Tucows 2013 Annual Report Download - page 56

Net cash inflows from operating activities were $8.7 million, an increase of 37% when compared to the prior year.
Net income during Fiscal 2013 was $5.7 million, which included non-cash charges and recoveries of $1.5 million such as
depreciation, amortization, stock-based compensation, the provision for unrealized losses on currency forward contracts,
excess tax benefit related to stock-based compensation and a recovery for deferred tax. In addition, changes in our working
capital generated $3.0 million. Positive contributions of $5.4 million from movements in deferred registration costs, income
taxes, accrued liabilities, inventory, accounts payable and prepaid expenses and deposits, were partially offset by our utilizing
$2.4 million to fund a reduction in deferred revenue and customer deposits and an increase in accounts receivable.
Year ended December 31, 2012
Net cash inflows from operating activities were $6.3 million, an increase of 8% when compared to the prior year.
Net income during Fiscal 2012 was $6.0 million, which included non-cash charges and recoveries of $1.6 million such as a
provision for deferred tax, gain on currency forward contracts, depreciation, amortization and stock-based compensation. The
remainder of our source of net cash flow from operating activities was from changes in our working capital, with positive
contributions of $4.3 million from movements in deferred revenue, accounts payable, accrued expenses, income taxes
recoverable and customer deposits being partially offset by our utilizing $4.0 million to fund deferred registration costs,
deposits with registries, accounts receivable and prepaid expenses.
Year ended December 31, 2011
Net cash inflows from operating activities were $5.9 million a decrease of 13% when compared to the prior year.
Net income during Fiscal 2011 was $7.1 million, which included non-cash charges and recoveries of $0.9 million such as a
deferred tax recovery, a gain on currency forward contracts, depreciation, amortization and stock-based compensation. We
deployed an additional $7.1 million in working capital to fund deferred registration costs, deposits with registries, accounts
receivable, income taxes recoverable, prepaid expenses and accounts payable which was partially offset by positive
contributions of $5.9 million in movements in deferred revenue, accrued expenses and customer deposits.
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Cash Flow from Financing Activities
Year ended December 31, 2013
Net cash used in financing activities during Fiscal 2013 totaled $1.4 million as compared to $5.8 million during
Fiscal 2012. Net cash of $6.5 million was used to fund the repurchase of 4.1 million of our shares through a modified “Dutch
auction tender offer” that was successfully concluded on January 4, 2013 and to repurchase 0.1 million shares under our
current Normal Course Issuer Bid during the three months ended March 31, 2013. In addition, $2.6 million was used to fund
principal repayments under our Amended Credit Facility. These uses of funds in financing activities were partially offset by
our drawing $5.2 million under our Amended Credit Facility in January 2013 to fund a portion of the modified Dutch auction
tender offer and by the proceeds from the exercise of stock options of $2.6 million.
Year ended December 31, 2012
Net cash used in financing activities during Fiscal 2012 totaled $5.8 million as compared to $0.4 million during
Fiscal 2011. Net cash of $9.1 million was used to fund the repurchase of 7.6 million of our shares through a modified “Dutch
auction tender offer” that was successfully concluded on January 23, 2012 and to repurchase 2.4 million shares under our
current Normal Course Issuer Bid during Fiscal 2012. A portion of the amount to fund the modified Dutch auction tender
offer was from a $4.0 million draw down on our DLR Loan facility. In addition, during Fiscal 2012, $1.2 million was used to
fund principal repayments under our loan agreements. These uses were partially offset by the proceeds of $0.4 million we
received on the exercise of options by directors and employees of the Company.
Year ended December 31, 2011
Net cash used in financing activities during Fiscal 2011 totaled $0.4 million which arose out of our using our credit
facilities with the Bank. During Fiscal 2011, we fully repaid the remaining $1.3 million that was outstanding on the non-
revolving, reducing demand loan facility we utilized to acquire Innerwise Inc. in July 2007. In addition, in July 2011, we
utilized $2.5 million of our non-revolving, reducing demand loan facility to fund the acquisition of EPAG and over the
balance of the fiscal year repaid $1.7 million of this loan.
Cash Flow from Investing Activities
Year ended December 31, 2013
Investing activities during Fiscal 2013 used net cash of $1.3 million to acquire additional property and equipment.
Year ended December 31, 2012