Vistaprint 2010 Annual Report Download - page 58

Liquidity and Capital Resources
Consolidated Statements of Cash Flows Data:
In thousands
2010 2009 2008
Years Ended June 30,
Purchases of property, plant and equipment . . . . $ (101,326) $ (76,286) $ (62,740)
Capitalization of software and website
development costs. . . . . . . . . . . . . . . . . . . . . . (6,516) (7,168) (5,696)
Depreciation and amortization . . . . . . . . . . . . . . . 44,367 35,713 25,193
Cash flows provided by operating activities . . . . . 153,701 120,051 87,731
Cash flows used in investing activities . . . . . . . . . (123,865) (57,595) (58,056)
Cash flows provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,259 (31,243) 2,980
At June 30, 2010, we had $162.7 million of cash and cash equivalents primarily consisting of
money market funds and $9.6 million of marketable securities with maturities less than one year
consisting of corporate debt securities, U.S. government and agency securities and certificates of
deposit. During fiscal 2010, we financed our operations primarily through internally generated cash
flows from operations. We believe that our available cash and cash flows generated from operations
will be sufficient to satisfy our working capital, long-term debt and capital expenditure requirements for
the foreseeable future.
Operating Activities. Cash provided by operating activities in fiscal 2010 was $153.7 million
and consisted of net income of $67.7 million, positive adjustments for non-cash items of $62.2 million
and $23.7 million provided by working capital and other activities. Adjustments for non-cash items
included $44.4 million of depreciation and amortization expense on property, plant and equipment and
software and website development costs, $22.4 million of share-based compensation expense,
$0.9 million for the write off of intangible assets acquired in a business acquisition and $0.5 million
from the loss on sale, disposal, or impairment of long-lived assets, offset by $6.3 million of tax
benefits derived from share-base compensation. The change in working capital and other activities,
excluding the impact of an acquisition, primarily consisted of an increase of $19.7 million in accrued
expenses and other liabilities, an increase of $6.2 million in accounts payable, and a decrease of
$3.8 million in prepaid expenses and other assets. This was partially offset by an increase of
$3.7 million in accounts receivable and an increase of $2.2 million in inventory. The increase in
accrued expenses and other liabilities is driven primarily by increases in accrued payroll and benefit
costs $5.5 million, increases in tax liabilities including indirect taxes of $5.2 million related to indirect
taxes to be remitted on sales, and increases in accrued marketing and shipping expenses of
$2.9 million and $0.6 million, respectively.
Cash provided by operating activities in fiscal 2009 was $120.1 million and consisted of net
income of $55.7 million, positive adjustments for non-cash items of $42.9 million and $21.4 million
provided by working capital and other activities. Adjustments for non-cash items included $35.7 million
of depreciation and amortization expense on property and equipment and software and website
development costs, $19.5 million of share-based compensation expense and $1.9 million of loss on
disposal or impairment of long-lived assets, offset by $4.5 million of deferred taxes, and $9.6 million of
tax benefits derived from share-based compensation. Working capital and other activities primarily
consisted of an increase of $24.8 million in accrued expenses and other liabilities, an increase of
$3.1 million in accounts payable, and a decrease of $0.3 million in accounts receivable. This was
partially offset by an increase of $4.9 million in prepaid expenses and other assets and an increase of
$1.9 million in inventory.
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