Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 9

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 2
Chunk 9
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 increase in tax rates were an increase in tax expenses on share-based compensation and non-deductible losses in the current year as opposed to non-taxable gains in the prior year from the market performance of insurance products used to fund certain non-qualified retirement plans, partially offset by a decrease in the impact of non-deductible goodwill related to the sale of company-operated restaurants.

LIQUIDITY AND CAPITAL RESOURCES

General

Our primary sources of short-term and long-term liquidity and capital resources are cash flows from operations and borrowings available under our credit facilities. Our cash requirements consist principally of working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements, franchise tenant improvement allowance and incentive distributions, dividend payments, and obligations related to our benefit plans. We generally use available cash flows from operations to invest in our business, service our debt obligations, pay dividends and repurchase shares of our common stock.

As of January 19, 2025, the Company had $104.6 million of cash and restricted cash on its consolidated balance sheet and available borrowings of $170.7 million under our $150.0 million Variable Funding Notes and our $75.0 million revolving credit facility. The Company continually assesses the optimal sources and uses of cash for our business. We review our balance sheet for any undervalued assets and pursue opportunities for capital sources, including the sale of our owned Jack in the Box properties and refranchising, primarily for Del Taco in the near term.

Based upon current levels of operations and anticipated growth, we expect that cash flows from operations, combined with our securitized financing facility and revolving credit facility, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future.

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Cash Flows

The table below summarizes our cash flows from continuing operations (in thousands):

 Sixteen Weeks Ended January 19,2025January 21,2024Total cash provided by (used in):Operating activities$105,656 $(22,675)Investing activities(26,084)(36,574)Financing activities(29,106)(44,124)Net cash flows$50,466 $(103,373)

Operating Activities. Operating cash flows increased $128.3 million compared with a year ago. This is primarily due to a favorable change in working capital of $132.5 million, partially offset by lower net income, when adjusted for non-cash items, of $4