Lifetime Fitness 2006 Annual Report Download - page 46

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40
LIFE TIME FITNESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended
December 31,
2006 2005 2004
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income....................................................................................................... $ 50,565 $ 41,213 $ 28,908
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ...................................................................... 47,560 38,346 29,655
Deferred income taxes .................................................................................. 3,165 3,315 14,276
Loss on disposal of property and equipment, net.......................................... 946 539 543
Amortization of deferred financing costs...................................................... 696 1,025 1,035
Share-based compensation............................................................................ 7,556 388 76
Excess tax benefit from exercise of stock options......................................... (10,229) — —
Changes in operating assets and liabilities.................................................... 25,425 22,870 5,661
Other ............................................................................................................ 168 256 277
Net cash provided by operating activities .................................................. 125,852 107,952 80,431
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (excluding non-cash purchases
supplementally noted below) .........................................................................
(261,767)
(190,355)
(145,562)
Proceeds from sale of property and equipment ................................................. 6,629 4,411 2,139
Proceeds from property insurance settlement.................................................... 581 — —
Increase in other assets...................................................................................... (7,803) (3,083) (1,537)
Decrease (increase) in restricted cash................................................................ (823) 8,177 (1,120)
Net cash used in investing activities ........................................................... (263,183) (180,850) (146,080)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term borrowings................................................................ — 5,652 44,853
Repayments on long-term borrowings .............................................................. (19,120) (23,971) (68,986)
Proceeds from revolving credit facility, net ...................................................... 134,000 80,678 —
Increase in deferred financing costs .................................................................. (842) (1,175) —
Excess tax benefit from exercise of stock options............................................. 10,229 — —
Proceeds from exercise of stock options ........................................................... 15,264 6,183 1,061
Proceeds from initial public offering, net of underwriting discounts and
offering costs.................................................................................................. — — 80,398
Tax benefit from expenses incurred upon initial public offering....................... — — 88
Net cash provided by financing activities ...................................................... 139,531 67,367 57,414
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS................ 2,200 (5,531) (8,235)
CASH AND CASH EQUIVALENTS – Beginning of period.............................. 4,680 10,211 18,446
CASH AND CASH EQUIVALENTS – End of period........................................ $ 6,880 $ 4,680 $ 10,211
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash payments for interest, net of capitalized interest of $5,308, $3,965 and
$1,443, respectively ....................................................................................... $ 22,183 $ 17,212 $ 17,789
Cash payments for income taxes....................................................................... $ 17,005 $ 13,227 $ 8,986
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Property and equipment purchases financed through capital lease obligations. $ — $ 96 $ 145
Property purchase financed through note payable............................................ $ 1,620 $ — $ —
Conversion of redeemable preferred stock to common stock upon initial
public offering............................................................................................... $ — $ — $109,735
See notes to consolidated financial statements.