Chegg 2015 Annual Report Download - page 102

Table of Contents
63
CHEGG, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2015 2014 2013
Cash flows from operating activities
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (59,210) $ (64,758) $ (55,850)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Textbook library depreciation expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,553 70,147 64,759
Amortization of warrants and deferred loan costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 187 1,545
Other depreciation and amortization expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,511 11,159 10,078
Share-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,775 36,888 36,958
(Release) provision for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (77) 234 206
Gain on liquidation of textbooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,326) (4,555) (1,186)
Loss from write-offs of textbooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,297 10,534 5,874
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,291) —
Realized gain on sale of securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (21) —
Loss from disposal of property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967 — —
Revaluation of preferred stock warrants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 622
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,552 —
Change in assets and liabilities net of effect of acquisition of businesses:
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712 (1,709) (1,474)
Prepaid expenses and other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,878) (2,981) (1,661)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (592) (155) 209
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,236) 5,037 (30)
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,620) 1,657 2,772
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,237 7,448 771
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (346) (898) 113
Net cash (used in) provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . (82) 68,475 63,706
Cash flows from investing activities
Purchases of textbooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,297) (112,814) (122,247)
Proceeds from liquidations of textbooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,260 58,119 37,946
Purchases of marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35,610) (70,706) (61,420)
Proceeds from sale of marketable securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 46,358 —
Maturities of marketable securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,840 50,700 —
Purchases of property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,253) (5,083) (7,369)
Acquisition of businesses, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (53,872) —
Release of cash from escrow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (52) —
Purchase of strategic equity investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,019) — —
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,271 (87,350) (153,090)
Cash flows from financing activities
Proceeds from debt obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 31,000
Payments of debt obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (51,000)
Common stock issued under stock plans, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,696 2,712 3,369
Payment of taxes related to the net share settlement of RSUs . . . . . . . . . . . . . . . . . . . . . . . (8,710) (3,980) (1,034)
Proceeds from initial public offering, net of issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . — — 162,883
Repurchase of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,263) (604) —
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,723 (1,872) 145,218
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,912 (20,747) 55,834
Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,117 76,864 21,030
Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 67,029 $ 56,117 $ 76,864
Supplemental cash flow data:
Cash paid during the period for:
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95 $ 114 $ 2,541
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 827 $ 625 $ 429
Non-cash investing and financing activities:
Accrued purchases of long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,771 $ 5,132 $ 3,215
Conversion of preferred stock warrants to common stock warrants. . . . . . . . . . . . . . . . . . . $ — $ — $ 7,097
Conversion of preferred stock warrants into common stock . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 207,238
Issuance of common stock upon exercise of stock warrants . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 118
Deemed dividend to preferred stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 102,557
Issuance of common stock warrants in connection with consulting services. . . . . . . . . . . . $ — $ — $ 130
Issuance of common stock related to prior acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 825 $ 2,585 $ —
Common stock offering costs not yet paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 769
See Notes to Consolidated Financial Statements.