Send us Feedback

Polo Ralph Lauren (RL)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

RL » Topics » Fiscal 2009 Compared to Fiscal 2008

This excerpt taken from the RL 10-K filed May 27, 2009.
Fiscal 2009 Compared to Fiscal 2008
 
                         
    Fiscal Years Ended        
    March 28,
 		    March 29,
 		       
    2009     2008     $ Change  
    (millions)  
 
Net cash provided by operating activities
  $ 774.2     $ 695.4     $ 78.8  
Net cash used in investing activities
    (458.0 )     (505.0 )     47.0  
Net cash used in financing activities
    (352.1 )     (260.5 )     (91.6 )
Effect of exchange rate changes on cash and cash equivalents
    (34.4 )     57.7       (92.1 )
                         
Net increase (decrease) in cash and cash equivalents
  $ (70.3 )   $ (12.4 )   $ (57.9 )
                         
 
Net Cash Provided by Operating Activities.  Net cash provided by operating activities increased to $774.2 million in Fiscal 2009, compared to $695.4 million in Fiscal 2008. This net increase in operating cash flow was primarily driven by:
 
  •  an increase in net income before depreciation, amortization, non-cash asset impairment charges, stock-based compensation and other non-cash expenses; and
 
  •  an approximate $84 million decrease in cash tax payments.
 
The above increases were partially offset by:
 
  •  an increase in inventory primarily due to the Japanese Childrenswear and Golf Acquisition, offset in part by the effects of ongoing inventory management across most businesses.
 
Other than the items described above, the changes in operating assets and liabilities were attributable to normal operating fluctuations.
 
Net Cash Used in Investing Activities.  Net cash used in investing activities was $458.0 million in Fiscal 2009, as compared to $505.0 million in Fiscal 2008. The net decrease in cash used in investing activities was primarily driven by:
 
  •  a decrease in net cash used to fund the Company’s acquisitions. In Fiscal 2009, the Company used $46.3 million primarily to fund the Japanese Childrenswear and Golf Acquisition and to complete the minority squeeze-out related to the Japanese Business Acquisitions. On a comparative basis, in Fiscal 2008, the Company used $188.7 million principally to fund the Japanese Business Acquisitions, net of cash acquired, and the Small Leathergoods Business Acquisition;
 
  •  a decrease in cash used in connection with capital expenditures. In Fiscal 2009, the Company spent $185.0 million for capital expenditures, as compared to $217.1 million in Fiscal 2008. The Company’s capital expenditures were primarily associated with global retail store expansion, construction and


51

Table of Contents

  renovation of department store shop-within-shops and investments in its facilities and technological infrastructure; and
 
  •  a change in restricted cash deposits. In Fiscal 2009, net restricted cash of $26.9 million was released primarily in connection with the partial settlement of certain international tax matters. On a comparative basis, Fiscal 2008 included net restricted cash deposits of $15.1 million.
 
The above decreases were partially offset by:
 
  •  an increase in cash used to purchase investments, less proceeds from sales and maturities of investments. In Fiscal 2009, the Company used $623.1 million to purchase investments, less $369.5 million of proceeds from sales and maturities of investments. On a comparative basis, in Fiscal 2008, $96.8 million was used to purchase investments, less $12.7 million of proceeds from sales and maturities of investments.
 
Net Cash Used in Financing Activities.  Net cash used in financing activities was $352.1 million in Fiscal 2009, as compared to $260.5 million in Fiscal 2008. The increase in net cash used in financing activities was primarily driven by:
 
  •  the repayment of ¥20.5 billion ($196.8 million as of the repayment date) of borrowings under a one-year term loan agreement pursuant to an amendment and restatement to the Company’s existing credit facility (the “Term Loan”) in Fiscal 2009 related to the Japanese Business Acquisitions. On a comparative basis, Fiscal 2008 included the receipt of proceeds from the Term Loan of $168.9 million as of the borrowing date; and
 
  •  a decrease in excess tax benefits from stock-based compensation arrangements of $22.3 million in Fiscal 2009 as compared to the prior fiscal year.
 
The above increases were partially offset by:
 
  •  a decrease in repurchases of the Company’s Class A common stock pursuant to the Company’s common stock repurchase program. Approximately 2.5 million shares of Class A common stock at a cost of $169.8 million (including approximately 0.4 million shares at a cost of $24.0 million that was traded prior to the end of Fiscal 2008 for which settlement occurred in April 2008) were repurchased in Fiscal 2009, as compared to approximately 6.0 million shares of Class A common stock at a cost of $475.4 million in Fiscal 2008.
 

"Fiscal 2009 Compared to Fiscal 2008" elsewhere:

Columbia Sportswear Company (COLM)
Cost Plus (CPWM)
Guess? (GES)
G-III Apparel Group (GIII)
GSI Commerce (GSIC)
Gymboree (GYMB)
COLE KENNETH PRODUCTIONS INC (KCP)
CHILDRENS PLACE RETAIL STORES INC (PLCE)
Urban Outfitters (URBN)
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki