Pier 1 2007 Annual Report Download - page 40

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Pier 1 Imports, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
2007 2006 2005
Year Ended
Cash flow from operating activities:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(227,645) $ (39,804) $ 60,457
Adjustments to reconcile to net cash provided by (used in) operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,496 78,781 75,624
Loss on disposal of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 1,781 315
Loss on impairment of fixed assets and long-lived assets . . . . . . . . . . . . . . . . . 36,369 6,024 741
Write-down of assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 7,441 —
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,464 636 —
Deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,915 10,766 7,710
Lease termination expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,003 4,176 2,243
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,576 (14,496) 2,035
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,121) 236 3,446
Change in cash from:
Sale of receivables in exchange for beneficial interest in securitized receivable . . (15,914) (74,550) (91,071)
Purchase of proprietary credit card receivables and other . . . . . . . . . . . . . . . . . (97,740) — —
Proceeds from the sale of proprietary credit card operations . . . . . . . . . . . . . . . 144,622 — —
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,757 882 (6,860)
Other accounts receivable, prepaid expenses and other current assets . . . . . . . . . (14,428) (22,778) (11,302)
Income tax receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,955) (18,011) —
Accounts payable and accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,388) 7,369 21,572
Income taxes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,595) (6,966) (14,116)
Other noncurrent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566 (2,558) 336
Other noncurrent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,074) (3,226) —
Net cash provided by (used in) operating activities . . . . . . . . . . . . . . . . . . . (104,905) (64,297) 51,130
Cash flow from investing activities:
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,600) (50,979) (99,239)
Proceeds from disposition of properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 1,401 3,852
Proceeds from sale of discontinued operation (net of $3,397 cash included in sale
of discontinued operations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,601 — —
Proceeds from sale of Pier 1 National Bank (net of $2,208 cash included in sale of
Pier 1 National Bank) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,754 — —
Proceeds from sale of restricted investments . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,707 3,226 —
Purchase of restricted investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,712) (3,500) (10,807)
Collections of principal on beneficial interest in securitized receivables. . . . . . . . . 21,907 60,240 99,712
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . 31,830 10,388 (6,482)
Cash flow from financing activities:
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,398) (34,667) (34,762)
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (4,047) (58,210)
Proceeds from stock options exercised, stock purchase plan and other, net. . . . . . . 4,719 7,641 12,473
Issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 165,000 —
Notes payable borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,000 86,500 —
Repayment of notes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (69,000) (86,500) —
Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (283) (6,739) (169)
Purchase of call option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (9,145) —
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . (12,962) 118,043 (80,668)
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (86,037) 64,134 (36,020)
Cash and cash equivalents at beginning of period (including cash at discontinued
operation of $7,100, $3,359 and $6,148, respectively) . . . . . . . . . . . . . . . . . . . . . 253,215 189,081 225,101
Cash and cash equivalents at end of period (including cash at discontinued operation
of $0, $7,100 and $3,359, respectively) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 167,178 $253,215 $189,081
Supplemental cash flow information:
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,821 $ 8,136 $ 868
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,021 $ 21,342 $ 45,655
The accompanying notes are an integral part of these financial statements.
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