Petsmart 2005 Annual Report Download - page 65

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PetSmart, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
January 29,
2006
January 30,
2005
February 1,
2004
Fiscal Year Ended
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................... $ 182,490 $ 157,453 $ 124,951
Depreciation and amortization . . . .................................... 139,625 107,835 95,481
Deferred income taxes . . . ......................................... (16,602) (5,844) (1,856)
Loss on disposal of property and equipment .............................. 2,892 4,755 4,653
Stock-based compensation expense .................................... 22,398 28,452 20,240
Capital assets received through vendor resolution .......................... — — (1,288)
Non-cash interest expense . ......................................... 3,161 1,749 —
Changes in assets and liabilities:
Receivables, net .............................................. (9,751) (10,111) (6,883)
Merchandise inventories ......................................... (61,745) (27,727) (49,856)
Prepaid expenses and other current assets .............................. (3,154) (14,434) (115)
Other noncurrent assets . ......................................... (5,332) (3,436) (3,200)
Accounts payable ............................................. 25,760 8,205 3,828
Accrued payroll, bonus and employee benefits . .......................... 16,904 13,322 2,783
Accrued occupancy expenses . . .................................... 8,354 2,543 2,558
Other current liabilities . ......................................... 38,656 (15,187) 19,436
Deferred rents and other noncurrent liabilities . .......................... (1,314) 8,559 8,711
Net cash provided by operating activities . ............................... 342,342 256,134 219,443
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment . . . ............................... (165,737) (143,628) (159,343)
Purchases of available-for-sale investments ............................... (1,644,050) (775,386) (770,019)
Proceeds from sales of available-for-sale investments . . . ..................... 1,737,725 697,086 718,593
Investment in equity holdings . . . .................................... — (773) —
Proceeds from sales of property and equipment . . .......................... 262 456 315
Net cash used in investing activities ................................... (71,800) (222,245) (210,454)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock issued under stock incentive plans ................ 33,058 39,955 36,007
Purchase of treasury stock ......................................... (265,002) (79,998) (34,977)
Payments on capital lease obligations . . . ............................... (10,308) (7,806) (7,561)
Increase (decrease) in bank overdraft. . . . ............................... (2,698) (6,721) 9,716
Payments on deferred financing fees ................................... — — (464)
Tax benefits from tax deductions in excess of the compensation cost
recognized .................................................. 10,464 28,667 13,829
Cash dividends paid to stockholders ................................... (17,203) (15,893) (2,871)
Net cash (used in) provided by financing activities .......................... (251,689) (41,796) 13,679
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS . . 4,530 2,404 (220)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS................ 23,383 (5,503) 22,448
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR . ................ 87,032 92,535 70,087
CASH AND CASH EQUIVALENTS AT END OF YEAR . ..................... $ 110,415 $ 87,032 $ 92,535
The accompanying notes are an integral part of these consolidated financial statements.
F-6