Advance Auto Parts 2005 Annual Report Download - page 40

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Fiscal Years Ended
2005 2004 2003
(in thousands)
Cash flows from operating activities:
Net income..................................................................................................................................................................... $ 234,725 $ 187,988 $ 124,935
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ................................................................................................................................... 119,938 104,877 100,737
Amortization of deferred debt issuance costs............................................................................................................ 620 1,082 1,470
Amortization of bond discount .................................................................................................................................. —— 3,640
Stock-based compensation ......................................................................................................................................... 3,942 3,891 3,543
Loss on disposal of property and equipment, net ...................................................................................................... 503 447 793
Provision for deferred income taxes .......................................................................................................................... 2,790 6,508 53,742
Tax benefit related to exercise of stock options ........................................................................................................ 30,300 23,749 7,964
Loss on extinguishment of debt ................................................................................................................................. —3,230 47,288
Net decrease (increase) in, net of business acquisitions:
Receivables, net ...................................................................................................................................................... 21,819 (15,945) 17,775
Inventories, net........................................................................................................................................................ (130,426) (87,669) (64,893)
Other assets............................................................................................................................................................. (23,963) 1,750 (7,216)
Net increase (decrease) in, net of business acquisitions:
Accounts payable.................................................................................................................................................... 35,610 19,673 97,535
Accrued expenses ................................................................................................................................................... 32,805 12,581 (27,985)
Other liabilities ....................................................................................................................................................... (3,452) 1,632 (3,407)
Net cash provided by operating activities........................................................................................................... 325,211 263,794 355,921
Cash flows from investing activities:
Purchases of property and equipment ........................................................................................................................... (216,214) (179,766) (101,177)
Business acquisitions, net of cash acquired................................................................................................................... (99,300) ——
Proceeds from sales of property and equipment ........................................................................................................... 12,734 12,944 15,703
Net cash used in investing activities ................................................................................................................... (302,780) (166,822) (85,474)
Cash flows from financing activities:
Increase (decrease) in bank overdrafts .......................................................................................................................... 29,986 (10,901) 30,216
Increase in financed vendor accounts payable .............................................................................................................. 62,455 56,896 —
Early extinguishment of debt......................................................................................................................................... —(105,000) (647,462)
Borrowings on note payable .......................................................................................................................................... 500 ——
Borrowings under credit facilities ................................................................................................................................. 1,500 256,500 452,600
Payments on credit facilities.......................................................................................................................................... (33,200) (126,500) (99,300)
Payment of debt related costs ........................................................................................................................................ —(3,509) (38,330)
Repayment of management loans.................................................................................................................................. —— 976
Proceeds from exercise of stock options ....................................................................................................................... 28,696 20,470 25,407
Repurchase of common stock........................................................................................................................................ (101,594) (146,370) —
(Decrease) increase in borrowings secured by trade receivables .................................................................................. (26,312) 6,276 3,048
Net cash used in financing activities .................................................................................................................. (37,969) (52,138) (272,845)
Net (decrease) increase in cash and cash equivalents
................................................................................................ (15,538) 44,834 (2,398)
Cash and cash equivalents,
beginning of period.......................................................................................................... 56,321 11,487 13,885
Cash and cash equivalents,
end of period.................................................................................................................... $ 40,783 $ 56,321 $ 11,487
38
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2005, January 1, 2005 and January 3, 2004