Chipotle 2006 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2006 Chipotle annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

Chipotle Mexican Grill, Inc.
Consolidated Statement of Cash Flows
(in thousands)
Years ended December 31
2006 2005 2004
Operating activities
Net income ............................................................... $ 41,423 $ 37,696 $ 6,126
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ............................................ 34,253 28,026 21,802
Current income tax (benefit) provision ..................................... (782) 15,541 (8,873)
Deferred income tax (benefit) provision .................................... (1,857) (2,654) 11,485
Change in valuation allowance ............................................ — (20,343) (2,612)
Loss on disposal of assets ................................................ 3,982 3,119 1,678
Bad debt allowance ..................................................... (59) (359) 804
Stock-based compensation ............................................... 5,193 2,103 193
Other ................................................................ (323) (678) —
Changes in operating assets and liabilities:
Accounts receivable ................................................ (2,873) 916 (689)
Inventory ......................................................... (880) (369) (790)
Prepaid expenses ................................................... 1,499 (3,757) (1,092)
Other assets ....................................................... (242) (477) (145)
Accounts payable .................................................. 912 5,553 (2,345)
Accrued liabilities .................................................. 11,304 6,485 6,717
Income tax payable ................................................. 2,222 — —
Due (from) to McDonald’s Corp. ...................................... — (177) 155
Deferred rent ...................................................... 9,714 6,806 7,258
Other long-term liabilities ........................................... 111 — —
Net cash provided by operating activities ........................................ 103,597 77,431 39,672
Investing activities
Purchases of leasehold improvements, property and equipment, net ................... (97,312) (83,036) (95,615)
Net cash used in investing activities ............................................ (97,312) (83,036) (95,615)
Financing activities
Net proceeds from sale of common stock ....................................... 133,333 — 64,923
Costs of issuing common stock ............................................... (12,436) — —
Proceeds from McDonalds—tax sharing agreement ............................... 19,468 7,402 —
Proceeds from option exercises ............................................... 2,752 — —
Excess tax benefit on stock-based compensation .................................. 1,357 — —
Proceeds from McDonald’s—intercompany notes ................................. 2,248 37,905 55,139
Payments to McDonald’s—intercompany notes .................................. — (38,743) (66,000)
Changes in cash overdrafts ................................................... — (4,431) 1,881
Proceeds from deemed landlord financing ....................................... 635 3,549 —
Payments on deemed landlord financing ........................................ (61) (16) —
Net cash provided by financing activities ........................................ 147,296 5,666 55,943
Net change in cash and cash equivalents ........................................ 153,581 61 —
Cash and cash equivalents at beginning of year ................................... 61 — —
Cash and cash equivalents at end of year ........................................ $153,642 $ 61 $ —
Supplemental disclosures of cash flow information
Taxes paid ................................................................ $ 26,316 $ — $ —
Non-cash pre-opening rent capitalized to leasehold improvements .................... $ — $ 2,667 $ 2,317
Net purchases of leasehold improvements, property and equipment accrued in accounts
payable ................................................................ $ (5,467) $ (4,168) $ 4,127
See accompanying notes to consolidated financial statements.
39