WeightWatchers 2004 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2004 WeightWatchers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS)
January 1, January 3, December 28,
2005 2004 2002
(52 Weeks) (53 Weeks) (52 Weeks)
Operating activities:
Net income ............................................. $183,084 $ 143,941 $143,694
Adjustments to reconcile net income to cash provided by operating activities:
Cumulative effect of accounting change ........................... 11,941 — —
Depreciation and amortization ................................. 8,935 5,894 4,738
Amortization of deferred financing costs .......................... 1,308 1,248 1,313
Restricted stock compensation expense ........................... 143 53 —
(Gain) loss on settlement of hedge .............................. (1,255) 5,381 —
Deferred tax provision ...................................... 22,024 16,906 4,566
Unrealized loss (gain) on derivative instruments ...................... 1,318 (5,097) (174)
Repayments from equity investee ............................... (4,916) (5,000) —
Allowance for doubtful accounts ................................ 728 552 233
Reserve for inventory obsolescence, other .......................... 5,474 4,627 2,754
Foreign currency exchange rate (gain) loss ......................... (803) 7,271 17,224
Early extinguishment of debt .................................. 4,264 47,368 —
Tax benefit of stock options exercised ............................ 7,678 7,319 6,331
Other items, net .......................................... 144 (63) (156)
Changes in cash due to:
Receivables ........................................... (6,193) 861 (5,099)
Inventories ............................................ 2,718 1,149 (12,443)
Prepaid expenses ........................................ (549) (1,555) (9,131)
Accounts payable ........................................ (1,067) (563) 1,594
Accrued liabilities ....................................... (676) (3,469) 1,965
Deferred revenue ....................................... 4,533 (42) 2,126
Income taxes .......................................... 13,605 6,318 5,403
Cash provided by operating activities ........................... 252,438 233,099 164,938
Investing activities:
Capital expenditures ....................................... (5,163) (5,029) (4,889)
Web site development expeditures .............................. (1,557) — —
Repayments from equity investee ............................... 4,916 5,000 —
Cash paid for acquisitions .................................... (61,881) (210,470) (68,148)
Other items, net .......................................... (2,189) (1,121) (827)
Cash used for investing activities .............................. (65,874) (211,620) (73,864)
Financing activities:
Net increase in short-term borrowings ............................ (1,609) 998 254
Proceeds from borrowings .................................... 321,000 85,000 —
Payment of dividends ....................................... — — (1,249)
Payments on long-term debt .................................. (456,055) (58,447) (35,338)
Proceeds from new term loan ................................. 150,000 227,326 —
Repayment of high-yield loan ................................. (15,541) (244,919) —
Proceeds from settlement of hedge .............................. 1,255 2,710 —
Premium paid on extinguishment of debt and other costs ................ (1,331) (42,980) —
Redemption of redeemable preferred stock ......................... — — (25,000)
Deferred financing costs ..................................... (2,896) (2,366) —
Purchase of treasury stock ................................... (177,081) (28,815) —
Cost of public equity offering ................................. — — (850)
Proceeds from stock options exercised ............................ 1,879 2,003 1,694
Cash used for financing activities .............................. (180,379) (59,490) (60,489)
Effect of exchange rate changes on cash and cash equivalents and other ........ (164) 3,923 3,607
Impact of consolidating WeightWatchers.com ......................... 5,693 — —
Net increase (decrease) in cash and cash equivalents .................... 11,714 (34,088) 34,192
Cash and cash equivalents, beginning of fiscal year ..................... 23,442 57,530 23,338
Cash and cash equivalents, end of fiscal year ......................... $ 35,156 $ 23,442 $ 57,530
The accompanying notes are an integral part of the consolidated financial statements.
F-5