Classmates.com 2007 Annual Report Download - page 68
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Net cash used for investing activities increased by $86.4 million for the year ended December 31, 2006 compared to the year ended
December 31, 2005. The increase was primarily the result of the following:
•
a $52.5 million increase in cash paid for acquisitions. We acquired MyPoints in April 2006 for $49.5 million, net of cash
acquired; we acquired The Names Database in March 2006 for $9.5 million, net of cash acquired; and we paid the remaining
$1.5 million due in connection with the acquisition of our photo sharing service in March 2006 compared to the initial payment of
$8.6 million in March 2005;
• a $31.6 million net decrease in proceeds from maturities and sales of short-term investments;
• a $4.8 million escrow deposit for the settlement of a pre-
acquisition liability related to our Juno Online Services, Inc. subsidiary in
the September 2006 quarter; and
• a $2.7 million increase in purchases of property and equipment.
These increases in uses of cash were partially offset by a $5.1 million decrease in purchases of rights, patents and trademarks, primarily
related to the purchase of proprietary rights associated with the NetZero trademark for $6.0 million, $5.5 million of which was paid in the March
2005 quarter. The remaining $0.5 million was paid in January 2006.
We have invested significantly in our network infrastructure, software licenses, leasehold improvements, and computer equipment and we
will need to make further significant investments in the future. Capital expenditures for the year ended December 31, 2006 were $24.3 million.
Net cash used for financing activities increased by $3.1 million, or 3%, for the year ended December 31, 2006 compared to the year ended
December 31, 2005. The increase was primarily the result of the following:
•
a $15.4 million increase in dividend payments; and
• an $8.4 million increase in payments on our term loan. In January 2006, we paid, in full, the outstanding balance of the term loan
of $54.2 million.
The increases in uses of cash were offset by:
•
an $11.5 million decrease in repurchases of common stock;
• a $5.4 million increase in proceeds from exercises of stock options and the employee stock purchase plan; and
• a $3.9 million increase in excess tax benefits from stock-based compensation as a result of the adoption of SFAS No. 123R,
which requires a portion of the tax benefits from stock-based compensation to be presented in financing activities versus its
historical presentation in operating activities.
In 2006, our Board of Directors declared quarterly cash dividends of $0.20 per share of common stock for a total of $53.5 million.
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