Nutrisystem 2008 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2008 Nutrisystem annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2008 2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ...................................................................... $46,253 $ 104,152 $ 85,130
Adjustments to reconcile net income to net cash provided by operating activities-
Loss on discontinued operation .................................................. 174 795 548
Depreciation and amortization ................................................... 8,508 5,812 2,464
(Gain) loss on disposal of fixed assets ............................................. (71) 303 17
Share–based expense .......................................................... 7,978 4,270 5,507
Deferred income tax expense (benefit) ............................................ 493 (1,887) 3,230
Equity and impairment loss ..................................................... 9,458 800 —
Changes in operating assets and liabilities
Accrued interest income ........................................................ 19 590 (343)
Receivables ................................................................. 1,840 (1,886) (9,746)
Inventories .................................................................. 31,237 (10,110) (38,213)
Other assets ................................................................. 3,248 (3,878) (7,342)
Accounts payable ............................................................. (13,970) 779 19,637
Accrued payroll and related benefits .............................................. 245 547 442
Deferred revenue ............................................................. 4,964 — —
Income taxes ................................................................ (6,664) 5,728 258
Other accrued expenses and liabilities ............................................. (1,231) 1,381 4,725
Net cash provided by operating activities of continuing operations .................. 92,481 107,396 66,314
Net cash (used in) provided by operating activities of discontinued operation .......... (192) 513 (674)
Net cash provided by operating activities ...................................... 92,289 107,909 65,640
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities ............................................... — (178,800) (119,350)
Sales of marketable securities ................................................... 1,750 243,250 94,950
Cash paid for acquisition of business .............................................. (5,717) — —
Capital additions ............................................................. (11,624) (18,703) (5,881)
Proceeds from the sale of fixed assets ............................................. 1,120 — —
Purchase of equity investment ................................................... — (14,258) —
Net cash (used in) provided by investing activities of continuing operations ........... (14,471) 31,489 (30,281)
Net cash provided by (used in) investing activities of discontinued operation .......... — 1,650 (1,679)
Net cash (used in) provided by investing activities ............................... (14,471) 33,139 (31,960)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit facility ................................................. 35,000 — —
Repayments of borrowings under credit facility ..................................... (35,000) — —
Exercise of stock options ....................................................... 1,022 1,931 3,632
Tax benefit from equity compensation awards, net ................................... 2,184 7,317 17,939
Debt issuance costs ........................................................... — (814) —
Repurchase and retirement of common stock ....................................... (67,085) (121,777) (45,368)
Payment of dividends .......................................................... (16,251) — —
Net cash used in financing activities of continuing operations ...................... (80,130) (113,343) (23, 797)
Net cash used in financing activities of discontinued operation ..................... — (300) —
Net cash used in financing activities .......................................... (80,130) (113,643) (23,797)
Effect of exchange rate changes on cash and cash equivalents ...................... (247) — —
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ................... (2,559) 27,405 9,883
CASH AND CASH EQUIVALENTS, beginning of year ................................. 41,190 13,785 3,902
CASH AND CASH EQUIVALENTS, end of year ....................................... 38,631 41,190 13,785
LESS CASH AND CASH EQUIVALENTS OF DISCONTINUED OPERATION, end of year . . . 322 511 316
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS, end of year ......... $38,309 $ 40,679 $ 13,469
The accompanying notes are an integral part of these consolidated financial statements.
43