Tucows 2015 Annual Report Download - page 113

Cash Flow from Financing Activities
Year ended December 31, 2015
Net cash used in financing activities during Fiscal 2015 totaled $17.2 million as compared to $4.1 million during
Fiscal 2014. Net cash outflows amounting to $24.9 million resulted from $20.0 million used to fund our repurchasing
868,549 of our shares through our open market stock buyback that commenced on February 16, 2015 and our repurchasing
of 193,907 shares for $3.6 million through our Tender Offer that closed on January 7, 2015. In addition, during Fiscal
2015, we made payments of tax obligations resulting from the net exercise of stock options of $1.3 million on behalf of
option holders. These cash outflows were partially offset by cash inflows of $3.5 million we received under our Amended
Credit Facility to fund the previously announced acquisition of a controlling interest in Ting Virginia, LLC and the
exercise of stock options of $4.2 million. The resulting proceeds from the exercise of stock options of $4.2 million includes
an excess tax benefit from share based compensation expenses of $3.4 million.
Year ended December 31, 2014
Net cash used in financing activities during Fiscal 2014 totaled $4.1 million as compared to $1.4 million during
Fiscal 2013. Net cash of $6.3 million was used to fully repay our Amended Credit Facility and $1.2 million was used to
repurchase 0.1 million shares under our Normal Course Issuer Bid announced in March 2014. These uses of funds in
financing activities were partially offset by the proceeds from the exercise of stock options of $3.4 million.
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.
Cash Flow from Investing Activities
Year ended December 31, 2015
Investing activities during Fiscal 2015 generated net cash of $3.3 million as compared to our use of $8.9 million
during Fiscal 2014.
Investing activities benefited from the proceeds of $6.6 million we received on our previously announced
agreement with our .online joint venture partners to release each other from any and all obligations under the .online joint
venture Term Sheet and instead enter into the Joint Marketing Agreement to launch marketing programs, with incentives
and obligations to ensure the success of the .online registry. These marketing arrangements will contribute $1.5 million,
which will be recognized evenly over the term of the marketing agreement commencing in November 2015.
On February 27, 2015, Ting Fiber, Inc., one of our wholly owned subsidiaries, acquired a controlling ownership
interest in the newly formed Ting Virginia, LLC and its acquired subsidiaries, Blue Ridge Websoft, LLC (doing business
as Blue Ridge InternetWorks), Fiber Roads, LLC and Navigator Network Services, LLC (the “BRI Group”) for a
consideration of approximately $3.6 million. The purchase price was satisfied through our releasing $3.1 million from the
escrow accounts established during Fiscal 2014 and an additional payment of $0.4 million made at closing. In addition, we
used $3.0 million to acquire additional property and equipment. Included in these additions is an amount of $2.2 million
that we have invested since the acquisition of the BRI Group primarily in expanding our fiber network footprint. We
expect our capital expenditures on building and expanding our fiber network to increase significantly during Fiscal 2016 as
we seek to extend both our current network and expand to new towns.
Year ended December 31, 2014
Investing activities during Fiscal 2014 used net cash of $8.2 million to fund our contribution for the auction and
registry seed capital costs for the .online gTLD joint venture, as well as the escrow accounts that were established to fund
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