Redbox 2006 Annual Report Download - page 49

COINSTAR, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2006 2005 2004
OPERATING ACTIVITIES:
Net income ...................................................................... $ 18,627 $ 22,272 $ 20,368
Adjustments to reconcile income from operations to net cash provided by operating activities:
Depreciation and other ......................................................... 52,836 45,347 35,302
Amortization of intangible assets ................................................ 6,220 4,556 2,014
Amortization of deferred financing fees ........................................... 760 785 456
Loss on early retirement of debt ................................................. 238 — 706
Non-cash stock-based compensation .............................................. 6,258 340 38
Excess tax benefit from exercise of stock options .................................... (1,033) — —
Deferred income taxes ......................................................... 10,183 14,315 8,597
Loss (income) from equity investments ........................................... 66 (353) (177)
Return on equity investments ................................................... 929 974 —
Other ...................................................................... 38 41 (7)
Cash provided (used) by changes in operating assets and liabilities, net of effects of business
acquisitions:
Accounts receivable ........................................................... (8,464) (2,159) (1,754)
Inventory ................................................................... (9,253) 2,920 (2,956)
Prepaid expenses and other current assets .......................................... (3,138) (2,480) (4,969)
Other assets ................................................................. (444) 172 (1,522)
Accounts payable ............................................................. 25,507 880 2,702
Accrued liabilities payable to retailers ............................................ 9,977 12,722 (1,436)
Accrued liabilities ............................................................ 6,073 2,791 3,237
Net cash provided by operating activities .......................................... 115,380 103,123 60,599
INVESTING ACTIVITIES:
Proceeds from available-for-sale securities ......................................... — — 24
Purchase of property and equipment .............................................. (45,867) (43,905) (42,784)
Acquisitions, net of cash acquired of $2,800, $4,574 and $12,592 in 2006, 2005 and 2004,
respectively ............................................................... (31,254) (20,832) (236,351)
Equity investments ........................................................... (12,109) (20,327) —
Proceeds from sale of fixed assets ................................................ 254 432 218
Net cash used by investing activities .............................................. (88,976) (84,632) (278,893)
FINANCING ACTIVITIES:
Proceeds from common stock offering, net of cash paid for offering costs of $4,626 in
2004 ..................................................................... — — 81,624
Principal payments on long-term debt and capital lease obligations ...................... (24,209) (3,762) (59,199)
Borrowings under long-term debt ................................................ — — 250,000
Excess tax benefit from exercise of stock options .................................... 1,033 — —
Repurchase of common stock ................................................... (8,023) — —
Proceeds from exercise of stock options and issuance of shares under employee stock
purchase plan .............................................................. 5,357 5,548 7,309
Financing costs associated with long-term credit facility .............................. — — (5,459)
Net cash (used) provided by financing activities ..................................... (25,842) 1,786 274,275
Effect of exchange rate changes on cash ........................................... 2,335 (1,797) 1,142
NET INCREASE IN CASH AND CASH EQUIVALENTS, CASH IN MACHINE OR IN TRANSIT,
AND CASH BEING PROCESSED .................................................... 2,897 18,480 57,123
CASH AND CASH EQUIVALENTS, CASH IN MACHINE OR IN TRANSIT, AND CASH BEING
PROCESSED:
Beginning of year ............................................................ 175,267 156,787 99,664
End of year .................................................................. $178,164 $175,267 $ 156,787
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for interest ............................................. $ 14,795 $ 11,516 $ 4,914
Cash paid during the period for taxes ............................................. 1,982 1,089 880
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Purchase of vehicles financed by capital lease obligations ............................. $ 13,811 $ 2,280 $ 2,614
Common stock issued in conjunction with acquisition, net of issue costs of $44 in 2005 ..... 1,673 39,969 —
Accrued acquisition costs ...................................................... 217 — 293
Unpaid fees for common stock offering ........................................... — — 486
See notes to consolidated financial statements
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