WeightWatchers 2002 Annual Report Download - page 54

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED DECEMBER 28, 2002 AND DECEMBER 29, 2001,
THE EIGHT MONTHS ENDED DECEMBER 30, 2000, AND
THE FISCAL YEAR ENDED APRIL 29, 2000
(IN THOUSANDS)
December 28, December 29, December 30, April 29,
2002 2001 2000 2000
(52 Weeks) (52 Weeks) (35 Weeks) (53 Weeks)
Operating activities:
Net income ............................................... $143,694 $147,187 $15,019 $ 37,759
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization .................................. 4,738 13,243 6,607 9,286
Amortization of deferred financing costs .............................. 1,313 2,097 1,282 1,112
Deferred tax provision (benefit) ................................... 4,566 (71,069) 104 8,541
Unrealized (gain) loss on derivative instruments ......................... (174) 1,125 (5,815) 499
Accounting for equity investment .................................. — 17,344 17,604 —
Elimination of foreign subsidiaries one month reporting lag .................. ——1,206 —
Allowance for doubtful accounts .................................. 233 6,330 198 (385)
Reserve for inventory obsolescence, other ............................. 2,754 2,718 3,993 3,360
Foreign currency exchange rate loss (gain) ............................ 17,224 (6,496) ——
Extraordinary charges from early extinguishment of debt .................... — 2,875 ——
Tax benefit of stock options exercised ............................... 6,331 ———
Other items, net ............................................ (156) 191 (954) (2,492)
Changes in cash due to:
Receivables .............................................. (5,099) 231 (2,746) 13,424
Inventories .............................................. (12,443) (11,895) (8,902) (5,177)
Prepaid expenses .......................................... (9,131) (5,605) (3,592) (801)
Due from related parties ...................................... ——241 (14,765)
Accounts payable .......................................... 1,594 5,201 (303) (1,512)
Accrued liabilities .......................................... 1,965 3,143 6,862 5,281
Deferred revenue .......................................... 2,126 7,290 1,043 (1,753)
Income taxes ............................................. 5,403 7,654 (2,975) (2,492)
Cash provided by operating activities .............................. 164,938 121,564 28,872 49,885
Investing activities:
Capital expenditures .......................................... (4,889) (3,834) (3,626) (1,874)
Advances and interest in equity investment ............................ —(17,344) (15,604) —
Cash paid for acquisitions ...................................... (68,148) (97,877) ——
Acquisitions of minority interest ................................... ——(2,400) (15,900)
Other items, net ............................................ (827) (1,063) 3 (1,867)
Cash used for investing activities ................................. (73,864) (120,118) (21,627) (19,641)
Financing activities:
Net increase (decrease) in short-term borrowings ........................ 254 748 (34) (5,455)
Proceeds from borrowings ...................................... 58,500 60,042 — 491,260
Repurchase of common stock .................................... ———(324,476)
Payment of dividends ......................................... (1,249) (1,500) (879) (2,796)
Payments on long-term debt ..................................... (93,838) (50,813) (7,060) (3,530)
Redemption of redeemable preferred stock ............................ (25,000) ———
Deferred financing cost ........................................ —(2,406) —(15,861)
Net Parent settlements ........................................ ———(131,030)
Purchase of treasury stock ...................................... —(27,132) ——
Cost of public equity offering .................................... (850) (1,017) ——
Proceeds from sale of common stock ................................ — 525 ——
Proceeds from stock options exercised ............................... 1,694 198 ——
Cash (used for) provided by financing activities ........................ (60,489) (21,355) (7,973) 8,112
Effect of exchange rate changes on cash and cash equivalents .................. 3,607 (1,254) 1,186 (13,828)
Net increase (decrease) in cash and cash equivalents ....................... 34,192 (21,163) 458 24,528
Cash and cash equivalents, beginning of fiscal year/period .................... 23,338 44,501 44,043 19,515
Cash and cash equivalents, end of fiscal year/period ........................ $57,530 $ 23,338 $44,501 $ 44,043
The accompanying notes are an integral part of the consolidated financial statements.
F-5