Nutrisystem 2010 Annual Report Download - page 48

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2010 2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................................................... $33,637 $ 28,790 $ 46,253
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on discontinued operations ....................................................... 242 4,083 933
Depreciation and amortization ........................................................ 11,773 11,177 8,093
Loss (gain) on disposal of fixed assets .................................................. 120 113 (71)
Share–based expense ............................................................... 10,951 9,382 7,978
Deferred income tax expense (benefit) .................................................. 4,118 (2,531) 493
Equity and impairment loss ........................................................... — 4,000 9,458
Changes in operating assets and liabilities:
Accrued interest ................................................................... — — 19
Receivables ....................................................................... 3,682 4,308 1,856
Inventories, net .................................................................... 23,265 (929) 31,237
Supplier advances .................................................................. (15,240) — —
Other assets ....................................................................... (1,086) (2,499) 3,338
Accounts payable .................................................................. (6,766) 1,221 (14,484)
Accrued payroll and related benefits ................................................... 3,784 (1,029) 211
Deferred revenue ................................................................... 778 (1,125) 4,836
Income taxes ...................................................................... (2,525) 2,475 (6,664)
Other accrued expenses and liabilities .................................................. 200 (824) (1,231)
Net cash provided by operating activities of continuing operations ........................ 66,933 56,612 92,255
Net cash (used in) provided by operating activities of discontinued operations ............... (316) 852 34
Net cash provided by operating activities ............................................ 66,617 57,464 92,289
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities ..................................................... (540) (30,344) —
Sales of marketable securities ......................................................... 10,000 — 1,750
Capital additions ................................................................... (19,594) (8,184) (11,548)
Proceeds from the sale of fixed assets .................................................. 22 125 1,120
Net cash used in investing activities of continuing operations ............................ (10,112) (38,403) (8,678)
Net cash provided by (used in) investing activities of discontinued operations ............... 112 (168) (5,793)
Net cash used in investing activities ................................................ (10,000) (38,571) (14,471)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit facility ....................................................... 30,000 — 35,000
Repayments of borrowings under credit facility ........................................... — — (35,000)
Exercise of stock options ............................................................ 124 563 1,022
Equity compensation awards, net ...................................................... (3,079) (2,170) 2,184
Repurchase and retirement of common stock ............................................. (74,997) (1,939) (67,085)
Payment of dividends ............................................................... (20,662) (21,421) (16,251)
Net cash used in financing activities ................................................ (68,614) (24,967) (80,130)
Effect of exchange rate changes on cash and cash equivalents ........................... 9 (193) (247)
NET DECREASE IN CASH AND CASH EQUIVALENTS .................................... (11,988) (6,267) (2,559)
CASH AND CASH EQUIVALENTS, beginning of year ....................................... 32,364 38,631 41,190
CASH AND CASH EQUIVALENTS, end of year ............................................ 20,376 32,364 38,631
LESS CASH AND CASH EQUIVALENTS OF DISCONTINUED OPERATIONS, end of year ....... — 166 322
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS, end of year ............... $20,376 $ 32,198 $ 38,309
The accompanying notes are an integral part of these consolidated financial statements.
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