Sprouts Farmers Market 2013 Annual Report Download - page 94

Table of Contents
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
The accompanying notes are an integral part of these consolidated financial statements.
89
Year Ended
December 29,
2013
December 30,
2012
January 1,
2012
Cash flows from operating activities
Net income (loss)
$
51,326
$
19,500
$
(27,445
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense
47,217
35,773
54,645
Accretion of asset retirement obligation
322
237
36
Amortization of financing fees and debt issuance costs
2,482
2,590
1,546
Loss on disposal of property and equipment
449
2,704
—
Gain on sale of intangible assets
(19
)
(134
)
—
Equity
-
based compensation
5,780
4,653
3,774
Non
-
cash loss on extinguishment of debt
18,513
992
—
Excess tax benefit from exercise of stock options and antidilution payment to optionholders
(17,826
)
(143
)
—
Deferred income taxes
25,176
13,996
(19,753
)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable
(1,521
)
(2,861
)
1,559
Inventories
(19,875
)
(1,442
)
1,837
Prepaid expenses and other current assets
2,643
3,337
(794
)
Other assets
(4,114
)
(4,586
)
224
Accounts payable
31,996
(4,673
)
15,175
Accrued salaries and benefits
890
2,956
1,556
Other accrued liabilities
5,397
1,533
7,318
Other long-term liabilities
11,752
9,999
12,706
Net cash provided by operating activities
160,588
84,431
52,384
Cash flows from investing activities
Purchases of property and equipment
(87,463
)
(46,485
)
(27,594
)
Proceeds from disposal of property and equipment
1,000
9,657
—
Proceeds from sale of intangible assets
172
—
—
Payments for business combinations, net of cash acquired
—
(
129,875
)
(232,911
)
Net cash used in investing activities
(86,291
)
(166,703
)
(260,505
)
Cash flows from financing activities
Borrowings on line of credit —
3,000
23,000
Payments on line of credit
—
(
3,000
)
(23,000
)
Borrowings on term loan, net of financing costs
688,127
97,247
296,050
Payments on term loan
(786,850
)
(2,575
)
(2,325
)
Borrowings on Senior Subordinated Notes
—
35,000
—
Payments on Senior Subordinated Notes
(35,000
)
—
—
Payments on capital lease obligations
(412
)
(439
)
(272
)
Payments on financing lease obligations
(2,868
)
(2,377
)
(1,204
)
Payment of deferred financing costs
(1,370
)
(401
)
(3,023
)
Proceeds from issuance of shares to Apollo Funds in Henry
’
s Transaction
—
—
206,000
Equity contribution by Apollo Funds
—
—
8,000
Distribution to S&F as a result of the Henry
’
s Transaction
—
—
(
274,635
)
Net transactions with S&F
—
—
(
12,732
)
Payments of IPO costs
(4,212
)
—
—
Cash from landlord related to financing lease obligations
4,581
2,942
1,886
Payment to stockholders and optionholders
(295,921
)
—
—
Excess tax benefit for exercise of options and antidilution payment to optionholders
17,826
143
—
Proceeds from the issuance of shares
348,536
5,549
—
Proceeds from exercise of stock options
3,820
—
—
Repurchase of shares
(113
)
(148
)
—
Net cash provided by (used in) financing activities
(63,856
)
134,941
217,745
Net increase in cash and cash equivalents
10,441
52,669
9,624
Cash and cash equivalents at beginning of the period
67,211
14,542
4,918
Cash and cash equivalents at the end of the period
$
77,652
$
67,211
$
14,542
Supplemental disclosure of cash flow information
Cash paid for interest
$
38,091
$
32,395
$
13,863
Cash paid for income taxes
1,276
1,626
3,421
Supplemental disclosure of non
-
cash investing and financing activities
Property and equipment in accounts payable
$
7,873
$
8,679
$
2,137
Property acquired through capital and financing lease obligations
10,660
10,686
1,479
Issuance of shares to business combinations
—
89,605
146,137
Contribution of net assets from S&F
—
—
14,105
Deferred tax asset resulting from the business combinations
—
1,896
47,589