Nutrisystem 2009 Annual Report Download - page 49

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2009 2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .......................................................................... $28,790 $ 46,253 $ 104,152
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on discontinued operation ....................................................... 246 174 795
Depreciation and amortization ....................................................... 16,294 8,508 5,812
Loss (gain) on disposal of fixed assets ................................................. 113 (71) 303
Share–based expense .............................................................. 9,382 7,978 4,270
Deferred income tax (benefit) expense ................................................. (2,531) 493 (1,887)
Equity and impairment loss .......................................................... 4,000 9,458 800
Changes in operating assets and liabilities:
Accrued interest income ............................................................ — 19 590
Receivables ...................................................................... 4,199 1,840 (1,886)
Inventories ....................................................................... (929) 31,237 (10,110)
Other assets ...................................................................... (2,431) 3,248 (3,878)
Accounts payable ................................................................. 949 (13,970) 779
Accrued payroll and related benefits .................................................. (1,054) 245 547
Deferred revenue .................................................................. (1,111) 4,964 —
Income taxes ..................................................................... 2,475 (6,664) 5,728
Other accrued expenses and liabilities ................................................. (825) (1,231) 1,381
Net cash provided by operating activities of continuing operations ....................... 57,567 92,481 107,396
Net cash (used in) provided by operating activities of discontinued operation .............. (103) (192) 513
Net cash provided by operating activities ........................................... 57,464 92,289 107,909
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities .................................................... (30,344) — (178,800)
Sales of marketable securities ........................................................ — 1,750 243,250
Cash paid for acquisition of business .................................................. — (5,717) —
Capital additions .................................................................. (8,352) (11,624) (18,703)
Proceeds from the sale of fixed assets ................................................. 125 1,120 —
Purchase of equity investment ....................................................... — — (14,258)
Net cash (used in) provided by investing activities of continuing operations ............... (38,571) (14,471) 31,489
Net cash provided by investing activities of discontinued operation ...................... — — 1,650
Net cash (used in) provided by investing activities ................................... (38,571) (14,471) 33,139
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit facility ...................................................... — 35,000 —
Repayments of borrowings under credit facility .......................................... — (35,000) —
Exercise of stock options ........................................................... 563 1,022 1,931
Equity compensation awards, net ..................................................... (2,170) 2,184 7,317
Debt issuance costs ................................................................ — — (814)
Repurchase and retirement of common stock ............................................ (1,939) (67,085) (121,777)
Payment of dividends .............................................................. (21,421) (16,251) —
Net cash used in financing activities of continuing operations ........................... (24,967) (80,130) (113,343)
Net cash used in financing activities of discontinued operation .......................... — — (300)
Net cash used in financing activities ............................................... (24,967) (80,130) (113,643)
Effect of exchange rate changes on cash and cash equivalents .......................... (193) (247) —
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ........................ (6,267) (2,559) 27,405
CASH AND CASH EQUIVALENTS, beginning of year ...................................... 38,631 41,190 13,785
CASH AND CASH EQUIVALENTS, end of year ........................................... 32,364 38,631 41,190
LESS CASH AND CASH EQUIVALENTS OF DISCONTINUED OPERATION, end of year ........ 166 322 511
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS, end of year .............. $32,198 $ 38,309 $ 40,679
The accompanying notes are an integral part of these consolidated financial statements.
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