Shutterfly 2008 Annual Report Download - page 50

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SHUTTERFLY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
The accompanying notes are an integral part of these consolidated financial statements.
Year Ended December 31,
2007
2006
2005
Cash flows from operating activities:
Net income
$
10,095
$
5,798
$
28,932
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
17,384
10,525
6,246
Amortization of intangible assets
412
222
276
Amortization of deferred stock
-
based compensation, net of cancellations
4,001
2,300
3,310
Charitable contribution expense for shares issued to charitable foundation
—
923
—
Change in carrying value of preferred stock warrant liability
—
(
152
)
21
Loss/(gain) on disposal of property and equipment
262
(29
)
207
Deferred income taxes
5,880
3,199
(23,833
)
Changes in operating assets and liabilities, net of effects of acquisition
Accounts receivable, net
(2,316
)
(1,215
)
(547
)
Inventories
(2,290
)
(1,419
)
(253
)
Prepaid expenses and other current assets
(1,750
)
(1,171
)
(398
)
Other assets
(1,668
)
(121
)
(40
)
Accounts payable
(602
)
5,514
(434
)
Accrued and other liabilities
10,390
(2,603
)
4,550
Deferred revenue
2,421
1,714
569
Net cash provided by operating activities
42,219
23,485
18,606
Cash flows from investing activities:
Purchases of property and equipment
(34,993
)
(20,681
)
(10,858
)
Acquisition of business and intangible assets, net of cash acquired
(2,858
)
—
239
Purchases of short term investments
(3,000
)
—
—
Proceeds from sale of property and equipment
28
—
6
Net cash used in investing activities
(40,823
)
(20,681
)
(10,613
)
Cash flows from financing activities:
Principal payments of capital lease obligations
(2,840
)
(1,446
)
(2,379
)
Proceeds from IPO shares issued, net of issuance costs
—
78,468
—
Proceeds from term loan
—
—
2,571
Repayment of term loan
—
—
(
2,571
)
Principal payment of note payable obligation
—
—
(
192
)
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs
—
—
19,830
Proceeds from issuance of common stock upon exercise of stock options
4,975
83
134
Repurchases of common stock
—
(
11
)
(14
)
Net cash provided by financing activities
2,135
77,094
17,379
Net increase in cash and cash equivalents
3,531
79,898
25,372
Cash and cash equivalents, beginning of period
119,051
39,153
13,781
Cash and cash equivalents, end of period
$
122,582
$
119,051
$
39,153
Supplemental disclosures of cash flow information
Cash paid during the period for interest
$
198
$
205
$
410
Cash paid during the period for income taxes
812
—
70
Supplemental schedule of non
-
cash investing and financing activities
Additions to property and equipment acquired under capital lease obligations and notes payable
—
—
3,516
Net non
-
cash assets acquired upon acquisition
—
—
551
Vested shares issued upon acquisition
—
—
656
Restricted shares issued upon acquisition
—
—
724
Reclassification of preferred stock warrants to liability
—
—
1,514
Deferred stock
-
based compensation, net of cancellations
—
—
1,225
Deferred stock
-
based compensation in connection with option modifications
—
—
1,100
Tax benefit of stock options recorded in additional paid
-
in capital
27
—
365
Conversion of preferred stock
—
89,795
—
Conversion of preferred stock warrant liability into APIC
—
1,381
—
Preferred stock warrants exercised on net basis
—
143
—
35