Classmates.com 2005 Annual Report Download - page 78

UNITED ONLINE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
The accompanying notes are an integral part of these consolidated financial statements.
F- 9
Year Ended
December 31,
Six Months
Ended
December 31,
Year
Ended
June 30,
2005
2004
2003
2003
Cash flows from operating activities:
Net income
$
47,127
$
117,480
$
33,327
$
27,792
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
37,280
29,151
11,076
27,560
Stock
-
based compensation
9,952
2,449
—
107
Deferred taxes
1,577
(61,478
)
(5,632
)
(4,336
)
Tax benefits from stock options
15,170
25,156
7,000
1,464
Other
748
1,005
621
866
Changes in operating assets and liabilities (excluding the effects of
acquisitions):
Accounts receivable
(1,669
)
220
(1,645
)
(2,832
)
Other assets
1,806
(4,122
)
(3,180
)
4,050
Accounts payable and accrued liabilities
17,677
11,356
5,302
6,678
Deferred revenue
5,181
848
1,023
3,757
Other liabilities
2,198
1,895
—
—
Net cash provided by operating activities
137,047
123,960
47,892
65,106
Cash flows from investing activities:
Purchases of property and equipment
(21,653
)
(12,510
)
(5,075
)
(5,983
)
Purchases of rights, patents and trademarks
(5,562
)
(926
)
—
—
Purchases of short
-
term investments
(320,869
)
(329,083
)
(228,941
)
(141,422
)
Proceeds from maturities and sales of short
-
term investments
353,333
344,519
208,130
75,400
Proceeds from sales of assets, net
—
92
—
—
Proceeds from sale of cost
-
basis investment
—
—
—
750
Cash paid for acquisitions, net of cash acquired
(8,638
)
(110,102
)
—
(
8,388
)
Net cash used for investing activities
(3,389
)
(108,010
)
(25,886
)
(79,643
)
Cash flows from financing activities:
Payments on capital leases
(621
)
(166
)
(34
)
(2,968
)
Proceeds from term loan and line of credit, net
—
107,569
—
—
Payments on term loan
(45,792
)
—
—
—
Repayment of line of credit
—
(
10,300
)
—
—
Repayment of notes receivable from stockholders
—
—
—
1,653
Payments for dividends
(38,067
)
—
—
—
Proceeds from exercises of stock options
5,874
6,015
8,971
6,962
Proceeds from employee stock purchase plan
3,169
3,045
1,679
1,862
Repurchases of common stock and option shares exercised
(14,206
)
(74,509
)
(40,002
)
(7,777
)
Net cash provided by (used for) financing activities
(89,643
)
31,654
(29,386
)
(268
)
Effect of exchange rate changes on cash and cash equivalents
(130
)
—
—
—
Change in cash and cash equivalents
43,885
47,604
(7,380
)
(14,805
)
Cash and cash equivalents, beginning of period
56,512
8,908
16,288
31,093
Cash and cash equivalents, end of period
$
100,397
$
56,512
$
8,908
$
16,288
Supplemental disclosure of cash flows:
Cash paid for interest
$
4,245
$
9
$
1
$
86
Cash paid for income taxes
13,970
2,851
250
225
Supplemental disclosure of non
-
cash investing and financing activities:
Stock option tax benefits recognized in connection with the release of the deferred
tax valuation allowance
$
—
$
—
$
15,006
$
3,720
Reduction in goodwill and intangibles in connection with the release of the
deferred tax valuation allowance
—
20,782
1,399
—
Issuance of common stock and options assumed for acquisitions
—
2,880
—
—