WeightWatchers 2003 Annual Report Download - page 93

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
SUPPLEMENTAL CONSOLIDATING STATEMENT OF CASH FLOW
FOR THE FISCAL YEAR ENDED DECEMBER 28, 2002
(IN THOUSANDS)
Non-
Parent Guarantor Guarantor
Company Subsidiaries Subsidiaries Eliminations Consolidated
Operating activities:
Net income ........................ $143,694 $151,137 $10,744 $(161,881) $143,694
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization ........... 758 3,258 722 — 4,738
Amortization of deferred financing costs ..... 1,313 — — — 1,313
Deferred tax (benefit) provision ........... (4,011) 8,498 79 — 4,566
Unrealized gain on derivative instruments .... (174) — — — (174)
Allowance for doubtful accounts .......... 19 184 30 — 233
Reserve for inventory obsolescence, other .... (280) 3,034 — — 2,754
Foreign currency exchange rate gain (loss) .... 19,332 (2,108) — — 17,224
Tax benefit of stock options exercised ....... 6,331 — — — 6,331
Other items, net ..................... (3) 26 (179) — (156)
Changes in cash due to:
Receivables ...................... (765) (4,671) 337 — (5,099)
Inventories ....................... 280 (9,586) (3,137) — (12,443)
Prepaid expenses ................... (1,190) (4,777) (3,164) — (9,131)
Intercompany receivables/payables ....... 65,813 (67,863) 2,050 — —
Accounts payable ................... 195 (31) 1,430 — 1,594
Accrued liabilities .................. (1,465) 4,058 (628) — 1,965
Deferred revenue .................. 100 2,961 (935) — 2,126
Income taxes ..................... (13,850) 21,297 (2,044) — 5,403
Cash provided by operating activities ...... 216,097 105,417 5,305 (161,881) 164,938
Investing activities:
Capital expenditures .................. (515) (3,549) (825) — (4,889)
Cash paid for acquisitions .............. — (68,148) — — (68,148)
Other items, net ..................... (591) (177) (59) — (827)
Cash used for investing activities ......... (1,106) (71,874) (884) — (73,864)
Financing activities:
Net (decrease) increase in short-term
borrowings ....................... (265) 519 — — 254
Parent company investment in subsidiaries .... (140,140) — — 140,140 —
Payment of dividends .................. (1,249) (22,540) (7,326) 29,866 (1,249)
Payments on long-term debt ............. (29,186) (6,152) — — (35,338)
Redemption of redeemable preferred stock . . . (25,000) (25,000)
Net Parent advances .................. — 12 697 (709) —
Cost of public equity offering ............ (850) (850)
Proceeds from stock options exercised ...... 1,694 — — — 1,694
Cash used for financing activities ........ (194,996) (28,161) (6,629) 169,297 (60,489)
Effect of exchange rate changes on cash and cash
equivalents and other ................. 8,469 622 1,932 (7,416) 3,607
Net increase (decrease) in cash
and cash equivalents .................. 28,464 6,004 (276) — 34,192
Cash and cash equivalents, beginning of fiscal
year ............................. 6,230 8,804 8,304 — 23,338
Cash and cash equivalents, end of fiscal year .... $34,694 $ 14,808 $ 8,028 $ — $ 57,530
F-39