WeightWatchers 2007 Annual Report Download - page 68

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS)
December 29,
2007
December 30,
2006
December 31,
2005
(52 Weeks) (52 Weeks) (52 Weeks)
Operating activities:
Net income ...................................................... $ 201,180 $ 209,825 $ 174,402
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization ....................................... 19,033 13,351 12,817
Amortization of deferred financing costs .............................. 1,713 1,529 879
Share-based compensation expense ................................... 11,763 11,789 2,901
Deferred tax provision ............................................. 18,274 28,819 11,184
Allowance for doubtful accounts ..................................... 1,242 (153) 629
Reserve for inventory obsolescence, other ............................. 9,317 6,990 6,044
Foreign currency exchange rate (gain) loss ............................. (2,751) (1,075) 1,576
Early extinguishment of debt ........................................ 3,021 1,321 —
Compensation expense associated with the WW.com acquisition ........... — — 43,590
Tax benefit of stock options exercised ................................ — — 26,770
Other items, net .................................................. (1,122) (356) 2,714
Changes in cash due to:
Receivables ................................................. (2,099) (10,656) (9,125)
Inventories .................................................. (12,220) (9,250) (6,014)
Prepaid expenses ............................................. 466 (9,292) 6,302
Accounts payable ............................................. 8,957 10,737 (1,026)
Accrued liabilities ............................................ 48,357 23,852 25,102
Deferred revenue ............................................. 14,847 2,453 13,225
Income taxes ................................................ (1,433) (14,106) (15,174)
Cash provided by operating activities ............................. 318,545 265,778 296,796
Investing activities:
Capital expenditures .............................................. (18,030) (14,329) (14,634)
Web site development expenditures .................................. (4,889) (5,083) (3,184)
Capitalized software expenditures .................................... (8,929) (11,614) (1,615)
Cash paid for acquisitions .......................................... (16,812) (140,374) (380,832)
Other items, net .................................................. (169) 29 (1)
Cash used for investing activities ................................ (48,829) (171,371) (400,266)
Financing activities:
Net increase in short-term borrowings ................................ — — 1,329
Proceeds from borrowings .......................................... — 202,500 65,000
Payments on long-term debt ........................................ (401,034) (449,466) (3,000)
Proceeds from new term loan ....................................... 1,200,000 350,000 215,000
Payment of dividends ............................................. (58,524) (51,792) —
Secondary offering fees ............................................ — (455) —
Tax benefit of restricted stock units vested and stock options exercised ...... 10,879 6,234 —
Deferred financing costs ........................................... (5,417) (1,980) (3,758)
Purchase of treasury stock .......................................... (1,033,644) (151,678) (175,980)
Proceeds from stock options exercised ................................ 18,563 5,779 4,563
Cash (used for)/provided by financing activities ..................... (269,177) (90,858) 103,154
Effect of exchange rate changes on cash and cash equivalents and other .......... 1,780 2,479 (3,364)
Net increase/(decrease) in cash and cash equivalents ......................... 2,319 6,028 (3,680)
Cash and cash equivalents, beginning of fiscal year .......................... 37,504 31,476 35,156
Cash and cash equivalents, end of fiscal year ............................... $ 39,823 $ 37,504 $ 31,476
The accompanying notes are an integral part of the consolidated financial statements.
F-6