Classmates.com 2009 Annual Report Download - page 81

Table of Contents
The payment of dividends reduces our cash flows from financing activities. In January, April, July, and October 2009, United Online, Inc.'s
Board of Directors declared quarterly cash dividends of $0.10 per share of common stock. The dividends were paid on February 27, May 29,
August 31, and November 30, 2009 and totaled $8.8 million, $9.1 million, $9.2 million, and $9.1 million, respectively. In February 2010, United
Online, Inc.'s Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock. The record date was February 14, 2010
and the dividend will be paid on February 26, 2010. In January, April and July 2008, United Online, Inc.'s Board of Directors declared quarterly
cash dividends of $0.20 per share of common stock. The dividends were paid on February 29, May 30 and August 29, 2008 and totaled
$14.6 million, $14.9 million and $14.9 million, respectively. Following the closing of the FTD acquisition, United Online, Inc.'s Board of
Directors decreased the cash dividend from $0.20 per share of common stock to $0.10 per share of common stock. In October 2008, United
Online, Inc.'s 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 totaled $8.7 million. The payment of future dividends is discretionary and is subject to determination by United
Online, Inc.'s Board of Directors each quarter following its review of our financial performance and other factors. In accordance with the terms
of the FTD Credit Agreement, cash flows at FTD will, in general, not be available to United Online, Inc. or segments other than the FTD
segment. In addition, the UOL Credit Agreement imposes certain limitations on our ability to pay dividends or use cash flows from operations
generated by our Communications and Classmates Media segments for the benefit of our FTD segment.
Future cash flows from financing activities may also be affected by our repurchases of our common stock. United Online, Inc.'s 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, 2010. From
August 2001 through December 31, 2009, 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, 2009, 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 from employees upon vesting of restricted stock units and restricted stock awards and upon the issuance of stock awards. 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, 2009 and 2008 were $6.8 million and $8.8 million, respectively, for which we
withheld 1,066,000 shares and 806,000 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 may 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 United Online, Inc.'s Board of Directors; the
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