eBay 1998 Annual Report Download - page 63

63
eBAY INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Year Ended December 31,
1996 1997 1998
Cash flows from operating activities:
Net income.............................................................................................................. $ 148 $ 874 $ 2,398
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for doubtful accounts and authorized credits ..................................... 18 343 3,323
Depreciation and amortization ........................................................................... 2 74 1,688
Amortization of unearned compensation ........................................................... — 25 2,662
Compensation expense associated with purchases of Common Stock by
outside directors ............................................................................................. — — 429
Charitable contribution of Common Stock ........................................................ — — 1,215
Series B Preferred Stock issued for services...................................................... — — 93
Acquired research and development .................................................................. — — 150
Amortization of acquired intangibles................................................................. — — 1,030
Changes in assets and liabilities:
Accounts receivable ....................................................................................... (184) (1,201) (8,656)
Other current assets ........................................................................................ (16) (204) (4,605)
Accounts payable ........................................................................................... 23 229 1,118
Customer advances......................................................................................... — 128 599
Income taxes payable ..................................................................................... 50 119 (169)
Other current liabilities................................................................................... 17 300 3,587
Deferred tax liabilities.................................................................................... 55 102 1,447
Net cash provided by operating activities.................................................... 113 789 6,309
Cash flows from investing activities:
Purchases of property and equipment ..................................................................... (25) (680) (8,858)
Purchases of short-term investments....................................................................... — — (40,401)
Net cash used in investing activities ............................................................ (25) (680) (49,259)
Cash flows from financing activities:
Proceeds from Series A Preferred Stock................................................................. 4 — —
Proceeds from Series B Preferred Stock and Series B warrants ............................. — 2,972 2,000
Proceeds from Common Stock, net......................................................................... 10 — 69,299
Repayment of stockholder loans ............................................................................. — — 316
Proceeds from debt issuance................................................................................... 1 545 —
Principal payments on debt and leases.................................................................... — (6) (598)
Net cash provided by financing activities ..................................................... 15 3,511 71,017
Net increase in cash and cash equivalents................................................................... 103 3,620 28,067
Cash and cash equivalents at beginning of year.......................................................... — 103 3,723
Cash and cash equivalents at end of year.................................................................... $ 103 $3,723 $31,790
Supplemental cash flow disclosures:
Cash paid for interest .............................................................................................. $ — $ 3 $ 39
Cash paid for income taxes ..................................................................................... $ 1 $ 452 $ 4,882
Non-cash investing and financing activities:
Property and equipment leases................................................................................ $ — $ 23 $ —
Common Stock issued for notes receivable ............................................................ $ 68 $ — $ 1,378
Common Stock issued for acquisition ........................................................................ $ — $ — $ 2,000
The accompanying notes are an integral part of these consolidated financial statements.