Advance Auto Parts 2004 Annual Report Download - page 34

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32
Fiscal฀Years฀Ended
2004 2003 2002
(in฀thousands)
Cash฀flows฀from฀operating฀activities:
฀ Net฀income฀........................................................................................................................... $฀187,988 $฀124,935 $฀ 65,019
฀ Adjustments฀to฀reconcile฀net฀income฀to฀net฀cash฀provided฀by฀operating฀activities:
฀ ฀ Depreciation฀and฀amortization฀........................................................................................ 104,877 100,737 94,090
฀ ฀ Amortization฀of฀deferred฀debt฀issuance฀costs฀................................................................. 1,082 1,470 3,536
฀ ฀ Amortization฀of฀bond฀discount฀....................................................................................... —3,640 13,076
฀ ฀ Non-cash฀equity฀compensation฀....................................................................................... 3,891 3,543 667
฀ ฀ Loss฀(gain)฀on฀disposal฀of฀property฀and฀equipment,฀net฀................................................ 447 793 (1,838)
฀ ฀ Provision฀for฀deferred฀income฀taxes฀............................................................................... 6,508 53,742 51,426
฀ ฀ Tax฀benefit฀related฀to฀exercise฀of฀stock฀options฀.............................................................. 23,749 7,964 6,968
฀ ฀ Loss฀on฀extinguishment฀of฀debt฀...................................................................................... 3,230 47,288 16,822
฀ ฀ Net฀(increase)฀decrease฀in:
฀ ฀ ฀ Receivables,฀net฀........................................................................................................... (15,945) 17,775 (6,610)
฀ ฀ ฀ Inventories,฀net฀............................................................................................................ (87,669) (64,893) (69,481)
฀ ฀ ฀ Other฀assets฀.................................................................................................................. 1,750 (7,216) (9,824)
฀ ฀ Net฀increase฀(decrease)฀in:
฀ ฀ ฀ Accounts฀payable฀......................................................................................................... 19,673 97,535 41,699
฀ ฀ ฀ Accrued฀expenses฀........................................................................................................ 12,581 (27,985) 34,110
฀ ฀ ฀ Other฀liabilities฀............................................................................................................ 1,632 (3,407) 3,336
฀ ฀ ฀ ฀ Net฀cash฀provided฀by฀operating฀activities฀............................................................... 263,794 355,921 242,996
Cash฀flows฀from฀investing฀activities:
฀ Purchases฀of฀property฀and฀equipment฀................................................................................. (179,766) (101,177) (98,186)
฀ Acquisitions,฀net฀of฀cash฀acquired฀...................................................................................... —— (13,176)
฀ Proceeds฀from฀sales฀of฀property฀and฀equipment฀................................................................ 12,944 15,703 33,357
฀ ฀ ฀ ฀ Net฀cash฀used฀in฀investing฀activities฀....................................................................... (166,822) (85,474) (78,005)
Cash฀flows฀from฀financing฀activities:
฀ (Decrease)฀increase฀in฀bank฀overdrafts฀.............................................................................. (10,901) 30,216 (33,879)
฀ Increase฀in฀financed฀vendor฀accounts฀payable฀................................................................... 56,896 — —
฀ Early฀extinguishment฀of฀debt฀.............................................................................................. (105,000) (647,462) (464,991)
฀ Borrowings฀under฀credit฀facilities฀....................................................................................... 256,500 452,600 308,100
฀ Payments฀on฀credit฀facilities฀............................................................................................... (126,500) (99,300) (66,400)
฀ Repayment฀of฀industrial฀development฀revenue฀bonds฀........................................................ —— (10,000)
฀ Payment฀of฀debt-related฀costs฀.............................................................................................. (3,509) (38,330) (10,955)
฀ Repayment฀of฀management฀loans฀........................................................................................ —976 1,700
฀ Proceeds฀from฀issuance฀of฀common฀stock,฀net฀of฀related฀expenses฀.................................. —— 88,658
฀ Proceeds฀from฀exercise฀of฀stock฀options฀............................................................................. 20,470 25,407 17,369
฀ Repurchase฀of฀common฀stock฀............................................................................................. (146,370) — —
฀ Increase฀in฀borrowings฀secured฀by฀trade฀receivables฀......................................................... 6,276 3,048 1,175
฀ ฀ ฀ ฀ Net฀cash฀used฀in฀financing฀activities฀...................................................................... (52,138) (272,845) (169,223)
Net฀increase฀(decrease)฀in฀cash฀and฀cash฀equivalents฀............................................................ 44,834 (2,398) (4,232)
Cash฀and฀cash฀equivalents,฀beginning฀of฀period฀..................................................................... 11,487 13,885 18,117
Cash฀and฀cash฀equivalents,฀end฀of฀period฀............................................................................... $฀ 56,321 $฀ 11,487 $฀ 13,885
Supplemental฀cash฀flow฀information:
฀ Interest฀paid฀......................................................................................................................... $฀ 15,616 $฀ 33,904 $฀ 60,081
฀ Income฀tax฀(payments)฀refunds,฀net฀.................................................................................... (86,051) (10,126) 2,910
Non-cash฀transactions:
฀ Accrued฀purchases฀of฀property฀and฀equipment฀.................................................................. 21,479 9,324 15,818
฀ Unrealized฀gain฀(loss)฀on฀hedge฀arrangements฀.................................................................. 1,343 63 (592)
฀ Accounts฀and฀note฀receivable฀upon฀disposal฀of฀property฀and฀equipment฀.......................... 1,225 — 925
The฀accompanying฀notes฀to฀consolidated฀financial฀statements฀are฀an฀integral฀part฀of฀these฀statements.
Consolidated฀Statements฀of฀Cash฀Flows
For฀the฀Years฀Ended฀January฀1,฀2005,฀January฀3,฀2004,฀and฀December฀28,฀2002