NetSpend 2010 Annual Report Download - page 77

Table of Contents
NetSpend Holdings, Inc.
Consolidated Statements of Cash Flows
Years Ended December 31, 2008, 2009 and 2010
See accompanying notes to the consolidated financial statements.
71
2008 2009 2010
(in thousands of dollars)
Cash flows from operating activities
Net income (loss)
$
(11,645
)
$
18,174
$
23,748
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Depreciation and amortization
8,899
10,297
12,725
Goodwill and acquired intangible asset impairment
26,285
—
—
Amortization of debt issuance costs
631
476
424
Loss on extinguishment of debt
—
—
734
Gain on settlement
—
(
1,192
)
—
Stock
-
based compensation
2,473
4,484
7,268
Tax benefit associated with stock options
(37
)
(18
)
(1,520
)
Provision for cardholder losses
2,362
4,930
10,254
Deferred income taxes
2,465
3,101
(1,505
)
Changes in operating assets and liabilities
Accounts receivable
543
1,037
(928
)
Income tax receivable or payable
(1,301
)
(203
)
4,227
Prepaid card supply
(523
)
396
178
Prepaid expenses
(835
)
(654
)
(23
)
Other current assets
(606
)
(826
)
838
Other long
-
term assets
(134
)
(1,754
)
(972
)
Accounts payable and accrued expenses
2,834
2,291
2,942
Cardholders' reserve
(2,303
)
(4,629
)
(7,085
)
Deferred revenue
(4,228
)
212
(825
)
Other liabilities
140
73
2,637
Net cash provided by operating activities
25,020
36,195
53,117
Cash flows from investing activities
Purchase of property and equipment
(10,715
)
(14,616
)
(6,045
)
Purchase of intangible assets
—
(
125
)
(4
)
Long
-
term investment
—
—
(
3,210
)
Net cash acquired from the acquisition of Skylight
6,986
—
—
Net cash paid for the acquisition of Procesa
(386
)
—
—
Net cash used in investing activities
(4,115
)
(14,741
)
(9,259
)
Cash flows from financing activities
Dividends paid
(25,000
)
(5,000
)
—
Dividend equivalents paid
—
(
213
)
(176
)
Proceeds from exercise of common stock warrants
37
—
83
Proceeds from exercise of common stock options
1,227
125
851
Tax benefit associated with stock options
37
18
1,520
Net cash proceeds from initial public offering
—
—
20,981
Proceeds from issuance of long
-
term debt
90,000
9,000
58,500
Issuance costs of long
-
term debt
(1,230
)
(361
)
(1,462
)
Principal payment on debt
(91,450
)
(25,140
)
(72,138
)
Cash purchase of treasury stock
(3,177
)
(219
)
(5,670
)
Net cash provided by (used in) financing activities
(29,556
)
(21,790
)
2,489
Net change in cash and cash equivalents
(8,651
)
(336
)
46,347
Cash and cash equivalents at beginning of year
30,141
21,490
21,154
Cash and cash equivalents at end of year
$
21,490
$
21,154
$
67,501
Supplemental disclosure of cash flow information
Cash paid for interest
$
4,069
$
4,893
$
2,764
Cash paid for income taxes
6,126
10,040
10,682
Non-cash investing activities
Capital lease entered into for the purchase of software
$
—
$
3,383
$
—
Stock issued for the acquisition of Skylight
93,549
—
—
Stock issued for the acquisition of Procesa
300
—
—