World Fuel Services 2005 Annual Report Download - page 55

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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Year ended December 31,
2003 2004 2005
Cash flows from operating activities:
Net income ........................................................... $22,161 $ 28,559 $ 39,609
Adjustments to reconcile net income to net cash provided by (used in) operating
activities:
Provision for bad debts ................................................ 6,281 4,338 8,644
Depreciation and amortization .......................................... 3,830 3,596 3,826
Inventory write-down associated with the exiting of the Panamanian market ...... — 2,134 —
Deferred income tax provision (benefit) ................................... 3,240 661 (1,446)
Earnings from aviation joint ventures, net ................................. (493) — —
Goodwill impairment ................................................. — — 528
Software write-down .................................................. — — 605
Share-based compensation charges ....................................... 925 1,708 3,976
Other non-cash operating charges ........................................ 360 362 740
Changes in assets and liabilities, net of acquisitions
Accounts and notes receivable ........................................ (37,315) (156,141) (206,297)
Inventories ........................................................ (11,796) (18,293) 4,942
Prepaid expenses and other current assets ................................ 2,477 (31,413) (22,435)
Other assets ....................................................... 67 (14) (1,255)
Accounts payable .................................................. 35,330 91,651 148,822
Customer deposits .................................................. 1,056 29,486 (12,700)
Accrued expenses and other current liabilities ............................ (734) 10,899 29,829
Deferred compensation and other long-term liabilities ...................... 1,341 3,682 (1,414)
Total adjustments ................................................ 4,569 (57,344) (43,635)
Net cash provided by (used in) operating activities .......................... 26,730 (28,785) (4,026)
Cash flows from investing activities:
Capital expenditures .................................................... (3,267) (2,398) (4,615)
Acquisition of business, net .............................................. — 3,587 —
Purchase of short-term investments ........................................ — — (20,000)
Proceeds from the sale of short-term investments ............................. — — 10,000
Net cash (used in) provided by investing activities ........................... (3,267) 1,189 (14,615)
Cash flows from financing activities:
Dividends paid on common stock .......................................... (3,182) (3,350) (3,440)
Borrowings under revolving credit facility ................................... 32,000 285,000 186,000
Repayments under revolving credit facility .................................. (32,000) (235,000) (216,000)
Repayment of promissory notes ........................................... (2,527) (2,100) (1,100)
Proceeds from exercise of stock options ..................................... 726 6,315 3,033
Proceeds from sale of equity shares, net of expenses ........................... — — 120,262
Repayment of debt assumed from acquired business ........................... — (35,347) —
Payment of employee withholding taxes related to share-based awards ............ — — (1,234)
Other ................................................................ — — 226
Net cash (used in) provided by financing activities .......................... (4,983) 15,518 87,747
Net increase (decrease) in cash and cash equivalents ............................. 18,480 (12,078) 69,106
Cash and cash equivalents, at beginning of period ............................... 57,776 76,256 64,178
Cash and cash equivalents, at end of period .................................... $76,256 $ 64,178 $ 133,284
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for:
Interest ............................................................... $ 404 $ 1,668 $ 1,877
Income taxes .......................................................... $ 6,155 $ 8,786 $ 11,738
The accompanying notes are an integral part of these consolidated financial statements.
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