Ulta 2008 Annual Report Download - page 57

Ulta Salon, Cosmetics & Fragrance, Inc.
Consolidated Statements of Cash Flows
(In thousands)
January 31,
2009
February 2,
2008
February 3,
2007
Fiscal Year Ended
Operating activities
Net income .......................................... $ 25,268 $ 25,335 $ 22,543
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization .......................... 51,445 39,503 29,736
Deferred income taxes ................................ 22,583 (3,284) (3,080)
Non-cash stock compensation charges..................... 3,877 2,283 983
Excess tax benefits from stock-based compensation........... (1,774) (1,575) (5,360)
Loss on disposal of property and equipment ................ 267 195 3,518
Change in operating assets and liabilities:
Receivables ...................................... 2,375 (2,167) (2,719)
Merchandise inventories ............................. (37,493) (46,872) (19,863)
Prepaid expenses and other assets ...................... (5,110) (3,594) (449)
Income taxes ..................................... (11,918) 4,373 (421)
Accounts payable .................................. (4,311) 9,051 8,636
Accrued liabilities ................................. (59) 2,790 12,188
Deferred rent ..................................... 30,053 20,868 9,918
Net cash provided by operating activities .................... 75,203 46,906 55,630
Investing activities
Purchases of property and equipment ....................... (110,863) (101,866) (62,331)
Receipt of related party notes receivable..................... — 4,467 —
Issuance of related party notes receivable .................... — — (2,414)
Net cash used in investing activities ........................ (110,863) (97,399) (64,745)
Financing activities
Proceeds on long-term borrowings ......................... 1,217,969 1,094,590 851,468
Payments on long-term borrowings......................... (1,186,692) (1,070,557) (846,112)
Proceeds from issuance of common stock in initial
public offering, net of issuance costs ..................... (59) 123,608 —
Payment of accumulated dividends in arrears ................. — (93,012) —
Redemption of Series III preferred stock .................... — (4,792) —
Purchase of treasury stock ............................... — (1,950) (2,217)
Excess tax benefits from stock-based compensation ............ 1,774 1,575 5,360
Proceeds from issuance of common stock under stock plans ...... 2,517 1,175 1,422
Net cash provided by financing activities .................... 35,509 50,637 9,921
Net (decrease) increase in cash and cash equivalents............ (151) 144 806
Cash and cash equivalents at beginning of year ............... 3,789 3,645 2,839
Cash and cash equivalents at end of year .................... $ 3,638 $ 3,789 $ 3,645
Supplemental cash flow information
Cash paid for interest................................... $ 4,764 $ 5,429 $ 3,798
Cash paid for income taxes .............................. $ 6,509 $ 16,146 $ 17,193
Noncash investing and financing activities:
Change in property and equipment included in accrued
liabilities ........................................ $ (3,316) $ 12,141 $ 4,010
Unrealized gain (loss) on interest rate swap hedge, net of tax . . . $ 88 $ (738) $ 68
Issuance of related party notes receivable for exercise of stock
options.......................................... $ — $ — $ (1,680)
See accompanying notes to consolidated financial statements.
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