Shutterfly 2014 Annual Report Download - page 69

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Reconciliation of Cash Flow from Operating Activities to
Non-GAAP Adjusted EBITDA and Free Cash Flow Year Ended December 31,
2014 2013 2012
Net cash provided by operating activities ................ $ 166,488 $ 147,268 $ 151,381
Add back:
Interest expense ................................ 16,732 9,446 597
Interest and other income, net ...................... (508) (308) (42)
Benefit from /(provision for) income taxes ............. (2,119) 3,635 17,160
Changes in operating assets and liabilities .............. (4,360) (2,226) (43,762)
Other adjustments ............................... (9,474) (7,373) 2,810
Non-GAAP Adjusted EBITDA ........................ 166,759 150,442 128,144
Less:
Purchases of property and equipment, including accrued
amounts .................................... (68,495) (59,210) (48,229)
Capitalized technology & development costs ............ (21,748) (15,760) (12,528)
Free cash flow ................................... $ 76,516 $ 75,472 $ 67,387
Reconciliation of Net Income/(Loss) per Share to Non-GAAP
Net Income per Share Year Ended December 31,
2014 2013 2012
GAAP Net income/(loss) ............................ $ (7,860) $ 9,285 $ 22,998
Add back interest expense related to:
Amortization of debt discount ...................... 11,726 7,002 —
Amortization of debt issuance costs .................. 1,179 705 —
0.25% coupon .................................. 750 469 —
Tax effect ..................................... (2,900) (2,300) —
Non-GAAP net income ............................. $ 2,895 $ 15,161 $ 22,998
GAAP basic shares outstanding ....................... 38,452 37,680 35,826
Add back:
Dilutive effect of stock options and restricted awards ...... — 1,813 1,606
GAAP diluted shares outstanding ..................... 38,452 39,493 37,432
Add back:
Dilutive effect of stock options and restricted awards ...... 1,442 — —
Dilutive effect of convertible notes ...................———
Non-GAAP shares outstanding ....................... 39,894 39,493 37,432
GAAP net income/(loss) per share ..................... $ (0.20) $ 0.24 $ 0.61
Non-GAAP net income per share ...................... $ 0.07 $ 0.38 $ 0.61
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