WeightWatchers 2013 Annual Report Download - page 74

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Cash Flows
The following table sets forth a summary of the Company’s cash flows for the fiscal years ended:
December 28,
2013
December 29,
2012
December 31,
2011
(in millions)
Net cash provided by operating activities ..... $323.5 $ 336.7 $ 407.0
Net cash used in investing activities ......... $(145.3) $(109.5) $ (45.2)
Net cash used in financing activities ......... $ (74.4) $(211.1) $(352.0)
Operating Activities
Fiscal 2013
Cash flows provided by operating activities of $323.5 million for fiscal 2013 decreased by $13.2 million
from $336.7 million in fiscal 2012. The decrease in cash provided by operating activities was primarily the result
of lower net income in fiscal 2013 as compared to the prior year offset by the non-cash early extinguishment of
debt charge and the intangible and long-lived asset impairment charges in fiscal 2013 as well as a payment to
HMRC in fiscal 2012 in connection with the previously reported UK self-employment liability.
The $323.5 million of cash flows provided by operating activities for fiscal 2013 exceeded the period’s net
income by $118.8 million. The excess of cash flows provided by operating activities over net income arose
primarily from changes in our working capital as described above (see “—Balance Sheet Working Capital”),
non-cash expenses and differences between book and cash taxes.
Fiscal 2012
Cash flows provided by operating activities of $336.7 million in fiscal 2012 decreased by $70.3 million
from $407.0 million in fiscal 2011. The decrease in cash provided by operating activities was primarily the result
of lower net income in fiscal 2012 versus the prior year, a payment of $30.0 million to HMRC, as well as a $7.4
million accrual reversal based on the settlement of the UK self-employment matter.
The $336.7 million of cash flows provided by operating activities for fiscal 2012 exceeded the period’s net
income attributable to the Company by $79.3 million. The excess of cash flows provided by operating activities
over net income arose primarily from changes in our working capital as described above (see “—Balance Sheet
Working Capital”), non-cash expenses and differences between book and cash taxes.
Investing Activities
Fiscal 2013
Net cash used for investing activities totaled $145.3 million in fiscal 2013, an increase of $35.9 million as
compared to fiscal 2012. This increase was primarily attributable to the $83.8 million aggregate purchase price
paid for franchise acquisitions completed in 2013. In fiscal 2013, we acquired substantially all of the assets of the
following franchisees: Weight Watchers of Alberta Ltd. and Weight Watchers of Saskatchewan Ltd. for an
aggregate purchase price of $35.0 million, Weight Watchers of West Virginia, Inc. for a net purchase price of
$16.0 million, Weight Watchers of Columbus, Inc. for a net purchase price of $23.3 million, Weight Watchers of
Northern Nevada, Inc. for a net purchase price of $4.0 million, Weight Watchers of Manitoba Ltd. for a net
purchase price of $5.2 million, and Weight Watchers of Franklin and St. Lawrence Counties Inc. for a net
purchase price of $0.3 million. In addition, we incurred capital expenditures in connection with the move of our
headquarters, our retail initiative and capitalized software expenditures to support our customer relationship
management platform and other global systems initiatives.
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