WeightWatchers 2003 Annual Report Download - page 92

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
SUPPLEMENTAL CONSOLIDATING STATEMENT OF CASH FLOW
FOR THE FISCAL YEAR ENDED JANUARY 3, 2004
(IN THOUSANDS)
Non-
Parent Guarantor Guarantor
Company Subsidiaries Subsidiaries Eliminations Consolidated
Operating activities:
Net income ............................. $143,941 $149,838 $11,174 $(161,012) $143,941
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization ................ 942 4,033 919 — 5,894
Amortization of deferred financing costs ......... 1,248 — — — 1,248
Restricted stock compensation expense .......... 53 — 53
Loss on settlement of hedge ................. 5,381 — 5,381
Deferred tax (benefit) provision ............... (2,581) 19,582 (95) — 16,906
Unrealized gain on derivative instruments ........ (5,097) — — — (5,097)
Accounting for equity investment .............. (5,000) — — — (5,000)
Allowance for doubtful accounts ............... 117 195 240 — 552
Reserve for inventory obsolescence, other ........ — 3,704 923 — 4,627
Foreign curreny exchange rate loss ............. 9,583 (2,303) (9) — 7,271
Early extinguishment of debt ................. 47,368 — — — 47,368
Tax benefit of stock options exercised ........... 7,319 — — — 7,319
Other items, net .......................... — (8) (55) — (63)
Changes in cash due to:
Receivables ........................... (1,105) 2,112 (146) — 861
Inventories ............................ — 3,270 (2,121) — 1,149
Prepaid expenses ........................ (468) (1,234) 147 — (1,555)
Intercompany receivables/payables ............ (61,219) 60,781 438 — —
Accounts payable ....................... (623) (2,634) 2,694 — (563)
Accrued liabilities ....................... (7,327) 5,012 (1,154) — (3,469)
Deferred revenue ....................... (100) (302) 360 — (42)
Income taxes .......................... 7,965 (1,266) (381) — 6,318
Cash provided by operating activities .......... 140,397 240,780 12,934 (161,012) 233,099
Investing activities:
Capital expenditures ....................... (427) (3,636) (966) — (5,029)
Advances, repayments and interest in equity
investment ............................ 5,000 — — — 5,000
Cash paid for acquistions ................... — (209,116) (1,354) — (210,470)
Other items, net .......................... (814) (318) 11 — (1,121)
Cash used for investing activities ............. 3,759 (213,070) (2,309) — (211,620)
Financing activities:
Net increase in short-term borrowings ........... 576 422 — — 998
Proceeds from borrowings ................... 85,000 — — — 85,000
Payment of dividends ...................... — (24,239) (13,338) 37,577 —
Parent company investment in subsidiaries ........ (144,945) — — 144,945 —
Payments on long-term debt ................. (49,502) (8,945) — — (58,447)
Proceeds from new term loan ................ 227,326 — — — 227,326
Repayment of high-yield loan ................. (244,919) — — — (244,919)
Proceeds from settlement of hedge ............. 2,710 — — — 2,710
Premium paid on extinguishment of debt and other
costs ................................ (42,980) — — — (42,980)
Deferred financing cost ..................... (2,366) — — — (2,366)
Purchase of treasury stock ................... (28,815) — — — (28,815)
Proceeds from stock options exercised ........... 2,003 — — — 2,003
Cash used for financing activities ............. (195,912) (32,762) (13,338) 182,522 (59,490)
Effect of exchange rate changes on cash and cash
equivalents and other ...................... 19,232 877 5,324 (21,510) 3,923
Net (decrease) increase in cash and cash equivalents . . (32,524) (4,175) 2,611 — (34,088)
Cash and cash equivalents, beginning of fiscal year .... 34,694 14,808 8,028 — 57,530
Cash and cash equivalents, end of fiscal year ........ $ 2,170 $ 10,633 $10,639 $ — $ 23,442
F-38