Classmates.com 2008 Annual Report Download - page 74

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discussed below. The increase in net cash provided by financing activities was partially offset by a combined $8.6 million decrease in proceeds
from exercises of stock options and proceeds from our employee stock purchase plan; a $3.2 million increase in repurchases of common stock in
connection with shares withheld upon vesting of restricted stock awards and restricted stock units to pay applicable employee withholding taxes;
and a $2.9 million decrease in excess tax benefits from equity awards.
In January, April and July 2008, our Board of Directors declared quarterly cash dividends of $0.20 per share of common stock, which were
paid on February 29, 2008, May 30, 2008 and August 29, 2008 and totaled $14.6 million, $14.9 million and $14.9 million, respectively.
Following the closing of the FTD acquisition, our Board of Directors decreased our quarterly cash dividend from $0.20 per share of common
stock to $0.10 per share of common stock. In October 2008, our Board of Directors declared a quarterly cash dividend of $0.10 per share of
common stock. The dividend was paid on November 28, 2008 and amounted to $8.7 million. In January 2009, our Board of Directors declared a
quarterly cash dividend of $0.10 per share of common stock. The record date for the dividend was February 13, 2009. The dividend was paid on
February 27, 2009 and totaled $8.8 million. In accordance with the terms of the FTD Credit Agreement, cash flows at FTD will, in general, not
be available to us (other than FTD). In addition, the UOL Credit Agreement imposes certain limitations on our ability to pay dividends. The
payment of future dividends is discretionary and is subject to determination by our Board of Directors each quarter following its review of our
financial performance and other factors. The payment of dividends will negatively impact cash flows from financing activities. Future cash flows
from financing activities may also be affected by our repurchases of our common stock. Our Board of Directors authorized a common stock
repurchase program (the "program") that allows us to repurchase shares of our common stock through open market or privately negotiated
transactions based on prevailing market conditions and other factors through December 31, 2009. From August 2001 through December 31,
2008, we had repurchased a total of $139.2 million of our common stock under the program. We have not repurchased any shares of our
common stock under the program since February 2005, and at December 31, 2008, the remaining amount available under the program was
$60.8 million. The UOL Credit Agreement imposes certain restrictions on our ability to repurchase shares of our common stock.
Cash flows from financing activities may also be negatively impacted by the withholding of a portion of shares underlying the restricted
stock units, restricted stock awards and stock awards we award to employees. We currently do not collect the applicable employee withholding
taxes upon vesting of restricted stock units and restricted stock awards and upon the issuance of stock awards from employees. Instead, we
automatically withhold, from the restricted stock units that vest and the stock awards that are issued, the portion of those shares with a fair
market value equal to the amount of the employee withholding taxes due. We then pay the applicable withholding taxes in cash. The withholding
of these shares, although accounted for as a common stock repurchase, does not reduce the amount available under the program. Similar to
repurchases of common stock under the program, the net effect of such withholding will adversely impact our cash flows from financing
activities. The amounts remitted in the years ended December 31, 2008 and 2007 were $8.8 million and $5.6 million, respectively, for which we
withheld 806,000 shares and 390,000 shares of common stock, respectively, that were underlying the restricted stock units and restricted stock
awards which vested and stock awards that were issued. The amount we pay in future quarters will vary based on our stock price and the number
of restricted stock units vesting and stock awards being issued during the quarter.
Based on our current projections, we expect to continue to generate positive cash flows from operations, at least in the next twelve months.
We intend to use our existing cash balances and future cash generated from operations to fund, among other things, both contractual payments
and optional prepayments on the outstanding balances under the UOL Credit Agreement and FTD Credit Agreement, dividend payments, if
declared by our Board of Directors; the development and acquisition of other services, businesses or technologies; to repurchase our common
stock underlying restricted
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