in full on January 20, 2004 using the net proceeds received from the Lightyear transaction and the net proceeds from the Bank of America Credit Facility. 

          The Company entered into the Bank of America Credit Facility on January 19, 2004. The credit facility is secured by a pledge of all of the Company’s assets and contains financial and non-financial covenants. The new credit agreement includes a term loan in the amount of $5.0 million and a revolving line of credit of up to $6.0 million for a total facility of up to $11.0 million. The revolving line of credit includes a $1.0 million letter of credit sub-limit. As of June 30, 2005, $3.4 million was outstanding under the Bank of America Credit Facility.

          The Bank of America Credit Facility expires on January 19, 2007. The revolving credit commitment reduces by $1.0 million on each of the first two anniversary dates.

          The term loan is repayable in twelve equal quarterly installments of $416,667, along with interest at the applicable margin. Interest is also due on the revolving loan quarterly at the applicable margin. The interest rates of the term loan and revolving loan are based on a pricing grid using the Company’s Funded Debt to Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) Ratio, as follows (The Company has the option of choosing Libor or Base Rate):

Funded Debt to EBITDA

 

Libor

 

Base Rate

 


 



 



 

Less than or equal to 1.0

 

Libor + 2.25%

 

0

 

Greater than 1.0 but less than or equal to 1.25

 

Libor + 2.50%

 

0

 

Greater than 1.25 but less than or equal to 1.50

 

Libor + 2.75%

 

0

 

          As of June 30, 2005, the Company’s applicable borrowing rate, calculated as Libor + 2.25%, was 5.35%.

          The credit agreement includes certain restrictive financial covenants, measured quarterly, relating to net worth, maximum annual capital expenditures, funded debt to EBITDA ratio and fixed charges coverage ratio, as defined in the credit agreement.  The credit agreement also contains certain non-financial covenants, including but not limited to a prohibition on declaring and paying any cash dividends on any class of stock, except for the Series A and Series B preferred shares outstanding, provided, that no default, as defined in the credit agreement, exists as of the date of payment and such payment will not cause a default.  As of June 30, 2005, the Company was, and expects to be throughout 2005, in compliance with the credit agreement covenants.

          As of June 30, 2005, we had working capital of approximately $1.1 million compared to a working capital deficit of approximately $158,000 as of December 31, 2004. The change in working capital resulted primarily from decreases in accounts payable and accrued liabilities, partially offset by an increase in accounts receivable.  We believe that our line of credit availability along with future operating cash flows will be sufficient to meet our working capital and capital expenditure requirements for the next twelve months.

20


          We may, in the future, acquire businesses or products complementary to our business, although we cannot be certain that any such acquisitions will be made. The need for cash to finance additional working capital or to make acquisitions may cause us to seek additional equity or debt financing. We cannot be certain that such financing will be available, or that our need for higher levels of working capital will not have a material adverse effect on our business, financial condition or results of operations.

This excerpt taken from the GFSI 10-Q filed May 13, 2005.

Liquidity and Capital Resources

          Our primary sources of capital have historically been cash provided by operations, short-term and long-term debt, and investment from stockholders.  During the first three months of 2005, our operating activities provided cash of approximately $408,000. We used approximately $219,000 in our investing activities, consisting of capital expenditures of $66,000 and $153,000 of software development costs.  We currently estimate that total capital expenditures and software development costs for 2005 will be approximately $1.0 million.

          Cash used by financing activities totaled $189,000 for the first three months of 2005, which is the result of draws against the revolving line of credit and proceeds from the exercise of employee stock options, offset by payments of preferred dividends of $540,000 and term debt of $416,000.

          The Company entered into the Bank of America Credit Facility on January 19, 2004. The credit facility is secured by a pledge of all of the Company’s assets and contains financial and non-financial covenants. The new credit agreement includes a term loan in the amount of $5.0 million and a revolving line of credit of up to $6.0 million for a total facility of up to $11.0 million. The revolving line of credit includes a $1.0 million letter of credit sub-limit. As of March 31, 2005, $3.4 million was outstanding under the Bank of America Credit Facility.

          The Bank of America Credit Facility expires on January 19, 2007. The revolving credit commitment reduces by $1.0 million on each of the first two anniversary dates.

          The term loan is repayable in twelve equal quarterly installments of $416,667, along with interest at the applicable margin. Interest is also due on the revolving loan quarterly at the applicable margin. The interest rates of the term loan and revolving loan are based on a pricing grid using the Company’s Funded Debt to Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) Ratio, as follows:

Funded Debt to EBITDA

 

Libor

 

Base Rate

 


 

 


 

 


 

Less than or equal to 1.0

 

 

Libor + 2.25%

 

 

0

 

Greater than 1.0 but less than or equal to 1.25

 

 

Libor + 2.50%

 

 

0

 

Greater than 1.25 but less than or equal to 1.50

 

 

Libor + 2.75%

 

 

0

 

As of March 31, 2005, the rate, calculated as Libor + 2.25%, was 4.81%.

18


          The credit agreement includes certain restrictive financial covenants, measured quarterly, relating to net worth, maximum annual capital expenditures, funded debt to EBITDA ratio and fixed charges coverage ratio, as defined in the credit agreement.  As of March 31, 2005, the Company was in compliance with all such covenants.

          The credit agreement contains certain non-financial covenants, including but not limited to a prohibition on declaring and paying any cash dividends on any class of stock, except for the Series A and Series B preferred shares outstanding, provided that no default under the credit agreement exists as of the date of payment and such payment will not cause such a default.  As of March 31, 2005, the Company was, and expects to be throughout 2005, in compliance with such non-financial covenants.

          As of March 31, 2005, we had working capital of approximately $647,000 compared to a working capital deficit of approximately $158,000 as of December 31, 2004. The change in working capital resulted primarily from a decreases in accounts payable and accrued liabilities of $764,000 and deferred revenue of $100,000 offset by a decrease in deferred tax assets of $202,000 and a $140,000 decrease in prepaid and other current assets. The decreases in accounts payable and accrued liabilities are primarily attributable to lower overall operating expenses.  We believe that our line of credit availability along with future operating cash flows will be sufficient to meet our working capital and capital expenditure requirements for the next twelve months.

          We may, in the future, acquire businesses or products complementary to our business, although we cannot be certain that any such acquisitions will be made. The need for cash to finance additional working capital or to make acquisitions may cause us to seek additional equity or debt financing. We cannot be certain that such financing will be available, or that our need for higher levels of working capital will not have a material adverse effect on our business, financial condition or results of operations.

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